A study by the Small Business Administration (SBA) revealed that over 2.5 million small businesses are owned by veterans of the U.S. armed forces, representing over 9% of all U.S. firms. Collectively, veteran-owned businesses haul in $1.22 trillion in revenue each year and employ nearly 5.8 million people. Another study revealed that over 59% of veteran business owners start their companies with personal or family savings, compared to 57% of all business owners who do the same. This basically means that better funding for veteran-owned business can significantly improve the economy of the US.
In a similar vein, there are several bodies that are willing to support such businesses, providing a wide range of small business loans for veterans.
Small business loans available for veterans
There are several financing options, including cash for invoices available to veteran-owned small businesses as highlighted below:
Loans From Veteran-Focused Funding Firms
Several veteran-specific financial groups have emerged to help make it easier for members of the military to get the funds they need to make their transition into the entrepreneurial world a lot easier. Some of these firms include Hivers and Strivers and Veterans Business Fund.
However, it is worth noting that it may be tricky to secure financing through these firms due to their competitive nature.
Loans from Traditional Financial Institutions
Traditional financial institutions like banks also provide financing to businesses, including veteran-owned businesses. For business owners choosing this route, it is important to have all the necessary documentation in place to ensure a smooth process that could take anything between two to three months.
Debt Financing From Venture Capitalists and Other Investors
Venture Capitalists are always available to give money to promising businesses through debt financing. Debt financing enables business owners to get money from a financier who almost certainly knows how to run a successful business and has a lot of connections that can be leveraged.
Loans from the Small Business Administration
The SBA also offers several small business financing options, some of which are only available to veterans.