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Here are 6 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 |
PNC Bank - Line of credit | Best for Bank business loans for veterans | $100,000 | 720 | 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 Business loans for veterans with bad credit | $250,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Startup business loans for veterans | $150,000 | 600 | Read Review |
Here are 6 small-business loans for veterans
Best for SBA loans for veterans
Best for Discounted SBA loans for veterans
Best for Bank business loans for veterans
Best for Fast small-business loans for veterans
Best for Business loans for veterans with bad credit
Best for Startup business loans for veterans
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) program participants include specialized lenders like Live Oak Bank and big-name traditional banks like Wells Fargo.
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 up to $500,000 as either a term loan or line of credit.
Max loan
$500,000
Min. Credit score
650
Apr range
11.50-15.00%
Our pick for
Bank business loans for veterans
PNC offers business lines of credit up to $100,000 that are well-suited for experienced business owners with strong credit.
PNC Bank - Line of credit
Max Loan Amount
$100,000
Min. credit score
720
Est. APR
15.99-17.99%
PNC offers a revolving line of credit that works similarly to a credit card, but you’ll need excellent credit and multiple years in business to qualify.
Max loan
$100,000
Min. Credit score
720
Apr range
15.99-17.99%
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
35.40-99.90%
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
35.40-99.90%
Our pick for
Business loans for veterans with bad credit
With Bluevine, you can get a business line of credit up to $250,000. You may be able to qualify with a credit score of 625 or higher.
Bluevine - Line of credit
Max Loan Amount
$250,000
Min. credit score
625
Est. APR
20.00-50.00%
Bluevine's 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
Fundbox offers quick funding up to $150,000. You may be able to qualify for a loan from Fundbox with a minimum of six months in business.
Fundbox - Line of credit
Max Loan Amount
$150,000
Min. credit score
600
Est. APR
10.10-79.80%
Fundbox offers a business line of credit to fill a cash flow gap, and qualifying is easier than with other lenders.
May fund quickly
Max loan
$150,000
Min. Credit score
600
Apr range
10.10-79.80%
Typically, to qualify for a veteran business loan, your business must be majority owned by a veteran or their spouse.
For example, to be eligible for the Veterans Advantage program, your business must be at least 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.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.
The Department of Veterans Affairs, or VA, does not guarantee business loans the way it guarantees mortgages through the VA loan program.
However, the term “VA business loans” may refer to the SBA’s Veterans Advantage program. The VA program waives upfront guarantee fees for veterans and their spouses on SBA Express loans.
After the program launched in 2014, it was renewed in subsequent years and made permanent by the 2020 CARES Act for SBA Express loans. The Veterans Advantage program also used to offer reduced or eliminated fees on SBA 7(a) loans for veteran-owned businesses, but Congress hasn’t authorized those discounts since the 2018 fiscal year.
Lenders generally prefer to do business with established companies that have strong cash flow. This often disqualifies startups with less than a year of operating history and little revenue.
However, veterans and other new business owners aren't completely out of luck.
The SBA microloan program and Community Advantage loan program both cater 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 typically provide up to $50,000 in revolving credit, meaning you can borrow and repay from the credit card as needed, and pay interest only on withdrawn funds.
- Personal loans for business offer a lump sum of cash, with a fixed interest rate and repayment terms. But you’ll be on the hook for repayment, not your business.
Both options are unsecured, meaning you won’t have to put down collateral — an asset, such as real estate or inventory — to qualify.
Veteran business loans are available through commercial lenders, nonprofit organizations and the SBA.
While some popular loan programs for veterans have been discontinued, such as the SBA’s Patriot Express loans, there are plenty of other options for veterans and their families.
SBA Express loans
Veterans can borrow up to $500,000 through the SBA’s Express loan program. Upfront guarantee fees, typically 2% to 3% of the loan, are waived for veterans, reservists, national guard members and spouses who qualify.
SBA Express loans have a quicker turnaround time than other SBA loans — 36 hours compared with several weeks or months — 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.
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 for established businesses looking for long-term financing — with larger loan amounts than the Express program offers (up to $5 million).
SBA 7(a) loans are issued by banks, credit unions and online lenders and partially guaranteed by the SBA. Like the Express loan program, you’ll need strong credit and solid business financials to qualify for a 7(a) loan.
Bank business loans
Small-business loans from banks typically have the lowest interest rates, but they are difficult to access. Many banks require that you have several years in business, a credit score in the 700s and strong revenue to qualify for financing.
If you think your business may be eligible for a bank loan, look for military discounts. Chase business loans, for example, waive the annual fee for the first year on a business line of credit for veteran-owned businesses that qualify. Chase business checking also waives its $15 monthly fee for veterans.
USAA piloted a business loan program in 2018 in collaboration with the online lending platform StreetShares, but stopped offering loans after the pilot ended.
Online loans
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.
» MORE: Compare the best fast business loans
Microloans
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.
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 program, 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.
- Office of Small & Disadvantaged Business Utilization. Although the VA doesn’t offer 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 and get verified to participate in the Veterans First Contracting Program.
- Military Reservist Economic Injury Disaster Loan Program. The MREIDL can provide up to $2 million if you have an essential employee who is a military reservist and gets called to active duty. This program is for covering regular business operating costs, not starting or expanding a business.
- SBA 8(a) program. The SBA offers this business development program to eligible businesses, which can include those owned by veterans. The SBA 8(a) program provides small businesses with a certification that can improve their chances of winning government contracts, as well as help navigating the bidding process.
- 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.
- Small-business grants for veterans. 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.
The best business loan is generally the one with the lowest rates and most ideal terms. But other factors — like time to fund and your business’s qualifications — can help determine which option you should choose. NerdWallet recommends comparing small-business loans to find the right fit for your business.
Last updated on July 17, 2023
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 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.
Veterans can get startup funding from SBA loans, like the Express loan and Community Advantage loan programs, online loans and microloans. New entrepreneurs who can’t qualify for a business loan might consider a business credit card or personal loan.
There are no specific rate discounts for veteran loans through the SBA. Your rate will be dependent on the individual lender that issues your SBA loan. However, the SBA does discount the upfront fees on loans through its Veterans Advantage program – between $0 and half of upfront fees for non-veteran loans.