According to the 2017 Defense Department Surveys of Active Duty and Reserve Component Spouses, the military spousal unemployment rate is at a high of 25%.
Besides unemployment struggles, it’s no surprise that a lack of financial stability and loneliness is a top concern for military spouses. That’s why becoming self-employed can become the perfect solution for military wives and husbands across the country.
The opportunity of entrepreneurship can give spouses a certain level of jurisdiction over their own lives. Despite the chaotic lifestyle of frequent uproot and relocation. If you are a current or widowed spouse of an active duty service member or veteran, including those honorably discharged, you may qualify for special financing. The lifeblood of a new business venture could come down to the small business financing opportunities available to you.
The SBA: Your #1 Resource
Personal savings, collateral, and borrowed money from family or friends are helpful. However, they are not necessary to get your business off the ground. Thanks to the Small Business Association Office of Veterans Business Development, most lenders today can provide guaranteed loan packages to qualified borrowers.
If you’ve struggled with your finances or credit in the past, the SBA helps mitigate the risk. While they are not a direct lender, most lenders offer the programs they support. The SBA can also direct you to local educational resources, mentors, and recommended lenders in your area that will get you on the right track.
Where To Begin
When shopping for a lender, it’s important to gather several opinions and options to compare. A great place to start is to talk to the bank that you have previously done business with, like a bank that you have a credit card, checking, or savings account. You might also get referrals from your family or friends. A suitable lender should know about each of the available veteran financing options and properly analyze your unique situation to come up with the best possible solution. Below are a few possible programs that come with various degrees of help.
SBA 7(a) Veterans Advantage Loan
This type of loan is one of the most flexible lending options available for military spouses. In addition to helping to back your loan with your lender, the SBA can also provide more reasonable requirements for down payments, extended terms, and no guarantee fees up to $125,000.
SBA 504 Loan
If you’re looking to invest in commercial real estate, including business equipment that you plan to use for ten years or more, the SBA 504 loan may be an excellent option for you. It also includes some great benefits similar to the 7(a) loan, such as zero or little money down and fixed rates. You also don’t need to have a perfect credit score to qualify.
Microloans, Grants, and More
Another alternative to traditional financing is to find an assistance program such as a non-profit lender that offers microloans. The SBA supports a long list of non-profit, community-based microloan lenders. Plus, others are supported by private investors. Additionally, there are many online lenders, peer to peer loans, grants, and scholarships, especially suited for the military community.
The Support You Need is Out There
If you’ve always wanted to venture down the path of entrepreneurship, the best place to start is the SBA’s Office of Veterans Business Development for a list of recommended resources in your local community. It’s important to remember that there are many businesses, lenders, non-profits, and people that want to help you succeed.
Small businesses help to enrich the communities we live in and strengthen the economy of our nation. But most of all, becoming an entrepreneur can give you a new sense of purpose, provide financial stability and new connections. The big bonus is the chance to create a thriving career for yourself.