Ways to Get a Veteran Business Loan Even With Bad Credit

If you are a retired or unemployed veteran interested in starting up your own business, access to funds for such a venture may be hard to come by. Many veterans who are retired receive pension checks every month, and the majority of financial institutions are not willing to consider pensions as a reliable form of income. So, what do you do if you are a veteran who wants to start up a business with no clue as to getting financing? Consider getting a veteran business loan.

What do I do if I’m a veteran and I need $5000 fast to start up my business?

The quickest way for you to get your hands on this kind of money is to consider a military pension funding plan. Basically, there are some financial institutions who will give you a lump sum of cash for giving up your entire pension amount to them for a certain number of years, which is dependent on how much money you need to borrow. So, if you need $5000 to start up your business and your pension check is roughly $400 per month, that’s how much you will agree to give the company, which would be equivalent to roughly one year of pension checks. Most of the places offering these pension funding plans require that you be retired from the military for at least six years, and it may be necessary for you to have average credit at best.

Check for Veteran Loans Through the SBA

The SBA is also known as the U.S. Small Business Administration, and according to the United States Department of Veteran’s Affairs, it is one of the first places a veteran should check for small business loans.  There is no guarantee that you can definitely get a loan through the SBA if you are a veteran, but they do give special consideration to veterans looking for business loans. Additionally, veterans also get their applications processed through the SBA system faster than non-veterans, so you shouldn’t have to wait long to find out whether or not you have a chance of getting the money you need.

Consider Grants as an Alternative to Emergency Loans for Unemployed Veterans

If a military pension funding plan or other type of veteran business loan doesn’t seem like the way you want to go to get the money you need for your business start up, there are a few other things you can consider. There are occasionally grants available for veterans who need financing for a variety of different reasons, including small business start ups. The U.S. Small Business Administration is an excellent resource for finding these kinds of grants for veterans, so visiting their site to see what is currently out there is probably your best bet. Grants come and go, so if you don’t see something you think you would qualify for now,  you can always check back later to see what else is available.

I Need a Loan ASAP and I Don’t Qualify For Veteran Loans, What Else Can I Do?

If you can’t get approval for veteran business grants, loans, or pension funding plans, you’ll have to consider some other things. Homeowners can usually get approval for home equity lines of credit, so that might be something to think about if you own your own home. If you own a car outright, you could also try to get a loan against the title. The amount you receive might not be enough to start up a large business, but it may be sufficient for a small business.

Veteran’s Small Business Loans

A small business is the ideal way for a disabled veteran to earn a reliable income each month in addition to any regular pension payments. Unfortunately, small business ventures always involve some start-up expenses, and obtaining a $25000 personal loan for starting a business isn’t something every veteran can realistically do through traditional means. Veteran’s small business loans are the obvious answer to such a dilemma.

Veteran Business Outreach Programs

Many people who start up small business fail, but this is the case much less often with veterans. People who have been part of the Armed Forces learn valuable skills which don’t disappear once they return home. Veterans are usually diligent, focused, and determined, and these traits carry over into their business ventures. Veteran business outreach programs exist in almost every major city in the United States to help veterans learn the necessary skills for ensuring that their small businesses thrive. Participation in an outreach program may be the best first step in securing small business loans for veterans.

U.S. Small Business Administration

Although some veterans who need money may be able to secure bank loans or online signature loans for financing new businesses, these options aren’t always available. The Small Business Administration (SBA) is actually one of the best places to look for veteran’s small business loans. The organization is known for doing all they can to help veterans across the United States realize their dreams of starting small businesses, which includes providing loans, grants, counseling, and access to lots of other useful resources . The SBA is additionally responsible for the existence of the Veteran Business Outreach Programs nationwide.

Military Pension Funding Plans

If going through the SBA doesn’t work out when in search of small business loans for veterans, military pension funding plans are something else to consider. As long as a veteran has a pension, he can usually agree to give up part of it in order to secure a veteran business loan. There are several different organizations that offer these funding plans, and veterans who are interested should make sure the organizations check out as legitimate through the Better Business Bureau to ensure they will not be ripped off.

How to Get a Small Business Loan with Bad Credit

There are three types of loan programs offered by the U.S. Small Business Administration. They are the 7(a) Loan Program, Microloan Program, and the CDC/504 Loan Program.

The most used and most basic type of small business loans are 7(a) loans, which come from section 7(a) of the Small Business Act. (SBA). This Act is designed to assist for-profit businesses unable to get financing from other resources. The Act requires the loan program to meet SBA size standards, be for-profit, not already have business or personal internal resources providing financing, and be able to show repayment. The maximum length of a small business loan is 25 years for real estate and seven years for working capital, under the Act.

The Microloan Program provides a way small businesses and some not-for-profit child-care centers can get small, short term business loans. The maximum microloan loan amount is $50,000, but the average loan is $13,000.

The CDC/504 Loan Program is a long-term financing tool for small businesses. It has fixed-rate financing. CDC stands for a Certified Development Company, which is a private, not-for-profit corporation contributing to economic development within its community. 504 Loans are required to be used for fixed asset projects.

If you are a company with bad credit, there are several things you can do to boost your credit rating. In an article by the Small Business Review, a Credit.com advisor points out that many small business owners either don’t know their scores, think they can get around a low credit score, or assume its not important to their business.

The above loan programs may be especially beneficial to anyone trying to get approval for veterans small business loans because veterans often have difficulty securing financing on start-up businesses, particularly when they are disabled without a steady income.

Here are a few ways small businesses can “clean up” their credit profiles:

• Know your credit score.
• Don’t overextend your credit line.
• Generate positive cash flow.
• Manage your personal credit carefully.
• Clean up your balance sheet.