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The US Small Business Administration (SBA) used to offer reduced fees on 7(a) loans and Express loans to veteran-owned businesses. But this Veteran's Advantage (VA) small business loan program expired in 2018.
In fact, there are no SBA loans specifically for veterans that currently available. But a few small business loans that offer the next best thing.
Our team of experts reviewed over 220 business loan providers before selecting these six choices. We focused on lenders offer special deals to veteran-owned businesses, though some were just a good choice for any business owner.
We've kept this list up to date by removing lenders like BlueVine that currently are only offering Paycheck Protection Program loans.
Lendio is a connection service that helps business owners find the right lender for their needs — including alternatives to the SBA Patriot Express Program. Its wide range of lenders sets it apart from similar connection services like LendingTree and National Business Loans, and you may be able to score rates as low as 6%.
Min. Loan Amount | $500 |
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Max. Loan Amount | $5,000,000 |
APR | Starting at 6% |
Interest Rate Type | Variable |
Min. Credit Score | 560 |
Minimum Loan Term | 12 months |
Maximum Loan Term | 300 months |
StreetShares designed its Patriot Express line of credit as an alternative to the now-defunct Patriot Express SBA loan program. While its rates run higher than an SBA loan, it’s faster and easier to qualify. Veteran business owners can also access free training, find a mentor and even apply for grants through the StreetShares Foundation. However, the maximum loan amount is relatively low, and you should expect to pay an origination fee up to 4.95% when you borrow.
Min. Loan Amount | $2,000 |
---|---|
Max. Loan Amount | $250,000 |
APR | Starting at 8% |
Interest Rate Type | Fixed |
Min. Credit Score | 640 |
Minimum Loan Term | 3 months |
Maximum Loan Term | 36 months |
Kiva offers microloans by allowing you to create and manage a crowdfunding campaign. While this means you will need to rely on your social network to get traction, you won’t have to pay any fees to Kiva. Its maximum loan amount is low, but its lack of strict requirements means that you could qualify for funding even if you have bad credit.
Min. Loan Amount | $25 |
---|---|
Max. Loan Amount | $15,000 |
APR | 0% |
Interest Rate Type | N/A |
Minimum Loan Term | 1 months |
Maximum Loan Term | 3 months |
Navy Federal Credit Union is built for veterans. Its maximum APR is set at 18%, and it has plenty of loan options to meet your business’s needs. But it isn’t fast — although you can apply online — and its maximum unsecured loan amount is set at a very low $25,000.
Min. Loan Amount | $2,500 |
---|---|
Max. Loan Amount | $25,000 |
Interest Rate Type | Fixed |
Maximum Loan Term | 60 months |
PNC Bank is an SBA Preferred Lender, which means it has a more streamlined SBA loan application process. As a regional bank, it might be easier to qualify with than larger counterparts like Bank of America. But you’ll have to contact a PNC Bank loan specialist to get started — there’s no online application.
Min. Loan Amount | $20,000 |
---|---|
Max. Loan Amount | $100,000 |
APR | 8.18% to 15.57% |
Interest Rate Type | Variable |
Minimum Loan Term | 24 months |
Maximum Loan Term | 60 months |
OnDeck doesn’t have a specific program for veterans. But this provider has flexible requirements and a fast, online application that makes applying simple. Its relatively low credit requirement also makes it easier to qualify after a stint of active duty service. But be prepared for daily or weekly repayments.
Min. Loan Amount | $5,000 |
---|---|
Max. Loan Amount | $100,000 |
Interest Rate Type | Fixed |
Min. Credit Score | 600 |
Veteran-owned businesses can benefit the most from these types of business loans.
Military Reservist Economic Injury Disaster Loans (MREIDLs) are SBA disaster loans designed for businesses that have suffered because an owner was called to active duty. You can borrow up to $2 million at a 4% rate with terms up to 30 years.
To qualify, your business must have no other means to financially recover from the loss of revenue due to your active-duty status. And you can only apply up to a year after returning from active duty.
Unlike other SBA loans, the Small Business Administration fully funds these loans. You can apply online through the SBA Disaster Assistance website.
The second stimulus bill reduced or eliminated fees on 7(a), Express loans and 504 loans until October 2021. Since VA business loans were essentially 7(a) and Express loans with reduced fees, applying for an SBA loan now might get you a similarly competitive deal.
The bill also increased the amount the SBA will guarantee on 7(a) and Express loan programs. And it extended an SBA loan debt relief program. The government will cover interest and principal payments for the first six months of a loan issued between February 1, 2021 and September 30, 2021.
No, the SBA stopped offering Patriot Express loans in 2001. But the standard SBA 7(a) loan program is still up and running — and might offer a better deal than you’d find elsewhere if you can qualify.
Some online providers like StreetShares specialize in financing for veterans who can’t qualify for SBA funding. Online lenders tend to focus on factors beyond your personal credit score and business revenue to offer a better deal.
While online rates and fees are often higher than SBA or bank loans, you can access a wider range of financing and get your money as soon as the next business day.
Several corporations like UPS and 7-Eleven offer special financing options for veterans who want to open a franchise. With 7-Eleven, for example, you can get a significantly reduced franchising fee and unique financing options that are only available to veterans.
Your business can also apply for highly discounted financing with nonprofits like the Veteran Business Fund. These loans typically can’t cover all of your business’s financing needs, but they can come with interest as low as 0%. Nonprofits sometimes also offer help in getting additional financing from the SBA and other veteran-friendly lenders.
No, the VA doesn’t offer business funding for veterans. VA business loans typically refer to the Veterans Advantage SBA loan program — which happens to share initials with the US Department of Veterans Affairs.
Select a few pieces of information about the loan you’re looking for, your business and your personal credit to get even more options.
Several government and private organizations offer resources for veteran-owned companies, ranging from grants to training programs.
Whether starting a business or expanding your existing one, you can find opportunities that support veterans and military personnel with the financial support and capital you deserve. You can learn more about how business loans work and find even more lenders with our guide.
Answers to common questions about business loans for veterans.
Your business might qualify for the Work Opportunity Tax Credit if it employs veterans, but there are no federal tax breaks for veteran-owned businesses.
But your state might offer tax breaks depending on the type of business you have. For example, veteran-owned franchises in Texas might not have to pay taxes for the first five years of operation.
You can get your business certified as veteran-owned through the Department of Veterans Affairs. Generally, this involves providing proof that you’re a veteran, like a Department of Defense Form 214 or a letter from the Department of Veterans Affairs.
Want more options? The Veterans Affairs (VA) Office of Small and Disadvantaged Business Utilization is one of the most prominent federal resources available.
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