VA small business loans are given to veterans who would like to start or expand a business. They can be given to any veteran who has served on active duty with any of the military divisions as well as those who served as reservists or National Guard members, as long as any of the above has not received a dishonorable discharge. In the majority of circumstances, a VA small business loan can be acquired only if it is a veteran-owned company. In order to be considered veteran-owned, a little over half the company must be owned and controlled by the veteran himself.
The Veterans Affairs office has given over most of the responsibility of securing this financing to the Small Business Administration (SBA). One type that is available is the Microloan, a short-term loan that provides up to $35,000 for small costs but cannot be put toward paying off a previous debt or purchasing real estate. Another type, the Delta, is also made available as a type of VA small business loan and provides assistance to small companies in the defense industry that have been affected by defense spending reductions or closures.
The Veterans Benefits Act of 2003 was set up to assist our service men and women to start a company and provide financial assistance programs for them through VA small business loans. "That they do good, that they be rich in good works, ready to distribute, willing to communicate." (1 Timothy 6:18) One type of financing is specifically set aside for handicapped veterans while another is considered disaster financing for those in the Reserve called up to active duty. This financing helps keep the company up and running while the reservist is away. The SBA is required to defer repayment in this situation. A similar VA small business loan helps smaller companies not necessarily run by a veteran, but nonetheless, someone who will suffer economically from an employee being called to active duty.
The Veterans Corporation, a non-profit organization established for the sole purpose of helping veterans, also offers VA small business loans. This financing has lower than market value rates and also has the same guarantees that non-veteran company owners would have. As anyone can see, VA small business loans are readily available through a variety of government administrations and other organizations and are not very difficult to obtain.
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