9
Best Business Loans For Veterans
Biz2Credit
Loan amounts
Up to $1 million
Revenue-based financing. Varies depending on product and qualifications
Minimum Credit Score
650*
*See website for details
Up to $1 million
Revenue-based financing. Varies depending on product and qualifications
650*
*See website for details
Compare the Best Business Loans for Veterans
| COMPANY | FORBES ADVISOR RATING | LOAN AMOUNTS | APR | LEARN MORE |
|---|---|---|---|---|
 
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$5,000 to $400,000
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Varies by loan
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Via Ondeck's Website
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$5,000 to $250,000
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Simple interest starts at 7.8%
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On BlueVine's Website
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|
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$5,000 to $500,000
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Buy rates start at 1.11
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On National Funding's Website
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|
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$2,000 to $250,000
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N/A
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Via Forbes Advisor
| |
|
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$1,000 to $250,000
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Interest rates start at 4.66%
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On Fundbox's Website
| |
|
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$25,000 to $500,000
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As low as 7.49%
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From participating partners via businessloans.com's website.
| |
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Up to $1 million
|
Varies by qualifications
|
On Biz2credit's Website *See Website For Details
|
Best Business Loans for Veterans: A Closer Look
BEST FOR SHORT-TERM LOANS
OnDeck
Loan amounts
$5,000 to $400,000
varies by loan
APR range
Varies by loan
Minimum Credit Score
625
$5,000 to $400,000
varies by loan
Varies by loan
625
OnDeck was founded in 2006 and has since been a leading provider in the business lending space, offering both term loans and lines of credit. Today, they have extended $14 billion in funding to small businesses.
We picked OnDeck for its variety of business lending products and same-day funding. OnDeck offers a term loan from $5,000 to $400,000 with repayments terms of up to 24 months. You can also access a credit limit of $6,000 to $100,000 through its line of credit with a 12-month repayment term that resets after each withdrawal.
Note: OnDeck does not lend to businesses in Nevada, North Dakota or South Dakota. What’s more, while it lends to over 700 industries, there are some industries it cannot serve.
- Term loans from $5,000 to $400,000
- Same-day funding available
- 0% origination fee limited to renewed term loans
- $100,000 minimum annual revenue requirement
- Must have been operating for at least one year
- Does not lend to businesses in North Dakota
Eligibility
- Minimum credit score: 625
- Time in business: One year
- Minimum revenue: $100,000 per year
Turnaround time
You can apply and receive a decision from OnDeck on the same day.
Consumer Sentiment Index
- Overall rating: 3.1/5 — Satisfied
Based on 6,300 customer insights and reviews for the entire category.
Some customers praised the lender for its quick and straightforward lending process, while others complained of high interest rates and feeling misled about rates and fees.
Disclaimer: The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
BEST FOR FLEXIBLE LINES OF CREDIT
Bluevine
Loan amounts
$5,000 to $250,000
APR range
Simple interest starts at 7.8%
Minimum Credit Score
625
$5,000 to $250,000
Simple interest starts at 7.8%
625
BlueVine is a financial technology company that provides financing solutions to small businesses nationwide. It specifically specializes in business lines of credit and checking accounts. As of December 2021, BlueVine no longer offers invoice factoring as one of its financing methods.
Small business owners looking to access a line of credit on an as-needed basis can receive funds between $6,000 and $250,000. BlueVine offers two payment structures: Flex 6 or Flex 12. Customers who choose Flex 6 make weekly payments over 26 weeks while Flex 12 customers make monthly payments over 12 months. What’s more, after 45 days of payment on Flex 6, or 90 days of payment on Flex 12, you may be eligible for a credit line increase.
BlueVine also charges weekly or monthly fees for its line of credit. Standard pricing is 1.7% per week or 7% per month for line of credit draws.
Note: BlueVine’s line of credit is available in all 50 U.S. states except North and South Dakota.
