Each year, veterans around the United States start their own businesses after returning to civilian life following military service. In addition to financing options available to other business owners, veterans and their families may have access to small business loans for veterans specifically, as well as government programs, grants, training opportunities, and resources designed for the military community.
Here’s what you need to know about the programs and funding available for veteran entrepreneurs.
Who can qualify for veteran business financing and resources?
Eligibility varies by program. Depending on the financing, grant, or support program, eligible applicants may include:
- Military veterans
- Service-disabled veterans
- Active-duty service members
- Active reservist
- Members of the National Guard
- Qualifying military or veteran spouses
Some resources have additional ownership, service-status, discharge-status, time-in-business, revenue, credit, or intended-use requirements. Programs offering small business loans for disabled veterans may also define eligibility differently.
Before applying, check current requirements directly with the financing provider or program administrator, rather than assuming veteran status alone qualifies the business.
Types of small business loans for veterans
Veteran entrepreneurs can apply for all the same small business loans as other business owners, but there are also unique advantages to certain types of loans for veterans. Instead of looking only for products marketed as veteran small business loans, start with your business need and how quickly you need the capital.
Understanding how to get a small business loan for veterans starts with the same question any business owner should ask: What is the money for, and which structure fits that use? Keep that in mind as you review these financing options available to veterans.
SBA loan programs and support for veteran-owned businesses
SBA financing can be useful for veteran entrepreneurs, but most SBA loan programs are not veteran-exclusive. The SBA does not directly lend to small business borrowers, but rather guarantees a large percentage of the funding for loans to approved businesses. There are several different types of SBA loans, including SBA 7 (a) loans.
- The SBA 7(a) program can support working capital, equipment purchases, real estate expenses, business debt refinancing, and complete or partial changes of business ownership.
- The SBA Express program helps business owners get funding more quickly by expediting the loan review process. It allows lenders to use their own approval processes in exchange for a lower SBA guaranty percentage.
The Military Reservist Economic Injury Disaster Loan Program (MREIDL) is different from standard SBA business financing. These low-interest loans are available to businesses that need extra money to stay open because an essential employee has been called to active duty. MREIDLs are available in amounts up to $2 million in most cases, with a maximum fixed interest rate of 4%. The first payment is deferred for 12 months with no interest accrual.
Alternative and online financing options for veteran entrepreneurs
For an established business that needs capital on a shorter timeline or does not fit traditional underwriting requirements, online financing may offer another route.
- A working capital loan provides a lump sum that can be used for expenses such as inventory, staffing, marketing, repairs, or other operational needs. Online financing providers may evaluate business revenue, cash flow, time in business, credit, and other indicators rather than relying on a single financial metric.
- A merchant cash advance (MCA) is not a loan. Instead, a business receives an advance in exchange for an agreed-upon amount of future business revenue, which is collected through regular remittances. An MCA can offer flexible qualification for some established businesses, but owners should understand the total cost and remittance schedule before accepting an offer.
- Equipment financing is designed for purchasing machinery, vehicles, technology, or other business equipment. Because the equipment commonly helps secure the financing, this structure can make more sense than using general working capital for a large equipment purchase.
Online options can help businesses act on time-sensitive expenses or opportunities. More flexible underwriting may be useful when an established business has revenue that provides additional context beyond a single credit score.
Business lines of credit and other flexible funding options for veterans
A business line of credit or business credit card can be a flexible financing option. With a line of credit or business credit card, you only have to pay back the amount you actually use (plus interest).
That flexibility can make a line of credit more useful than fixed lump-sum financing if your business has recurring or difficult-to-predict costs, such as seasonal inventory, periodic repairs, or gaps between completing work and collecting customer payments.
Business grants for veterans
In addition to small business loans, veterans and active-duty service members have the opportunity to apply for national and local grants. Unlike loans and other financing options, grants are competitive, non-guaranteed funding. Verify current eligibility, deadlines, and availability directly with each program.
Hiring Our Heroes
The Hiring Our Heroes Small Business Grant Program supports small businesses owned by veterans and military spouses. As part of the U.S. Chamber of Commerce Foundation, the organization also provides resources and community for such businesses.
Hivers and Strivers
Hivers and Strivers is an angel investment group for businesses owned by graduates of any and all U.S. military academies. Many investors in the Hivers and Strivers group are veterans themselves.
Government programs and organizations that support veteran-owned businesses
Many departments of the U.S. government and outside organizations have a vested interest in helping veteran entrepreneurs succeed. Some of these organizations offer grants or loans to veterans, while others provide tools to help veterans find financing. Some of these programs include:
Veteran Entrepreneur Portal
The Department of Veterans Affairs (VA) provides a portal full of resources and information designed for veterans looking to start, grow or fund a business. In addition to business resources, this portal includes:
- Information about doing business with federal agencies and government contract work
- Training programs available to veterans through the VA.
Boots to Business
The Boots to Business program is an SBA initiative through the Department of Defense Transition Assistance Program (TAP), providing courses and information to help veterans transition from active duty to civilian life. If you are thinking of starting a business, this program offers training that can help. If you are an Active Duty Service Member, veteran of any era or a military spouse, you are eligible for this program.
SBA Resources for Veteran-Owned Businesses
The SBA has many different resources for veterans, as well as specific resources for women veterans and service-disabled veteran entrepreneurs. The SBA’s Office of Veterans Business Development provides training and resources that can help business owners get started or keep their businesses going.
