SMALL BUSINESS LOANS FOR VETERANS: Best 2023 Options and; All you Need


Did you know that veteran-owned firms in the United States generate millions of dollars in annual revenue? Check out what small business loans for veterans are available if you’ve been in the military and want to build your business and contribute to the economy.

Many organizations have come up with a new way to help veterans get small business loans. Commonly, known as small business loans for veterans. For instance, all veteran loans approved under the SBA Express program up to $350,000, eliminate the borrower upfront charge.

Also, 73 per cent of all SBA loans to veterans are for less than $350,000. The SBA Express Loan Program, which helps with loans under $350,000, is the most popular way for the agency to give out loans. Over the last ten years, nearly 60% of all 7(a) loans were given through this program.

It has also been one of the most common distribution mechanisms for getting funds into the hands of veteran borrowers since its start.

Because of this policy change, veteran borrowers will no longer be required to pay an upfront charge for any SBA Express loan up to $350,000.

This will lower the cost of the loans for the borrower, which is another way the SBA is assisting small business owners in their search for cash. Through government contracts, the SBA supports veterans with business counseling and training, as well as finance and business growth possibilities.

In this article, we have discussed how veteran business entrepreneurs may acquire the assistance and finance they need to establish and expand their companies.

Small Business Loans for Veterans 2023

In general, you must fall into one of the following groups to qualify for small business loans or other government possibilities for military veterans:

  • Honorably Discharged Veterans
  • Service-Disabled Veterans
  • Active Duty Personnel Participating in the military’s Transition Assistance Program as a military service member
  • Reservists and National Guard Members
  • Currently married to a Veteran, Active Duty service member, Reservist, or National Guard member; or widowed spouse of a service member who died in the line of duty or suffered a service-connected condition.

Small business loans for veterans

There is a multitude of SBA loan programs available to all qualified small business owners, including veterans, and there are some costs that are waived for veterans.

The main SBA loan programs are: 

  • 7(a) loans, including 7(a) Small Loans
  • SBA Express loans
  • 504 CDC loans
  • SBA Microloans

Military Reservist Economic Injury Disaster Loan Program (MREIDL)

The SBA makes these loans because the Military Reservist Loan program falls under its catastrophe loan scope. If an important employee is called to active duty, a small firm may be eligible for one of these $2 million loans through MREIDL. (The loan amount will be determined by the SBA based on the economic injury.) Low-interest loans with periods of up to 30 years are available.

This loan program’s funds can be used to give the amount of working capital required by a small firm to fulfill its necessary commitments as they mature until activities resume once the critical employee has been discharged from active military duty.

Hivers and Strivers Angel Fund & Veteran Capital for Veterans

The Hivers and Strivers Angel Fund is a good place to search for investment cash rather than a loan for veterans. It has only invested in veteran-led firms, and many of the entrepreneurs it has supported are service academy graduates. In the future, Venture Capital for Veterans will continue to invest in firms run by veterans of America’s armed forces, so that’s where you’ll find us.

The range of investments is $200,000 to $500,000. Your company must be beyond the concept stage, positioned for significant development, and led by a seasoned executive.

Business Credit Cards 

Startups and established businesses who want the flexibility of a credit line they can access when needed may find business credit cards tempting.

Crowdfunding: This funding technique allows you to raise money online from people who want to help small businesses. Crowdfunding comes in a variety of forms, including:

Rewards-based: Those that contribute to your campaign receive a monetary reward.

Equity-based: You provide others with the chance to invest in your firm by issuing shares.

Lending-based: You borrow money with the intention of repaying it.

Donor-based: You ask for donations from people who want to help your company.

However, finding the correct platform and building an effective campaign takes time, but the fact that you served in the US military may appeal to some platform backers.


If your company only requires a small amount of money (typically $50,000 or less), you might be able to acquire a microloan from one of the many Community Development Financial Institutions (CDFIs) or other nonprofits. The Small Business Administration also offers a microloan program, with average loan amounts of around $14,000.

Many microlenders help entrepreneurs who don’t get enough help, like veterans, so you might be welcomed with open arms. However, because these organizations often do not have huge marketing budgets, finding the proper lender will take some time.

