It doesn't matter what branch of the
service you served in. It doesn't matter what rank you
attained. If you served as part of the United States forces at any
time, you are now eligible for discounted business loans in New Jersey.
As of June 2006, eight New Jersey
community banks agreed to offer loan discounts to former service members
at the urging of the Small Business Administration's New Jersey District
Office.
The federal SBA, which guarantees a
portion of business loans made by private banks, helps many borrowers who
might otherwise have a difficult time securing credit. The SBA encourages
participating banks to reach out to blacks, Hispanic Americans,
Asian-Americans, women and veterans. And while SBA loans to minorities
have risen in New Jersey over the years, loans to veterans have declined
recently.
The benefit varies from bank to bank, and
at this time none of the larger banks are participating in the
program. So head on over to some of the smaller banks in New Jersey
for the SBA business loans for veterans: Lakeland Bank in Oak Ridge,
First Washington State, New Millennium Bank, Skylands Community Bank,
Somerset Valley Bank and The Bank of Woodbury.
The discount offers vary from bank to
bank. One bank is offering a choice of a one-percentage-point rate cut or
a waiver of the loan guaranty fee, which is 2 percent of the loan amount
on smaller loans and is typically paid by the bank to the SBA, and passed
on to the customer.
Another bank is offering SBA loans to
veterans at its prime rate, currently 8 percent, instead of the usual 2.5
percentage points above prime.
It's a great perk for our veterans.
The SBA business loans for veterans should have been put in place decades
ago. I am glad that it is there now.
