If you're a veteran and interested in opening up a new business, there are loans geared directly to help you. Once you have a great idea for a business and have thought through the best way to make it happen, then go to your local bank and follow these simple steps from eHow.
- Make an analysis about the business you want to create before asking for business loans. Address some specific points: type of business, how much money is needed to run the first year, list all the sources of potential loans and grants, will you have employees, project your revenues and expenses, how much cash do you have, business marketing and competition.Some of these details may be used during the loan proposal process, get yourself ready ahead of time. Get familiar with writing formal loan and business proposals before starting your business (I included business plans information in Resources below).
- Apply for non veteran loans as well as veteran specific ones to start a business. There are many loans and grants opportunities, and each has different requirements. Some sources of money are more risk adverse than others, so you may qualify for one and not for others.
- Consider the "Patriot Express Pilot Loan Initiative" from the SBA. Visit the Small Business Administration internet site to learn about this loan opportunity for veterans. The loan maximum amount is $500,000 and may be used for new business venture. Since this loan is designed for veterans, there are special requirements to fulfill. Review the requirements and follow the SBA instructions to apply.
- Review the International Franchise Association's VetFran internet site at VetFran.com. This is a special offer for veterans who are planning to be self employed. The program is supported by a group of franchises offering discounts to discharged veterans of the United States. The franchises include; food, home care and cleaning businesses. Read the requirements and apply for a specific business franchise.
- Use various business educational and loan references to learn about creating and running a new business. Understand how business funding works before applying for loans and grants. Use the library, other business owners, books and online resources. The more prepared you become, the more confident you'll be when applying for funds.
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