There are many funds available to a veteran who is looking to start a business. Out of all the sources that a veteran may qualify for VA loans may be the best choice of available for them. This is mainly due to the fact that loans that are in place by the VA have very low interest rates.
You will save a lot more on interest if you qualify through the VA than you could at any normal bank. If you do plan on applying for a VA loan for your small business there are of course some steps that you will want to take to ensure everything goes as smoothly as possible.
One of the first steps that you may want to take is to try and analyze the type of business that you want to create. There are specific points that should be associated with any future business owner and one of the major ones is the amount of money that you will need to keep your business up and running in its first year.
You will then want to try and write down all the funds and sources that are available to you. After you established the type of financing that is available to you, then you will need to figure in your expenses if you can afford employees. Once you know if you can afford employees, you will need to figure out how many you will need to hire so their wages can be added to your business expenses.
You will also want to look at the competition you have in your area as well before you apply for a VA small business loan. It is vital that you are prepared to discuss these issues with a VA lender because they more than likely will be a part of your loan decision. It will also be of grave important for you to learn how to formally write business proposals way before your business gets off the ground.
Keep in mind that as a veteran VA loans may be the best option for you but you will still want to apply for regular business loans as well. There are many websites that are available for anyone who wants to start a small business to do research. The Small Business Administration also will have loans that are available for veterans looking to start a business. The maximum amount that is allowed by the Small Business Administration is $500,000 for new businesses.
Before you even inquire about getting a VA loan you will need to know if you are even eligible to receive the loan. Most of the people who get VA loans will more than likely be middle-class people who make around $50,000 per year and will have about $4,900 dollars in cash. A good percentage of the people who apply for loans from the VA will often be middle aged individuals. When it comes to VA they are largely open for people who are actively serving in the military or are veterans.
However, in order for a military person to qualify for a VA loan they will have to prove that they received the correct kind of discharge from the military. If you have received a dishonorable discharge from the military you will not be eligible for any type of VA benefits and this will include loans.
If you have served in the reserves you may have to have been in service for a time that stretches out to be at a minimum of 6 years. Any military person that has received a discharge that is a direct relation to injuries occurred while in service are eligible for VA loans.
Another way that a person may receive eligibility for loans from the VA will be if they have become a widow due to the death of their spouse while serving. If you spouse has become a prisoner of war you may also apply for a VA loan. This same rule applies for soldiers that have become missing in action and have a spouse or children at home. Keep in mind that a VA loan will take the same amount of time for you to receive as any other normal loans.