Veteran Business Loan Options

Getting a business loan for your business can be a lot of hard work. Veterans of the United States have a couple of unknown sources where they can apply to get a loan or a discount on buying a franchise. Loans help veterans to start a business or to grow their existing business with the additional capital.

The Small Business Administration has information on all the programs mentioned below. They're also a great resource not only for veterans, but for citizens as well. Check with them for different financing options such as loan programs, grants or other discounts available through the government. Most loan programs provided by the SBA offers discounts on interest rates and the SBA will back a percentage of the loans for people that approved for a loan.

Listed below are some relatively unknown veteran loan and discount options that are available to help you start or grow a business. According to the Small Business Administration Office the following three programs are available for veterans to help start a new business or to keep an existing one growing:

The first program is called the Patriot Express Pilot Loan program where veterans can apply up to $500,000 for a loan that is guaranteed by the Small Business Administration of up to 85% of the loan value. When applying for this type of loan the interest rates are usually between 2 to 5 % over the prime rate. The loan is not provided by the government, but through a bank. You can find out within a few days or weeks if you qualify once applying for the Patriot Express Loan.

Citizens that can apply for the Patriot Loan are active duty members, veterans, reservists and military spouses. You have to have good credit to obtain this type of business loan.

The second program is called Military Reservist Economic Injury Disaster Loan where military members can apply for a loan up to $2 million to help overcome an emergency situation such as being called back to active duty. Also, you get an additional time to apply for this loan after a discharge or release of active duty for up to a year.

The third veterans program that is available is called the Veterans Transition Franchise Initiative where certain franchises will give you up to ten or twenty percent off the franchise fee. This is not a loan so you'll either have to have the cash or apply for a business loan to purchase a franchise. There are roughly over 390 franchises that provide some type of discount to veterans. You should review this option with care because startup costs are high and you have to pay a monthly royalty fee based on sales or some other measurement based on sales and revenue.

http://www.sba.gov/aboutsba/sbaprograms/ovbd/index.html