Best Small-Business Loans for Veterans of November 2023
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Veteran business loan options
Veteran business loans are available through commercial lenders, nonprofit organizations and the SBA.
Although some popular loan programs for veterans have been discontinued, such as the SBA’s Community Advantage loan program, there are plenty of other options for veterans and their families.
SBA loans
SBA loans are issued by banks, credit unions and online lenders. And while they’re partially guaranteed by the SBA — which can make them easier to qualify for — you’ll still need strong credit and solid business financials to qualify. Though the SBA offers a number of loan programs, SBA Express loans and standard SBA 7(a) loans may be of special interest to veterans.
SBA Express loans
SBA Standard 7(a) loans
Military reservist loan
Bank business loans
Credit unions
Credit unions located in your local community may also be an option for business loans.
CDFIs
Online loans
Microloans
Nonprofit organizations often focus on funding traditionally underserved businesses in their area, offering smaller loan amounts of up to $50,000.
Are VA loans available to businesses?
Are there startup business loans for veterans?
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 with new businesses still have options.
If you have good personal credit, alternative options for your startup also include:
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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$50,000 in revolving credit, meaning you can borrow and repay from the credit card as needed, and pay interest only on withdrawn funds.
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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.
Who qualifies as a veteran-owned business?
To qualify as a veteran-owned business, your business must typically be 51% owned by someone in one of the following categories:
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Active-duty military service members participating in the Transition Assistance Program.
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Honorably discharged or service-disabled veterans.
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Reservists and active National Guard members.
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Current spouse of a veteran, active-duty service member, reservist or guard member.
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Widowed spouse of a service member who died in service or from a service-related disability.
How to apply for a small-business loan as a veteran
The loan application process will vary from lender to lender. In general, you may need to provide basic information such as:
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Military identification.
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Background information about your business.
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Business financial documents such as profit and loss statements, tax returns or bank statements.
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Personal guarantee.
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.
Other 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:
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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.
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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.
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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. To get verified to participate in the VA’s Vets First program, visit the Veteran Small Business Certification portal managed by the SBA.
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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.
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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.
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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.