Top Veterans Small Business Loans

The Small Business Administration (SBA) provides not just training programs but also veteran business financing. There are also several private lenders who provide veteran-friendly loans. The following are some of the top small business loans for veterans:

#1. Navy Federal Credit Union

Navy Federal Credit Union provides a business line of credit, automobile loans, equipment loans, and term loans for working capital. The minimum credit score required is 650, and the maximum loan amount is $100,000. The expected APR range is 11% to 18%.

#2.  Small Business Administration Loans

The SBA has numerous loan programs to assist firms to grow and expand. The SBA Veterans Advantage Program is developed exclusively for veterans, service-disabled veterans, and military spouses. SBA7(a) and SBA Express loans are accessible to firms with a minimum credit score of 650.

The Military Reservist Economic Injury Disaster Loan Program (MREIDL) is offered to service-disabled Veterans who have incurred economic harm as a result of being summoned to active duty. The SBA also has an Office of Veterans Business Development that fosters Veteran entrepreneurship.

#3. OnDeck

OnDeck provides online term loans up to $250,000 for businesses with a credit score of at least 600. The APR on these loans ranges from 29.90% to 97.30%.

OnDeck is a prominent provider of online term loans, and its loans are designed to help businesses grow and expand. However, the hefty APR makes these loans unappealing to many consumers.

#4. SmarBiz

SmartBiz provides low-interest online SBA loans to established Vet-owned companies. The maximum loan amount is $5 million, and the minimum credit score is 650. These loans can be utilized for a variety of objectives, including operating capital, equipment purchases, and business expansion.

#5. LoanBuilder

LoanBuilder is a lending platform owned by PayPal. The platform provides loans up to $500,000 with a maximum period of 12 months. Borrowers must have a minimum credit score of 620 and make weekly payments.

#6. Kabbage

Kabbage is a well-known organization that gives small businesses with the financing they need to develop and prosper. Kabbage provides loans up to $250,000 and requires a minimum credit score of 640.

The organization also asks that businesses earn at least $3,000 in monthly revenue and have been in operation for at least one year.

#7. Credibility Capital

Credibility Capital is a reliable online term loan company. Their minimal credit score is 650, and their predicted APR ranges from 6.99% to 24.99%. This makes them a dependable alternative for Veteran applicants with strong credit. Furthermore, their maximum loan size is $500,000, making them a suitable choice for people searching for a larger loan.

#8. Fundbox

Fundbox is a small business loan facility. The minimum credit score necessary is 600, and the maximum loan amount is $150,000. The APR ranges from 10.10% to 79.80%. Fundbox is an alternative for veterans with poor credit.

#9. PNC Bank

PNC Bank is an excellent choice for a line of credit. The minimum credit score necessary is 720, and the maximum loan amount is $100,000. The APR range is 12.99% to 14.99%, which is competitive when compared to other lenders.

#10. Bluevine

Bluevine is a corporation that supplies small businesses with loan lines. The maximum loan amount is $250,000, and the minimum credit score is 625. The APR ranges from 15.00% to 78.00%. This is another viable option for Veterans with poor credit.

Small Business Loans for Veterans with Disabilities

Every year, the federal government strives to give service-disabled veteran-owned small companies at least 3% of all federal contracting funds.

Businesses that engage in the Service-Disabled Veteran-Owned Small Business program are exempt from competition for certain contracts.

Also, if you join the program for disabled veterans who want to start a business, you can compete for set-aside contracts. You can still compete for contract awards if you qualify for other socioeconomic programs.

Small Business Loans for Veterans with Disabilities Program qualifications

Your company must meet the following criteria to be eligible for the handicapped veterans’ business program:

  • Be a small business
  • One or more service-disabled veterans must own and control at least 51 per cent of the company.
  • One or more service-disabled veterans should be in charge of day-to-day operations as well as long-term planning.
  • Veterans must have a service-connected disability to be eligible.

