Veterans and Entrepreneurship: Navigating Government Grants and Funding

For veterans transitioning to civilian life, entrepreneurship offers an exciting opportunity to apply the skills and discipline developed during military service toward building a successful business. However, one of the biggest challenges in starting or growing a business is securing the necessary funding. Fortunately, veterans have access to a range of government grants and funding opportunities designed to support their entrepreneurial endeavors.

In this blog, we’ll explore the various government grants and funding programs available to veteran entrepreneurs, along with tips on how to successfully apply for these opportunities. Whether you’re just starting out or looking to grow an existing business, understanding these resources can help you secure the capital needed to thrive.

1. Government Grants for Veteran Entrepreneurs

Government grants are one of the most sought-after sources of funding for entrepreneurs, as they don’t require repayment like loans. While competition for grants can be high, several federal programs are designed to support veterans in launching or expanding their businesses.

Key Federal Grant Programs for Veterans:

• Veteran-Owned Small Business (VOSB) Certification The U.S. Small Business Administration (SBA) offers certification for Veteran-Owned Small Businesses (VOSB) and Service-Disabled Veteran-Owned Small Businesses (SDVOSB). While not a grant in itself, this certification can help veterans access government contracting opportunities, which can provide a steady stream of revenue for their businesses.
• SBA Office of Veterans Business Development (OVBD) The SBA’s Office of Veterans Business Development (OVBD) offers various programs and grants to support veteran entrepreneurs. One of their key initiatives is the Veteran Federal Procurement Entrepreneurship Training Program, which provides grants to veterans looking to secure government contracts.
• Grants.gov This is a centralized website that lists all federal government grant opportunities, including those available to veterans. By using specific search filters, veterans can find grants that cater to their unique business needs and service background.
• The StreetShares Foundation The StreetShares Foundation offers the Veteran Small Business Award, a grant program specifically designed to support veteran entrepreneurs. The foundation offers various grant sizes to businesses with strong potential for impact and growth.
• Veteran Readiness and Employment (Chapter 31) Self-Employment Track Veterans with service-connected disabilities may qualify for the Veteran Readiness and Employment (VR&E) Self-Employment Track, which provides financial support and counseling for those seeking to start their own businesses. This program includes grants for essential equipment, supplies, and startup capital.
• Action Step: Visit Grants.gov and the SBA’s Office of Veterans Business Development website to search for current grant opportunities. Take time to carefully review eligibility requirements before applying.

2. Government Loans for Veterans Starting a Business

In addition to grants, veterans can access low-interest government-backed loans to help finance their businesses. While loans must be repaid, government loan programs often offer more favorable terms than traditional bank loans, including lower interest rates and longer repayment periods.

Key Government Loan Programs for Veterans:

• SBA Veterans Advantage Loan Program The SBA Veterans Advantage Loan Program provides loans specifically for veteran-owned businesses. Through this program, veterans can access 7(a) loans and Express Loans, which offer funding up to $5 million for working capital, equipment purchases, and business expansion.
• SBA Express Loan Program The SBA Express Loan Program allows veterans to secure loans up to $500,000 with a faster approval process than traditional SBA loans. Veterans receive reduced or waived fees, making it an affordable option for financing business needs quickly.
• Military Reservist Economic Injury Disaster Loan (MREIDL) The Military Reservist Economic Injury Disaster Loan (MREIDL) program provides low-interest loans to veteran business owners whose businesses have been impacted by the activation of a reservist employee. This loan program helps cover operating expenses and keep the business afloat during challenging times.
• Action Step: Research the SBA’s Veterans Advantage Loan Program and SBA Express Loans to see which option best suits your business needs. Reach out to an SBA-approved lender for guidance on the application process.

3. How to Apply for Government Grants and Loans

Applying for government grants and loans requires careful preparation and a clear understanding of your business goals. Here are some key steps to ensure your application stands out and improves your chances of securing funding:

Step 1: Prepare a Solid Business Plan

A well-developed business plan is essential when applying for grants and loans. This document should clearly outline your business’s mission, target market, revenue model, and growth strategy. Your plan should also include financial projections, such as expected revenue, expenses, and profit margins.

Grant providers and lenders want to see that your business is viable and has a clear path to success. A strong business plan demonstrates your commitment and helps build trust with potential funders.

• Action Step: Take the time to create a detailed and professional business plan. Consider working with a business development center or the SBA for assistance in crafting your plan.

Step 2: Gather Supporting Documentation

When applying for government grants and loans, you’ll need to provide various forms of supporting documentation, such as:

• Proof of military service (e.g., DD Form 214)
• Tax returns for the past few years (if applicable)
• Financial statements, including income statements and balance sheets
• Personal and business credit history

Be sure to review the specific documentation requirements for each grant or loan program before applying, as missing documents can delay the approval process.

Step 3: Highlight Your Veteran-Owned Status

Many government programs prioritize funding for veteran-owned businesses. Be sure to highlight your status as a veteran entrepreneur in your application. If you are applying for Service-Disabled Veteran-Owned Small Business (SDVOSB) grants or contracts, include documentation proving your disability status and eligibility.

• Action Step: Obtain Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Business (SDVOSB) certification through the VA or SBA to improve your chances of securing grants and contracts.

Step 4: Apply Early and Follow Up

Many grant and loan programs have application deadlines or limited funding windows. It’s important to apply early to increase your chances of receiving funding. After submitting your application, follow up with the grant provider or lender to ensure your application is being processed and to address any potential issues.

• Action Step: Mark grant deadlines on your calendar and submit your application well in advance. Don’t hesitate to follow up if you haven’t received a response after a few weeks.

4. Additional Resources for Veteran Entrepreneurs

In addition to grants and loans, several veteran-specific resources can help you navigate the process of starting and growing a business. These resources offer guidance, mentorship, and networking opportunities to help veterans succeed in the entrepreneurial world.

Key Resources:

• SBA’s Boots to Business Program: The SBA’s Boots to Business is an entrepreneurial training program for veterans and military spouses. It offers workshops and classes on business ownership, financial planning, and marketing.
• Veteran Business Outreach Centers (VBOCs): VBOCs provide veterans with business training, counseling, and mentoring services. These centers are a valuable resource for veterans looking to start or grow their businesses.
• Bunker Labs: Bunker Labs is a nonprofit organization that supports veteran entrepreneurs through networking, education, and startup programs. They offer accelerator programs that provide mentorship and resources for veterans launching businesses.
• Action Step: Enroll in the Boots to Business program or visit your local Veteran Business Outreach Center (VBOC) for free training and mentorship.

Conclusion

For veterans looking to transition into entrepreneurship, there are numerous government grants, loans, and resources available to help you secure the funding needed to start or grow your business. From SBA loans to veteran-specific grants, these opportunities can provide the capital and support to turn your business vision into reality.

By preparing a strong business plan, gathering necessary documentation, and utilizing resources like Veteran Business Outreach Centers, veterans can successfully navigate the process of applying for grants and loans. With determination and the right support, veterans can build thriving businesses that contribute to their communities and honor their service.