Veterans often have the strategic thinking, discipline, and leadership experience to be successful business owners, but that doesn’t always make it easier to secure funding. While programs like the Patriot Express Loan have disappeared over the years, there’s a silver lining—several lenders still offer small business loans and financing with special considerations for veterans.
How do small business loans work in 2025?
A small business loan is borrowed capital that you repay (usually with interest) over a fixed term—whether to start or expand your company. This might be for purchasing equipment or property, covering renovation costs, hiring employees, or investing in growth opportunities.
Veterans can apply for a few different types of small business financing, including loans backed by the Small Business Administration (SBA) and conventional loans directly from private lenders. Many lenders also offer lines of credit, which aren’t technically loans but provide flexible access to funds as needed.
Each lender sets its own requirements—some only accept applications from businesses operating for a minimum period, while others require specific credit scores, financial history, or revenue projections. Keep in mind that loan availability and terms can also shift based on policy changes and economic conditions.
The best 5 small business lenders for veterans
We’ve researched various lending options available to veteran small business owners this year. Here are five that stand out for their accessibility, veteran-focused resources, or unique approach to funding.
1. Small Business Administration (SBA)
SBA loans are federal government-backed financing options made through approved lender partners, usually with better rates and terms than conventional loans.
- Where to apply: Small Business Administration
- Funding amount: $500 to $5.5 million, depending on the loan type and eligibility
- Who can apply: Varies by lender (generally must meet SBA size standards, be a for-profit business in the U.S., and be able to repay the loan)
Although the SBA no longer offers the Patriot Express Loan for veteran-owned businesses, you may be able to apply for these loans to fund your small business.
- 7(a) loans: The SBA’s main lending program, with several financing options for working capital, equipment purchases, real estate, and other business expenses.
- 504 loans: Long-term financing for business growth and job creation, typically used to purchase major fixed assets (such as real estate or machinery)
- Microloans: Smaller loans up to $50,000, though they come with some restrictions on how the funds can be used
The SBA also operates 31 Veterans Business Outreach Centers (VBOCs) to support veteran entrepreneurs nationwide. While VBOCs aren’t lenders themselves, you can contact or visit your nearest center to get help with veterans' business development, preparing loan applications, and drafting a business plan, among other things.
2. Navy Federal Credit Union
Naval Federal is the largest credit union in the U.S., now with over 13 million members. Veterans who join Navy Federal can apply for several business financing options, including lines of credit and loans for real estate, vehicles, and equipment purchases.
- Where to apply: Navy Federal Credit Union
- Funding amount: Minimum of $10,000 for loans, $10,000 for secured lines of credit, and $500 for checking lines of credit
- Who can apply: Naval Federal members, with additional eligibility requirements for each financing option
You can either apply online, call membership services, or visit your local branch to apply for financing. Here’s an overview of each option.
- Business loans: Depending on what you need to finance, you can apply for commercial real estate, vehicle, or secured term loans.
- Business credit: Navy Federal offers lines of credit for short-term cash needs, as well as a business credit card with no annual fee.
3. Service Credit Union
Similar to Navy Federal, Service Credit Union has various financing programs specifically for active duty service members and veteran-owned small businesses. In addition to offering business lines of credit and loans, Service Credit Union can help members apply for SBA loans.
- Where to apply: Service Credit Union
- Funding amount: Varies by program
- Who can apply: Service Credit Union members who have been in business for at least two years, with additional eligibility requirements for each financing option
Service Credit Union has a universal application to apply for any of these funding types (except for SBA loans, which are handled through the government agency).
- Commercial mortgages: Funds to purchase, renovate, refinance, or build a business property
- Business line of credit: A revolving line of credit for the first three years, followed by a repayment period over the next four years
- SBA loans: Service Credit Union can help determine if you’re eligible for an SBA loan and walk you through the application process.
- Commercial vehicle loans: Fixed-rate auto loans for new and used vehicle purchases
- Equipment financing: Loans specifically for commercial equipment purchases
4. Lendio
Lendio is a lender marketplace for all small business owners, with a dedicated application page for veterans. After submitting a free application, you can compare rates from over 75 lenders without impacting your credit score.
