Veterans play a vital role in the business landscape. In fact, veterans run nearly 2 million businesses across the United States. These companies create jobs for 5.45 million people.
Yet many veterans can’t easily find the financing to launch and grow their businesses. It may be that they don’t know where to look. Financial and business resources for veterans are available and ready to help you realize your entrepreneurial dreams. Here, we’ll explore a few resources to help you find business loans for veterans.
5 business loans for veterans to consider
Veterans have several options when it comes to financing. Some are intended to support small businesses generally; others are designed specifically for veterans.
1. SBA 7(a) Loan Program
The 7(a) loan is the most popular Small Business Administration (SBA) loan program. Loan proceeds up to $ 5 million can be used for working capital to make improvements on property, buy inventory, refinance current debt, and several other initiatives.
To qualify, you must have a U.S. for-profit business that meets the SBA’s size requirements. Some types of businesses—including life insurance companies, banks, and businesses involved in lobbying, among others—are ineligible. You must also be unable to obtain financing from other sources before applying. There are no criteria specific to veterans.
The 7(a) loan is ideal if you have good to great credit and are looking for a larger loan.
2. SBA Express Loan Program
The Express Loan program is an SBA 7(a) program for loans up to $500,000. You may be able to qualify without needing collateral.
Veterans can qualify for a waiver of the upfront fees, which can be 2% to 3% of the loan amount.
One advantage of the Express Loan is quicker financing with less paperwork. The entire loan approval process could be shortened by a month or more compared to other SBA loan options.
3. LiftFund Veteran Loan Program
The LiftFund program is specifically for veterans. If you’re an honorably discharged veteran, veteran spouse, or active duty servicemember, you could be eligible. The LiftFund Veteran Loan Program offers loans up to $100,000, with a fixed interest rate of 5%. You can use the funds for equipment, inventory, and leasehold improvements. Funding is prioritized for business owners located in or operating from designated low- to moderate-income areas.
It’s a good choice if you don’t need more than $100,000 and aren’t ready to apply for SBA financing.
4, Hivers and Strivers Angel Fund
The Hivers and Strivers angel fund provides early-stage financing to startup ventures run by veterans. Those who qualify can apply for $100,000 to $1 million in eq uity funding. This fund can also introduce you to potential customers, partners, and vendors, and assist with strategic planning.
This option is perfect for vet-run startups that could benefit from experienced guidance and contacts.
5, Veteran Business Fund
The Veteran Business Fund helps veterans who can’t secure bank financing due to a lack of equity. The financing is non-interest-bearing, and repayment terms are five years or longer.
The Veteran Business Fund doesn’t always accept new applications. When it’s available, the VBF is a solid option to consider.
Other business loans for veterans
Some business loans might also be worth researching even though they’re not specifically designed for veterans.
Online business loans
Banks, credit unions, and online lenders offer business loans. Qualifications for financing may vary from one lender to another, with some catering to different situations. Some lenders work with borrowers with poor credit or serve brand-new startups. Others focus on established businesses. Rates and terms vary, so shop around to find the best terms that you qualify for.
Lines of credit
If you’d rather have access to capital as needed, a line of credit might be a good fit. A line of credit allows you to borrow, repay, and borrow more, up to your limit.
A line of credit could be ideal if you know you have upcoming business expenses.
Business credit cards
While business credit cards aren’t business loans, they can be helpful in a couple of ways. You can pay for business expenses like inventory or office supplies with a business credit card. If your business doesn’t yet have a credit history, using a business credit card and making on-time monthly payments could help you establish your credit, which could then help you qualify for better rates and terms on business loans for veterans.
Look for a business credit card that offers perks like rewards, cash back, or points that can be used for travel.
Other resources for veterans
Various resources tailored for veterans are available through a range of resources vets can access.
Service-Disabled Veteran-Owned Small Business program
If you qualify as a service-disabled veteran and own a small business, you may be able to qualify for certain government contracts. The federal government sets aside 5% of all federal contracting dollars for the Service-Disabled Veteran-Owned Small Business program (SDVOSB).
Warrior Rising
Warrior Rising is an organization whose aim is empowering veterans to become successful business owners. To achieve this goal, Warrior Rising provides education, training, coaching, mentorship, potential access to clients and investors, and funding opportunities.
Veteran Entrepreneur Portal
The Veteran Entrepreneur portal is a Veterans Administration portal. It provides a wealth of resources and tools to start and grow a business, find funding, and find federal contracting opportunities. The site provides a great deal of free educational information.
Bunker Labs
Bunker Labs provides community and resources to support veterans and military spouses who are or who want to become business owners. Courses cover topics like starting a business, business basics, financing, and serving customers. Bunker Labs is part of Syracuse University’s D’Aniello Institute for Veterans and Military Families, whose focus is advancing the post-service lives of military veterans and their families.
DAV Patriot Boot Camp
Patriot Boot Camps are in-person events held over several days, designed to support vets and their spouses in becoming business owners. Topics include business planning, sales and marketing, legal, funding and financial management, pitching, and mentorship.
Boots to Business (B2B)
This Small Business Administration program provides entrepreneurial education and training programs for veterans in partnership with the SBA’s resources partners, which include SCORE Mentors, Small Business Development Centers, Women’s Business Centers, and the Institute for Veterans and Military Families at Syracuse University. The first course is the two-day Introduction to Entrepreneurship. After completion, participants can opt to take the online B2B: Revenue Readiness. Both programs are free.
