Guest Editorial: SBA Helps Veterans Turn Service into Small Business Success

This Veterans Day, we thank everyone who has served our country, and the families who served alongside them. During National Veterans Small Business Week, Nov. 9–13, we also honor veterans, service members and military spouses who keep serving by building businesses, creating jobs and strengthening their communities.

Military service has shaped a generation of business leaders. The people who protect our country often go on to build its businesses.

The numbers show it. More than 1.8 million veteran-owned small businesses bring in about $1.3 trillion a year, pay $258 billion in wages and employ more than 4 million Americans. Veterans own about 7% of the nation's 632,000 small manufacturers, a larger share than their share of the population.

The SBA's mission is to power the American Dream of entrepreneurship. This administration is putting veterans first and American products first. If you're a veteran, a transitioning service member or a military spouse, the SBA is the place to start.

Training and counseling

Veterans Business Outreach Centers offer workshops, counseling, mentoring and connections to lenders for people who want to start, buy or grow a business.

Boots to Business teaches entrepreneurship on military bases worldwide as part of the Defense Department's Transition Assistance Program. Boots to Business Reboot brings the same training to veterans of all eras, Guard and Reserve members and military spouses in their own communities. Graduates can then take Revenue Readiness, a six-week online course that helps turn an idea into a business.

Veterans can also get free mentoring from SCORE, counseling at Small Business Development Centers and support at Women's Business Centers, which also serve women veterans and military spouses.

Federal contracts

The SBA's VetCert program certifies veteran-owned businesses so they can compete for federal contracts. Veteran-owned businesses can bid on contracts set aside for veterans at the Department of Veterans Affairs. Service-disabled veteran-owned businesses can compete for set-aside contracts across the federal government.

To qualify, veterans generally must own and control at least 51% of the business. Certification doesn't guarantee a contract, but it opens doors. Certified businesses may also be able to get surplus federal equipment through state agencies.

Under SBA Administrator Kelly Loeffler, the SBA cleared a VetCert backlog of more than 2,700 applications and cut average processing time to 12 days. This year, the SBA also announced:

Nearly $5 million to open new Veterans Business Outreach Centers.

$3.75 million to help veteran businesses win federal contracts.

More than $1 million to train veteran entrepreneurs to fill gaps in the defense industry.

Building the defense industry

Earlier this year, the SBA and the U.S. Department of War created the Smaller War Plants Commission. It helps small defense suppliers grow production, cut red tape, close supply-chain gaps and get capital and technical support. For veterans, it's a new way to serve: helping build the American industries, from munitions to drones, that keep our military the strongest in the world.

Access to capital

Veterans can apply for all SBA loan programs:

7(a) loans for working capital, equipment, inventory, real estate or buying a business.

504 loans for long-term, fixed-rate financing for buildings and machinery.

Microloans of up to $50,000 to start or expand.

Talk to your bank about an SBA-backed loan, or use the free Lender Match tool at SBA.gov.

When an essential employee is called to active duty, the Military Reservist Economic Injury Disaster Loan helps the business cover regular operating costs. Payments are deferred for 12 months, with no interest during that first year.

Tax relief

The Working Families Tax Cuts made the 2017 tax rates permanent. The law lets businesses fully deduct new factories, equipment and research costs. It also doubles the equipment expensing cap to $2.5 million, provides estate-tax relief for family businesses and creates new tax breaks on tips and overtime. It raises the employer childcare credit cap from $150,000 to $500,000. And it creates Trump Accounts with $1,000 for each child born from 2025 through 2028.

Take the next step

Veterans lead, adapt and get the mission done. Those same qualities build strong businesses. If you're a veteran, service member or military spouse with a business idea, or a business ready to grow, visit SBA.gov or contact your local SBA district office. To every veteran: thank you for your service. We're proud to serve you in return.