Until the necessary fundraising is complete, no applications are being accepted. Please check back to learn when applications will be accepted. The below information is provided to clarify how the Veterans Business Fund will work once it begins accepting applications.
HOW IT WORKS
Veterans Business Fund (VBF) was created to help Veterans who are ready and able to become small business owners or expand their businesses, but lack the required equity capital to qualify for small business loans. At this time the VBF is raising the required donated capital to execute on its mission. Until the necessary fundraising is complete, no applications will be accepted. The following "Frequently Asked Questions" explain how the Fund will work.
WHO SHOULD APPLY FOR THE VETERANS BUSINESS FUND ONCE IT STARTS ACCEPTING APPLICATIONS?
At this time, no applications are being accepted. Once the VBF is accepting applications, the only applications that will be accepted are from Veterans seeking to fund an existing or new business who have been unsuccessful in securing bank financing due to the lack of equity. As part of the application, a Veteran is required to evidence that a bank loan would have been approved, but for the lack of equity.
DOES THE VBF ISSUE GRANTS OR GIFTS?
VBF is a not-for-profit organization designed to offer loans to Veterans on favorable terms. All principal paid into The Fund will be available to future Veterans applying for loans.
What are the terms on VBF loans?
The VBF loans will be non-interest bearing to the extent permitted by law and repayment will be scheduled in a manner and over a term designed to meet the projected needs of the business and the senior loan. Generally the loans will be for a term of five years or longer. VBF will generally require the applicant to supply at least 50% of the equity capital required.
WHERE DOES THE VBF SOURCE ITS CAPITAL FROM?
VBF secures its capital from contributions made by generous donors -- individuals, corporations, and foundations. To donate click here.
HOW DOES THE APPLICATION PROCESS WORK?
At this time, the VBF is not accepting applications. When the VBF is ready to accept applications, Veterans should first apply to a lending institution of their choice for a business loan. For assistance in finding a participating lending institution you can contact your local SCORE chapter or VBF. The lender will specify the amount of equity required for the loan. After receipt of the requirements from your lending institution you should contact the VBF. The application process captures detailed information in order to make informed decisions about who is eligible. Information required may include: a business plan, historical tax returns, a personal financial statement, and more. Following receipt of a full financing request, VBF will issue a decision within 3 weeks.
IS THERE A GUARANTEE THAT VETERANS WILL RECEIVE FUNDING?
Applying to VBF is not a guarantee of securing capital. However, any Veterans who apply, who the Fund is unable to support with capital, will be offered a connection for free small business counseling from a local SCORE (www.score.org) chapter.
CAN A LOAN FROM THE VBF BE COMBINED WITH OTHER CAPITAL, SUCH AS AN SBA OR CONVENTIONAL LOAN?
VBF is designed to help Veterans secure additional capital. For example, consider a Veteran who needs $100,000 to start a new business, but only has $12,500 in savings. The Fund could offer this Veteran $12,500, then help him or her secure a $75,000 SBA or conventional bank loan, resulting in the total needed capital of $100,000.
CAN THE VBF BE USED FOR A FRANCHISE BUSINESS?
VBF is designed to help Veterans achieve small business ownership through both franchising and independent business ventures. Franchising, with its focused training opportunities, defined structure and systems, and requirement for operational excellence, is an ideal pathway for achieving small business ownership. For this reason, VBF has aligned with VetFran a program of the International Franchise Association. Again, VBF supports Veterans seeking capital for independent businesses as well.
Thank you for your interest in applying to or supporting Veterans Business Fund. VBF is a recognized 501C3 Charity and donations will be tax deductible pursuant to section 170 of the Internal Revenue Code.
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