KEY TAX BENEFITS FOR VETERAN-OWNED BUSINESSES THAT YOU SHOULD KNOW
Veterans are naturally adept at managing a business because they develop the necessary abilities while serving in the military. Since many Veterans have successfully transitioned from active duty to entrepreneurship, it is important they know how to manage a business. Many are aware of the Veteran benefits for spouses, but do they also know that they can get other benefits when they own a business?
Veteran-owned businesses face the same problems that other companies go through. With this in mind, there are tax benefits for Veteran-owned businesses that can assist in growing one's company. Numerous training programs, certifications, and loan options are available to help any Veteran grow their business, so it is necessary that they know these things.
Tax Benefits for Veteran-Owned Businesses
There are certain benefits available to Veterans who run their own businesses that they might not be aware of. Small companies, some of which are owned by veterans, are the foundation of our economy. The government believes it is only right to honor Veterans' sacrifices and service by giving them access to the resources they require and offering them numerous perks along the road. Here are some notable ones:
SBA Veterans Advantage 7(a) Loan
The Small Business Administration is the provider of this loan program. It ultimately comes down to assisting veterans in launching and expanding their own companies.
This loan is popular since it has low interest rates, doesn't demand an upfront guarantee for loans under $125,000, and offers 50% off the charge for loans between $125,000 and $350,000.
Veterans will be able to recruit staff, buy or rent real estate, invest in supplies and equipment, and much more, thanks to this instant access to money.
Government Contracts With the VA
Special government contracts are reserved only for Veteran-owned small businesses. This particular access is provided through the Veterans First Contracting Program. This is supported by the U.S. Department of Veterans Affairs. As a member of the Vets First Verification program, they must be confirmed, but it's an easy process.
After verification, they’ll have access to connections that are exclusively open to veteran-owned businesses, increasing their chances of landing a good contract compared to competing with the general public.
The Program for Service-Disabled VSOB
Since it only serves Veterans who suffered disabilities while serving, this program is even more specialized than the first government contracting program. They have exclusive access to a specific 3% of government contracts that are out for bid.
Naturally, there are requirements for this, such as the fact that at least one employee must be service-disabled and actively participate in daily operations and long-term business choices (managers or leaders). However, make sure to mention that the handicap must be relevant to the service.
Program for Economic Injury Disaster Loans to Military Reservists
Under this unique initiative, businesses can be eligible for special loans in the event that one of their employees is called to active duty. Although there are limitations, such as the requirement that the employee be considered essential, you could be eligible to receive up to $2 million in loan funding just because you have essential employees who are called up for active duty.
Tips for Veteran-Owned Business Success
Since every company is different from each other, their needs will also vary. Veterans now have access to a wealth of resources thanks to these programs, so it is only a matter of sustainability. Accordingly, these are some of the best tips for a Veteran-owned small business:
Discover the Best Entrepreneurship Practices: With the help of the SBA Learning Center's online course catalog and the accessible business fundamentals courses, you may apply this skill to your company and educate yourself. Everything from social media marketing to pricing tactics and everything in between will be covered.
Use Your Existing Network of Resources: Every small firm operated by veterans has a far wider network than they realize. Think about using every networking opportunity available to you, including Meetups, LinkedIn groups, and even your fellow Veterans who own a business.
Choose a Cause or Mission: Many Veterans have a strong sense of purpose and seek opportunities to give back or even pay it forward. Build the company of your dreams if you can discover a method to launch a business while giving back to the community or military.
These are just some of the tips so that they can truly take advantage of these tax benefits for Veteran-owned businesses. It may seem difficult at first, especially if they’re just starting out, but there are programs that can help Veteran entrepreneurs take the first step until they can stand on their own.
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