Veterans can get help with loan programs
Q: I’m wondering if there are any special financing programs for veterans who own small businesses. My bank turned me down for a loan and now I could use some help.
A: The U.S. Small Business Administration has programs that can help you connect with lenders or reduce your upfront borrowing fee when you take out certain types of loans.
Lender Match is an online program that anyone can use to help find a lender. It’s easy to use: Submit information about your business and your financing needs, and if they are interested, lenders will contact you within two days.
You can then compare fees, rates, terms and more, and submit a loan application to the lender of your choice. You can probably use the documentation you submitted previously to your lender, but you might want to take a fresh look to make sure it’s all in order and accurately reflects how much money you need and what you’ll use it for.
You’ll also need a decent credit score, so if you have a problem with yours, take steps to improve it before applying for another loan. Websites like myfico.com or bankrate.com offer free advice on how to improve your score. There are no guarantees that you’ll be approved for a loan with Lender Match, but it does give you access to a wider group of potential lenders.
Veterans Advantage Lending is an SBA program that helps veterans and their family members save money on the cost of borrowing by reducing loan fees. Honorably discharged veterans, service-disabled veterans, active duty members who are eligible for the Transition Assistance Program, Reservists and National Guard members are all eligible for this program. Depending on the type and amount of the loan, there is either no upfront loan fee or the fee is reduced by 50 percent. The loans are SBA guaranteed loans, which means that if you default on the loan, the SBA will cover a percentage of the payback amount, making the loan less risky for the lender.
For more information, visit the SBA’s website at www.sba.gov/veterans. Also take advantage of the SBA’s resource partner, the Small Business Development Center. Business advisers at the UH Bauer College SBDC in midtown Houston can help you determine your financing needs and assist with putting together the documentation for a loan application, as well as connect you to some of the community lenders who might be willing to work with you, all free of charge. You might also want to attend one of the SBDC’s affordable workshops such as Making Sense of the Numbers or Business Plan Basics to help you get prepared to apply for a loan. Go to www.sbdc.uh.edu for more information.
Jacqueline Taylor is deputy director of the Texas Gulf Coast Small Business Development Center Network, a partnership of the U.S. Small Business Administration and the University of Houston C.T. Bauer College of Business. Information is intended to provide general guidance only. jtaylor@uh.edu