Few dreams are more specifically American than the desire to start one’s own business. To build an enterprise from the ground up, to work in a field you are passionate about, to be the master of your own fate: these are the very foundations of the “manifest destiny” spirit that have brought so many people to the greatest country in the world, and continues to do so today.
Veterans, perhaps more so than any other demographic, are acutely aware of this. Many former service members enter the business world as entrepreneurs, bringing with them the skills and experiences of their military careers. According to the Washington Department of Veterans Affairs, there are currently 764 registered veteran-owned business in the state, 50 of them in Kitsap County alone.
Of course, starting a business is a big choice and a big risk, but there are resources available to those who think that it may be right for them. There are even more options available to veterans who aspire to start a business, with many groups and organizations offering services and assistance.
According to the U.S. Department of Veterans Affairs website, the VA itself does not make loans or grants for the startup or expansion of a small business.
Instead, the Small Business Administration (SBA) is the specific agency that has been tasked with business financing and there are a variety of specialized services for veterans.
Their website states: “On June 14, 2007, SBA launched a loan program for veterans called Patriot Express. The Patriot Express Loan, part of the SBA 7(a) small business loan program, provides financial assistance for veterans and members of the military community who want to establish or expand small businesses.”
The local SBA district office (800-827-5722) will have a list of lenders and specific requirements.
Navy Federal Credit Union, perhaps the best known financial institution catering to military and Department of Defense employees, measures loan eligibility based on their “Five C’s” system.
The Navy Federal “Five C’s of Credit” are capacity (can you produce enough cash to repay the loan?), capital (how much equity do you have?), collateral (property or possessions that if liquidated could repay the loan), conditions (proof that the current conditions are right for your business) and character (the “general impression” that an applicant makes on the lender).
The SBA also recommends getting in touch with the veteran organizations in your area such as the American Legion or Veterans of Foreign Wars (VFW), that might know other local resources.
A good starting point for the aspiring veteran entrepreneur, even before applying for any sort of financial assistance, is the service guide provided by the Boots To Business organization (www.boots2business.org) including online training in management, writing a business plan and even basic legal training.
From their website: “Boots to Business is a program offered by the Whitman School of Management at Syracuse University (SU) in cooperation with the SBA and is operated by SU’s Institute for Veterans and Military Families (IVMF). It is a three phase training program developed to introduce and train transitioning service members to business ownership.”
The training actually begins during the Transition Assistance Program (or TAP) course, which is a requirement for all service members separating from the military.
Another similar program is the Veteran Business Fund (VBF).
This not-for-profit organization was created in response to the high unemployment rate among veterans and assists applicants by providing supplemental capital required to satisfy the equity requirements for a small business loan.
The VBF provides capital to veterans in the form of a non interest bearing loan with very favorable repayment terms. More information can be found on their website www.veteransbusinessfund.org
Still another organization helping vets start businesses is Entrepreneurship Bootcamp for Veterans with Disabilities (EBV).
They offer management and business training specifically to post-9/11 veterans with disabilities resulting from their service. Their training is offered through a partnership with several educational institutions including Syracuse University, Florida State University, Texas A&M and others. More information is available at their website www.whitman.syr.edu/ebv/
There are as many resources available to veterans who aspire to become business owners as there are business opportunities in Washington state. With a variety of programs and organizations offering free assistance and the availability of financial aid there is no reason why any veteran who wants to should be unable to start their own business legacy.