If you’re a business owner who served in the military and are looking for funding, this guide is for you. Here, we explore special financing programs for veteran-owned businesses designed to help veterans access capital, grants, and loans. These programs offer tailored options to make financing more accessible and supportive of your entrepreneurial goals.
Veterans bring strong leadership, discipline, and commitment to their business ventures. However, like any entrepreneur, they often face challenges accessing funding. Traditional lenders may view small businesses as high-risk, which is why specialized veteran programs exist.
Special financing programs for veteran-owned businesses help bridge this gap by offering lower fees, better terms, dedicated support, and exclusive grants. Many organizations, government agencies, and nonprofits also provide educational resources and mentorship for veteran entrepreneurs. These programs help veterans translate their military experience into sustainable business success.
Here are the top financing opportunities available to veteran-owned businesses today.
Government-supported loans are among the most reliable sources of capital for veterans. Programs backed by the U.S. Small Business Administration (SBA) often come with favorable interest rates, flexible repayment schedules, and reduced fees.
Some examples include:
SBA Veterans Advantage Program: Offers fee reductions and flexible terms for loans up to $500,000.
Military Reservist Economic Injury Disaster Loan (MREIDL): Provides working capital to businesses whose key employees are called to active duty.
SBA Express Loans: Fast-track financing for veteran-owned small businesses, often approved within 36 hours.
State and local veteran-loan programs: Many states offer interest-free or low-interest loans specifically for veteran-owned businesses.
Unlike loans, grants do not require repayment. This makes them highly competitive but also incredibly valuable for veterans starting or expanding their businesses.
Common examples include:
Veteran Small Business Grants: Many nonprofit and private organizations offer small grants ($5,000–$25,000) to veteran entrepreneurs.
Veteran Entrepreneur Investment Programs: Designed to connect veterans with investors and mentorship while providing access to funding.
Foundation Grants for Veterans: Numerous foundations sponsor annual or quarterly grant opportunities for veteran-run companies.
To win a grant, veterans typically need a strong business plan, clear goals, and documentation that shows how the funding will make an impact.
Certification as a Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Business (SDVOSB) can unlock valuable government contracts and procurement opportunities. These certifications give veterans priority in certain federal and state contracting processes, which can effectively act as a form of indirect financing through guaranteed revenue streams.
Being certified also increases credibility and visibility when working with corporate clients or applying for financing.
Private lenders and credit unions often design programs exclusively for veterans. These loans may feature lower interest rates, fewer documentation requirements, and faster approvals.
Alternative financing options include:
Veteran business microloans (typically $5,000–$50,000).
Crowdfunding campaigns aimed at veteran projects.
Peer-to-peer lending platforms that connect veteran entrepreneurs with investors.
Business lines of credit from lenders that specialize in supporting veteran-owned businesses.
These alternatives are ideal for veterans who need quick capital or don’t meet traditional bank requirements.
Eligibility rules vary by program, but most veteran financing options share similar requirements.
The business must be at least 51% owned and controlled by one or more veterans.
Applicants must provide proof of service, typically a DD-214 or equivalent documentation.
Service-disabled veterans must provide official verification of their disability rating.
The business must be legally registered and in good standing with state and federal regulations.
Some programs may require a minimum credit score (usually around 640 or higher) or a specific amount of annual revenue.
Gather proof of veteran status (DD-214 or National Guard/Reserve records).
Create or update a detailed business plan outlining goals, financials, and growth strategy.
Prepare your business tax returns, profit and loss statements, and cash-flow reports.
Obtain your VOSB or SDVOSB certification if you plan to pursue government contracts.
Check your personal and business credit reports.
Research programs that match your business needs and apply to multiple options.
Follow these simple steps to apply for veteran-specific financing:
Verify your veteran status.
Choose the best program for your business.
Gather financial statements and business documents.
Obtain any required certifications.
Complete and submit your application.
Review terms and finalize agreements.
Use funds strategically to grow your business.
Not every program will be a perfect fit. Use these considerations to select the right option:
Purpose of funding: Are you starting a business, expanding operations, or purchasing equipment?
Funding amount: Match your needs to programs that fit your scale.
Repayment obligations: Understand whether the funding is a loan or a grant.
Timeline: Some programs offer rapid funding, while others take weeks or months to process.
Additional resources: Many programs provide mentoring and training—these can be as valuable as the funding itself.
Eligibility match: Focus on programs that fit your ownership structure and veteran status.
Keep your financial records organized and up-to-date.
Highlight your military experience and leadership in applications—it demonstrates reliability.
Obtain veteran certifications early to access federal contracting opportunities.
Work with Veteran Business Outreach Centers (VBOCs) for mentoring and application assistance.
Compare interest rates and repayment terms before committing to any loan.
Use funds wisely to drive measurable growth or revenue.
Track and report your progress to strengthen your eligibility for future programs.
Assuming veteran status alone guarantees funding.
Applying without a well-developed business plan.
Missing application deadlines or failing to submit all required documents.
Taking on too much debt without clear repayment planning.
Overlooking valuable mentorship and networking programs that complement funding opportunities.
Veteran-owned businesses across the country have successfully used these programs to build thriving companies. Many leveraged a combination of government-backed loans, micro-grants, and certification benefits to expand their operations. The key theme among these success stories is preparation, persistence, and alignment with the right financing option.
Veterans who plan strategically and take advantage of available programs are more likely to secure funding and sustain long-term success.
Special financing programs for veteran-owned businesses give veterans access to capital, training, and opportunities that honor their service while supporting entrepreneurship. Whether through SBA loans, grants, certifications, or private lenders, veterans can find financial solutions tailored to their needs.
Start by gathering your proof of service and financial records. The earlier you begin, the faster you can access the funding your business deserves.