Small-Business Loans for Veterans: Top Options and Resources
The U.S. Department of Veterans Affairs doesn’t offer VA business loans, but traditional, SBA, nonprofit and alternative lenders do.
Nearly 5% of U.S. employer small businesses are veteran-owned, according to data released from the U.S. Census Bureau in December 2024small-business loans
Types of small-business loans for veterans
SBA Express loans
Veterans can borrow up to $500,000 through the SBA’s Express loan program.
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
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
Bank and credit union business loans for veterans
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:
- Navy Federal Credit Union.
Navy Federal Credit Union - Huntington Bank. Huntington Bank has a business loan program available to veterans where the origination fee is waived and the bank covers the borrower’s SBA fees.
- Bank of America. Bank of America offers veterans a 25% discount on loan administration or origination fees for certain small-business loans, including secured business loans and commercial real estate loans.
- Service Credit Union. Service Credit Union also caters specifically to veterans, active duty military members, as well as Department of Defense employees. It offers SBA loans, lines of credit, equipment financing, commercial mortgages and commercial vehicle loans.
- Community banks. California Bank & Trust and Zions Bank are examples of community banks that have small-business diversity programs for veteran-,
women- minority- LGBTQ-owned small businesses
Are VA business loans available to veterans?
Although the U.S. Department of Veterans Affairs (VA) guarantees mortgages through the VA home loan program
Who can qualify as a veteran-owned business?
There are 1.6 million veteran-owned businesses in the U.S., according to data released by the Census Bureau in 2024
- 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.
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We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Max loan amount
$5,000,000
Min. credit score
650
Min. annual revenue
Undisclosed
See Your Loan Options with Fundera by NerdWallet
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA 7(a) loan
Best for large loan amounts
Max loan amount
$5,000,000
Min. credit score
650
Min. annual revenue
Undisclosed
with Fundera by NerdWallet
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Max loan amount
$500,000
Min. credit score
650
Min. annual revenue
Undisclosed
with Fundera by NerdWallet
Pros
- Can choose between term loan and line of credit.
- Competitive interest rates and long repayment terms.
- Faster turnaround times than other SBA loans.
- Government guarantee makes it somewhat easier to qualify compared to conventional business bank loans.
Cons
- Loan amounts max out at $500,000.
- Can still be difficult to meet minimum eligibility requirements.
- May still take a total of 30 days or more to receive funding.
SBA Express loan
Best for SBA loans with veteran discounts
Max loan amount
$500,000
Min. credit score
650
Min. annual revenue
Undisclosed
with Fundera by NerdWallet
Pros
- Can choose between term loan and line of credit.
- Competitive interest rates and long repayment terms.
- Faster turnaround times than other SBA loans.
- Government guarantee makes it somewhat easier to qualify compared to conventional business bank loans.
Cons
- Loan amounts max out at $500,000.
- Can still be difficult to meet minimum eligibility requirements.
- May still take a total of 30 days or more to receive funding.
Max loan amount
$1,500,000
Min. credit score
570
Min. annual revenue
$240,000
with Fundera by NerdWallet
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Fora Financial - Online term loan
Best for bad credit borrowers
Max loan amount
$1,500,000
Min. credit score
570
Min. annual revenue
$240,000
with Fundera by NerdWallet
Pros
- Cash can be available quickly.
- Get a discount for prepaying.
- No collateral required.
- Low minimum credit score requirement.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Can’t build business credit.
- Longest loan term is 18 months.
- Charges an origination fee.
Max loan amount
$500,000
Min. credit score
600
Min. annual revenue
$250,000
with Fundera by NerdWallet
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Short-term loans require daily or weekly repayment.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
National Funding - Online term loan
Best for startup business owners
Max loan amount
$500,000
Min. credit score
600
Min. annual revenue
$250,000
with Fundera by NerdWallet
Pros
- Funding in as little as 24 hours.
- Prepayment discounts available.
- Offers loans to startups and borrowers with bad credit.
- No collateral or down payment required.
Cons
- Charges a factor rate that makes it more difficult to compare costs with other lenders.