- Receive a decision within five minutes and instant funding with a Bluevine business checking account, or receive funds within 24 hours
- Lines of credit up to $250,000
- Low credit score requirement
- No mobile app for its line of credit
- Monthly revenue requirement
- Not available to businesses in Nevada, North Dakota, South Dakota, Puerto Rico and other U.S. territories
Eligibility
Eligibility varies on the specific program a business owner chooses.
Weekly plan
- Minimum credit score: 625
- Time in business: Less than one year
- Minimum revenue: $40,000 monthly or $480,000 annually
- Business type: Corporation or LLC
- Bankruptcies: No past bankruptcies
Monthly plan
- Minimum credit score: 700
- Time in business: Three years
- Minimum revenue: $80,000 per month or $960,000 annually
- Business type: Corporation or LLC
Turnaround time
After you submit your application, you can receive a decision in as quickly as five minutes and instant funding with a Bluevine business checking account. Borrowers who don’t have a Bluevine business checking account can receive funds within 24 hours.
Consumer Sentiment Index
- Overall rating: 2.4/5 — Neutral
Based on 6,300 customer insights and reviews for the entire category.
Bluevine’s borrowers reported quick application processes and funding times, but many were also disappointed with their experiences. Some customers noted that the customer service was unresponsive and that there were technical issues during the application process.
Disclaimer: The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
BEST FOR SMALL- TO MID-SIZED VETERAN-OWNED BUSINESSES
National Funding
Loan amounts
$5,000 to $500,000
APR range
Buy rates start at 1.11
Minimum Credit Score
600
$5,000 to $500,000
Buy rates start at 1.11
600
National Funding offers working capital small business loans from $5,000 to $500,000 with terms of four months to two years, paid daily or weekly. Borrowers can use their funds for all working capital needs, including inventory, payroll, marketing, taxes and more. National Funding also offers equipment financing Up to $150,000 but applicants must have a minimum personal credit score of 575 to qualify for that financing method.
Unlike most business lenders, National Funding offers early pay-off discounts. Small business loan customers who repay their total remaining balance in full within the first 100 days of the contract will automatically receive a 7% discount off the total remaining balance. Equipment financing customers who repay the total remaining balance early, at any point during the term, will automatically receive a 6% discount off the total remaining balance.
- Financing up to $500,000
- Early payoff discounts
- Most loans are funded within 24 hours of approval
- Requires daily or weekly payments
- Potentially high borrowing costs
- Requires minimum gross annual sales of $250,000
Eligibility
- Minimum credit score: 600 (575 for equipment financing)
- Time in business: Six months
- Minimum sales: $250,000 per year
Turnaround time
Most loans are funded within 24 hours of approval, subject to receipt of required documentation, underwriting guidelines and processing time by your bank.
BEST FOR SMALL AND LARGE LINES OF CREDIT
American Express® Business Line of Credit
Loan amounts
$2,000 to $250,000
APR range
N/A
Minimum Credit Score
660 FICO at the time of application
$2,000 to $250,000
N/A
660 FICO at the time of application
American Express Business Blueprint™ is best for its American Express® Business Line of Credit (formerly Kabbage from American Express and Kabbage Funding™), which gives business owners the chance to secure funding between $2,000 to $250,000. Repayment terms include six, 12, 18 and 24 months.
Line of credit customers incur a loan fee for each month they have an outstanding balance. Total monthly fees incurred over the loan term range from 3% to 9% for six-month loans, 6% to 18% for 12-month loans, 9% to 27% for 18-month loans and 12% to 18% for 24-month loans.
In addition to its line of credit, American Express Business Blueprint provides other tools beneficial to small business owners, including its own mobile app that provides comprehensive cash flow insights.
- No prepayment penalty
- Four different repayment options
- Offers small to large lines of credit
- Monthly fees on unpaid balances
- Requires personal guarantee
- Lines of credit over $150,000 are only available to borrowers who meet additional criteria
Eligibility
- Minimum credit score: 660 FICO at the time of application*
- Time in business: At least one year**
- Average revenue: at least $3,000 monthly
All businesses are unique and are subject to approval and review**. The required FICO score may be higher based on your relationship with American Express, credit history and other factors.*
Turnaround time
Once application is approved, funds can take up to three business days to appear in your account, depending on your bank.
