What is VetLoan Advantage?
Founded by the National Association of Development Companies (NADCO), VetLoan Advantage is a strategic initiative to help veterans access capital through reduced-rate financing. The program complements the Small Business Administration’s (SBA) veteran loan initiatives. NADCO and its 250 member Community Development Corporations (CDCs) publish their reduced fees, training and incentives for veterans who own businesses or are interested in small-business ownership on their websites and at nadco.org.
What incentives does MBFC offer through VetLoan Advantage?
As a member of NADCO, MBFC offers veterans a reimbursement of up to $3,000 to offset SBA 504 loan expenses, including appraisals and environmental reports.
How many veterans have chosen small business ownership as a career path?
We’ll let the numbers do the talking on this one:
- Veterans are at least 45 percent more likely to take the plunge into entrepreneurship than people with no active duty military experience. (SBA Office of Advocacy)
- In 2007, veterans owned 2.4 million businesses, or 9 percent of all businesses nationwide, generating $1.2 trillion in receipts and employing nearly 5.8 million people. (U.S. Census Bureau)
- One out of every seven franchise businesses are owned and operated by veterans of the U.S. military. (International Franchise Association Educational Foundation; based on U.S. Census data)
- More than 66,000 veteran-owned franchise businesses in the U.S. provide jobs directly for 815,000 Americans and generate more than $41 billion in GDP. The statistics for non-franchised small businesses are similarly impressive. (International Franchise Association Educational Foundation; based on U.S. Census data)
- In the first four months of 2013, 381 veterans received loans totaling $260 million – or approximately 10 percent of all loans offered through NADCO’s 250 Certified Development Company (CDC) members.
Why are veterans successful in small business ownership?
- Veterans come back with strong leadership skills and a thorough understanding of teams. Military experience includes leading people, improving processes and accomplishing missions. In small business – just like in the military – missions are accomplished by teams.
- Many veterans have innate entrepreneurial skill. Veterans are trained and taught to solve problems. Those same skills – adapting to the unexpected and finding a path to success – lead to achievement in small business.
- CDCs and the SBA’s network of Small-Business Development Centers and SCORE volunteers offer support and training such as marketing, social media and financial counseling.
What should veterans consider when exploring small-business opportunities?
Here are five tips:
- Seek out other veterans in small business.
- Create and access support networks. Prioritize what’s important.
- Consider different models (home-based vs. office-based, capital requirements, etc.) to find or create a small business that will be a good fit.
- Do research to understand the history of the franchise and other opportunities.
- Seek out others who know and have succeeded – or moved on.
How can I find out about more about MBFC’s veteran financial incentives or start the process?
Any of our business development officers would be happy to help you. Contact us today to learn how you can take advantage of MBFC’s business-lending program for veterans.