Do know that considering the fact that you are a former military personnel yourself, getting financial aid to start this venture that you have in mind is easier. There are government programs that will make it easier for you to get financing assistance. For instance, you can take advantage of business loans for veterans.
Understand that nature in which the grant is going to be offered to you. For instance, you need to remember that this is not something that is coming straight from the Veteran’s Administration, you are getting the guarantee and back up from the government, but the money you are availing is from an actual lending firm.
Consider the eligibility requirements of the program as well. For instance, there could be certain requisites that you are going to have to meet first before you are deemed qualified. Most of the time, personnel in active duty, service-disabled veterans. And regular veterans are qualified for this grant.
It is important for the veteran to own the business. In the event that it is a partnership or is a joint ownership with other personalities, he must at least hold 51% of the ownership. Most of the businesses that are established around are deemed eligible except for those related to gambling, ending, or pyramid schemes.
Understand though that there are conditions to the amount of money that you’ll be allowed to borrow through the program. For instance, it can depend on the lending firm that you will be borrowing it from. There is a program that will guarantee 75%- 85% for the amount being borrowed depending on the figure itself.
Understand that it is not the SBA that will loan the money to you. You are getting the money you need from the usual lending institutions like banks and credit unions. It is just that the federal government is the one that is guaranteeing the loan. Depending on how huge the amount is you may be required a collateral.
Know what the interest rate is going to be, just like any loan that you will avail of from lending firms, there will be interest rates for you to cover. This would depend on the amount that you are getting. It can range for, 2.25%-4.75%. Of course, you always have the chance to negotiate for a lower one with the creditor.
Finding a lender should be easy since a number of these institutions can be located around if you want to get help through, calling the SBA for a list of possible lending institutions that can assist you would help a lot. Refer to credible places only. Consider their reputation and if they are indeed recognized in the field.
Know the details of the loan that you are availing of too. In most cases, maximum term is going to be 30 years of course, this would depend on the circumstances with which the amount was availed of. In some cases, expect that a collateral maybe necessary and for the borrower to have a good credit standing.