The SBA also has Veteran Business Outreach Centers (VBOCs) in many locations around the United States. You can visit these local centers to request advice and learn about any local grants or funding programs for veterans.
How to compare veteran business loans, grants, and other financing
Grants and financing solve different problems. A grant may reduce how much outside capital you need, but availability is limited and competitive. Financing creates a repayment or remittance obligation, but may offer more predictable access to the amount your business needs.
Consider these factors before choosing an option:
Factor | What to compare |
|---|---|
Speed | How soon do you need the funds, and how long does the application and review process typically take? |
Repayment obligation | Grants generally do not require repayment when their terms are followed. Loans require repayment, while MCAs involve remitting an agreed amount of future revenue. |
Application effort | SBA programs and grants can require detailed documentation. Some online financing processes may be simpler. |
Eligibility | Review service-status requirements as well as credit, revenue, time in business, ownership, and other qualifications. |
Funding amount | Make sure the available amount matches the actual business need rather than simply taking the largest amount offered. |
Intended use | Choose financing designed for the expense, whether that is startup costs, working capital, equipment, an acquisition, or recurring operating needs. |
The strongest financing decision is not necessarily the option with the fastest approval or the largest available amount. Look for options with a total cost and structure that fit your business and cash flow.
How to prepare before applying for veteran business financing
A little preparation can make it easier to compare programs and avoid taking on financing that does not fit the business.
Before applying:
- Define the funding need. Know how much you need, what you will use it for, and when you need it.
- Explore your options. Review sources of small business financing to find an option that fits your needs and cash flow.
- Gather business financial information. Depending on the provider, this may include business bank statements, revenue records, tax returns, financial statements, or a business plan.
- Collect service-status documentation when required. Veteran- or military-specific programs may ask for documentation establishing eligibility.
- Review your credit. Understand both your personal and business credit profile before a financing provider reviews it.
- Estimate the cash-flow impact. Determine whether the business can comfortably handle the proposed repayment or remittance schedule.
- Compare total cost. Look beyond the amount offered and compare rates or factor rates, fees, terms, payment frequency, collateral requirements, and other obligations.
Financing options for veteran-owned businesses through Credibly
Credibly helps small and medium-sized businesses explore financing options based on their business health, goals, and funding needs. Veteran-owned businesses can explore direct business lending and other funding products based on the same business health considerations as other applicants.
Options for established businesses may include a Credibly Working Capital Loan or Merchant Cash Advance*. These products generally require at least six months in business, $20,000 in average monthly deposits, and a minimum personal FICO score of 550, along with other underwriting requirements.
Our goal is to match the financing structure to the business’s actual financial position and intended use—not simply to military status.
Frequently asked questions
Do I need to be certified as a veteran-owned business before I apply for financing?
Generally, no. Business lenders and financing providers typically do not require SBA veteran-owned business certification simply because the owner is a veteran. Certification can be important for certain federal contracting opportunities, however, and individual veteran-focused grants or programs may have their own verification requirements.
Can a military spouse apply for business financing in their own name?
Yes, if the spouse owns the business and meets the financing provider’s normal eligibility requirements. Military-spouse-specific programs may apply separate ownership, service-status, or documentation rules.
Can I combine a veteran business grant with a business loan or other financing?
Potentially. A grant can sometimes cover one portion of a project while financing covers another, but you need to review the grant agreement and financing terms for restrictions on how the funds may be used.
Does veteran status automatically improve my chances of getting approved for a business loan?
No. Veteran status may establish eligibility for certain programs, but standard business financing decisions still depend on factors such as revenue, cash flow, credit, time in business, existing obligations, and the amount requested.
What documents might I need to prove veteran or military spouse eligibility for a program?
Requirements vary. A program may request military service or discharge records, documentation from the VA or Department of Defense, or documentation establishing an eligible spouse relationship. Check the program’s application instructions before submitting personal records.
Can I use veteran business financing to buy an existing business or franchise?
Some financing can be used for business acquisitions. SBA 7(a) financing, for example, permits eligible complete or partial changes of ownership, although the business, transaction, and borrower must still meet program requirements.
What financing options should I consider if I need funds faster than an SBA loan can provide?
Depending on the business’s qualifications and intended use, you could compare online working capital loans, merchant cash advances, equipment financing, or a business line of credit. Faster access can come with different costs and repayment structures, so compare the full offer rather than funding speed alone.
Can a newly launched veteran-owned business qualify for financing?
Possibly, but options are more limited because many business financing providers require an operating history and established revenue. New businesses may need to explore SBA-supported startup financing, grants, personal investment, or equity while building the operating history required by other financing providers.
What should I compare before accepting a financing offer for my veteran-owned business?
Compare the total amount received, total financing cost, rate or factor rate, term, payment or remittance frequency, fees, collateral or guarantee requirements, and any restrictions on how you can use the funds. Most importantly, model how those obligations will affect your business cash flow.
If I do not qualify for a veteran-specific program, can I still apply for regular small business financing?
Yes. Veteran-specific programs are only one part of the financing landscape. Veteran business owners can apply for regular business loans and other financing products as long as they meet the provider’s standard eligibility and underwriting requirements.
*Credibly Merchant Cash Advances and Working Capital Loans to merchants in California are provided by Retail Capital LLC. All other Credibly products in all other jurisdictions are provided by Credibly or Arizona LLC.
