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Veteran small business loan



The VA small business loans are a good option for Veterans that are looking forward to start their own business. However, the VA small business loans are not obtained directly from the Department of Veteran Affairs. This department in cooperation with the Small Business Administration and The Veterans Entrepreneur and Small Business Development Act of 1999 makes these loans available to veterans.

Any person who is at a look out for VA business loans is required to go through the web site of Small Business Administration as this would provide them with the required information. Besides providing finance this department also provides the required training and the help that is required to establish the business.

Who is eligible for a VA small business loan?

Any veteran who has served in the armed forces and has had an honorable retirement from the service is eligible to take these loans till the veteran owns almost 51% of the venture. If the veteran seeking the VA small business loan is disabled then also the business needs to be 51% disabled veteran owned. However the degree of disability does not hold any importance.

Though the Department of Veteran Affairs does not give out finance directly but there are hardly any difficulties in obtaining the VA business loans. The VA business loans have thus become a database from which you can obtain various types of start-up finances for your business. Basically the VA business loans are guaranteed by the Department of Veteran Affairs and the Small Business Administration but are made available by the private lenders.

Applying for the loan

You can obtain these loans from private banks, lenders, loan companies, credit unions etc. These organizations that opt for are authorized by the SBA and the Department of Veteran Affairs to give out loans to Veterans on some pre-determined terms. By giving guaranty for these loans the Department of Veteran Affairs and the SBA are responsible for making some part of the payment towards the loan if you are unable to make the payments towards the loan. The terms and conditions of these loans are simpler in comparison to the conventional business loans.

These loans are however approved by the lender and it is the lender who determines the people who are eligible to take the VA business loans. The interest rates on these loans however are lower than the conventional loan. When a comparative study is done on the loans that are provided by private lending institutions and banks in comparison to the loans that are sponsored by the Department of Veterans Affair then the VA business loans have more advantages in comparison to the conventional business loans. When a private institution lends out money their motive is to make profit but when the government guarantees a loan business then its aim for the benefit of the veterans and in improving the economy of the country.

The terms of the VA loans are quite flexible in comparison to the loans given out by private companies . The government gives these loans to even people who would not have the ability to pay back the loan . There are times that the government might even forgive the loan payment if there is a genuine reason. With the help of VA loans the veteran can have an advantage of taking a large amount of loan and having flexible terms of payment. The monthly payments towards the VA business loans are small and can be easily afforded.

When applying for a VA business loan you are required to provide the lender with a business plan that should be effective. Besides this you are also required to produce a certificate that would prove that you are either an active member of the armed forces or you have retired with honor due to any reason. This is the most important document for securing a VA loan. Besides this you would have to provide your credit report and other financial documents on the basis of which the loan can be granted .

How do the SBA and VA help?

Apart from the training that is provided by the SBA, the SBA also provides contacts and links about other businesses that might be able to help the veteran in establishing his own business . There are some of the services that are made available in connection to the local and the state government where the veteran resides. The information on the legal requirements can be obtained from the SBA and the Veteran's Administration system.

Besides this the Veterans Business Outreach Program (VPOT) also provides useful services like establishing contacts with other veterans for the development of the enterprise. This service is provided in connection to the finance related issues. If you get some practical advice from your fellow men then it can be f some good help. This is one of the most valuable services offered by the Veterans Business Outreach Program (VPOT). This can be of much benefit to the veterans, as it would provide them with first hand information about how to deal with financial issues.

When you want to apply for a VA business loan it is advised that you go through an authorized agent. This would not only save your time but you can also get some good loan programs that you might not be able to search when you are looking for the VA business loan yourself. The agent would do all the official work for you like collecting all the documents and getting the required forms filled. The best part of taking the help of an agent is that they dont charge much fees. So if you are a veteran and are looking forward to start a business then a VA business loan is the best option that you can have for starting your own business.