Many veterans that have spent their lives protecting our nation and our freedom also buy and operate smaller businesses. Based on a Small Business Administration study, there are 2.4 million veteran-owned businesses in the U.S. These veteran business owners continue to give back towards the nation by providing jobs to five.8 million employees.
Like every other small business owners, veterans face financial hardships on the path to entrepreneurship. Emergency expenses, cash flow shortages, and expansion are only a few situations in which a business might need extra capital. Veteran-owned businesses may face even more financial challenges – for example, if your reservist that also owns a small business is suddenly deployed, money, time, and resources can become scarce quickly. While your incoming revenue should cover much of your expenses in theory, there'll always be times when the present cash flow situation just isn’t enough.
If you’re an experienced who runs your own business and therefore are facing a financial challenge, you will find possibilities for you. One of the best options? Grants for veteran-owned businesses. With a veteran business grant, you can receive money to fund startup costs, pay for the research and growth and development of services, or support your established business. Best of all, grants don’t need to be repaid.
This is basically free money for veterans.
What’s the issue? Receiving a business grant is tough for many business owners. You might not know where to even begin to find these grants for veterans, and when you find them, the application process could be confusing. You may also discover the competition extremely stiff. Not only do you have to be an experienced to qualify for these grants, but you may also have to meet additional requirements, such as the location of your business, the industry you’re in, and your time in business.
Veteran business grants are available through the federal government, nonprofit organizations, and even corporations.
However, simply because it’s difficult to get one of these grants for veterans doesn’t mean it’s impossible. The first step would be to know very well what grants are available to you, learn the requirements, and move through the application process. In the following paragraphs, we’ll explore the best grant possibilities to veterans, how to find your personal grants, and other financial possibilities for your business.
Ready to move one step nearer to getting the business funding you need? Let’s begin!
1. StreetShares Foundation Veteran Small Business Award
- Submission dates: Watch the web site for announcements.
- Entry requirements: Open to active duty people in armed forces who are at least 21 years old own at least 51% of the business, or qualifying spouse, child, or immediate member of the family.
- Website: streetsharesfoundation.org/the-veteran-small-business-award
As of 2022, the StreetShares Foundation awards grants to three winners. To begin with receives $15,000, second place receives $6,000, and third place wins $4,000. To become entitled to the grant, all applicants must view educational content through StreetShares. Once qualifying content has been downloaded or viewed, the application can be obtained. Applicants must write a listing of their business and submit a video. The building blocks will choose up to 10 finalists whose businesses will be presented towards the public and set to some vote to look for the winners.
2. National Association For The Self-Employed Growth Grants
- Submission dates: Applications are reviewed quarterly.
- Entry requirements: You should be part of NASE ($99 fee for veterans)
- Website: nase.org/become-a-member/member-benefits/business-resources/growth-grants
For businesses with smaller capital needs, the National Association for the Self-Employed Growth Grant provides small grants as much as $4,000. Like other grants, the funds must be used for any specific purpose, for example purchasing equipment or hiring new employees. Applications are reviewed quarterly and awards as much as $4,000 are distributed monthly. To qualify, you must submit an application outlining your company need and providing details of how to make use of the grant to fund this need.
3. FedEx Small Business Grant Program
- Submission dates: Entry period begins in February
- Entry requirements: Must be for-profit and U.S.-based with fewer than 99 employees. Should have been around for at least 6 months.
- Website: www.fedex.com/en-us/small-business/grant-contest.htmlnase.org/become-a-member/member-benefits/business-resources/growth-grants
The FedEx Small company Grant program has awarded over $500,000 in grants since its launch in 2022. In 2022, FedEx awarded 10 prizes to small business owners. One winner received $50,000 plus $7,500 in FedEx print and business services. One winner received the Silver prize of $30,000 plus $5,000 in FedEx print and business services. Eight winners took home Bronze prizes, each receiving $15,000 plus $1,000 in FedEx print and business services. Winners may also receive additional prize packages, including website audits and design and social media workshops.
