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Good news for veterans-turned-entrepreneurs looking for small business financing. The federal government has launched a new program to get former service members SBA loans at little cost.
In a press release, the U.S. Small Business Administration (SBA) has announced that beginning in 2014, there will be no borrower upfront fee for loans to veterans under the SBA Express Loan program.
How does this fee waiver work, and what other programs are available for veterans looking to start their small business dreams?
No Initial Fees for Veterans
Much like their civilian counterparts, veterans who are planning to start a business know that financing can come from various places. An SBA loan is a great place to start, especially in light of this new announcement.
Beginning January 1, 2014, veterans will be able to apply for an SBA Express Loan for up to $350,000, and pay nothing for their borrower upfront fees.
This is good news for veterans (and the U.S. economy), as a recent Census Bureau study found that in the private sector, "veterans are 45 percent more likely" than those who haven't served in active duty to be self-employed.
Another of the strengths of the SBA Express Loan program is that veteran business owners looking for that first financial step can get a response back on their applications within 36 hours.
Other Small Business Veteran Programs
This SBA Express Loan fee waiver for vets isn't the only option available to veterans when it comes to government small business loans. The SBA also offers Patriot Express Loans, which are similar to SBA Express Loans but allow former service members to borrow up to $500,000 for their businesses.
The Patriot Express Loan program has been around since 2007. The SBA reports that in the 2013 fiscal year, the Administration supported $1.86 billion in loans for more than 3,000 veteran-owned small businesses.
Government programs have also made the financial climate right for small business owners to hire former service members, with tax credits being offered to businesses who have reached out to unemployed veterans.
These programs assist business owners and entrepreneurs in honoring their country's veterans while also making their business aspirations a reality.
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