It’s tough enough for civil servants nowadays to get bank loans to kickstart their venture; so it’s no wonder, returning veterans, with fewer bank contacts, find it doubly difficult to get approval of such loans. To make matters worse, many veterans arrive to US after a lengthy service abroad, only to be astonished by the inflation, where trying to meet their financial needs proves to be a massive struggle. This scenario obviously leaves its mark in the form of a bad credit score. It’s to that predicament of veterans, we dedicate this article. We’ll have a look at some of the relief programs that are specifically in place for veterans to stay afloat in their financial hardship.
Well the veterans’ situation, really isn’t all dull and gloomy as it may appear at first. In fact, there are many business loans for veterans with bad credit. That’s not to say the civil members of the population have no access to business loans. It’s just that with specific lending programs in place for veterans, they’re more likely to avail such loans when they approach the lenders with ‘starry-eyed’ visions. These lending programs make the lenders amiable towards veterans to get their funding needs approved.
Veterans with bad credit can avail business loans from any bank or credit union just like other people, still the Patriot Express Program by SBA(Small Business Administration) is the obvious choice for most veterans.
The appealing factor of the Patriot Express Program could be explained with the decent interest rates offered by lenders who’re willing to help them. Under this program, the lenders are offered guarantees, upon loan’s approval. This only makes lenders more generous towards veterans’ business plan. The SBA, with the reputable backing of the US Government, guarantee up to 85% for loans less than $150,000 while 75% for loans more than the said amount.
Veterans in need of a business loan can apply for as much as $500,000, which should be a handsome package for a start up. The interest rates range is between 2.25%-4.75. The program requires that the applicants must be veterans of the US Army, Air Force, Navy or Marine Corps. Those disabled during the military service are also eligible to apply for the program.
Not only this, the active members of the military, who qualify for the Transition Assistance Program and those who’re members of the National Guard and reservists, can also apply for the Patriot Express Program. Other than this, the spouses of any of the previously mentioned positions and widows of US military personnel also stand to benefit from this program.
But there’s a catch, veterans with bad credit seeking business loans, must give 20% guarantee of funds they’re wishing to borrow. The guarantee could be in the form of personal asset or business collateral. That means, the veteran has got to have something to offer to the lender/lending institution. Despite that, a number of veterans have found this program beneficial and a proportionate amount have gone on to start their own successful businesses serving as contractors to the military. Drawing on their experience in the military, the veterans continue to aid the Armed forces, thanks to the Patriot Express Program.