Consumer Sentiment Index
- Overall rating: 2.6/5 – Neutral
Based on 6,300 customer insights and reviews for the entire category.
American Express Business Line of Credit received mixed reviews from borrowers. Some appreciated the reasonable rates and the ease of getting funding, but there were issues with customer service and applications being denied for unclear reasons.
Disclaimer: The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
BEST FOR QUICK APPROVALS
Fundbox
Loan amounts
$1,000 to $250,000
APR range
Interest rates start at 4.66%
Minimum Credit Score
600
$1,000 to $250,000
Interest rates start at 4.66%
600
Fundbox is an AI-powered business lending platform that speeds up the application, decision-making and funding process. It offers decisions within three minutes and funds as soon as the next business day.
Prospective borrowers have two business financing options through Fundbox. Business owners can apply for revolving business lines of credit up to $150,000 with repayment terms of 12 or 24 weeks. Your available credit goes back up as you repay your line of credit.
- Flexible eligibility criteria
- Small and large loan amounts
- Short repayment terms of 12, 24, 52, or 76 weeks
Loan Details
- Minimum credit score: 600
- Minimum annual revenue: $30,000
- Minimum time in business: three months
Funding Speed
Funds may arrive within two business days of requesting a credit line draw.
BEST FOR ESTABLISHED VETERAN-OWNED BUSINESSES
Funding Circle
Loan amounts
$25,000 to $500,000
APR range
As low as 7.49%
Minimum Credit Score
660
$25,000 to $500,000
As low as 7.49%
660
Funding Circle has been a direct lender specializing in small business loans since 2010. Since its inception, it has helped 100,000 businesses in 700 industries and lent $15.2 billion globally. We chose Funding Circle because it provides fast, affordable loans with a simple application process and funding in as little as 48 hours. Prospective borrowers have three options: business term loan, line of credit or SBA loan.
Funding Circle term loans range from $25,000 to $500,000 with repayment terms from six months to five years. If you choose to apply for a business line of credit, you can access credit lines between $6,000 and $100,000. However, Funding Circle doesn’t specify its line of credit repayment terms. You can also apply for SBA loans, which range from $25,000 to $500,000 with terms up to 10 years.
There are two main drawbacks of Funding Circle. First, there’s a one-time origination fee on each loan ranging from 3.49% to 6.99% of the approved loan amount. Second, due to state lending regulations, Funding Circle does not lend to businesses that operate out of Nevada, making it available in only 49 of the 50 U.S. states.
- Loans from $25,000 to $500,000
- Funding in as little as 48 hours
- No minimum annual revenue requirement for most loans
- One-time origination fee between 3.49% to 6.99% of the approved loan amount
- Requires two years in business, so it’s not ideal for startups
- Not available to Nevada businesses
Eligibility
- Minimum credit score: 660 for most loans; 650 for SBA loans
- Time in business: Two years
- Minimum revenue: None for most loans; $400,000 per year for SBA loans
Turnaround time
Depending on the loan type, you can receive your funds within two days. However, SBA loan funding may take up to two weeks.
BEST FOR FUNDING OPTIONS
Biz2Credit
Loan amounts
Up to $1 million
Varies depending on qualifications
APR range
Varies by qualifications
Minimum Credit Score
650*
*See website for details
Up to $1 million
Varies depending on qualifications
Varies by qualifications
650*
*See website for details
Biz2Credit is a digital funding platform that provides three funding options—term, revenue-based financing and commercial real estate (CRE) loans—ranging from Up to $1 million. It only takes a few minutes to apply.
Biz2Credit can connect business owners with revenue-based financing Up to $2M+ and term loans Up to $1 million. Revenue-based financing payments are flexible based on business performance, with a right to reconcile against actual business receipts while term loans are repaid through weekly, bimonthly or monthly payments over the course of 12 to 36 months. Biz2Credit also offers interest-only CRE loans from Up to $2M+ with terms between 12 and 36 months; payments are due monthly.
