VA Small Business Loans and who are eligible to take them?
What is VA small business and who is a veteran? A person honorably discharged from either of the US army, Air Force, Navy, Coast guard and Marines or any one called for active duty and National Guardsman and Reservist also is considered a veteran. The businesses owned and managed by them at least to the tune of 51 %, qualify for the status of veterans’ businesses. In case of publicly owned companies, it is considered a VA business if veterans hold an equity of not less than 51% by one or more veterans with all other conditions remaining ceteris paribus.
In addition, service-disabled veterans even with a letter of zero percent rating as per Public Law 106-50, qualifies for VA business category assistance.
In its mission statement the US Department of Veterans Affairs (VA) says it is on them to service more than 27 million veterans who have unselfishly served their country. They are distributing solicitation documents to provide partners having a potential, to access whatever VA business opportunity.
Any veteran self-representing his or her status on small Business Program Representation, FAR 52.219-1 or Offeror Representations and Certifications – Commercial Items, FAR 52.212-3 becomes eligible for getting VA business loans especially Federal Contracting.
VA small business loans
Small business loans for veterans are not pretty much different from that of loans for general public. And the VA small business loans are not given by any governmental agency but SBA guarantees your loan that you have obtained from a lending agency. Such a guarantee is limited up to the amount of guarantee and not beyond it. Here are some of SBA small business loans of veterans’ interest.
1.) Basic 7(a) loans program – A most flexible program and you can use it for almost any sound purpose. Term remains up to 10 years for working capital and 25 years for real estate purchases. The limit is $150,000.00 under this program.
2.) CDC 504 program – Disbursal through certified development companies. Features of this loan are short term and loans up to $ 5 million.
3.) LowDoc program – No documentation necessary for veterans so not applicable for them.
4.) CapLine program – Another working capital loan of maximum 5 years term and loans of up to $ 2 million.
5.) Microloan 7 (m) program – Maximum limit $ 35,000. Loan proceeds not to be used to purchase real estate and servicing old debts.
6.) MREIDL – Military Reservist Economic Injury Disaster Loan. This applies to businessmen whose employees had to leave for active duty and they suffered a loss due to this.
7.) SBA Export Express – This special loan program supports those veteran businesses that are finding it difficult to obtaining export finance. This is a combination of lending assistance as well as training assistance in technical matters.
8.) Prequalification Pilot Loan Program – Approved intermediaries work with veteran loan applicants in developing a valid application. Once this is submitted SBA, it is paid within 72 hours. The loan limitation in this type is $ 250,000 and 80 % of the amount is guaranteed by SBA.