Small-Business Loans for Veterans: Top Options and Resources
Small-Business Loans for Veterans: Top Options and Resources
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SBA 7(a) loan
Best for large loan amounts
Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%
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
Est. APR
10.50-14.00%
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
SBA Express loan
Best for SBA loans with veteran discounts
Max loan amount
$500,000
Min. credit score
650
Est. APR
10.50-14.00%
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
Est. APR
10.50-14.00%
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
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
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
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
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
Est. APR
14.00-48.00%
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
Est. APR
14.00-48.00%
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
Est. APR
27.20-99.90%
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
Est. APR
27.20-99.90%
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.
Huntington National Bank Lift Local Business Program
Best for low-cost bank loans
Max loan amount
$150,000
Min. credit score
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.
Huntington National Bank Lift Local Business Program
Best for low-cost bank loans
Max loan amount
$150,000
Min. credit score
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.
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
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
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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- Need emergency funding? Consider a business line of credit.
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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 mission-driven organizations that provide business funding to underserved communities, such as U.S. veterans. Approval 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 options, 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.
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, 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 (IVMF). 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 are 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.
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.
🤓 Nerdy Tip
Interested in applying for a grant? We’ve compiled a list of opportunities for small-business grants for veterans.Alternatives to veteran business loans
When a business loan is not achievable, consider taking out a personal loan for veterans. Banks, credit unions and online lenders offer loans designed for veterans. These may come with discounted interest rates or other benefits specifically for veterans. But unlike some business loans, a personal loan won’t help to build your business credit.
Borrowing from friends and family who support your entrepreneurial vision may be an option, particularly when you’re just starting out. Startup loans can be especially difficult to qualify for if your business doesn’t meet minimum time in business or credit score requirements. Although you may save money on interest, friends and family loans won’t contribute to your business credit history, and you should make sure you have a loan agreement in writing to avoid personal disputes.
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 January 30, 2025
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.
See Your Loan Options
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.