Also, you can self-represent your business to the federal government as being owned by a service-disabled veteran. Simply update the socio-economic status section of your business profile at

However, the Department of Veterans Affairs, which awards a large number of contracts to veterans, sets aside contracts for veterans through their Veterans First Contracting Program. Their program is not the same as SBA’s program. To get access to set-aside Veterans Affairs contracts, your business must be verified through the Vets First Verification Program.

Best Small Business Loans for Veterans

Here are the best business loans for veterans

  • SBA Express loan
  • Navy Federal Credit Union 
  • Fora Financial
  • Funding Circle
  • Smartbiz

Veterans can get free counseling, training, and low-interest small-business financing to help them start, run, and grow businesses.

For veterans and their spouses, the Small Business Administration waives the upfront costs (usually 2 per cent to 3 per cent of the loan amount) on SBA Express loans.

Furthermore, several financial organizations specialize in small-business loans for veterans, minorities, and women.

Also, look for loan terms that fit your needs, whether it’s for recruiting new employees, purchasing equipment, or covering other expenses, whether you go to a typical bank, an online lender, or a community group.

Startup Small Business Loans for Veterans

Lenders like to work with well-established businesses that have a steady cash flow. Startups with less than a year of operation and little income are frequently disqualified.

Veterans and other new business owners, on the other hand, aren’t completely out of luck: Business credit cards and personal business loans are available if you have good personal credit.

Business credit cards: These normally offer up to $50,000 in revolving credit, which means you can borrow and repay as needed, paying interest solely on the money you take.

Personal loans for business: These provide a lump sum of money with a predetermined interest rate and repayment schedule.

Both are unsecured, which means you won’t have to put up any collateral — such as real estate or merchandise — in order to qualify.

Small Business Loans for Veterans with Bad Credit

You may need to check into small business loans for veterans with bad credit if you’re seeking a loan for your veteran-owned small business and have negative credit (under 620). To see if you qualify for a bad credit business loan, do some research.

You still have access to bad credit business loans and other funding choices. Alternative lenders can help you get one of the best bad credit business loans available.

Alternative lenders aren’t as cautious as banks when it comes to taking risks. They provide funding to a broader range of business owners, including veterans seeking bad credit business loans.

Furthermore, these companies are more concerned with your company’s overall financial health, so your credit score isn’t the be-all and end-all of their acceptance criteria.

Small Business Loans for Veterans in Texas

The Veteran Entrepreneur Program (VEP), which was formed in 2013 and is governed by Texas Code Sec. 434.022. (2)(c), offers veteran entrepreneurs and small companies the resources they need to start or grow their firms.

The program advisor makes sure that we have the tools and processes we need to help veterans, family members, and survivors quickly and well. Also. their team of consultants, who are veterans, company owners, and MBA graduates, are dedicated to your success.

How Can You use the Funds From a VA Business Loan?

VA loans are designed to be versatile and can be used for a variety of purposes, including:

#1. Pay for Startup Costs

While many veterans fund the initial costs of their businesses, not everyone is endowed with substantial personal financial reserves. You can use the funds from a VA loan to cover the costs of starting your business (e.g., business incorporation, rent, utilities, supplies, salaries, inventory, and marketing).

#2. Pay your operating expenses.

Once your company is up and running, you can use your VA loan to fund your recurrent monthly expenses (e.g., accounting software subscriptions, office supplies, utilities, and taxes).

#3. Employ People

You can’t keep growing your business on your own forever. You may recruit additional workers and pay them a fair wage with VA loan funding to keep them happy and motivated.

#4. Purchase Real Estate or Equipment

Are you tired of having to pay rent every month? Are you still using outdated tools when there are game-changing alternatives? You can buy new equipment or property with money from a veteran business loan in the bank, adding assets to your balance sheet and making your business more competitive.

#5. Obtain Inventory and Supplies

To produce income, retailers and manufacturers require inventory and materials. When money is limited, it might be tough to come up with the finances to purchase these products. A VA loan, on the other hand, provides you with the funds you require to purchase the things your clients desire.

#6. Open a Second Location

You can use a VA loan to create a second site to increase the market you’re trying to serve and grow your customer base if you’re a restaurateur, landscaper, or retailer.

