Whether returning from the military or having been a veteran for some time, veterans can help strengthen the economy. They are more likely to start a business than non-veterans. They have the adaptability to lead our country to a better economy. They may even qualify for a veteran advantage loan to help veterans launch their businesses.
Whether it is a small business, medium, or large, veteran-owned businesses are an integral part of the U.S. economy. According to the US Small Business Administration, these businesses contribute more than $1.2 trillion yearly to the U.S. economy. Their sales make up 9.1% of the U.S. economy and employ 5.8 million Americans.
Veteran-owned businesses are more likely to start their own business than non-veterans, according to the Small Business Administration. This is a big deal. They are 45% more likely to be self-employed than non-veterans. Despite this, they have had less access to SBA-guaranteed loans over the years. This could be due to the higher credit risk associated with veterans.
Veterans have unique skills that make them good candidates for entrepreneurship. These skills include operations, logistics, and planning. They are also good at executing ideas. In addition, they know how to motivate staff. They know how to overcome obstacles and how to guide less experienced individuals.
Despite a challenging economic climate, small business is still in the American economic driver's seat. The most recent Small Business Administration (SBA) statistics suggest that 44% of all U.S. economic activity is tied to small firms.
Small businesses are proving to be the real economic engine reviving American economies and refocusing our attention on what matters most. This includes our nation's veterans. The SBA estimates that over 1 million veteran-owned businesses are operating in the United States. These firms account for more than 5.3 million workers and $232 million in annual payroll.
The SBA estimates that about 40% of these firms are in the construction industry. The best way to see these firms is to visit your local county or state SBA office. In addition, the SBA has a network of resource partner agencies and lenders that can help veterans start or grow their businesses. The SBA is so confident in the efficacy of veteran-owned firms that it has set a goal of awarding three per cent of all federal contracts to service-disabled veteran-owned businesses each year.
Whether you are a veteran who owns a business or are a spouse of a military veteran, you may qualify for a veteran advantage loan to help your business succeed. With these loans, you can acquire the supplies, equipment, and property you need to operate your business.
Many other financial options are available to veterans who want to start their businesses. Some of these options offer funding within a short period, while others provide loans with five years or more repayment terms.
Some banks have tightened their lending standards, making it difficult to get a loan. If you have bad credit or are not in the military, it is more likely that you will be rejected. However, if you have a profitable business with documented revenue, banks will be more likely to approve your loan application.
The SBA offers two programs to veterans. One is the Veterans Advantage program, which reduces fees on certain loans. The other is the Veterans Business Assistance Program, which funds small businesses owned by veterans, service-disabled veterans, and reservists.