Business Loans for Veterans: Where and How to Apply
Veteran business loans, often referred to as VA business loans, aren’t offered by the U.S. Department of Veterans Affairs (VA).
Last updated Jan. 22, 2025
Active-duty military, former members of the military, and their current spouses may be interested in a veteran (VA) business loan to start or expand their business. While the VA itself does not issue small business loans for veterans, SBA lenders and many commercial lenders do.
In this guide, we’ll walk you through how to qualify, how to apply, and your top options for veteran small business loans.
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How to Qualify for a Veteran Small Business Loan
To receive a veteran business loan, you’ll need to meet some of the standard business loan requirements. Additionally, you’ll need to prove your veteran status.
Generally, business owners in the following categories are eligible for veteran small business loans:
- Active-duty military service members
- Honorably discharged veterans
- Service-disabled veterans
- Reservists and active National Guard members
- Current spouses of any veteran, active duty service member, reservist, or National Guard member
- Widowed spouses of a service member who died in service or from a service-related disability
If you fall under one of these categories and apply for a veteran small business loan, you may need to provide a military ID or discharge papers, such as DD Form 214, to prove your veteran status.
How to Apply for a Veteran Small Business Loan
Some of the application processes will vary based on the lender you’re working with, but much of the loan application will look the same—with lenders emphasizing the same factors, such as credit history, time in business, and annual revenue.
Here’s how to apply for a small business loan for veterans.
1. Determine How Much Money You Need and What You're Using It For
It’s easy to say, “I need $50,000,” but many lenders will want to know why you’re applying for that specific amount of capital and what you’re going to use it for. This is particularly important if you’re looking for a veteran business loan to start a business, as startup funding can be much more difficult to qualify for. Additionally, certain loan programs—especially within SBA loans—are better suited for specific purposes.
The other very important piece of this first step in the application process is to be sure that the loan you’re asking for is one you can actually afford. A business loan calculator (easily found online) can help you estimate your monthly payments based on your loan amount, the type of loan, the term, and interest rates.
2. Get Your Loan Documents in Order
Once you figure out why you need the funding and how much you can realistically afford, you’ll need to put time into organizing your loan documents.
One of the most important requirements for your veteran business loan application will be your documentation proving your military status. You will also likely need common loan qualification documents including:
- Personal and business bank statements
- Personal and business tax returns
- Business financial statements
- Personal and business credit score information
Ultimately, the documentation you need will vary by lender, but it’s helpful to get the basics sorted out ahead of time. And if you decide to apply for an SBA loan, you’ll have to prepare more extensive documentation based on the more rigorous SBA loan requirements.
3. Evaluate Your Loan Options and Apply
With your veteran business loan requirements in order, the next step is to evaluate your options (we’ve detailed some below). When exploring the various lenders and loan products available to you, consider whether you can meet the lender’s qualifications, what the terms and interest rates will be, and whether the lender charges any additional fees (e.g., an origination fee, a draw fee, or a prepayment penalty).
Whether you decide to apply for an SBA loan, bank loan, or online loan, you’ll want to ensure that you follow the lender’s guidelines and submit a complete and accurate business loan application.
Doing so will not only increase your chances of qualifying but also speed up the underwriting process.
4. Choose the Best Loan Offer and Close On Your Loan
Ideally, you’ll have multiple loan offers to choose from and will need to decide which is best for you and your business. In almost every case, the best option for your business will be the least expensive option (typically the one with the lowest interest rate and fees).
But veteran business owners with poor or thin credit history tend to only qualify for steep interest rates. If you’re in this scenario, you may not have many options, but don’t lose hope. Check out our list of the best business loans for bad credit.
Before you sign any business loan agreement, review it thoroughly and consider consulting a business attorney. Read the fine print for any fees that might come with your loan and the loan term that you’re agreeing to. You want to be fully confident before going into your loan that it’s affordable for your business (fees included) and that the repayment structure is right for you.
Best Veteran Business Loan Options
Many of your loan options will be the same as for any other business owner. But the four options listed below each have a unique veteran-specific component.
SBA 7(a) Loans
SBA loans, issued by participating lenders (not the SBA itself) and partially backed by the U.S. Small Business Administration, are some of the most sought after small business loans out there.
The SBA 7(a) loan, in particular, is the most common SBA loan for small business owners to apply for. This loan, open to both veterans and non-veterans, offers up to $5 million to finance a variety of business needs, including working capital, refinancing business debt, buying equipment, purchasing real estate, and more.
SBA 7(a) loans have long repayment terms—as long as 25 years for real estate—and some of the lowest business loan interest rates on the market (currently ranging from around 10% to around 16%).
The SBA also offers a number of free resources to small business owners, including the Boots to Business program, which is specifically designed to aid the transition from military life to entrepreneurship.
A special note for service-disabled veterans: Make sure to mention your service-disabled status if you’re applying for an SBA loan, as the SBA offers additional programs and benefits specifically for service-disabled veterans.
SBA Express Loans
Another SBA loan that veterans should explore is the SBA Express Loan. These are part of the 7(a) loan program and offer loans up to $500,000 with faster approval decisions and funding timelines.
Both veterans and non-veterans can apply for SBA Express Loans, but the SBA waives the upfront guarantee fee on SBA Express Loans for veterans who qualify. Currently, this fee ranges from less than 1% to nearly 4% of the guaranteed portion of the loan. Veterans and spouses of veterans are eligible to have the fee waived.
Consult our guide for more information about VA SBA loans.
Military Reservist Economic Injury Disaster Loans (MREIDL)
This loan option, administered through the SBA, has a specific use case: Businesses that have an essential employee who is a military reservist called to active duty.
Unlike other SBA loans, which are offered through banks and direct lenders, the SBA provides loans of up to $2 million through the MREIDL program. The program allows for repayment terms up to 30 years. Collateral is required for loans over $50,000.
This SBA veteran loan program is geared particularly toward small businesses that are unable to meet their operating expenses because an essential employee was called to active military duty. This low-interest business loan helps small business owners cover their expenses until the employee can return.
Would you prefer a grant over a loan?
If you don’t have luck with a small business loan for veterans, or if you’d prefer to try a funding avenue that doesn’t involve debt, you can explore the variety of grant programs available through government and private programs that are designed specifically for veteran business owners.
Fundera Can Help
We’re here to take some of the work of finding a small business loan off your plate.
You can answer these few questions—with no impact to your credit score and free of obligation—to see which loans you qualify for. One of our trained sales associates will personally advise you through the entire loan process, from comparing options to signing your agreement.
Let’s get you funded!
How much do you need?
No cost to you
Your credit score won't be impacted
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