Best Grants For Veteran-Owned Small Businesses

Veteran small business owners may qualify for grants that can help cover startup costs, support product development, or fund growth. Unlike loans, grants don’t have to be repaid.

While grant funding is competitive, it’s not out of reach. Below are some grant options available to veteran-owned businesses.

Best Grants & Resources For Veteran-Owned Businesses

Start your search for free funding with these small business grants.

National Association For The Self-Employed Growth Grants

• Entry requirements: You must be a member of NASE ($99 fee for veterans)
• Website: nase.org/become-a-member/member-benefits/business-resources/growth-grants

For businesses with smaller capital needs, the National Association for the Self-Employed Growth Grant provides small grants up to $4,000.

Like other grants, the funds must be used for a specific purpose, such as purchasing equipment or hiring new employees. Applications are reviewed quarterly and awards up to $4,000 are distributed monthly.

To qualify, you must submit an application outlining your business need and providing details of how you will use the grant to fund this need.

USDA Rural Business Enterprise Grant Program

• Submission dates: Ongoing
• Entry requirements: Must have fewer than 50 employees and less than $1 million in annual revenue.
• Website: rd.usda.gov/page/state-offices

Through the United States Department of Agriculture, eligible small businesses can receive grants from $10,000 to $500,000. To qualify, you don’t have to be in the agriculture industry, but your business must be located in an eligible rural area.

All applicants can apply for the grant through their USDA Rural Development state office.

VetFran

• Submission dates: Ongoing
• Entry requirements: Must be a veteran interested in owning a franchise.
• Website: www.vetfran.org

If you’re interested in opening a franchise, look into the resources offered through VetFran. Among these resources are videos, links to Small Business Administration loans and resources, and publications focused on owning a franchise.

One of the best resources offered through VetFran is discounted franchise fees for qualified military veterans. VetFran is partnered with over 600 franchises, including 7Eleven, Arby’s Choice Hotels, and Cinnabon.

While traditional small business grants aren’t offered, these member franchises offer discounts that could save military vets thousands of dollars in initial costs.

Other Business Financing Resources For Veterans

Whether you don’t qualify for a grant program or have greater financial needs than a grant can cover, there are more financing options available for your business.

Grants.govs.

To find federal grant opportunities, check out Grants.gov. This searchable database of federal grants is easy to use. Through this website, you can search and apply for grants, use the educational resources to learn more about grants, and even track your submissions.

A mobile app is now available for Android and iPhone, making it easy for you to search for grants on the go.

SCORE

Another great resource is the SCORE Association. This nonprofit agency has counselors and mentors located nationwide. These volunteers can not only point you toward national and local grants but also provide free business advice for starting or building your business.

You can participate in online workshops as well, and take advantage of the other free resources available to small business owners.

VA SBA Loans

SBA loans have developed a reputation among small business owners for their low-interest rates and great terms. Rates and terms are comparable to those offered by bank and credit union loans.

The best part, though, is that even if you don’t qualify for traditional loan options, you may still receive an SBA loan. This is because these loans are backed by the government in amounts up to 85%, taking some of the risks away from the intermediary lender. What does this mean for you? Your small business can still be approved for an affordable loan, even if you’ve been turned down by other lenders.

Some SBA loans worth considering include:

• Microloans: SBA microloans provide up to $50,000 and can be obtained through an SBA-approved nonprofit lender.
• 7(a) loans: This is one of the most popular loan options. The SBA 7(a) loan provides you with up to $5 million for nearly any business purpose. The SBA sets interest rates at the prime rate plus a maximum markup of 4.75%, resulting in affordable long-term funding.
• Military Reservist Economic Injury Disaster Loan: The MREIDL provides up to $2 million for military reservists or National Guard members during or immediately following deployment. Loan proceeds can be used to cover operating costs but can’t be used to refinance debt, expand a business, or cover lost income or profits.

Federal Contracts

Veterans who are business owners may be able to get preferential treatment when it comes to the awarding of government contracts. Additionally, programs like the VA’s Vets First Contracting Program and the SBA’s Service-Disabled Veteran-owned Small Business Concern Program can help qualifying veterans land lucrative government contracts.

Business Crowdfunding

While not specific to veterans, business startups often struggle to find funding in their early phases of development. One workaround is to utilize business crowdfunding.

The principle is similar to what you may have encountered with crowdfunding companies that fund retail goods (like Kickstarter), but instead of a product, you’re funding a business through equity or a crowdsourced loan.

Business Loans For Veterans

If you don’t have time to pursue a veteran business grant or are having difficulty getting one, you may want to look at getting a business loan. There are several types of funding to consider, including:

• Installment loans
• Short-term loans
• Lines of credit
• Business credit cards

Final Thoughts On Business Grants For Veterans

Grants for a veteran-owned small business are difficult to receive, but you can improve your odds by doing your research and taking your time throughout the application process. A grant is a great way to fund your business, and you don’t have to worry about repaying funds.

Even if you don’t qualify for grants, your veteran-owned business can take advantage of other affordable financing options to start or expand your business. Consider SBA loans or our picks for small business loans for veterans to give your business the financial boost it needs to be successful.