A VA loan is a great option for financing business start-ups. The Veterans Administration (VA) provides loans to veterans and their family members. They are not the same type of loans that you would find at a bank or credit union. The loans are not backed by the federal government like a loan from the Small Business Administration (SBA). The money is provided by private foundations and the VA is the recipient of the funds. There are strict requirements that must be met in order to get a VA loan.
What to look for in a VA loan?
One thing you want to look for in a loan is a D-U-N-S (direct-to-self-sufficient) stamp. This is a mandatory requirement for all VA loans that are funded. Also, be prepared to provide your business plan and any financial projections for your proposed business. If you can’t produce such material, don’t apply. Your loan officer won’t help you if you can’t produce such documentation.
Another thing that you will want to provide the loan officer, is a current copy of your tax returns. This is a necessity. The loan officer can’t evaluate your loan if you don’t have this documentation. You also want to have your business plan completed with renderings of the products or services you plan to offer.
If you do qualify for a VA loan, there are a few things that will be required of you. One thing you will need to prepare for is an application. This is an application that you will be submitting to your local VA office in Sacramento. You will be asked to submit a lot of information, including your business plan, financial projections, and any resumes or references that you may have. You will also be required to submit copies of your tax returns, along with the tax forms.
Understand the complete loan process before applying
You should always understand fully the loan process before you apply. Don’t let anybody talk you into something you don’t qualify for. There is a lot of paperwork and qualification involved. It is better to get your business started and move forward than to spend time trying to qualify for a VAMSA loan. When it is completed and approved, you could be on your way to getting a low-cost business loan.
The next step you will want to take, once you qualify for a VA loan is to find a qualified and experienced loan officer. You can usually find a list of loan officers by contacting your local regional loan office. They will be able to tell you who is qualified and certified to work with veterans, and who may not be.
The goal of finding a loan is to have the funds available to you when you need them. If you do not qualify for the VAMSA, the Sacramento Veterans affairs department may be able to provide you with a loan through another program. Most times they will refer you to someone who does. It is important that you keep in mind that these are only short-term loans. You are going to have to pay the money back within a few months or a year. If you qualify and are unable to repay the loan, however, chances are very good that the Sacramento Veterans Affairs office will work with you to help you find the money that you need to start your new business. One can find their options to get these loans from websites like cambridgehomeloan.com.