Best of

Best Small-Business Loans for Veterans 2019

Steve NicastroDecember 6, 2019

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Small-business loan options for veterans include loans for working capital, expansion and unpaid customer invoices.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

Get Started

on Fundera's website

Our picks for

Fast cash

Kabbage and OnDeck offer fast business loans, with funding as fast as a few minutes.

Kabbage - Line of credit

Kabbage - Line of credit

Est. APR

24.00 - 99.00%

Min. Credit Score

560

Kabbage provides fast loans for business owners with bad personal credit, but rates can be high.

Pros

  • Financing up to $250,000 available within a few days.
  • Accepts low credit scores.

Cons

  • Rates are high compared to other online lenders.
  • Must have online checking or PayPal account to verify cash flow.
  • Fixed-fee structure means early repayment does not save interest.
Read full review

Qualifications

  • Minimum credit score: 560.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $50,000.
OnDeck - Online term loan

OnDeck - Online term loan

Est. APR

9.00 - 99.00%

Min. Credit Score

600

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.

Pros

  • Cash can be available within the same business day.
  • Requires low minimum credit score.
  • Less paperwork than most lenders.

Cons

  • Fixed-fee structure means early repayment will not save interest.
  • Requires frequent (daily or weekly) repayments.
  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $100,000.
  • No bankruptcies in the past 2 years.

Our picks for

Working capital

StreetShares, BlueVine and QuarterSpot provide working capital financing for veteran entrepreneurs.

StreetShares - Online term loan

StreetShares - Online term loan

Est. APR

8.00 - 39.99%

Min. Credit Score

600

StreetShares offers a business term loan for newer businesses that need to finance an expansion.

Pros

  • No prepayment penalty.

Cons

  • Requires weekly repayments.
  • Financing amounts limited to 20% of annual revenue.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $25,000.
  • No bankruptcies in the past 3 years.
BlueVine - Line of credit

BlueVine - Line of credit

Est. APR

15.00 - 78.00%

Min. Credit Score

600

BlueVine's line of credit provides fast working capital for short-term borrowing needs.

Pros

  • Offers options for businesses less than a year old.
  • Cash can be available within 12 to 24 hours.

Cons

  • Short repayment term results in higher payment amounts.
  • Requires personal guarantee.
  • Not available in North Dakota, South Dakota or Vermont.
Read full review

Qualifications

  • 6-month line of credit
  • Minimum credit score: 600.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $100,000.
  • 12-month line of credit
  • Minimum credit score: 620.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $450,000.
QuarterSpot - Online term loan

QuarterSpot - Online term loan

Est. APR

30.00 - 70.00%

Min. Credit Score

550

QuarterSpot's short-term business loans provide a financing option for borrowers with poor credit, but at high rates.

Pros

  • Requires low minimum credit score.
  • Cash can be available within the same day.
  • No prepayment penalty.

Cons

  • Rates are high compared to other online lenders.
  • Short loan terms.
  • Requires personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 550.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $200,000.
  • Average at least 10 monthly revenue-producing deposits.
  • Minimum $2,000 average daily account balance.

Our picks for

Expansion financing

SmartBiz provides Small Business Administration loans, which have relatively low interest rates and a 10-year repayment term. Credibility Capital is an option for larger loans up to $400,000.

SmartBiz - SBA loan

SmartBiz - SBA loan

Est. APR

9.28 - 10.52%

Min. Credit Score

650

SmartBiz’s low-cost SBA loans work best for established businesses that want to finance an expansion or refinance debt.

Pros

  • Competitive rates among online lenders.
  • Faster than getting an SBA loan from a bank.

Cons

  • Must have strong financials, supported by personal and business tax returns for the past 3 years.
  • Stringent rules on use of proceeds.
  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 650.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $50,000.
  • No bankruptcies or foreclosures in the past 3 years.
Credibility Capital - Online term loan

Credibility Capital - Online term loan

Est. APR

10.00 - 25.00%

Min. Credit Score

680

Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.

Pros

  • Competitive rates among online lenders.
  • No prepayment penalty.
  • Extra monthly payments can save interest cost.

Cons

  • Short repayment term results in higher payment amounts.
  • Requires high minimum credit score and revenue.
  • Requires business lien and may require personal guarantee.
  • Not available in Nevada, North Dakota, South Dakota, or Vermont.
Read full review

Qualifications

  • Minimum credit score: 680.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $250,000.
  • No bankruptcies in the past 5 years.