- Where to apply: Lendio
- Funding amount: Up to $50 million, depending on the loan type and eligibility
- Who can apply: All veteran small business owners
The exact loan types and funding amounts depend on your time in business, monthly revenue, industry, and credit score, among other factors. According to Lendio, these are some of the most common funding types that veterans apply for.
- Business line of credit: With 6–24 month terms, these funds help you cover cash flow needs, sudden large purchases, and emergency expenses.
- Revenue-based financing: Businesses can borrow based on their expected revenue, with terms ranging from 1–15 months.
- SBA loans: Lendio can connect you with lenders who offer SBA loans, including SBA Express Loans (up to $500,000 in funding).
5. Kiva
Kiva is an unconventional but admirable funding platform that offers crowdfunded microloans. In short, your loan gets funded by individual lenders, and once repaid, you can spread those funds to support other borrowers—including other veteran small business owners.
- Where to apply: Kiva
- Funding amount: $1,000 to $15,000
- Who can apply: Veteran small business owners seeking a loan for business purposes. Businesses can’t be registered or have primary operations in Nevada or North Dakota.
If you’re struggling to qualify for traditional financing, need smaller amounts of capital, or want to be part of a larger mission to help other entrepreneurs, Kiva may be worth exploring. Here’s an overview of how the crowdfunding platform works.
- Apply for a loan: Submit your application with business details, funding needs, and a personal story explaining how the loan will help your business.
- Get approved and matched: Once Kiva approves your application, you’re paired with a lending partner who will facilitate the loan, and your request goes live on Kiva’s platform.
- Community lending: Individual lenders browse active loans and contribute as little as $25 toward your funding goal.
- Repay and pay it forward: Make payments to your lending partner, who coordinates payments back to your individual lenders so they can re-lend to other entrepreneurs.
Starting a business takes courage. LegalZoom makes sure the legal details don’t stand in your way, from the day you register until the day you retire.
How are small business loans for veterans different?
The primary difference between veteran and traditional small business loans is eligibility—veteran-specific loans require proof of military service. That said, many veteran business loans offer additional benefits that go beyond traditional small business funding.
These programs often include access to business specialists who can help transitioning service members, as well as mentorship opportunities and ongoing advisory services. Still, you’ll typically need to meet additional requirements besides standard credit and income verification.
For instance, you may need to join a credit union, provide discharge papers, demonstrate specific financial need, or meet other service-related criteria set by the lender.
How to get a small business loan in 3 steps
You’ll apply for a small business loan much like any other business owner, though there are a few unique steps to plan for as a veteran. Here’s how to start the application process.
Step 1: Prepare your documentation and business plan
First, you should gather all the financial and business ownership records lenders will likely request, such as:
- Tax returns
- Bank statements
- Financial statements
- Any other existing business financial documents
It’s also a good idea to collect your military service documentation, including discharge papers and any records that demonstrate leadership experience or specialized training relevant to your business.
Then, if you haven’t already, write a business plan to show lenders that you’ve thought through your strategy, including market research, financial projections, and a clear projection of how the loan will drive growth. This also helps you calculate how much capital you need and ultimately justify why you deserve funding.
Finally, assess your overall creditworthiness. Check your personal and business credit scores, calculate your debt-to-income ratio, and review your financial history for any red flags lenders may notice.
Step 2: Research and compare lenders
Cast a wide net when exploring your funding options. In addition to the veteran small business lenders we’ve discussed, look into other traditional bank loans, online lending platforms that connect you with multiple lenders simultaneously, and unconventional alternatives, such as:
- Crowdfunding
- Business pitch contests
- Small business grants
- Personal borrowing from friends and family
Before you start applying, define exactly what you’re looking for. This includes your ideal funding amount, monthly payments you can comfortably handle, and an acceptable interest rate range. You should also research current market conditions to understand whether lenders are generally offering favorable terms or if credit has tightened across the board.