4. USDA Rural Business Enterprise Grant Program
- Submission dates: Ongoing
- Entry requirements: Must have fewer than 50 employees and less than $1 million in annual revenue.
- Website: rd.usda.gov/page/state-offices
Through america Department of Agriculture, eligible small businesses will get grants from $10,000 to $500,000. To qualify, you don’t need to be in the agriculture industry, but your business must be situated in an eligible province. All applicants can apply for the grant through their USDA Rural Development state office.
5. VetFran
- Submission dates: Ongoing
- Entry requirements: Must be a veteran interested in having a franchise.
- Website: www.vetfran.org
If you’re thinking about opening a franchise, check out the resources offered through VetFran. Among these resources are videos, links to Small Business Administration loans and resources, and publications centered on owning a franchise. Among the best resources offered through VetFran is discounted franchise fees for qualified military veterans. VetFran is partnered with over 600 franchises, including 7Eleven, Arby’s Choice Hotels, and Cinnabon. While traditional small business grants aren’t offered, these member franchises offer discounts that could save military vets thousands of dollars in initial costs.
Other Business Grant Resources For Veterans
Whether you don’t be eligible for a a grant program and have greater financial needs than the usual grant can cover, there are more financing options available for your business. The little Business and StreetShares stand out by providing low-cost loan options to veteran-owned businesses just like yours.
Grants.gov
If you’ve missed the deadline for applying for the grants discussed in this article, don’t qualify, or are searching for more grant opportunities, there are additional resources will find your own grants.
To find federal grant opportunities, take a look at Grants.gov. This searchable database of federal grants is simple to use. Through this website, you can search and make an application for grants, make use of the educational resources to learn more about grants, as well as track your submissions. A mobile app is now available for Android and iPhone, which makes it easy for you to search for grants on the run.
SCORE
Another great resource is the SCORE Association. This nonprofit agency has counselors and mentors located nationwide. These volunteers can not only point you toward national and local grants but additionally provide free business advice for starting or building your business. You can take part in online workshops as well, and make use of the other free resources available to small business owners.
VA SBA Loans
SBA loans have developed a reputation among small businesses for their low-interest rates and great terms. Rates and terms are comparable to those offered by bank and bank loans. The good thing, though, is the fact that even if you don’t qualify for traditional loan options, you might still get an SBA loan. It is because these financing options are backed through the government in amounts up to 85%, a little of the risks from the intermediary lender. What does this mean for you? Your small business can nonetheless be approved for an affordable loan, even when you’ve been turned down by other lenders.
You could also be eligible for a other SBA loan options not specific to veterans. For instance, if you want capital for the startup costs, you can make an application for SBA microloans as much as $50,000 with an SBA-approved nonprofit lender.
SBA 7(a) Loans
One of the most popular loan options may be the SBA 7(a) program. Through the program, you could get as much as $5 million for pretty much any company purpose. The SBA sets the eye rates in the prime rate along with a maximum markup of four.75%, so these loans are incredibly affordable.
Smartbiz can connect you having a SBA 7(a) loan:
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SBA Veterans Advantage
For military veterans, the SBA Veterans Advantage program is available. Through this program, you’ll get the same high borrowing limits and low rates and the 7(a) loan, using the benefit of reduced guarantee fees.
To qualify for the SBA Veterans Advantage loan, your company must be a veteran-owned business that's considered a small company based on the SBA’s definition. You must demonstrate the ability to repay the loan and meet all criteria for receiving an SBA loan, including personal credit score requirements.
Military Reservist Economic Injury Disaster Loan
If you’re a military reservist or have been in the nation's Guard, a deployment can throw your company off track. You shouldn’t need to bother about a pile of expenses that pose a menace to your company when you are on active duty. Luckily, the SBA has a financial solution.
