Friday, May 15, 2015

How To Get Business Loans For Veterans

By Tammie Caldwell

As one who has just completed your tour of duty, you have decided to focus your attention on other areas. You have since wanted to become a business-owner and you have just the idea to work on. Now, what you need is the capital that would help you get things started up.

Do know that considering the fact that you are a former military personnel yourself, getting financial aid to start this venture that you have in mind is easier. There are government programs that will make it easier for you to get financing assistance. For instance, you can take advantage of business loans for veterans.

If you are to take advantage of these loans, then know exactly what their nature is. For instance, what you are getting from the Veteran's Administration is not the actual loan itself. You are just getting a guarantee of the amount that you plan on borrowing. You have to get the figures firm the lenders still.

Consider the eligibility for the program too. There are certain requirements that you may be required to meet first before you will be awarded the grant. It's important that you've an active military personnel, a veteran, to a service-disabled veteran to avail of the loan. In addition, those who were dishonorably discharged are not eligible.

It is important that you as the veteran will own the business. On the event of partnership, you should at least own 51% of the venture. In addition, most ventures are going to be eligible. Non profit ones, those that are related to lending, gambling, a d pyramid scheming are not qualified for the grant.

The amount of the money that you will be able to take advantage of through this program will often depend on the lending institution that is granting you these funds. Ensuring that you check the limitations ahead of time. Depending on the amount you plan on availing of, guarantee may be around 75%-85% of the borrowed numbers.

Understand that it is not the SBA that will loan the money to you. You are getting the money you need from the usual lending institutions like banks and credit unions. It is just that the federal government is the one that is guaranteeing the loan. Depending on how huge the amount is you may be required a collateral.

There are interest rates that you are going to be charged with. As always, there are certain determining factors that you will have to consider when your interest rate is calculated. It will range from 2.25% up to 4. 75%. Of course, you can always choose to negotiate to get these numbers lowered.

Finding a lender should be easy since a number of these institutions can be located around if you want to get help through, calling the SBA for a list of possible lending institutions that can assist you would help a lot. Refer to credible places only. Consider their reputation and if they are indeed recognized in the field.

Be aware of the loan details as well. In this case, the loan is expected to have a maximum of 30 years. Of course, this can depend on the individual circumstances that are involved when availing of the financial assistance. The amount of the loan is going to ascertain how long it would usually take to pay it off.

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