By James Pruitt, Senior Staff Writer
Grants and loans for your small business are quite distinct entities. It is important to understand the differences. Loans may provide favorable terms and reduced interest rates, as well as better forbearance and deferment policies. Grants should be favored. Grants are yours to keep. A brand-new entrepreneur with a startup is well advised to research grant opportunities first and foremost, before taking out loans as needed.
This article will provide some of the important distinctions.
Small Business Grants
Whence come small business grants for veterans. Grants generally come from two sources: They come most of the time from governments and private organizations. Remember, though, that grants generally come with conditions.
Organizations that provide grants rarely bail out startup businesses or businesses deep in debt. Grant money is selectively distributed, and the benefactors choose their funding paths carefully. Nonprofits, minority-owned companies, and medical firms with experimental treatments are examples.
Many grants go to rural small businesses, in order to help maintain economic vibrance in the surrounding area. Organizations that provide the grants usually hope the money will go to the public good.
Veteran-Owned Businesses are yet another example. Many resources online provide information for small-business grants designed for Veteran Business Owners.
The following website is an excellent resource for private organizations that provide small business grants for Veterans: 12 Small Business Grants for Veterans in 2021 (fundera.com). Another good resource is Grants for Veterans Starting a Business – Kabbage Resource Center | Kabbage Resource Center.
The federal government also provides grants to help many types of struggling business owners. Grants.gov is a great resource for government-sourced small business loans for veterans.
Small Business Loans
What about small business loans? Terms vary depending upon conditions of the debtor, creditor, loan administrator, and society in general. Thorough research is key, as loans carry greater risks than grants.
The Small Business Administration is an excellent resource for those who choose this lending route. The relevant website is SBA Business Loan Information for Veterans | The U.S. Small Business Administration | SBA.gov
First steps for considering a good veteran’s SBA loan include the following questions: (1) how much money fits your current business needs, (2) the purpose of the loan, (3) the loan terms, and (4) your own plans and financial circumstances.
Fraud
Dire consequences await those who dishonestly accept small business grants. These grants come from governmental or private institutions with a purpose. Never lie to accept a grant. The same goes for loans. Private institutions can pursue you in civil (and criminal) court.
As for the government, it is never a good idea to lie to a government institution. You will have to pay back the money, and they will find a way to make you do it, even if they had already deposited the money into your bank account by mistake.
Takeaways
Funding resources for veteran owners of small businesses are readily available. Finding various private or public sources of funding may take some detective-work but do your research because there are many options. You should find the one(s) that are right for your business and your needs. We hope the resources provided may provide a step-in-the-right-direction and a starting point. honest Whatever your path, consider your financial resources, personal circumstances, and long-term capacities. VAMBOA wishes you great success.
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