Business Loans

What You Need to Know About Veteran Business Loans

As a business owner, you understand the importance of having the right cash flow to keep your business growing and moving forward. You might need funding at various stages of your business, which can include hiring new employees, capitalizing new equipment or processes, and funding marketing to expand your customer base. Working capital loans can also help you to manage your business’ overhead costs.

Veteran business owners face a unique set of challenges when it comes to accessing financial capital. Part of the reason is that there are often gaps in their financial history, due in part to their time devoted to active duty. However, there are options available that specifically target veteran businesses. Here is an overview of the small business loans available.

SBA Implements Measure for Veterans

The U.S. Small Business Administration (SBA) implemented a new measure to help veterans have access to small business loans. This measure sets the borrower upfront fee to zero for all veteran loans authorized the SBA Express program. It should be noted that 73% of SBA loans to veterans were under $350,000 and below.

The point of this measure is to make the loans cheaper for the borrower, making working capital loans more accessible for veteran business owners. The point of this measure and similar ones like it are to encourage greater participation in the SBA lending programs with a direct benefit for veteran-owned small businesses.

Benefits of SBA Loans for Veterans

For veterans, SBA loans provide a variety of benefits in terms of financing. They offer rates and fees that are comparable to non-guaranteed loans. These competitive terms are key to helping you to manage your cash flow effectively.

Plus, there are the unique benefits associated with these types of loans. Borrowers may be able to take advantage of lower down payments and flexible overhead requirements. Depending on the loan, you might not even have to provide collateral for your financing.

As a veteran, it is important to work with a lender who can understand the SBA loan process and offers options to help you in financing your business and its needs. To successfully complete the application process, it is important to understand the type of financing that you need. Our experienced and knowledgeable team can help you to determine what you need. Contact us today to find out what steps you need to take to access financing for your business.

Penn Commercial Capital can help you secure your next round of financing or business loan in an efficient and ethical manner. We’re proud to champion the small businessperson and can finance clients seeking loans from as little as $100,000 up to $100 million.