There are only 3 major requirements that you need to fulfill in order to be eligible for a VA Business loan:
1. Certificate of Eligibility — This provides you with proof that you have served in the military and are eligible for the VA loan. You can obtain one by completing VA Form 26-1880. Once completed, show the form to your lender and they will help you obtain a Certificate of Eligibility.
2. You must meet one of the following conditions:
- currently serving in the U.S military
- have served in the U.S military before and were released on an honorable discharge
- be a spouse of a veteran who has passed away
3. The VA loan amount must be below the maximum limit that the Department of Veteran Affairs can guarantee (typically close to about $417,000 but sometimes higher or lower depending on where you live).
If you’re a veteran who wants to start up a company but needs capital at a good interest rate, a VA business loan is the best option for you. Contrary to popular belief, the Department of Veteran Affairs does not issue VA small business loans; they are in fact issued by the Small Business Administration (SBA) but the DVA works with them closely to provide veterans with loans for their companies. There are many benefits that only veterans can receive from these loans so be sure to apply for one if your company is in need of financial assistance.
Advantages of VA Small Business Loans
If at any time after the VA business loan is issued, the debtor is unable to afford the payments, the DVA will offer financial assistance. The repayment policies for these loans are very flexible and they are not difficult to meet. If you think have bad credit and would not qualify, I would suggest applying anyways because as I said before, it is not very difficult to get accepted even with a less-than stellar credit score. The money can be used for just about any expenses the company might incur including but not limited to marketing, inventory, advertising, labor, etc.
Recently, SBA introduced a new program called Patriot Express Pilot Loan Initiative dedicated to helping members of the military start their own company. You will be eligible for this program if you are a veteran (service-disabled or not), members of the National Guard, widow of a former soldier, or members who are currently serving and are eligible for the Transition Assistance Program.
The Center for Veterans Enterprise (CVE) or ‘VetBiz’ is where you should start when considering getting a VA loan for your business. You can reach them at vetbiz.gov. Vetbiz was created exclusively for helping veterans expand their start-up and providing them the loans they need.