- Short-term loans require daily or weekly repayment.
- Requires higher annual revenue than other online lenders.
- Misleading website marketing: National Funding offers only short-term loans and equipment financing/leasing.
- Charges an origination fee.
Max loan amount
$250,000
Min. credit score
625
Min. annual revenue
$120,000
with Fundera by NerdWallet
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Bluevine - Line of credit
Best for fast and flexible funding
Max loan amount
$250,000
Min. credit score
625
Min. annual revenue
$120,000
with Fundera by NerdWallet
Pros
- Cash can be available within 12 to 24 hours.
- Can be used to build business credit.
- Low minimum credit score requirement.
Cons
- Requires weekly payments.
- Not available in North Dakota, South Dakota or Nevada.
- Rates can be high compared with traditional lenders.
Max loan amount
$250,000
Min. credit score
625
Min. annual revenue
$100,000
with Fundera by NerdWallet
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
OnDeck - Online term loan
Best for short-term loans
Max loan amount
$250,000
Min. credit score
625
Min. annual revenue
$100,000
with Fundera by NerdWallet
Pros
- Cash can be available within the same business day (does not apply in California or Vermont).
- Accepts borrowers with a minimum credit score of 625.
- Streamlined application process with minimal documentation required.
- Can be used to build business credit.
Cons
- Cannot fund North Dakota-based businesses.
- Requires frequent (daily or weekly) repayments.
- Interest rates can be high compared with traditional lenders.
- Charges origination fee.
Pros
- Loans starting as low as $1,000.
- No origination fees.
- SBA loans offered with SBA fees paid by Huntington.
- Free financial entrepreneurial courses.
Cons
- Low maximum loan amounts.
- Program only available in certain U.S. states.
- Limited information on terms and fees available online.
Huntington National Bank Lift Local Business Program
Best for low-cost bank loans
Max loan amount
$150,000
Min. credit score
Undisclosed
Min. annual revenue
Undisclosed
Pros
- Loans starting as low as $1,000.
- No origination fees.
- SBA loans offered with SBA fees paid by Huntington.
- Free financial entrepreneurial courses.
Cons
- Low maximum loan amounts.
- Program only available in certain U.S. states.
- Limited information on terms and fees available online.
Pros
- Competitive interest rates.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Strong eligibility criteria required.
- Can be slow to fund.
- Application cannot be completed online.
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
Bank of America Business Advantage Secured Term Loan
Best for secured loans with discounts for veterans
Max loan amount
$250,000
Min. credit score
700
Min. annual revenue
$250,000
Pros
- Competitive interest rates.
- Bank of America’s Preferred Rewards program can offer interest rate discounts and other perks.
- Fee discounts available for veteran-owned businesses.
Cons
- Strong eligibility criteria required.
- Can be slow to fund.
- Application cannot be completed online.
- Charges an origination fee.
- Prepayment fees may apply to early repayments.
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our guide
Additional lenders offering business loans to veterans
You might also consider working with a CDFI, online lender or microlender for your veteran business loan.
CDFIs
Online lenders
Microlenders
Looking for a grant, instead? Check out our list of small-business grants for veterans
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
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.
How to get certified as a veteran-owned business
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 - 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 Veteran Women Igniting the Spirit of Entrepreneurship Institute for Veterans and Military Families Veteran Federal Procurement Entrepreneurship Training Program Office of Small & Disadvantaged Business Utilization Veteran Readiness and Employment Second Service Foundation Military Entrepreneur Challenge
Business grants for veterans
Government agencies, nonprofit organizations and private companies all offer small-business grants for veterans.
Unlike a veteran business loan, a veteran grant does not need to be repaid and won’t have an effect on your credit rating. These appealing aspects make the veteran grant landscape highly competitive. Not to mention, the application process tends to be long and involved, and it may take a while to receive your funding. 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.
🤓
Interested in applying for a grant? We’ve compiled a list of opportunities for Nerdy Tip
Alternatives to veteran business loans
Personal loans
Friends and family loans
Equity financing
Crowdfunding
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 Oct. 31, 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.
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 editorial guidelines