The 6 Best Small Business Loans For Veterans: Compare Top Veteran Business Loans
Veterans have many options when it comes to funding their small businesses, and if you know where to look, you can even find business loans for veterans with bad credit.

The best business loans for veterans offer good terms, low rates, and reasonable fees, and include not only SBA loans, but also online veteran business loans, which could take the form of either small business term loans or lines of credit. These online loans can also be a good alternative to SBA loans for veterans who need a fast business loan, who have been in business less than two years, or who have poor or fair credit.
Read on to learn about the best small business loans for veterans.
Learn More About Our Top Picks
Other Featured Options:
- BlueVine: Best fast loans for veteran-owned businesses.
Read more below to learn why we chose these options.
Table of Contents
- The Best Business Loans For Veterans At A Glance
- The Best Business Loans For Veterans
- Best SBA Loans For Veteran-Owned Businesses
- Additional Funding Resources For Veteran-Owned Businesses
- How To Get A Veteran Business Loan
- Before Applying For A Veteran Business Loan
- The Loan Application Process
- FAQs About Veteran Business Loans
- Which Loan Is Right For Your Veteran-Owned Business?
- In Summary: The Best Business Loans For Veterans
The Best Business Loans For Veterans At A Glance
Lender | Best For | Maximum Loan Amount | Minimum Credit Score |
---|---|---|---|
SmartBiz | Best SBA loans for veteran-owned businesses | $5 million | 650 |
OnDeck | Best business loans for veterans with bad credit | $250,000 | 600 |
Kabbage | Best business loans for veterans with fair credit | $250,000 | 640 |
LoanBuilder | Best short-term loans for veteran businesses | $500,000 | 620 |
Fundbox | Best loans for veterans with startup businesses | $150,000 | 600 |
BlueVine | Best fast loans for veteran-owned businesses | $250,000 | 600 |
The Best Business Loans For Veterans
These lenders offer fair terms and reasonable rates to veteran-owned small businesses.
1. SmartBiz: Best SBA Loans For Veteran-Owned Businesses
SmartBiz |
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Pros
- Faster turnaround than regular SBA loans
- Low interest rate
- Accepts fair-credit applicants
Cons
- Funding takes longer than other types of online loans
SmartBiz offers online SBA loans with a fast turnaround time, an easy application process, and low interest rates. Loan offerings include SBA Working Capital and Debt Refinancing Loans, Bank Term Loans (non-SBA loans), and SBA7(a) Commercial Real Estate Loans.
SmartBiz loans are most appropriate for established veteran-owned businesses with at least fair credit and two years in business. SmartBiz also says most of its approved businesses have annual revenues of $100,000 or higher. SmartBiz is a smart choice for veterans who want to get an SBA loan but are frustrated by the lengthy signup process and want a faster turnaround—as soon as a week. SmartBiz can determine your loan eligibility in just a few minutes.
2. OnDeck: Best Business Loans For Veterans With Bad Credit
OnDeck |
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Pros
- Accepts poor-credit applicants
- Same-day funding
- Multiple types of financing available
Cons
- Rates can be expensive
Many veterans leave the military with low credit scores because their careers have prevented them from participating in credit-building activities, such as paying off a mortgage. OnDeck is one of the few reputable small business loan providers that might lend you money if you have a credit score as low as 600. However, a lot of good-credit borrowers also get funded through OnDeck.
OnDeck offers both short-term loans and lines of credit for businesses with bad credit. OnDeck’s loans typically aren’t the cheapest, but they are quite fast—you can potentially get the funds to expand your vet-owned small business within just 24 hours, or even the same day you apply. Startups should look elsewhere for financing, as OnDeck will not lend to businesses that have been operating for less than a year.
3. Kabbage: Best Business Loans For Veterans With Fair Credit
Kabbage Loans |
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Pros
- Transparent fee structure
- Monthly repayments
- Low revenue requirements
Cons
- Fees are front-loaded
Kabbage is another short-term business financing product that is easy for most veteran-owned businesses to qualify for. Specifically, Kabbage offers lines of credit to businesses with fair credit and higher. You do need at least one year in business, but the revenue requirements are quite low—you only need to make $3,000/month to qualify.
Each draw from your Kabbage line of credit is structured as a short-term loan, which you will pay off in monthly installments over 6, 12, or 18 months. Though Kabbage doesn’t have a prepayment penalty, it’s important to note that Kabbage loans are front-loaded, which means the majority of fees are paid in the first third of the repayment period. As a result, you won’t be able to save much money by repaying early.
Get Started with Kabbage Loans
4. LoanBuilder: Best Short-Term Loans For Veteran Businesses
LoanBuilder |
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Pros
- No origination fee
- Relaxed borrower requirements
- High max. borrowing amount
Cons
- Short repayment terms
LoanBuilder is a PayPal-owned lender that offers short-term business loans. You do not need to be a PayPal seller in order to qualify, but having a PayPal account makes the already-fast application process go even faster. LoanBuilder loans are also sometimes advertised as “PayPal Business Loans.” At $500,000, the maximum loan size is larger than that of many other online business loans, and veterans with poor credit and less than a year in business can still qualify.
With a maximum term length of 12 months, you will be repaying your LoanBuilder loan pretty expediently. However, LoanBuilder does not charge an origination fee, so you will receive more money upfront. On approval, funds will be deposited in your account as soon as the next business day. One thing we really like about LoanBuilder is that during the application stage, it lets you adjust your prospective loan amount and term length so you can choose a weekly repayment amount that works for you.