In the event that Biz2Credit cannot provide a financial product, it may present third-party options to qualified prospective borrowers. However, Biz2Credit confirms that “in the vast majority of cases, [it] will make a financing decision without referral to any external party.”
- Revenue-based financing has flexible qualification requirements
- Can prequalify for submitting an application
- Offers term loans with weekly or biweekly payments
- Does not disclose financing costs
- Does not disclose turnaround time
- High annual revenue requirement
Eligibility
Eligibility varies based on the financing option you choose.
Term loan
- Minimum credit score: 650
- Time in business: 18 months
- Minimum revenue: $250,000 per year
Revenue-based financing
- Minimum credit score: 575
- Time in business: 6 months
- Minimum revenue: $10,000 per year
Turnaround time
Biz2Credit does not disclose the turnaround time for its financing options.
Most Popular is calculated from the number of times each affiliate product was selected by Forbes Advisor users over a six month time period.
Methodology
We reviewed 26 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 25%
- Customer experience: 20%
- Eligibility and accessibility: 10%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Tips for Comparing Business Loans for Veterans
Consider these tips when comparing business loans for veterans:
- Consider credit unions that cater to veterans. Online lenders typically offer more favorable loans than credit unions. However, because most credit unions require memberships, they often offer additional member perks and discounts. You typically won’t see these perks at a bank or online lender; those institutions generally offer autopay discounts only. Consider which is more valuable to you.
- Determine how you want to receive your funds. Two of the most common ways you can receive and access your business funds are through a lump-sum payment or on an as-needed basis. If you want to receive your funds up front, choose a traditional working capital or term loan. However, if you want to use funds only as you need them, consider a business line of credit.
- Look out for additional fees. Some lenders offer fee-free business loans that don’t require borrowers to pay origination fees, late payment fees, prepayment penalties or other common loan costs. However, this is not always the case. Be sure to confirm a lender’s fee structure when shopping for the best terms. Factor in additional fees into your decision-making process.
- Evaluate the lender’s customer support options. If you’ve found a lender that’s prepared to offer the money you need at acceptable terms, consider the lender’s support options before signing the loan agreement. Customer support can make a huge difference down the line if you encounter issues with repayment. Research the lender’s customer service resources and read reviews to make sure it’s a good fit.
Types of Business Loans for Veterans
Traditional financial institutions like banks and credit unions may offer small business loans as well as financial products aimed at veterans. That said, eligible veteran-owned businesses can also borrow funds from a number of other sources.
Online Loans
Online business loans are a common source of funds for businesses, including those owned by veterans. The loans often come with less rigorous qualification requirements than financing offered by traditional business lenders and may offer more flexible loan amounts and repayment terms. Many online lenders also offer a variety of financial products, including equipment financing and invoice factoring, in addition to standard term loans and lines of credit.
Keep in mind, however, that these more accessible loans typically have higher annual percentage rates (APRs) than their traditional counterparts. This makes them more expensive—especially to business owners who don’t qualify for the most competitive rates.
SBA Veterans Advantage Program
The SBA’s Veterans Advantage program reduces guaranty fees for certain types of SBA 7(a) loans going to veteran-owned small businesses. The program was originally initiated by the Obama administration in 2014 to offer fee relief under the SBA Express program and, after expiring in 2015, was replaced with the current savings structure. Under the program, fee relief is available to small businesses that are at least 51% owned and controlled by one of the following:
- Honorably discharged veterans
- Service-disabled veterans
- Active duty military service member eligible for the military’s Transition Assistance Program (TAP)
- Reservists and/or active National Guard members
- Current spouse of any veteran, active duty service member, Reservist, National Guard member or the widowed spouse of a service member who died while in service or as a result of a service-connected disability
SBA Express Loan
SBA Express loans are part of the 7(a) loan program and offer qualified business owners up to $500,000. Funds can be accessed as a line of credit or lump-sum term loan, and the SBA waives guaranty fees for businesses that are owned and controlled (51% ownership or more) by veterans, certain active duty military and other applicants who qualify based on military service and their spouses.