Our pick for

Businesses with unpaid customer invoices

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Est. APR

15.00 - 68.00%

Min. Credit Score

530

BlueVine’s invoice factoring works best for financing larger invoices, but only if your customers reliably pay on time.

Pros

  • Finances larger invoices.
  • Cash can be available within the same day.
  • Accepts low minimum credit score and short time in business.

Cons

  • Not for businesses that do not invoice on net terms.
  • Loan amount is tied to the value of your invoices.
  • Dependency on customers to pay their bills on time.
Read full review

Qualifications

  • Minimum credit score: 530.
  • Minimum time in business: 3 months.
  • Minimum annual revenue: $100,000.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

Get Started

on Fundera's website

Summary of Best Small-Business Loans for Veterans 2019

LenderBest ForEst. APRMin. Credit Score
Kabbage - Line of credit

Kabbage - Line of credit

Fast cash

24.00 - 99.00%

560

OnDeck - Online term loan

OnDeck - Online term loan

Fast cash

9.00 - 99.00%

600

StreetShares - Online term loan

StreetShares - Online term loan

Working capital

8.00 - 39.99%

600

BlueVine - Line of credit

BlueVine - Line of credit

Working capital

15.00 - 78.00%

600

QuarterSpot - Online term loan

QuarterSpot - Online term loan

Working capital

30.00 - 70.00%

550

SmartBiz - SBA loan

SmartBiz - SBA loan

Expansion financing

9.28 - 10.52%

650

Credibility Capital - Online term loan

Credibility Capital - Online term loan

Expansion financing

10.00 - 25.00%

680

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Businesses with unpaid customer invoices

15.00 - 68.00%

530

LenderBest ForEst. APRMin. Credit Score
Kabbage - Line of credit

Kabbage - Line of credit

Fast cash

24.00 - 99.00%

560

OnDeck - Online term loan

OnDeck - Online term loan

Fast cash

9.00 - 99.00%

600

StreetShares - Online term loan

StreetShares - Online term loan

Working capital

8.00 - 39.99%

600

BlueVine - Line of credit

BlueVine - Line of credit

Working capital

15.00 - 78.00%

600

QuarterSpot - Online term loan

QuarterSpot - Online term loan

Working capital

30.00 - 70.00%

550

SmartBiz - SBA loan

SmartBiz - SBA loan

Expansion financing

9.28 - 10.52%

650

Credibility Capital - Online term loan

Credibility Capital - Online term loan

Expansion financing

10.00 - 25.00%

680

BlueVine - Invoice factoring

BlueVine - Invoice factoring

Businesses with unpaid customer invoices

15.00 - 68.00%

530

Best for startups

Lenders generally prefer to do business with established companies that have strong cash flow, and this often disqualifies startups with less than a year of operating history and little revenue.

However, you’re not completely out of luck: If you have good personal credit, your options include business credit cards and personal business loans.

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 provide a lump sum of cash, with a fixed interest rate and repayment terms.

Both options are unsecured, meaning you won’t have to put down collateral — an asset, such as real estate or inventory — to qualify.

» MORE: Where to find startup business loans

VA loans and other financial resources

Veteran-owned businesses can also seek help through the SBA’s Veterans Advantage lending program (VA business loans), which provides fee reductions on SBA loans, including:

  • No upfront fees for eligible borrowers on 7(a) loans of $125,000 or less.
  • Reduced fees by 50% on 7(a) loans between $125,001 and $350,000.
  • No fees on SBA Express loans between $150,001 and $350,000.

SBA loans are offered through banks, credit unions and other lenders (including lenders partnered with SmartBiz), with the SBA guaranteeing a portion of the loan if the borrower defaults.

For other financial resources for veterans, check out our list of small-business grants for veterans or personal loans for veterans.

Compare small-business loans

When you're shopping for a loan, be sure to compare annual percentage rates, or APRs, which give you a holistic picture of a loan's cost. NerdWallet's small-business loans comparison tool can help. We've gauged lender trustworthiness, market scope and user experience, among other factors to help you choose the best loan.

Last updated on December 6, 2019

To recap our selections...

NerdWallet's Best Small-Business Loans for Veterans 2019