Coronavirus (COVID-19): Relief options and Additional Resources
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Office of Veterans Business Development

Access Granted: Financial Assistance for Your #VetBiz

As an entrepreneur, you’re likely going to need capital during your small business mission – whether you’re just starting your business, preparing to grow, ready to expand into new areas, or working to recover from a disaster. And as a military or veteran small business owner, it’s important to know what financial resources are available to you specifically based on your veteran-owned status.

SBA can grant you access to reliable lenders who can provide the funding you and your business need to be successful. Learn more about access to capital opportunities, disaster assistance, and local resources that we provide as an agency with the help of our extensive resource partner network and SBA-approved lenders.

Access to Capital

If you’re ready to start, grow, or expand your small business, finding the right lender is an important first step if you’re looking to acquire additional funding. The SBA has made it easy for entrepreneurs to access lenders through Lender Match – a free online tool that connects small businesses with SBA-approved Community Development Financial Institutions (CDFIs) and small lenders. Simply fill out a few questions about your business and get matched with select lenders within two days. Try out the SBA Lender Match tool today.

SBA also offers a variety of loan programs for small businesses including:

  • Standard 7(a) Loan: Offers a maximum loan amount of $5 million through SBA’s primary financial assistance program.
  • SBA Express Loan: Offers a maximum loan amount of $1,000,000 (until December 31, 2020) with an accelerated SBA review turnaround time of 36 hours. SBA has also reduced the upfront guarantee fee to zero for veteran-owned small businesses.
  • 504 Loan: Offers a maximum loan amount of $5 million to finance fixed assets necessary for small business growth and expansion.
  • Microloans: Offers a maximum loan amount of $50,000 to newly established and growing small businesses.

Learn more about the SBA loan programs available for your small business.

Disaster Assistance

COVID-19 has had an unprecedented impact on our nation’s small businesses, including military- and veteran-owned small business across the country. Thanks to the CARES Act, the SBA was able to provide immediate assistance to individuals, families, and businesses who were affected by the pandemic. Here are some of the COVID-19 relief options that you can still take advantage of for your veteran-owned business:

  • Paycheck Protection Program (PPP) Loan Forgiveness: If you applied for a PPP loan on or before June 30, 2020, the full principle amount of your loan may qualify for loan forgiveness. Get in touch with your lender for additional information and to apply.
  • Economic Injury Disaster Loan (EIDL) and EIDL Advance: EIDL is a low interest federal disaster loan designed to support small businesses that are suffering substantial economic injury due to the pandemic. Up to $10,000 in EIDL Advance funds may be available upon request during the application process.

Learn more about SBA’s COVID-19 guidance and loan resources for small businesses.

Another disaster assistance program offered by the SBA is the Military Reservist Economic Injury Disaster Loan Program (MREIDL). MREIDL provides funds to help eligible small businesses meet ordinary and necessary operating expenses that they’re unable to meet in the event an essential employee is deployed. The loan is intended to provide the amount of working capital you’d need to pay your necessary obligations until operations return to normal after that employee is released from active military duty. Learn more about the MREIDL program.

Local Resources

For additional access to capital and disaster assistance resources, check out your local Veterans Business Outreach Center (VBOC). Our VBOCs offer trainings, like Boots to Business, to help you tackle common challenges related to self-employment including financing your business. You can also work directly with a business counselor to develop a financial plan complete with financial projections, budget projections, funding requirements, and more.

VBOCs, along with our SBA District Offices and partners at the Small Business Development Centers, Women’s Business Centers, and SCORE can help you get your veteran-owned small business “lender ready” in no time. Get in touch with your local SBA resource partner today.

For more information about SBA’s financial resources and programs for veterans, visit: http://bit.ly/JulyVetBiz2.

 

SBA’s top priority is to continue to support the small business community, including the military and veteran small business community, through the COVID-19 pandemic. Please visit sba.gov/coronavirus for information.

This blog was originally written by the U.S. Small Business Administration’s Office of Veterans Business Development.