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Here are 7 small-business loans for veterans
| Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
|---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for SBA loans for veterans | $5,000,000 | 650 | with Fundera by NerdWallet |
SBA Express loan with Fundera by NerdWallet | Best for Discounted SBA loans for veterans | $500,000 | 650 | with Fundera by NerdWallet |
Huntington National Bank - Lift Local Business Program | Best for Low-cost bank loans for veterans | $150,000 | Undisclosed | Read Review |
OnDeck - Online term loan with Fundera by NerdWallet | 5.0/5 Best for Fast small-business loans for veterans | $250,000 | 625 | with Fundera by NerdWallet |
Bluevine - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Veteran businesses with bad credit | $250,000 | 625 | with Fundera by NerdWallet |
National Funding - Online Term Loan with Fundera by NerdWallet | 4.0/5 Best for Startup business loans for veterans | $500,000 | 600 | with Fundera by NerdWallet |
Bank of America Business Advantage Secured Term Loan | 4.5/5 Best for Secured loans with discounts for veterans | Undisclosed | 700 | Read Review |
Here are 7 small-business loans for veterans
Best for SBA loans for veterans
Best for Discounted SBA loans for veterans
Best for Low-cost bank loans for veterans
Best for Fast small-business loans for veterans
Best for Veteran businesses with bad credit
Best for Startup business loans for veterans
Best for Secured loans with discounts for veterans
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Our pick for
SBA loans for veterans
Although the SBA doesn’t offer veterans discounted fees for standard 7(a) financing, these loans are a good option for long-term financing with low-interest rates.
SBA 7(a) loan
Max Loan Amount
$5,000,000
Min. credit score
650
Est. APR
11.50-15.00%
7(a) loans are issued by private lenders and backed by the SBA. They offer long repayment terms and low interest rates.
Lowest interest rate
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Discounted SBA loans for veterans
Businesses can borrow up to $500,000 through the SBA’s Express loan program. Upfront guarantee fees are waived for veteran-owned businesses that qualify.
SBA Express loan
Max Loan Amount
$500,000
Min. credit score
650
Est. APR
11.50-15.00%
SBA Express loans are available in amounts up to $500,000 as either a term loan or line of credit. These loans typically fund faster than standard 7(a) loans.
Max loan
$500,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Low-cost bank loans for veterans
Huntington Bank’s Lift Local Business loan program offers reduced fees as well as free entrepreneurial courses for veterans operating small businesses.
Huntington National Bank - Lift Local Business Program
Max Loan Amount
$150,000
Min. credit score
Undisclosed
Huntington National’s Lift Local Business loan program is designed to support minority-, woman- and veteran-owned small businesses from startup and on.
Max loan
$150,000
Min. Credit score
Undisclosed
Our pick for
Fast small-business loans for veterans
OnDeck provides short-term business loans up to $250,000. If approved, you may be able to receive funding as fast as the same day.
OnDeck - Online term loan
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
27.20-99.90%
OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.
May fund quickly
Max loan
$250,000
Min. Credit score
625
Apr range
27.20-99.90%
Our pick for
Veteran businesses with bad credit
Bluevine offers business lines of credit up to $250,000. You need a minimum credit score of 625 to qualify.
Bluevine - Line of credit
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
Bluevine's 26-week line of credit provides fast working capital for short-term borrowing needs.
May fund quickly
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
Our pick for
Startup business loans for veterans
National Funding offers term loans between $5,000 and $500,000. You may be able to qualify with a credit score of 600 or higher.
National Funding - Online Term Loan
Max Loan Amount
$500,000
Min. credit score
600
Borrowers who can't qualify for more traditional loan options might consider National Funding for fast access to capital.
Max loan
$500,000
Min. Credit score
600
Our pick for
Secured loans with discounts for veterans
Bank of America offers secured term loans with a 25% discount on loan administration or origination fees for eligible veterans.
Bank of America Business Advantage Secured Term Loan
Max Loan Amount
Undisclosed
Min. credit score
700
Bank of America offers secured business loans with repayment terms up to four or five years — depending on the type of collateral you provide.
Max loan
Undisclosed
Min. Credit score
700
Types of small-business loans for veterans
Veteran small-business loans are available through banks, alternative lenders, nonprofit organizations and the SBA.
SBA Express loans
Veterans can borrow up to $500,000 through the SBA’s Express loan program. Upfront guarantee fees are waived for veterans, reservists, National Guard members and spouses who qualify.
SBA Express loans also have a quicker turnaround time than other SBA loans but the underwriting criteria can be strict. You’ll likely need a minimum FICO score of 650, strong annual revenue and at least two years in business to get an Express loan.
Military reservist loans
The Military Reservist Economic Injury Disaster Loan (MREIDL) is a program through the SBA that can provide financial assistance if you have an essential employee who is a military reservist and gets called to active duty. The maximum loan amount is $2 million and funds can be used to cover regular business operating costs. The loan amount is limited to the actual economic impact incurred and it can’t be used to start or expand a business.
