VA Small Business Loan Supports Entrepreneurial Veterans

2007-11-09 05:11:17

( Business )



VA small business loans are specially designed for the veteran entrepreneurs who want to start or expand an existing business. You may think that you can get a VA small business loan from the department of veteran's affairs (DVA). This is not the case, the DVA only guarantees the loan but it is through the small business administration (SBA) that one can get a VA small business loan.

The SBA has given veterans special considerations that include priority processing of their application, and training assistance and management counseling. A prequalification program for the veterans has also been established to help them to process their VA small business loan application. This special program helps fulfill prequalification requirements on the loan application, provides a commitment letter for the SBA guaranty, allows up to eighty percent SBA guaranty on the loan, and speeds up the loan consideration process on the lender's side.

So long as you have not been discharged dishonorably from the service, you can apply for a VA small business loan. In most cases, the VA small business loan is generally available to companies that the veterans own and operate. To determine whether or not a company is a veteran-owned firm, the veterans must own and control at least half of the shares.

Like any other small business loans, you can file your application for a VA small business loan at a bank, credit union or savings and loans. The bank in turn will assess your application and documentation against the SBA guidelines to determine if you are qualified for a VA small business loan. If all the requirements are met, then the bank can provide the loan that SBA guarantees. In case you will default in your payment for the VA small business loan, the SBA will pay the small business lenders on your behalf to cover the loss.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.