entrepreneur, you’re likely going to need capital during your small business
mission – whether you’re just starting your business, preparing to grow, ready
to expand into new areas, or working to recover from a disaster. And as a
military or veteran small business owner, it’s important to know what financial
resources are available to you specifically based on your veteran-owned status.
SBA can grant you
access to reliable lenders who can provide the funding you and your business
need to be successful. Learn more about access to capital opportunities, disaster
assistance, and local resources that we provide as an agency with the help of
our extensive resource partner network and SBA-approved lenders.
Access to Capital
If you’re ready
to start, grow, or expand your small business, finding the right lender is an
important first step if you’re looking to acquire additional funding. The SBA
has made it easy for entrepreneurs to access lenders through Lender Match – a
free online tool that connects small businesses with SBA-approved Community
Development Financial Institutions (CDFIs) and small lenders. Simply fill out a
few questions about your business and get matched with select lenders within
two days. Try out the SBA Lender Match tool today.
SBA also offers a
variety of loan programs for small businesses including:
- Standard 7(a) Loan:
Offers a maximum loan amount of $5 million through SBA’s primary financial
- SBA Express Loan:
Offers a maximum loan amount of $1,000,000 (until December 31, 2020) with an
accelerated SBA review turnaround time of 36 hours. SBA has also reduced the
upfront guarantee fee to zero for veteran-owned small businesses.
- 504 Loan:
Offers a maximum loan amount of $5 million to finance fixed assets necessary
for small business growth and expansion.
Offers a maximum loan amount of $50,000 to newly established and growing small
Learn more about
the SBA loan programs available for your small business.
COVID-19 has had
an unprecedented impact on our nation’s small businesses, including military-
and veteran-owned small business across the country. Thanks to the CARES Act,
the SBA was able to provide immediate assistance to individuals, families, and
businesses who were affected by the pandemic. Here are some of the COVID-19
relief options that you can still take advantage of for your veteran-owned
Protection Program (PPP) Loan Forgiveness: If you applied for a PPP loan on or before June 30, 2020, the full
principle amount of your loan may qualify for loan forgiveness. Get in touch
with your lender for additional information and to apply.
- Economic Injury
Disaster Loan (EIDL) and EIDL Advance: EIDL is a low
interest federal disaster loan designed to support small businesses that are
suffering substantial economic injury due to the pandemic. Up to $10,000 in
EIDL Advance funds may be available upon request during the application
Learn more about SBA’s COVID-19
guidance and loan resources for small
Another disaster assistance program
offered by the SBA is the Military Reservist Economic Injury Disaster Loan
Program (MREIDL). MREIDL provides funds to help eligible small businesses meet
ordinary and necessary operating expenses that they’re unable to meet in the
event an essential employee is deployed. The loan is intended to provide the
amount of working capital you’d need to pay your necessary obligations until
operations return to normal after that employee is released from active
military duty. Learn more about the MREIDL
access to capital and disaster assistance resources, check out your local
Veterans Business Outreach Center (VBOC). Our VBOCs offer trainings, like Boots to Business, to help you tackle common challenges related to
self-employment including financing your business. You can also work directly
with a business counselor to develop a financial plan complete with financial
projections, budget projections, funding requirements, and more.
VBOCs, along with
our SBA District Offices and partners at the Small Business Development
Centers, Women’s Business Centers, and SCORE can help you get your
veteran-owned small business “lender ready” in no time. Get in touch with your local SBA resource
information about SBA’s financial resources and programs for veterans, visit: http://bit.ly/JulyVetBiz2.
top priority is to continue to support the small business community, including
the military and veteran small business community, through the COVID-19
pandemic. Please visit sba.gov/coronavirus for information.
This blog was
originally written by the U.S. Small Business Administration’s Office of
Veterans Business Development.