SBA 7(a) loans
Although the SBA 7(a) loan program does not offer any specific benefits for veterans, these loans are a great option if you need a larger loan amount than the Express program offers. SBA 7(a) loans can have maximum loan amounts as high as $5 million and loan terms as long as 25 years, in some cases.
SBA Community Advantage loans
The SBA Community Advantage loan program, which was designed to provide funding to underserved business owners, including veterans, was discontinued on Sept. 30, 2023. However, lenders that were involved in the program and applied to become Community Advantage Small Business Lending Companies (CA SBLCs) will be able to issue regular 7(a) loans under this new license and can continue to prioritize funding for veteran borrowers (and others).
Bank and credit union business loans for veterans
Business loans from banks and credit unions typically have the lowest interest rates and best terms, but they can be difficult to access. Many banks require that you have several years in business, a credit score in the 700s (although high 600s may be considered) and strong revenue to qualify for financing.
If you think your business may be eligible for a bank loan, look for local and national institutions that offer military discounts or other benefits to veteran-owned business:
Additional lenders offering business loans to veterans
You might also consider working with a CDFI, online lender or microlender for your veteran business loan.
Community development financial institutions (CDFIs) are private financial institutions that support targeted underserved communities with loan capital, which for some may include U.S. veterans. Underwriting requirements at CDFIs can be more flexible than banks or online loans.
Some CDFIs that support veteran entrepreneurs can be found through the online platform Veteran Loan Fund. In addition to being matched to a lender, you may also be able to access below-market-rate loan funding and free business coaching. For example, Colorado Enterprise Fund, Inc.'s VALOR Program offers discounted rates for veterans on loans between $5,000 and $500,000.
If you just launched your business, or have a lower credit score (below 690), you might look into online lenders. These lenders tend to have more flexible qualification requirements but higher interest rates.
They offer a variety of products, such as term loans, lines of credit, equipment financing and invoice factoring — and can sometimes provide funding as fast as the same business day.
Nonprofit organizations often focus on funding traditionally underserved businesses in their area, offering smaller loan amounts of up to $50,000.
For example, PeopleFund, a microlender and community development financial institution in Texas, offers fast working capital loans of up to $25,000, as well as other financing options. PeopleFund provides discounts on interest rates for veterans and says 14% of its borrowers are vets.
If you’re a new business or have bad credit, you may still be able to qualify for a microloan.
Are VA business loans available to veterans?
Although the Department of Veterans Affairs (VA) guarantees mortgages through the VA home loan program, it doesn’t have any such program for business loans.
Similarly, the SBA doesn’t offer specific VA business loans either. Currently, fee relief is available to veterans who are approved for SBA Express loans. Under the 2020 CARES Act, the upfront guarantee fee for this specific SBA loan program is permanently fully waived for veteran-owned businesses.
Who can qualify as a veteran-owned business?
To qualify as a veteran-owned business, your business must typically be 51% owned by someone in one of the following categories:
- Active-duty military service members participating in the Transition Assistance Program.
- Honorably discharged or service-disabled veterans.
- Reservists and active National Guard members.
- Current spouse of a veteran, active-duty service member, reservist or guard member.
- Widowed spouse of a service member who died in service or from a service-related disability.
Startup business loans for veterans
Lenders generally prefer to do business with established companies that have strong cash flow. However, veterans with new businesses still have options.
The SBA microloan program caters to startups and businesses in underserved communities. These loans are issued by certified development companies and nonprofit organizations, which often focus on working with businesses owned by veterans, women and minority groups.
If you have good personal credit, alternative options for your startup also include business credit cards and personal loans for business. Both options are typically unsecured, meaning you won’t have to put down collateral — an asset, such as real estate or inventory — to qualify.
How to apply for a veteran small-business loan
The loan application process will vary from lender to lender; however, you'll typically need to provide basic information such as:
- Military identification.
- Background information about your business.
- Business financial documents such as profit and loss statements, tax returns or bank statements.
If you’re applying for a small-business loan that offers discounts for veterans, like the SBA Express loan program, you’ll likely need to provide documentation to show that the business is at least 51% owned by a veteran or their spouse.
You’ll also need to meet general small-business loan qualifications, such as credit score, revenue and time in business. The exact veteran business loan requirements will vary by lender.
While most lenders don’t require you to be certified as a veteran-owned business to apply for a loan, it can open the doors to certain federal government contracts set aside for veteran business owners.
Under the VA's Vets First program, businesses can be certified as veteran-owned. There are two options for Veteran Small Business Certification (VetCert):
Veteran-owned small business (VOSB) certification. Veterans can apply for sole-source and set-aside contracts at the Department of Veterans Affairs.
Service-disabled veteran-owned small business (SDVOSB) certification. Disabled-veterans can apply for federal sole-source and set-aside contracts across the federal government.