Up to 50% of loan funds are guaranteed by the SBA and, while interest rates are lender-specific, they may not exceed the maximum imposed by the SBA (5% or 6%, depending on the loan amount). Most notable, however, is the turnaround time—prospective borrowers can expect a response to their application within 36 hours.
Military Reservist Economic Injury Disaster Loan
The Military Reservist Economic Injury Disaster Loan (MREIDL) program is reserved for businesses that have an essential employee who is a military reservist called to active duty. Loans are available up to $2 million and come with a 4% interest rate. Repayment terms extend up to 30 years, with no prepayment penalty or fees.
While an MREIDL is a flexible borrowing option for qualified businesses, collateral—something of value that backs the loan—is required for loans larger than $50,000. Funds can be used only for ordinary and necessary operating expenses—not to cover lost income or lost profits. What’s more, MREIDL loan funds may not be used to expand the business, and are not available in place of regular commercial debt or to refinance other debt.
How To Get a Business Loan as a Veteran
Getting a business loan as a veteran starts with shopping around to see what funding will provide you the most benefit. Here’s a rundown of steps to take:
- Review SBA loan options. The SBA’s website has a loan search tool where you can input information about your business to connect with lenders providing SBA loans with veterans benefits.
- Gather veteran documentation. You may be required to provide documents—such as Form DD 214, Certificate of Release or Discharge from Active Duty or a military ID—to qualify for benefits like a fee waiver on government-backed business loans. Speak to your lender to find out what forms are needed.
- Check out what other lenders have to offer. Loans offered by online lenders and credit unions that aren’t geared specifically to veterans could offer affordable rates, flexible repayment terms and quick funding. Comparing these options against government-backed business loans can help you determine the best type of financing.
- Submit your application. Lenders will ask for information about you and your business to complete the full application for the loan. This could include submitting documents like tax returns and financial statements to show financial history. A business plan, financial projections and collateral may also be required.
- Wait for approval. Once approved, you’ll get loan documents to review and sign before receiving business funding. The time from application to funding can vary by lender. Some online lenders can approve you and get you loan funds within a few days, while SBA loans can take several months to process.
Find the Best Small Business Loans
Small Business Grants for Veterans
In addition to small business loans available to veterans, there are several grants that can help entrepreneurial veterans and military spouses start and grow their businesses. Unlike loans, grants do not require repayment, though some cash infusions may require an exchange of ownership interest. Here are some veteran-specific grants to consider:
- StreetShares Foundation. The StreetShares Foundation is a nonprofit organization that aims to support entrepreneurial members of the military, including veterans. The Veteran Small Business Award grant program connects qualified veterans with the funds they need to start and grow their businesses, while also providing educational resources and events.
- The Global Good Fund Veterans Leadership Program. Offered through a partnership with The Smithfield Foundation (Smithfield Foods Inc.), The Global Good Fund supports veteran business owners through funding and leadership resources. Eligible veterans get access to leadership resources, a global network of like-minded peers, and professional leadership coaches and business mentors, as well as targeted funding.
- Hivers & Strivers Angel Fund. Though not technically a grant program, Hivers & Strivers is an angel investment group that provides funding between $250,000 and $1 million to companies led by military veterans. In addition to financial investments, Hivers & Strivers provides businesses with the guidance and expertise needed to succeed.
There are also a number of business resources tailored to the needs of entrepreneurial veterans and military spouses. For example, Bunker Labs’ Launch Lab Online offers online courses and programs to teach veterans about the fundamentals of entrepreneurship through an online learning platform.
Financing Options for Veteran-owned Startups
Generally speaking, new businesses pose more risk to lenders, making it more difficult for startups to get the financing they need—especially at competitive rates. If you own a startup, consider these alternative financing options.
