SBA Small Business Loans for Military Veterans
US Military Veterans and Service Disabled Veterans* are eligible for commercial financing with the SBA 504.
The 504 is a commercial real estate loan primarily designed for business expansion and it is the best commercial loan if you are a veteran, you already own a business and you need to do one of the following:
- Purchase real estate that will house your business
- Expand, remodel, renovate or retrofit an existing facility
- Install Green or Renewable Energy Equipment as part of a renovation
- Purchase expensive business equipment with a useful life of at least 10 years
- Refinance an existing commercial loan as part of a business expansion**
What makes the 504 & 7a so attractive?
1. They are commercial real estate loans are actually available.
2. Closing and soft costs can be financed making 90% loan to cost commercial financing possible.
3. It offers long term, fully amortized loans with no calls, balloons, re-qualifying or refinancing required.
4. It allows a 10% down payment/equity injection at a time when many commercial lenders require 30% down.
5. The rates are low and the SBA fees have been waived at least through the end of 2010.
6. You can finance manufacturing or Green Building projects up to $12,000,000+.
*SBA Definitions of Veteran and Veteran-Owned Business
The SBA defers to the Department of Veterans Affairs for definitions concerning eligibility. The following definitions are taken from US Code, Title 38:
Veteran: A person who served on active duty with the U.S. Army, Air Force, Navy, Marines or Coast Guard who was discharged or released under conditions other than dishonorable.
Reservists or members of the National Guard called to Federal active duty can also qualify.
Veteran-Owned Business: Is a business where not less than 51% of it is owned by one or more veterans. If it is a publicly owned business, not less than 51% of the stock of the company must be owned by one or more veterans and the management and daily operations would need to be controlled by one or more veterans
Service-Disabled Veteran: A veteran with a disability rating letter issued by the Department of Veterans Affairs that establishes a service-connected rating between 0 and 100% or one with a disability determination from the Department of Defense.
Service-Disabled Veteran-Owned Business: Is a business where not less than 51% of the business is owned by one or more service-disabled veterans. If it is a publicly owned business, not less than 51% of the stock of the business must be owned by service-disabled veterans.
Management and business operations would also need to be controlled by one or more service-disabled veterans except in the case of a veteran with a permanent and severe disability. In that case, a spouse or permanent caregiver can manage or operate the business on behalf of the veteran.
** SBA refinances under the 504 program will be available sometime in the Spring of 2009.
More SBA 504 Loan info: 504 Loans
Please also see: SBA Renewable Energy Loans for those that want to "go green."
Other SBA Loans for Veterans
There are other SBA programs for Veterans wishing to start a business or for those in need of working capital and you can find out more about those programs from The Office of Veterans Business Development at:
Please contact us at 1-800-414-5285 to find out how we can help your business.