VA Small Business Loan for REI

10 Replies

Good morning everyone!

When I was getting out of the military, I had to take a week long course that showed what benefits were out there for Veterans. One of those benefits was owning a Small Business, and the VA being able to help Veterans obtain that business.

I was recently listening to a BiggerPockets Podcast (can't recall the episode) but there was mention of using a VA Small Business Loan for REI. Since the VA Home Loan does not allow for Commercial Real Estate investing (5+ Units). This led me to a couple of questions.

1). Does anyone own a VA Small Business that operates on REI and what benefits does it provide?

2). Does the VA provide loans to Small Businesses and can it be used to purchase Commercial Real Estate Property that is more that 5+ Units?

Look forward to hearing back from this awesome community!

Thank you,

Mike Glatter

Michael - I have been looking into this myself but I am still active, not entitled to the small business loans you may have came across in TAPS. However, my spouse is for some odd reason, just not the active member.

I believe you're referring to the Small Business Administration's Patriot Express loans. You can take a loan up to 500k for small business deals. I'd check the SBA website for more information on terms. For larger purchases, there is a SBA 7a loan for up to 5 million that is geared towards veterans. There is also a specific Real Estate and Equipment loan entitled CDC 504. I don't have much more info for you, I've just very briefly researched these options in the past.

Originally posted by @Michael Glatter :

Good morning everyone!

When I was getting out of the military, I had to take a week long course that showed what benefits were out there for Veterans. One of those benefits was owning a Small Business, and the VA being able to help Veterans obtain that business.

I was recently listening to a BiggerPockets Podcast (can't recall the episode) but there was mention of using a VA Small Business Loan for REI. Since the VA Home Loan does not allow for Commercial Real Estate investing (5+ Units). This led me to a couple of questions.

1). Does anyone own a VA Small Business that operates on REI and what benefits does it provide?

2). Does the VA provide loans to Small Businesses and can it be used to purchase Commercial Real Estate Property that is more that 5+ Units?

Look forward to hearing back from this awesome community!

Thank you,

Mike Glatter

 Sounds like you had a better TAPS experience than I did!

Mine basically consisted of a guy that was in no way qualified to teach the course, trying to teach us how to get cushy gov't jobs that we were in no way qualified for (like he did... teaching that course).

@Matthew Spyker Thank you for your reply! I did find something on the eBenefits page in regards to the Patriot Express loans, but the link I clicked on did not take me to anything that had Patriot Express in the website. I'll look further into the other methods that you have suggested. If I find anything, I'll be sure to update this post and thanks again!

I too am interested in doing a VA/SBA loan (7a/504) for multifamily. I understand (perhaps incorrectly) the Patriot Express loans have mostly gone away. Anyone have info on this would be greatly appreciated.

Hi @Michael Glatter .  I looked into this previously and I'm pretty sure it's a no-go- here's why:

For SBA 7(a)

Ineligible Businesses:

  • Businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except when the property is leased to the business at zero profit for the property’s owners)

For Real Estate and Equipment Loans (CDC/504):

Use of CDC/504 Loan Proceeds

A 504 loan can be used for:

  • The purchase of land, including existing buildings
  • The purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
  • The construction of new facilities or modernizing, renovating or converting existing facilities
  • The purchase of long-term machinery and equipment

A 504 loan cannot be used for:

  • Working capital or inventory
  • Consolidating, repaying or refinancing debt
  • Speculation or investment in rental real estate

I'm interested in the podcast where someone used it-does anyone know which one?

I believe it was briefly mentioned in podcast #23.  The vet (guest) mentioned it but I think he said the loans didn't really for for his business.  I'm not sure if it's mentioned again in a different podcast.

I have been looking for the same stuff and came across this thread.

I also had the same bad exit experience when my time was over. The person talking about benefits was knowledgeable enough to give the right information, and as much as was given, I agree, it was overwhelming. 

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