SBA Loans For Veterans: Guide To Veteran SBA Loan Rates & Requirements

After serving their time in the military, many veterans choose to start a business. In fact, military veterans own about 7.5% of the businesses in the United States. Just like any other small business owner, there comes a time when these entrepreneurs may seek out a business loan.

SBA loans are among the best small business loans due to their low rates and excellent terms. Keep reading to learn about SBA loans for veterans, veteran small business loan rates, and how to apply.

What Are SBA Loans For Veterans?

The SBA (Small Business Administration) is a government organization that assists small businesses, providing education, training, and government-backed business loans. SBA loans for veterans include the Military Reservist Economic Injury Disaster Loan Program (MREIDL).

The Veterans Advantage Guaranteed Loan Program, which provided low-cost, long term loans, has expired and is no longer available.

What Happened To SBA Veterans Advantage Guaranteed Loans?

The Veterans Advantage Loan Program provided SBA 7(a) and SBA Express loans for veterans that came with reduced guaranty fees.

Unfortunately, this program has expired. However, veteran-owned businesses that meet SBA requirements can still qualify for loans under the 7(a) program — they just won’t receive reduced fees.

Still, SBA 7(a) loans offer low interest rates, favorable repayment terms, and can be used for nearly any business purpose. Businesses that want to apply for these loans can get started with our list of the best SBA 7(a) lenders.

Military Reservist Economic Injury Disaster Loan Program (MREIDL)

The Military Reservist Economic Injury Disaster Loan Program is designed to help cover business operating costs while a reservist veteran is called up to active duty.

Military reservists and members of the National Guard who face economic hardship during or after a deployment can get the financing they need for their business with an MREIDL.

MREIDL Program Terms, Rates, & Fees

These are the current rates and fees for an MREIDL:

While the SBA does typically require collateral on Military Reservist EIDL, the SBA will not turn down a loan simply for lack of collateral. Still, the borrower will be required to put up any available collateral, including real estate.

These loans are very attractive to military veterans because of their repayment terms and low-interest rates. SBA Veteran Loan rates for MREIDL are currently capped at 4%.

MREIDL provides the working capital needed to pay necessary expenses. Funds cannot be used for income or profit loss, refinancing debt, or business expansion.

How To Qualify For A MREIDL

The Military Reservist Economic Injury Disaster Loan Program is available to service members, reservists, or National Guard members on active duty.

To qualify, service members must apply for the loan while on active duty or for a period of one year following the end of active service or discharge.

How To Apply For A MREIDL

Contact the Disaster Assistance Customer Service Center via the SBA website, phone, or email to obtain an application for the Military Reservist Economic Injury Disaster Loan Program.

Additional SBA Resources For Veteran-Owned Businesses

In addition to the MREIDL program, the SBA also provides a variety of resources to give veterans the tools they need to succeed in business. SBA training programs for veterans include:

• Boots to Business, Boots to Business Reboot, and Boots to Business Revenue Readiness
• Women Veteran Entrepreneurship Training Program
• Service-Disabled Veteran Entrepreneurship Training Program
• Veteran Federal Procurement Entrepreneurship Training Program

The SBA also operates Veterans Business Outreach Centers (VBOCs) nationwide, offering workshops, training, counseling, and mentorship to veterans, service members, National Guard and Reserve members, military spouses, and family members interested in starting or growing a small business.

There’s also the Veteran Small Business Certification (VetCert) program, through which veteran-owned and service-disabled veteran-owned small businesses can get certified to compete for federal contracts. Certified SDVOSBs are eligible for at least 5% of all federal contracting dollars annually.

Military spouses are also eligible for many of the same SBA resources available to veterans, including access to all SBA loan programs, Women’s Business Centers, and the Military Spouse Pathway to Business program, which provides entrepreneurship training and resources specifically designed for military spouses.

Veteran-owned small businesses may also be eligible to purchase surplus government property — things like equipment, vehicles, and office supplies — at reduced prices through the SBA’s Surplus Personal Property for Veteran-Owned Small Business program. This can be a cost-effective way to acquire assets your business needs without paying full market value. Visit sba.gov for more details on eligibility and how to access available inventory.

Note that the SBA does not offer any grants to veterans. However, you can find other business grant options in our guide to the best business grants for veterans.

The Bottom Line On SBA Loans For Veteran-Owned Businesses

If you’ve been called up to active duty and your business is suffering as a result, the MREIDL can offer the financial relief you’re looking for.

If you’ve not been called up to active duty but you need a business loan, the SBA has plenty of options available for veteran-owned businesses, including the 7(a) loans, Express loans, and smaller Microloans up to $50,000.

It’s also possible that none of these options seem quite right. If that’s the case, one of these (non-SBA) best small business loans for veterans may be a better fit.