Veterans have served their country, and the country has responded with a meaningful set of programs designed to support veterans who want to build businesses. Veteran entrepreneurs represent approximately 10% of all small business owners in the United States — about 2.5 million veteran-owned businesses employing 5 million people. Whether you are transitioning out of the military and starting your first business, or are an experienced veteran entrepreneur looking to scale, there are specific financing resources designed for you. This guide covers every financing option available to veteran entrepreneurs.
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Veterans have several characteristics that create both advantages and challenges in business financing:
Key Advantage: Veteran-owned small businesses have higher survival rates than average small businesses, according to SBA research. This track record of business resilience is reflected in many lenders' positive perception of veteran-owned businesses. Veteran credentials are genuinely positive signals in loan applications — use them.
Veteran entrepreneurs qualify for all standard business loan products, and these mainstream products should be the foundation of any financing strategy:
All SBA 7(a) loan products are available to veteran-owned businesses, and veterans receive specific fee reductions (described below). SBA loans offer the best rates and terms for qualified veteran businesses and should be evaluated first for any financing need above $50,000.
SBA Express loans (up to $500,000, 36-hour SBA response) are particularly attractive for veterans because of the fee waiver program and faster processing. For veteran businesses needing SBA financing on a shorter timeline, SBA Express provides the best combination of SBA rate quality and processing speed. See our guide to SBA Express Loans: The Complete Guide to Fast SBA Funding.
For veteran-owned businesses with equipment needs — construction, transportation, manufacturing, food service, security services — equipment financing provides capital secured by the equipment itself, often accessible with lower credit requirements than unsecured alternatives.
Revolving lines of credit provide flexible working capital for veteran businesses managing the cash flow cycles of any industry.
The SBA Veterans Advantage program reduces or eliminates guarantee fees for veteran-owned businesses on SBA Express loans up to $350,000. This can save $1,000 to $5,000 or more on loan fees for veteran borrowers. Eligible borrowers include veterans, service-disabled veterans, active duty military participating in the Transition Assistance Program (TAP), Reservists, National Guard members, the spouse of a veteran or active duty service member, or the widowed spouse of a service member who died while in service or from a service-connected disability.
SBA Express loans with the Veterans Advantage fee waiver are typically the best entry point for veteran entrepreneurs seeking SBA financing. Maximum $500,000, 36-hour SBA response, available as term loans or revolving lines of credit.
Boots to Business is a free SBA entrepreneurship education program offered through military installations as part of the Transition Assistance Program (TAP). It provides:
Many states have veteran-specific small business lending programs funded through federal and state initiatives. State veterans affairs agencies and state economic development offices often maintain veteran business lending programs with below-market rates.
VBOCs are SBA-funded centers specifically designed to provide business development assistance to veterans, service-disabled veterans, Reserve component members, and their dependents. VBOC services include:
Find your nearest VBOC at sba.gov/offices/headquarters/ovbd. VBOCs often provide the best single-point resource for veteran entrepreneurs — connecting to the full range of SBA, state, and private veteran business financing.
Many CDFIs specifically prioritize veteran entrepreneurs as part of their underserved community mission. Local CDFIs often have veteran-specific programs with holistic evaluation that may be more flexible than conventional lender requirements. Find CDFIs in your area at cdfifund.gov.
VOSB certification through the SBA (for non-VA federal contracts) and the VA Center for Verification and Evaluation (CVE) (for VA contracts) certifies that a business is at least 51% owned and controlled by veterans. This opens access to:
SDVOSB certification requires 51% ownership by a service-disabled veteran with a disability rating from the VA. SDVOSBs qualify for:
VOSB/SDVOSB government contracting provides high-quality, stable revenue from creditworthy government customers that dramatically improves business financing qualification. A veteran-owned business with $500,000 per year in government contract revenue has a fundamentally different lending profile than an equivalent business without government customers.
Veteran-owned businesses qualify for business loans on the same financial criteria as any business:
For SBA Veterans Advantage fee reductions, provide your DD-214 (Certificate of Release or Discharge from Active Duty) or equivalent documentation confirming veteran status. Spouses of eligible veterans need documentation of the veteran's status plus marriage documentation.
For more on maximizing approval odds, see our How Cloud-Based Accounting Improves Your Loan Approval Odds.
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Disclaimer: This article is provided for general educational purposes only and does not constitute financial or legal advice. Program details and eligibility requirements change frequently. Verify current details with program administrators before applying. Consult a qualified financial advisor before making financing decisions.