Certification eligibility requirements for a veteran-owned business include:
- At least 51% veteran-owned.
- Registered as a small business with SAM.gov.
- Meet SBA's size standards.
In some cases, businesses managed by a disabled veteran's spouse or an appointed, permanent caregiver can also be certified. To apply for certification, visit the Veteran Small Business Certification portal managed by the SBA.
Resources for veteran-owned businesses
Government and nonprofit organizations offer financial resources, grant programs, business training and other assistance for veteran-owned businesses. Here are some of the available resources:
- Veterans Business Outreach Centers. These centers offer workshops, training, counseling and other services to help veteran business owners start, grow and expand their businesses. There are VBOCs across the country — and these organizations can help connect businesses with SBA partners, including community lenders and other resources.
- Veteran entrepreneurship training programs. The SBA works with nonprofit organizations and universities across the U.S. to provide in-depth business training programs for veterans and their spouses. These initiatives include the well-known Boots to Business and Veteran Women Igniting the Spirit of Entrepreneurship programs, as well as the Service-Disabled Veteran Entrepreneurship Training Program, which offers training to service-disabled veteran entrepreneurs looking to start or grow a small business.
- Institute for Veterans and Military Families (IVMR). IVMF is one of the organizations that partners with the SBA to offer veteran entrepreneurship training programs, most of which are free. IVMF offers conferences, summits and other resources to veterans and their families to support their entrepreneurial efforts. Some programs are offered online or available at partner institutions.
- Veteran Federal Procurement Entrepreneurship Training Program. This federal procurement training program is funded by the SBA, the State of Maryland and corporate sponsorships. It’s designed for veteran-owned businesses and available through the Veteran Institute for Procurement (VIP). Five curriculums are available with placement generally based on your level of participation in the federal market. VIP training is free but you will need to complete the course in Washington D.C. Meals and lodging are also provided at no cost, but your travel expenses are your responsibility.
- Office of Small & Disadvantaged Business Utilization. Although the VA doesn’t offer veteran business loans, the OSDBU is a part of the agency that provides a variety of resources for veteran entrepreneurs. Through the OSBDU website, you can find upcoming webinars and training sessions.
- Veteran Readiness and Employment. If you are a veteran with a service-connected disability who is interested in starting a business, assistance is offered through the Veteran Readiness and Employment program, formerly the Vocational Rehabilitation and Employment program. Veterans can get help with developing a business plan, training in marketing, finance and operations and other services.
- Second Service Foundation. The Second Service Foundation, formerly the StreetShares Foundation, is a nonprofit organization dedicated to supporting military entrepreneurs. The organization offers an annual grant program — the Military Entrepreneur Challenge — as well as networking events, coaching, training and other resources for business owners.
Alternatives to veteran business loans
Government agencies, nonprofit organizations and private companies all offer small-business grants for veterans. You can search Grants.gov to find all active government grants for businesses, or use a free website like GrantWatch to filter specifically for grants for vets.
Equity financing differs from debt financing in that you receive capital without taking on a loan. Instead, with equity financing, funding is raised through the sale of shares in your business with investors typically receiving a portion of your future profits. Hivers and Strivers is an angel investment group that invests exclusively in veteran entrepreneurs.
Crowdfunding platforms can be used to raise money for a variety of causes, including your small business. In addition to receiving capital, crowdfunding can also be helpful in promoting your product or services to a wider audience and building a larger customer base.
Last updated on June 26, 2024
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including:
- Transparency of rates and terms.
- Flexible payment options.
- Fast funding times.
- Accessible customer service.
- Reporting of payments to business credit bureaus.
- Responsible lending practices.
We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.
Learn more
Frequently Asked Questions
The Department of Veterans Affairs does not offer VA business loans. Veterans can turn to the SBA Express loan program, which carries no upfront fees for veterans, reservists, National Guard members and their spouses. Veterans can also get small-business loans from banks, credit unions and other lenders.
The Patriot Express loan program was an SBA initiative targeted at providing funding for military veterans. The program launched in June 2007 and was permanently discontinued in December 2013.
There are no specific interest rate discounts for veteran loans through the SBA. Your rate will be dependent on the individual lender that issues your SBA loan.
Veterans looking for startup funding may find online loans and microloans easier to qualify for than bank and SBA loans which typically require multiple years in business. New entrepreneurs who can’t qualify for a business loan might consider a business credit card or personal loan.
Veteran-owned businesses are eligible to have the upfront fees waived for SBA Express loans. Also, certain banks, CDFIs and microlenders offer discounts to veteran-owned businesses or have programs that can make it easier for veterans to qualify for financing. Assistance in the form of financial resources, business training and business grant programs are offered to veterans through government and nonprofit groups.
The SBA Community Advantage loan program ended on Sept. 30, 2023. However, many lenders in the program became Community Advantage Small Business Lending Companies and offer funding through the SBA 7(a) Loan program to underserved groups, including veterans.