A short term loan can help you get back on your feet, protect your family, or stay afloat during a difficult time. There are several short term loan programs that reward veterans with better loan terms. Explore your options for getting temporary financial assistance from a lender.
Military & Nonprofit Grants and Loans for Veterans
Army Emergency Relief handed out $71 million of emergency funds in 2015. Both retired and active duty military professionals are able to apply for grants, loans, or a combination of both. Money can be used to cover healthcare costs, apartment rental, furniture, mortgage, home repairs, funeral expenses, and other costs.
The loans from the Army Emergency are interest-free and come with no hidden fees.
Post-9/11 service members, active and veteran, can apply for emergency food and utility assistance from USA Cares. The average loan size is $650, and applications are reviewed regularly so that all eligible veterans and their families can get the assistance they need.
The American Legion offers immediate financial help after a natural disaster, and vets who are Legionnaires can apply. While the funding is only intended to provide for shelter, food, water and necessities, it may be just what you need out of a short-term loan.
The VFW (Veterans of Foreign Wars) offers an “Unmet Needs Loan Program” intended to provide short-term, immediate assistance to veterans, active duty service members, and their families. Vets must be able to prove emergency financial hardship or ongoing financial hardship as a result of service injuries to apply. Unmet Needs loans can be used for “basic life need” expenses such as medical care, child care, food, clothing, mortgage or rent, home repairs, or vehicle repairs.
Unmet Loans funds are gifted in an amount up to $5,000 per veteran. As a gift, they do not need to be repaid.
Emergency Business Loans From the Government
If you are a veteran who owns their own business, you may be eligible for an emergency business loan from The Department of Transportation. The DOT also provides short-term loans for disabled veterans who own businesses; however, funding cannot be used to pay taxes, purchase equipment, or refinance debt.
The Small Business Administration offers a number of loans for veterans, varying in rates and dollar amounts. Vets who apply for SBA funding may be eligible for a waiver of the typical loan guaranty fee. Besides loans, the SBA also offers a plethora of cost free resources for veterans, from writing a business plan, to filing for licenses and permits, to hiring employees and providing employee benefits, there’s definitely a lot to look into prior to starting your own business. The organization even has business mentors available who may be able to help you navigate your course.
These are just a sampling of the government loans vets for which may qualify. Veterans can answer a comprehensive quiz and get matches with government loans that meet their needs.
Many banks offer short term loans and/or lines of credit based on your personal credit history and your history with the financial institution. Such loans tend to have higher APRs than long term loans and rates will vary based upon your credit history.
If you are looking for a short term loan for your business, borrowing costs will generally be high in order for the bank to cover their risk. Most large banks, small banks, and even credit unions offer short term loans. Some lenders may also have special incentives for veterans.
Of course, you always have the option of applying for a private loan. Loans from private lenders vary in their terms, interest rates, and repayment instructions. Before you accept a private loan, or any loan for that matter, be sure to review the terms carefully to make sure you understand your rights and obligations. Then, select the lending source that best meets your needs and outlay a realistic, executable repayment plan prior to accepting the loan offer.