The Military Reservist Economic Injury Disaster Loan Program provides loans as much as $2 million for military reservists or National Guard members during or rigtht after deployment. Under the program, you can receive a loan with rates of interest set at 4% and repayment terms up to 30 years. Loan proceeds can be used to cover operating costs but can’t be used to refinance debt, expand a company, or cover lost income or profits.
Federal Contracts
Veterans who are business people might be able to get preferential treatment when it comes to the awarding of government contracts. Additionally, programs such as the VA’s Vets First Contracting Program and the SBA’s Service-Disabled Veteran-owned Small Business Concern Program can help qualifying veterans land lucrative government contracts.
Business Crowdfunding
While not specific to veterans, business startups often struggle to find funding in their early phases of development. One workaround is to utilize business crowdfunding. The principle is similar to whatever you decide and have come across with crowdfunding firms that fund retail goods (like Kickstarter), but instead of a product, you’re funding a company through equity or perhaps a crowdsourced loan.
StreetShares
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We already touched on StreetShares earlier when discussing grants. However, if you missed the deadline to use, don’t wish to feel the need for applying for the program, or don’t qualify, StreetShares has traditional financing options for your business.
StreetShares was founded by veterans and was originally targeted only toward veterans. Today, however, any qualifying business proprietor can apply for StreetShares financing. There are several special concessions made for veteran-owned businesses, which we’ll discuss in detail a bit later.
You can apply for any StreetShares installment loan of up to $250,000 to be paid back over 3 to 36 months. The interest rates of these loans are around 6% to 14%.
If an adaptable credit line better fits your financial needs, StreetShares offers those, too. You are able to obtain a credit line as high as $250,000 with repayment relation to 3 to Three years. Rates of interest remain 6% to 14% for a StreetShares credit line.
To be eligible for a financing or line of credit, you must be in business for at least 2 years. However, some businesses may qualify having a time in business as short as six months. You must also have a minimum personal credit score of 620. However, if you’re an experienced, this score requirement is lowered to 600. You must also have a yearly business revenue of $100,000.
Another credit line choice is BlueVine
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If you have federal, state, or commercial contracts, you could also be eligible for a contract financing. You can receive as much as 90% of your contract in advance by paying a factor fee. You can apply for contract financing in addition to a payment loan or line of credit.
Business Loans For Veterans
StreetShares is particularly focused on serving veterans, however they aren’t your main option. Should you don’t have time to pursue an experienced business grant or are experiencing difficulty you get one, you may want to look at obtaining a business loan.
- The Best Small Business Loans For Veterans
- SBA Loans For Veterans
- Small Business Startup Loans: Your 8 Best Options
More Educational Resources On Grants
Need more information by what grants are, how to find them, and the way to use them? Take a look at our informative articles on small company grants.
- What Are Business Grants & Could they be Taxable?
- How To Find A Startup Grants
- Free Money? Where & How To Get A Startup Grant For Your New Business
- Small Business Grants: Resources For Free Money
Veteran Business Grant FAQs
What qualifies as a veteran-owned business?
Every organization that provides veteran business grants have a different meaning of what's considered a veteran-owned business. To be sure you’re qualified, make sure to thoroughly browse the grant application information and rules.
Are there grants available for veterans to begin a company?
Yes, some veteran business grants are available to startups. Should you don’t use whatever within our article that suit your requirements, you might be able to find veteran startup grants around the state or local level.
Does the VA help veterans start a business?
On its website, the VA provides information and resources for veterans that are looking to begin a company. The VA doesn't provide loans or financing to veteran-owned businesses.
Business Grants For Veterans: Final Thoughts
Grants for a veteran-owned small business take time and effort to get, but you can enhance your odds by doing all of your research and taking your time throughout the application. A grant is a superb way to fund your business, and you don’t need to bother about repaying funds.
Even if you don’t qualify for grants, your veteran-owned business can take advantage of other affordable financing choices to start or expand your company. Consider SBA loans or our picks for small company loans for veterans to provide your business the financial boost it must be successful.
