By Fernando Berrocal

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Military veterans can apply for a variety of business programs that provide both capital and education.  Regardless of age - or expertise - such initiatives provide a great launchpad for entrepreneurial endeavors.  Veterans can apply for veteran business grants when they decide they want to start a business–or need assistance launching.

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Despite being a select minority, veteran entrepreneurs have a big effect in today's world of small businesses.  Nationwide, around 2.5 million small enterprises are owned by veterans and represent 9.15% of all businesses in the USA. Many different types of organizations such as Federal Agencies, Non-Governmental Organizations, and others help military entrepreneurs.  Small business grants for veterans are intended as a gesture of appreciation for their service to the nation.  

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Veterans may find it challenging to qualify for small business funding after their military service.  They could need financing, just like other owners, to launch or grow their endeavor. This procedure can be assisted by a variety of government business centers, organizations, programs, and independent platforms. Here are eight reliable grants and tools for entrepreneurial veterans (or their family members).

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• Veteran Readiness Program and Employment Opportunities: Veterans with service-related disabilities may qualify for grant financing and training to establish/expand their organizations.  Veterans who wish to participate must complete an application to determine eligibility. Then, they will attend an introductory meeting to learn more about the program (if they satisfy the qualifying conditions).

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• Foundation StreetShares: This is a non-profit organization that "inspires and educates the military entrepreneurship community." Founded by veteran entrepreneurs and supporters, it promotes military-owned businesses through its funding programs. Veterans can get awards up to $15,000. The applicant's professional and personal past plays a significant role in evaluating whether they qualify for grant money. It also provides a loan application online. Veterans control the online loan platform StreetShares Foundation. The platform provides three different loan kinds: contract financing, lines of credit up to $250,000, and term loans up to $250,000.

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• Small business grants from Warrior Rising: A nonprofit group that supports veteran entrepreneurs by providing them with training, workshops, and grants to assist with initial costs. After completing a phone interview, a staff member will speak to you about your background and ask you to enroll in an online course. Subsequently, Warrior Rising will offer mentoring and help with locating grant funding options.

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• Disaster Loan for Economically Injured Military Reserve: Businesses unable to fund their operating costs as a result of an owner's deployment to active duty can apply for a "Military Reservist Economic Injury Disaster Loan" (MREIDL) from the Small Business Administration (SBA).  Until the owner returns from duty, funds can be utilized to support working capital. Unlike other SBA loans, this initiative does not rely on an intermediate lender. Instead, funding is given directly by the SBA. Up to $2 million in MREIDL loans are available, with 30-year payback periods and an interest rate of 4.4 percent.

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• Program for Small Business Owners (Veterans with Disabilities): Three percent of the federal government's annual budget for contracts is reserved for service-disabled veteran-owned businesses. Your firm must fulfill these standards to be eligible:

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• For an official definition of a “small business”, consult the SBA.
• One or more handicapped veterans must possess at least 51% of the assets of the business.
• The operations must be overseen by 1 - 3 handicapped veterans (making long-term choices for the business).

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If your business fits the criteria, register on SAM.gov.  The government uses this online system to let companies submit applications for federal contracts.

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• Office of Small and Disadvantaged Business Utilization (OSDBU): The Office of Small and Disadvantaged Business Utilization is supervised by the Department of Veterans Affairs. Veterans can find opportunities to work on government contracts thanks to this specific resource. They can get help from OSDBU with funding, launching, and operating.  Make sure to check out the Entrepreneur Portal. It assists business owners in locating federal contracts, training and employment initiatives, and franchise possibilities.

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• Small Business Innovation Research (SBIR): The SBIR offers grant assistance to firms that develop technical advancements–and it’s open to veterans! SBIR grants fall into two categories: Phase 1 and 2. Businesses wanting to increase their economic viability through financial aid may apply for grants from the first phase. These non-dilutive donations have the highest value ($150,000). If you have been given a Phase 1 grant, you will be qualified for the second phase.  When Phase 1 work completes, you may be qualified for up to $1,000,000 during the next two years (Phase 2). Note: your business must be a for-profit firm with at least 500 workers and be owned mostly by U.S. citizens.

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• Boots to Business: Under the Department of Defense Transition Assistance Program, the SBA provides this training. It instructs veterans and their partners in business. It is separated into: “Business to Business (B2B) Revenue Readiness" and "Introduction to Entrepreneurship".  Through these courses, participants gain the knowledge and experience needed to start a successful business. The curriculum focuses on how to obtain startup funding and the principles of contracting. 

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A few things to keep in mind before submitting grant applications for your veteran-owned business: 

• First, verify your eligibility. It's crucial to learn everything about veteran-business grant qualifying standards. Different criteria must be met to qualify for the different small business grant programs. 
• You should anticipate that eligibility for veteran funding programs will be exclusive to veterans with an honorable discharge. Others are solely accessible to the close relatives of the veterans. Note: there are also programs intended solely for service-disabled entrepreneurs.
• Make sure to have a plan beforehand. As a military veteran, you are accustomed to being punctual!  Planning for grant applications is essential since time is of the essence when you’re in business–and a wait will most likely be involved.  Applications for grant programs are more selective, and thus take longer to complete. You must schedule your time months before the grant deadline to make sure your application is finished on schedule.

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Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.

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