#7. Remodel Your Restaurant or Retail Storefront

When was the last time you updated the interior of your store or restaurant? Make use of a veteran business loan to upgrade your business and attract new clients.

#8. Create a Website

In the age of mobile devices, having a modern, flexible website is more vital than ever for your small business. If a customer cannot find your business online, they may believe you have permanently closed your doors. Use a VA loan to build a business website that promotes your firm 24 hours a day, seven days a week. If you integrate e-commerce skills, you can sell to clients around the clock—even when you’re sleeping.

#9. Spend money on marketing outreach.

Customers will not flock to your business if they are unaware it exists. To that end, make use of your VA loan to market your business. Create and promote content for your website, mail coupons, and consider purchasing advertisements in the local newspaper.

Unlike other types of loans that need particular investments, VA loans allow firms greater flexibility. As a result, seasoned entrepreneurs are usually free to put the monies they receive to use in whatever method they believe would benefit their businesses the most.

How to Apply for VA Loan?

Those that are eligible for VA business loans, like most other types of small company funding, will need to gather and submit a number of documentation with their application. Veterans and their families must present the following paperwork in addition to the standard sorts of documentation: business plans, financial statements, tax information, general business ownership information, and any necessary business licenses or certificates (if applicable).

Veterans must furnish a copy of their Form DD 214.

Service-disabled veterans must present a copy of their Form DD 214 or other evidence proving they have a service-related disability.

Transitioning active duty personnel must present DD Form 2, “US Armed Forces Identification Card (Active)” or DD Form 2, “Armed Forces of the United States Geneva Conventions Identification Card (Active),” as well as DD Form 2648 (active duty military) or DD Form 2648-1. (reservist).

Reservists and National Guard personnel must present their DD Form 2, “Armed Forces of the United States Identification Card (Reserve)”.

Current wives of veterans must present the veteran’s Form DD 214 as well as proof that they are the veteran’s current spouse.

Current spouses of transferring active personnel must present DD Form 1173, a Department of Defense Guard Reserve Family Member Identification Card, and proof that they are the current spouse.

Widows of soldiers who died in the line of duty or from injuries received while serving must submit proof from the Department of Defense or the Department of Veterans Affairs.

If Form DD 214 is not available for whatever reason, NA Form 13038 might be utilized in its place.

Keep in Mind…

Once you’ve supplied the necessary documents and information, the VA lender, like most traditional lenders, will most likely obtain your personal credit report to assess your creditworthiness. Unfortunately, this inquiry can harm your credit score, making it even more difficult to obtain funding if the VA lender does not approve your application.

How Do Veterans Get Small-Business Loans?

Small-business loans and lines of credit are available from online lenders, banks, and credit unions to seasoned entrepreneurs. Your personal credit score, annual revenue, and time in business are all factors that influence your approval.

How Can Veterans Get a VA Loan?

Veterans can apply for an SBA Express Loan, which has no upfront fees for veterans, reservists, national guard members, and their spouses. Small-business loans from banks, credit unions, and other lenders are also available to veterans.

How Do I Qualify for a Veterans Business Loan?

Some VA business loan requirements include having a for-profit business, a viable business plan, and a solid credit score, as well as operating the business in the United States or US territories.

How Much Money Can You Get for a VA Business Loan?

A $50,000 loan is the highest amount that can be borrowed. The interest rate on these loans is typically between 8% and 13%, with security being required in most cases. 5 In order to qualify for a microloan, you must provide a large number of documents, such as A written business plan is required.


While grants and small business loans are generally front of mind for small business owners, there are other tools available to veterans who want to establish a business or further their careers.

Also, veteran-owned businesses can go to their local veterans business outreach centers for a variety of resources, such as training programs for adjusting to civilian life, technical assistance, business training, and other tools that aren’t always available at traditional small business development centers.

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  3. TEXAS SMALL BUSINESS GRANTS: Best Tips to Becoming Beneficiaries
  4. SBA EXPRESS LOAN: Online Application, Programs, Requirements for any Business
  5. California Small Business Grants: Top 13+ picks for Minorities & Veterans (+ Application Guide)
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