Lastly, create a list of your top lending options, noting each one’s application requirements. As a general rule, you don’t want to submit more applications than necessary, as multiple hard credit inquiries can impact your credit score.
Step 3: Apply and follow up
Keep in mind that every application process will be slightly different, especially when it comes to applying for SBA-backed loans versus traditional bank loans. Regardless of the lender, be prepared to submit your business plan, financial statements, and potentially military service records as part of your initial application.
Next, lenders will verify your information, review your credit history, and assess your business’ viability. This can take anywhere from a few minutes to several weeks, but you should be prepared to provide additional documentation or clarification if prompted for more information.
How to avoid predatory lenders
Even when the lending market is unfavorable, you may still find lenders willing to fund your business. However, be cautious if an opportunity seems too good to be true—predatory lenders often target small business owners who are struggling to secure traditional financing. Here are some red flags to watch out for.
- Unsolicited contact: Be cautious of lenders who cold-call, email, or make a surprise visit promising easy money.
- Pressure to sign immediately: Any reasonable lender should give you time to review the terms, whereas predatory ones create a sense of urgency to prevent you from shopping around.
- Guaranteed approval: It’s a common practice to assess creditworthiness and financial history before issuing a loan, so you should steer clear of options that automatically guarantee funding.
- Extremely high interest rates or hidden fees: Annual percentage rates (APRs) significantly above market rates or fees buried in the fine print should raise immediate concerns.
When researching lenders, you might also look into any available customer reviews or complaints from reputable third-party platforms, such as the Better Business Bureau (BBB).
How can LegalZoom help small businesses get funding?
As the #1 online legal service provider, LegalZoom has helped millions of small business owners since 2001. Although we don’t offer small business financing, LegalZoom can help you register your business and make it stand out with these services.
- Business formation: We’ll help you register your business with state officials—whether you’re starting a limited liability company (LLC), corporation, nonprofit, or doing business as (DBA).
- Legal forms and agreements: Get help drafting your operating agreement and other essential legal documents, from nondisclosure agreements (NDAs) to promissory notes for borrowing.
- Compliance coverage: Stay on top of business filing and compliance deadlines, plus get help submitting your filings to keep your business in good standing with local, state, and federal authorities.
- Intellectual property: A registered trademark or patent often signals you’ve created something worth protecting, and we can help you register your intellectual property with the U.S. Patent and Trademark Office (USPTO) for maximum protection.
If you have questions about your obligations as a borrower or want an attorney to review a loan agreement, you can also connect with one of LegalZoom’s network attorneys for advice—all for a flat and predictable fee.
Veteran small business loan FAQs
Does the VA offer small business loans?
No, the U.S. Department of Veterans Affairs (VA) doesn’t offer small business loans. However, the VA does have a few programs to assist veteran small business owners, including business training courses, webinars, and small business liaisons (SBLs) for direct support.
How much can a veteran get for a small business loan?
This ultimately depends on the loan type and the veteran’s financial history, but many veterans apply for SBA Express loans, which can be as high as $500,000. This is also because the SBA typically waives or reduces the guarantee fees for veteran applicants, thanks to the SBA Veterans Advantage Program.
What is the approval rate for small business loans?
It’s estimated that about 50% of small business loans get approved in the U.S. However, keep in mind that lenders don’t always disclose their approval rates, and most ultimately use the applicant’s financial history and credit worthiness to determine eligibility.
Are there small business grants for veterans?
Yes, you can find small business grants just for veterans. You can also find general small business grants that most owners can apply for. The main advantage of grants is that they don’t need to be repaid, but they normally have competitive applicant pools and limited funds available.
Can I get a veteran small business loan with bad credit?
Yes, but your options may be limited. If loan approval continues to be an issue, you might consider credit unions like Navy Federal, which often have more flexible credit requirements for military members. It also helps to start small—apply for smaller loan amounts initially to build your credit history, then work up to larger financing needs as your credit improves.
If all else fails, you can always look into crowdfunding platforms like Kiva, borrow from trusted friends or family members, or even ask someone to co-sign with you.
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