5 Steps to Financing Your Next Journey

Being a Veteran-Owned Small Business has a lot of advantages, like better loan terms and waived fees. But you’ll want an expert to clearly explain the details and guide you through the application process. Your lender can also help you decide which of several loan options is best for you. Here are some of the choices.

SBA Loans*

The three main SBA loan programs are SBA 7(a), SBA Express, and SBA 504. You can work with a banker to determine which loan makes sense for your business situation.

*SBA loans are typically for small organizations that have been in business for at least two years, unless the owner can provide a very strong business plan at start-up.

SBA Veteran Qualifications

The SBA Veterans Advantage (non-SBA Express loans) provides qualified veterans with a 50% upfront guarantee fee discount compared to non-veteran owned businesses. The guarantee fee is based on the term and the guaranteed loan amount.

Businesses must be at least 51% owned and controlled by an and SBA Form 413). individual or individuals that meet the following qualifications:

• Veterans (other than dishonorably discharged)
• Service-Disabled Veterans
• Active duty military participating in the Transition Assistance Program (TAP)
• Reservists and National Guard members
• Current spouse of any veteran, active duty servicemember, or any reservist or National Guard member

Having these items handy will help a lender determine if your loan is eligible for SBA financing and guide you to the loan choice that makes the most sense for your business.
Before meeting with a Business Banker, gather these documents:

• Business plan, including an overview of your business and market, your managerial experience and how you intend to use the loan
• Three years of recent business tax returns (if applicable)
• Three years of financial statements (if applicable)

During the application process, you will be asked to provide additional documentation and to complete some SBA forms, as listed below. In cases of a franchise purchase, construction or business acquisition, additional paperwork may be requested.

• Business financial statements, including a P&L statement current within 90 days of your application (if applicable)
• One year of business projections
• A list of ownership and affiliations
• Business certificate and license
• Past loan application history
• Most recent business income tax return and most recent three years of personal income tax returns (if applicable)
• Resumes for each principal of the business (20% or more ownership)
• Business lease or correspondence from your landlord
• SBA Form 1919
• Personal history and financial statement (SBA Form 912 and SBA Form 413)

Your Business Banker and the SBA website are great resources as you begin this process. There are also several entrepreneurial organizations that can help – check them out at sba.gov.

Office of Veterans Business Development

This agency helps veterans and their families access various small business programs offered through the federal government.

Boots to Business

As part of the Department of Defense’s Transition Assistance Program (TAP), this SBA entrepreneurial education and training program helps transition active-duty military personnel to life as a civilian business owner. Participants explore business ownership and self-employment opportunities, learn about developing a business plan, and are introduced to SBA funding resources.

Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE)

V-WISE helps female veterans turn their business ideas into reality through entrepreneurial training and networking.

Veterans’ Business Outreach Center (VBOC)

This is a cooperative effort between the SBA and 19 other organizations. It provides access to business training, counseling, mentoring, and referrals for veterans who already own or want to start a small business.

Verified Veteran-Owned Small Businesses are given preferred consideration when bidding on government contracts or private-sector business. Get more information at va.gov/osdbu/verification/