5. Fundbox: Best Loans For Veterans With Startup Businesses
Fundbox |
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Pros
- Suitable for startups
- Accepts poor-credit applicants
- Multiple financing types available
Cons
- Low max. borrowing amount
Fundbox offers two easy-to-qualify-for small business loans for veterans: lines of credit and short-term loans. Fundbox financing is available to businesses that have only been open for 6 months, and poor credit is not a problem. These short-term loans are good if you only need a small amount of capital to get your business off the ground—though loans can go up to $150,000, $20,000 is the average borrowing amount. However, you may become eligible for more funds over time.
Fundbox repayment takes place weekly, with a maximum term length of either 24 weeks (LOC) or 52 weeks (STL). So, you’ll need to pay your loan back quickly and fees are on the high side, especially for longer term lengths. Fortunately, all fees are transparently laid out on Fundbox’s website. Another positive is that Fundbox does not charge an origination fee on its term loans, and there’s no prepayment penalty for repaying early.
6. BlueVine: Best Fast Loans For Veteran-Owned Businesses
BlueVine |
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Pros
- Same-day funding available
- Startup-friendly
- Accepts applicants with poor credit
Cons
- Fees can be high
BlueVine is another one of our favorite SMB lenders. It has a lending product that’s fast and easy for veteran-owned small businesses to qualify for. BlueVine offers business lines of credit services similar to the LOCs offered by OnDeck, Kabbage, and Fundbox. BlueVine accepts veteran-owned businesses with bad credit, including startups with bad credit, and best of all is that you can receive same-day funding. Once BV approves your application—your initial pre-approval decision will take about 5 minutes—you can have funds deposited in your bank account within a few hours (if you choose the $15 bank wire option).
Be aware that even though many online lenders such as BlueVine will lend to businesses with bad credit, those same lenders may offer better financing options and/or lower borrowing fees if you have good credit (and a longer time in business). BlueVine, for example, while extending 6-month lines of credit to poor-credit borrowers, offers 12-month lines of credit to more established businesses with better credit. Thus, it’s a good idea to take some steps to improve your credit score before applying for business loans.
Best SBA Loans For Veteran-Owned Businesses
SBA loans for veterans have great terms and fees, though these loans are harder to qualify for and take longer to fund. The main types of SBA loans for veterans are Veterans Advantage Guaranteed Loans (which can include SBA Express loans) and MREIDL. Interested? Learn how to apply for an SBA loan.
Additional Funding Resources For Veteran-Owned Businesses
Don’t qualify for funding yet? Need more help finding options? Consider the following funding ideas for veteran-owned businesses.
- Get Certified As A Veteran-Owned Business: Getting certified as a veteran-owned business can increase your appeal to lenders and win federal contracts; service-disabled veteran-owned businesses may qualify for a separate federal contracting program.
- Contact Your Bank Or Credit Union: You may be able to obtain a business loan through your bank or credit union if you already have a good business relationship with them. Credit unions may soon start issuing more loans to veteran-owned businesses if a recently introduced bill called the Veteran Member Business Loan Act passes. If passed, the law would exempt loans made to veteran-owned businesses from the member business lending cap (currently 12.25%).
- Look Into Nonprofit Lenders: One example of a nonprofit lender for veterans is the Veterans Business Fund.
- Look Into Angel Investors: These organizations can help your veteran-owned business obtain startup funds. Example: Hivers and Strivers.
- Research Business Grants: See if you qualify for any grant programs for veteran-owned businesses—for example, there are special grants for veteran farmers and grants for veteran franchise owners.
- Contact Your Local SBA Office: They may be able to provide additional information on programs for veteran business owners. The Office of Veterans Business Development, SCORE, and Boots to Business are all SBA-powered programs that offer business training and mentoring to veterans.
- Consider Non-Government Resources: Some examples of non-government resources for veteran business owners include VetToCEO, the Global Good Fund, and the Coalition for Veteran-Owned Businesses.
How To Get A Veteran Business Loan
The best business loans for veterans make it easy to obtain funding with a few simple steps. Mainly, you just need documentation proving your veteran status and your business qualifications. You’ll also need to provide a detailed plan on how you intend to use the money. Read on to learn more about the process of how to get a veteran business loan.
Before Applying For A Veteran Business Loan
The Loan Application Process
Borrower Requirements
If you are well-prepared by taking the above actions, applying for loans should go pretty smoothly. You’ll simply need to prove you can meet the borrower requirements for the loan you want, supplying all the needed documentation. Fortunately, online loan applications are typically much quicker and easier than applying with a bank. Nevertheless, you will still generally have to provide much of the same documentation as you would for a bank loan.
First Time Business Loan
This blog post on applying for your first business loan is a good resource that includes more information about what you’ll need to apply for a loan and the best practices for business loan applications.
FAQs About Veteran Business Loans
Which Loan Is Right For Your Veteran-Owned Business?
To determine which small business loan is right for your veteran-owned business, first consider your qualifications, including time in business, credit score, and business revenues, to see which lender(s) you qualify for. You’ll also want to consider which lenders can offer the amount of funding you need, with a payment schedule you can afford. Since applying for loans usually only incurs a soft credit check that doesn’t harm your credit score, you can apply to multiple lenders before deciding. Once you start applying and get a few pre-approvals, you can compare these loan offers and accept the best one.
In Summary: The Best Business Loans For Veterans
- SmartBiz: Best SBA loans for veterans.
- OnDeck: Best for veteran-owned businesses with bad credit.
- Kabbage Loans: Best for veteran-owned businesses with fair credit.
- LoanBuilder: Best short-term loans for veteran businesses.
- Fundbox: Best loans for veteran startups.
- BlueVine: Best fast loans for veteran-owned businesses.
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