Military veterans who are disabled are eligible for a lot of benefits because of the injuries they incurred in the line of duty. After all, it is only right that they get compensated for their services and sacrifices. One of the most popular benefits for disabled veterans is obtaining the funds necessary to start a small business or expand an already existing business. The US Department of Veteran Affairs, with the help of the Small Business Administration (SBA) helps veterans to get these veterans business loans.
History, Where and How to Get a Loan
The Patriot Express Pilot Loan Initiative was launched back in the summer of 2007. When they launched the program, they guaranteed more than a $1 billion in loans per year for businesses which are owned by veterans. Loans from Patriot Express can be obtained from participating credit unions, lenders and banks. Although the SBA guarantees the loans for the veterans, they do not lend the money themselves. Disabled veterans can apply for the loan with a participating lender. They can contact the SBA directly or they locate a lender which has a connection with the SBA in their local area.
Requirements
For veterans to qualify for the loan there has to be a document proving the veteran’s honorable discharge. It is also a requirement to get a certificate of legibility from the Veterans Affairs Office. This is needed for the application process. It is also a must for the person applying for the loan to own at least 51% of the business.
Loan Terms
Disabled veterans are eligible to apply for the veterans’ loan. They also stand to get as much as $500,000 when they apply for a loan. The interest rates are regulated strictly by the SBA. The interest rate is restricted to only 2.25% over the prime rate as it is listed on the Wall Street Journal for loans which have a payment term of less than seven years. Lenders can charge as much as 2.75% for business loans which are over seven years. For loan amounts which are less than $50,000, lenders can charge an additional 1%. For loan amounts less than $25,000, lenders can charge an additional 2%.
Time Frame of the Loan
The standard processing time of most lenders is 2 to 4 weeks. The loan application still has to be submitted to the SBA for a final review. There is a 36-hour turnaround time for this. There is no additional paperwork required because the Patriot Express program is streamlined. The participating lenders use their own paperwork. So, how to get 10000 dollars fast or more to start your very own business? Get a veterans business loan now.