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Small Business Loans for Vets

When it come to funding your small business, as a Veteran, you have several options from which to choose from.  From funding with your own saved capital, to Government subsidized loans, grants, or finding investors who will back your business with their own capital.

When it comes to Government subsidized loans if you are a Veteran and want to start a new business, search out and find the one loan that is right for your situation, and needs.  Do not forget that your application should be genuine and you must be asking for government money for a legitimate reason. You must have a good business plan to present that is backed up by proper market research.

The following links are for Government subsidized loans available to Veteran entrepreneurs like you.  If in your research you come upon one which we have missed please comment with the link so we may add it, to aid others in their search.


Patriot Express

The Patriot Express Pilot Loan Initiative allows lenders with Patriot Express authority to make offers similar to lenders with SBAExpress authority, but the business owner is more limited. To be eligible to receive a Patriot Express Loan, the business must be owned and controlled (51 percent or more) by eligible veterans and members of the military community who want to establish or expand a small business.


Eligible military community members include:

  • Veterans
  • Service-disabled veterans
  • Active-duty service members eligible for the military’s Transition Assistance Program
  • Reservists and National Guard members
  • Current spouses of any of the above, including any service member
  • Widowed spouses of service members or veterans who died during service or of a service-connected disability


Military Reservists Economic Injury Loans

The Military Reservist Economic Injury Disaster Loan (MREIDL) provides funds to help an eligible small business meet its ordinary and necessary operating expenses that it could have met, but is unable to, because an essential employee was called-up to active duty in his or her role as a military reservist.

Eligibility and Terms

Businesses with the financial capacity to fund their own recovery are not eligible for MREIDL assistance.  Federal law requires SBA to determine whether a business has credit available elsewhere — that is, if credit in an amount needed to accomplish full recovery is available from non-government sources without creating an undue financial hardship.

The filing period for MREIDL assistance begins on the date the essential employee receives a notice of expected call-up and ends one year after the essential employee is discharged or released from active duty.

Collateral is required for all MREIDL loans more than $50,000. SBA accepts real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but will require the borrower to pledge collateral that is available.

The MREIDL interest rate is 4 percent and has loan repayment terms up to 30 years. SBA determines the term of each loan in accordance with the borrower’s ability to repay.

SBA provides loans to businesses — not individuals — so the requirements of eligibility are based on aspects of the business, not the owners. As such, the key factors of eligibility are based on what the business does to receive its income, the character of its ownership and where the business operates.

SBA generally does not specify what businesses are eligible. Rather, the agency outlines what businesses are not eligible.  However, there are some universally applicable requirements. To be eligible for assistance, businesses must:

  • Operate for profit
  • Be small, as defined by SBA
  • Be engaged in, or propose to do business in, the United States or its possessions
  • Have reasonable invested equity
  • Use alternative financial resources, including personal assets, before seeking financial assistance
  • Be able to demonstrate a need for the loan proceeds
  • Use the funds for a sound business purpose
  • Not be delinquent on any existing debt obligations to the U.S. government



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