SBA Microloan Program
New veteran-owned businesses can take advantage of the SBA’s microloan program, which offers funds for working capital and other expenses to eligible businesses in underserved communities.
This often includes veterans (as well as women and minorities). Loans are available up to $50,000 with repayment terms up to six years. APRs vary by individual lender but typically range from 8% to 13%.
Business Credit Card
If you don’t qualify for an SBA microloan, consider a business credit card. Interest rates are generally higher for credit cards (anywhere from 10% to 35%), but you’ll only pay interest on what you borrow—and you won’t pay any interest if you pay off your card each month. Depending on your credit score, you may also qualify for a 0% introductory APR offer.
Veteran Personal Loan
Alternatively, it may be possible to qualify for a veteran personal loan based on your personal credit score, income or assets like your house. However, not all personal loan lenders allow using the funds for business purposes.
SBA Business Growth Resources for Veteran-owned Business
In addition to trying to get a small business loan, veteran-owned businesses can take advantage of training programs and growth resources offered through the SBA. Consider these programs if you want to strengthen your leadership skills and grow as an entrepreneur:
- Boots to Business. The Boots to Business (B2B) program offers business training programs, including the Introduction to Entrepreneurship course, B2B Revenue Readiness online course, and additional resources offered through the SBA and its network of business development partners.
- Women Veteran Entrepreneurship Training Program (WVETP). Committed specifically to women veterans, women service members, and women spouses of service members and veterans, the WVETP offers several training programs. Resources funded by the SBA include Our Native American Business Network (ONABEN), Lift Fund – San Antonio and IVMF – Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE).
- Service-Disabled Veteran Entrepreneurship Training Program (SDVETP). Similar to WVETP, the SDVETP focuses on entrepreneurship training programs for service-disabled veterans. Programs are available to current or aspiring business owners, and include IVMF – Entrepreneurship Bootcamp for Veterans with Disabilities (EBV), Veterans Entrepreneurship Program (VEP) and Dog Tag Inc.
- Veteran Federal Procurement Entrepreneurship Training Program. Other SBA veteran resources focus on general entrepreneurship training, but the Veteran Federal Procurement Entrepreneurship Training Program (VFPETP) is specific to veteran-owned businesses that are engaged in federal procurement.
Frequently Asked Questions (FAQs)
Who qualifies for a VA small business loan?
While the VA—or Department of Veteran Affairs—does not offer business loans, there are some small business loans reserved for veteran-owned businesses. As with traditional business loans, lenders impose credit score requirements and other minimum qualifications on loans extended to veteran-owned businesses.
However, to qualify for a veteran-specific business loan from the SBA, a business must also be at least 51% owned and controlled by an eligible veteran, active-duty military service member participating in the Transition Assistance Program, or a Reservist or active National Guard member.
Eligible owners may also be the current spouse of a veteran, active-duty service member, reservist or guard member, or the widowed spouse of a service member who died in service or from a service-related disability.
How do I apply for a veteran small business loan?
The process of applying for a veteran small business loan varies by lender but typically requires submitting a formal application and supporting documentation to verify the applicant’s identity.
Applicants may also need to provide bank statements, tax returns and other financial documentation for the business, as well as a business plan and other evidence of the business’ financial stability.
In the case of veteran-specific loans offered through the SBA, applicants must demonstrate that at least 51% of the business is owned and controlled by a veteran or other eligible individual.
Can I get a veteran business loan with bad credit?
Like other forms of business financing, veteran business loans often come with minimum credit score requirements—usually around 680 for SBA loans and traditional financing options. This can make it difficult for business owners who have a low credit score or limited credit history to qualify.
Still, it is possible for veterans with poor credit to qualify for a business loan through an online lender that imposes less rigorous qualification requirements, or by pledging valuable collateral like real estate or equipment. If you have a low credit score and need funding for your business, it also may be possible to qualify for a business credit card to cover expenses until your score improves.
Related: Best Business Loans For Bad Credit