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.
| Lender | NerdWallet rating | Best For | Max loan amount | Min. time in business | Min. interest rate | Term length | Learn more |
|---|---|---|---|---|---|---|---|
 with Fundera by NerdWallet | Read expert review | Best for large loan amounts | $5,000,000 | 24 months | 10.25% | Up to 25 years | with Fundera by NerdWallet |
with Fundera by NerdWallet | Read expert review | Best for SBA loans with veteran discounts | $500,000 | Undisclosed | 10.25% | Up to 25 years | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for bad credit borrowers | $1,500,000 | 6 months | Undisclosed | 4 to 18 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for startup business owners | $500,000 | 6 months | Undisclosed | 4 to 24 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for fast and flexible funding | $250,000 | 12 months | 14% | Up to 6 months | with Fundera by NerdWallet |
 with Fundera by NerdWallet | Read expert review | Best for short-term loans | $250,000 | 12 months | 31.3% | 18 to 24 months | with Fundera by NerdWallet |
 | Read expert review | Best for low-cost bank loans | $150,000 | Undisclosed | Undisclosed | Undisclosed | |
 | Read expert review | Best for secured loans with discounts for veterans | $250,000 | 24 months | Undisclosed | Up to 5 years |
best veteran small-business loans: More details
U.S. Small Business Administration: Best for large loan amounts
Although the SBA doesn’t offer veterans discounted fees for standard 7(a) financing, veterans who qualify may be able to borrow up to $5 million for the purchase of real estate, debt refinance, working capital or equipment. These loans are a good option for long-term financing with low-interest rates.
Low interest rate
SBA 7(a) loan
with Fundera by NerdWallet
Max loan amount
$5,000,000
Min. credit score
650
Term length
Up to 25 years
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
Pros
- Large borrowing maximums.
- Interest rates are capped.
- Long repayment terms available.
Cons
- Collateral is typically required.
- Longer processing times than online lenders.
with Fundera by NerdWallet
U.S. Small Business Administration: Best for SBA loans with veteran discounts
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
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
650
Term length
Up to 25 years
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.
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.
with Fundera by NerdWallet
Fora Financial: Best for bad credit borrowers
Fora Financial offers term loans between $5,000 and $1.5 million. You may be able to qualify with a credit score of 570 or higher, making it a good option for veteran business owners who have a bad credit score.
Fora Financial - Online term loan
with Fundera by NerdWallet
Max loan amount
$1,500,000
Min. credit score
570
Term length
4 to 18 months
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.
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.
with Fundera by NerdWallet
National Funding: Best for startup business owners
With financing up to $500,000, National Funding’s online term loan may be a good choice for veteran entrepreneurs with as few as six months in business. Borrowers can get funding as fast as 24 hours and be allowed up to 24 months to pay back their loan.
National Funding - Online term loan
with Fundera by NerdWallet
Max loan amount
$500,000
Min. credit score
600
Term length
4 to 24 months
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.
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.
with Fundera by NerdWallet
Bluevine: Best for fast and flexible funding
Bluevine offers business lines of credit up to $250,000. It can fund draws instantly with a complimentary Bluevine Business Checking Account, or to an external account in a few hours for an additional fee, allowing veteran small-business owners to cover emergency expenses or capitalize on unexpected opportunities.
May fund quickly
Bluevine - Line of credit
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
625
Term length
Up to 6 months
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.
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.
with Fundera by NerdWallet
OnDeck: Best for short-term loans
For veteran business owners that need a short-term loan that can fund quickly, OnDeck provides loans with terms of 18 or 24 months. If approved, you may be able to receive funding as fast as the same day.
May fund quickly
OnDeck - Online term loan
with Fundera by NerdWallet
Max loan amount
$250,000
Min. credit score
625
Term length
18 to 24 months
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
- 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.
with Fundera by NerdWallet
Huntington National Bank: Best for low-cost bank loans
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
Term length
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
- 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: Best 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
$250,000
Min. credit score
700
Term length
Up to 5 years
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.
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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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
Last updated on January 30, 2025
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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
