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In this video, I will show you the three types of SBA loans available for veterans, the types of businesses that can borrow for such loans and how much money you can get on each loan as a veteran. We will cover that and much more. Hey everybody welcome to my channel. I am your host Leo Landaverde business coach and outsource CFO, helping you scale your business. If you’re ready to scale your business to seven figures and beyond while creating the lifestyle and the freedom that you want, please subscribe to this channel. Don’t forget to hit the bell and you’ll be notified every time new content comes out.
Hey everybody this is Leo Landaverde with Greenland Advisors creating more profit, more value, more freedom for your business. And in today’s video we’re talking about business loans for veterans. The SBA provides three types of VA loans. First is the SBA Express Loan initiative for veterans. This program is also open to non-veterans, but the SBA has a Veterans Advantage Program that waives all the upfront loan guarantees veterans who qualify for this loans and veterans can borrow up to $350,000. Then there is the SBA 7(a) Loan Program which is number two that provides up to $5 million in funding again, both for veterans and non-veterans.
However, the Veterans Advantage Program applies to this loan as well provided upfront guarantee fees of zero for loans of $125,000 or less. And a 50% reduction on guaranteed fees for Vets that borrow amounts greater than 125,000. The SBA also provides counseling and training to go along with this loans to give borrowers the support in their business ventures. Number three, it’s called the Military Reservist Economic Injury Disaster Loan which is very similar to the EIDL that is very popular for which is they want due to COVID-19. This is for military reservists so hence MREIDL.
This loan provides working capital to businesses that could have met their obligations and continue to meet their obligations had we not had a catastrophe of some sort like the one we are having today. Eligibility for VA loans. All active military personnel, veterans, service disabled veterans and their current spouses or widows are eligible for these loans. Veterans who receive a dishonorable discharge are not eligible for loan programs. If you’re an active duty personnel within 12 months of separation or a retiree within 24 months of retirement, you can qualify for an SBA Express Loan programs.
Reservists and National Guard are also eligible as well. The types of businesses that can borrow. The businesses must be at least 51% owned by a qualified veteran according to the definition above, which is you have to be active or recently honorably discharged. Most businesses meet the eligibility requirement as long as the business is not a pyramid scheme and that would be illegal. So also gambling businesses or lending business are not eligible. Also, and here’s very important the business must be for profit. Non-profits don’t qualify. What can you use the proceeds for?
As you see here, you can use it for working capital in your business. Which is kind of a blanket statement for anything that you need to require to keep the operation of the business running. You can use it for start up costs if you’re starting your business that is for profit. Anything that goes with this, the investment in the machinery, the securing of the lease, and the tenant improvements. All of those start up costs, the incorporation of your business would be under start up costs. Number three, you can use the proceeds for real estate purchases for your business.
This does not apply for residence if this is your residence, only for commercial real estate for the purposes of the business. Number four, you can use it for inventory purchases. If you’re a business, if you’re in a manufacturing business and you have a need to provide inventory to buy inventory so you can actually manufacture your final goods, then you can use it for that. And you can definitely use it for payroll. How much can I borrow? Well, under the SBA Express Loan you can actually borrow up to $350,000. Under the 7(a) Loan program you can get up to $5 million as we discussed earlier.
And for the Military Reservist Economic Injury Disaster Loan program you can get up to $2 million. This EIDL programs that are very, very popular right now you can get the payments spread over 30 years. And with an APR of 3.75%, that’s not a bad deal so hopefully this was very, very helpful to you if you’re a veteran. There are so many opportunities for you to grow your business and we thank you so much for your service. Please comment below and let me know which of this loans would benefit you the most and why. Also, if you want to join a community of like-minded successful entrepreneurs just like you, then join our Facebook group at the link below. Where I share tips, tactics and strategies of how my clients are growing their businesses to seven figures and beyond.
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