Compare small business loans and grants for veterans in 2026
Written byAnna Baluch
Reviewed by Robin Saks Frankel
Summary
- Veteran-owned businesses make up more than 1.6 million U.S. firms and employ roughly 3.3 million workers, according to the latest Small Business Administration (SBA) Office of Advocacy report.
- Though veterans play a significant role in the U.S. small business landscape, it can be difficult for some to secure financing due to credit issues, cash flow challenges, and limited assets to pledge as collateral.
- If you’re a veteran entrepreneur or small business owner, use this guide to explore all available loan options, grants, and free resources specifically for veteran business owners.
Compare small business loans for veterans
Small business loans can provide veterans with capital to start and grow their
businesses. Here’s a quick glance at the best options.
Borrowing amounts | Rates | Requirements | |
SBA loans for veterans | $500 up to $5 million | Competitive rates based on loan program | Must be a for-profit business in the U.S. and meet SBA size standards, show ability to repay the loan |
Military Reservist Economic Injury Disaster Loan (MREIDL) | Up to $2 million | Fixed low rate set by SBA, typically 4% | Must prove substantial economic injury due to an essential employee being called to active duty as a reservist |
Online business loans | Typically $1,000 up to $100,000, depending on lender and revenue | Varies greatly, typically 8% up to 60%, depending on lender, loan type, and credit | Typically 6-12 months in business, minimum monthly revenue, credit score requirements vary by lender |
Microloans for veterans | Up to $50,000 | Around 8% to 13% but varies by intermediary lender | Designed for startups and small businesses, may require collateral and personal guarantee |
Business credit cards | Typically $10,000 to $100,000, depending on creditworthiness | Variable rates, usually 18% to 30%, some cards have 0% intro APR offers | Requires personal and/or business credit check and a personal guarantee, approval depends on credit score |
SBA loans for veterans
The U.S. Small Business Administration is not a lender (with the exception of SBA Disaster Loans), but instead guarantees loans made by participating lenders, such as banks and non-profit Community Development Financial Institutions (CDFIs).
An SBA loan should be on your list of loan options to consider for your veteran-owned business. These loans carry attractive rates and terms for those who qualify. Note that as of March 1, 2026, all direct and indirect owners must be U.S. citizens or U.S. nationals with a U.S. principal residence to qualify for SBA loan programs.
If you’ve seen the term VA SBA loan, you may think that the VA makes SBA loans, but it does not. In fact, there is no VA SBA loan program. In the past, there was a program specifically for veteran entrepreneurs called the Patriot Express Pilot Program. However, that program was discontinued on December 31, 2013. It provided loans of up to $500,000 to veterans and their spouses.
There are a number of SBA loan programs that are currently available to all qualifying small business owners — including veterans — and there are some special breaks on fees for veteran business owners. The main SBA loan programs are:
These loans can be used for working capital, business expenses, and real estate purchases. You’ll find a complete guide to SBA loans here.
While the SBA previously offered a formal Veterans Advantage fee relief program. Now, you may benefit from reduced fees or incentives that vary by lender and loan type.
Military reservist economic injury disaster loan (MREIDL)
The Military Reservist Loan program falls under the SBA’s disaster loan umbrella, so these loans are made by the SBA. With MREIDL, if an essential employee has been called to active duty, a small business may qualify for one of these loans for up to $2 million. (The SBA will calculate the loan amount based on economic injury.) These are low-rate loans with terms of up to 30 years.
Funds from this loan program can be used to cover “ordinary and necessary operating expenses.” Learn more and apply at SBA.gov.
Online business loans
There are many online small business lenders offering a variety of different types of financing options ranging from long- and short-term loans to lines of credit to equipment financing.
Veterans can take advantage of these options and usually borrow anywhere from $1,000 all the way to $100,000, depending on credit, lender, and loan type. While eligibility requirements vary greatly, many lenders look for six to 12 months in business.
Some online business loans, such as commercial real estate loans are secured and require collateral, such as your office space or warehouse. Others like business lines of credit are unsecured and may ask you to sign a personal guarantee to reduce their risk.
Microloans for veterans
If your business needs a smaller amount of funding (usually $50,000 or less) you may be able to get a microloan through one of many Community Development Financial Institutions (CDFIs) or other nonprofit organizations. Compared to traditional banks, CDFIs have more flexible eligibility requirements. They may also offer perks like business coaching and financial education.
The SBA also has a microloan program, where the average loan amount is about $13,000. You can take out a microloan to cover working capital, inventory, supplies, machinery, and other smaller yet important business expenses.
Many microlenders strive to assist traditionally disadvantaged entrepreneurs, including veterans, so you may find a warm welcome. It will take some research to find the right lender, though, as these organizations don’t typically have large marketing budgets.
To find CDFIs and/or SBA microlenders, use the Opportunity Finance Network's CDFI locator or SBA lender search tool.
Learn more about how to get a microloan here.
Business credit cards
Business credit cards can be an appealing option for startups as well as more established businesses that want the flexibility of business line of credit they can access when needed.
According to the Federal Reserve’s 2026 Small Business Credit Survey, 71% of majority veteran-owned employer firms use or carry a balance on a business credit card on a regular basis. Credit cards can help you pay for everyday expenses and supplement other types of financing.
Consider a business credit card with an intro 0% APR for short-term funding needs.
Investment capital for veteran entrepreneurs
Veterans looking for business funding through investment capital, rather than a loan, may want to check out the following investment organizations:
Hivers and Strivers Capital
Hivers and Strivers Capital is a venture capital firm that focuses on investing in military led startups in the U.S. The firm offers financing to veteran entrepreneurs in a variety of industries, from seed stage all the way through Series B funding rounds. It also provides business mentorship and other valuable resources.
Investments range from $100,000 to $1 million. To be considered, your veteran business should be beyond the idea stage, prove strong growth potential, and be led by a military veteran.
If you meet the requirements and are interested in securing capital, you can apply online through the Skip platform.
Veteran Ventures
Another potential option for investment capital, Veteran Ventures invests in veteran-affiliated, post-revenue (Seed/Series A), dual-use technology companies, with a strong emphasis in the space, cyber, autonomy, and advanced materials sectors.
The average investment size is between $2 and $3 million. Veteran Ventures says it “backs the leaders who defend the future and build what matters.”
TFX Capital
TFX Capital invests in “early-stage startups tackling national security and healthcare challenges.” Its focus is on B2B rather than B2C companies in cyber, defense, healthcare, fintech, risk, and security.
The firm writes initial average checks of $750,000 as part funding rounds that range from $3 to $10 million.
Small business grants for veterans
Grants are coveted by small business owners because those funds don’t have to be repaid. However, searching for grants can take as much work as searching for new clients or customers,and the outcome is never guaranteed. So while searching for small business grants for veterans may be part of your strategy to fund your business, don’t overlook other sources.
Veteran-specific grant programs
Here are some grant programs to help you with your search.
- StreetShares Foundation Veteran Small Business Award: The StreetShares Foundation offers grants to veteran-owned small businesses who can show potential and social impact. Typical awards range from $4,000 up to $15,000. You may apply if you’re a veteran, active-duty service member, reservist, National Guard member, or military spouse who owns at least 51% of the business.
- Hiring Our Heroes Grant Program: Distributed annually, Hiring Our Heroes grants are for veteran and military-spouse-owned small businesses with under $5 million in revenue in an economically vulnerable community. Each year, there are five winners, four that receive $10,000 and one that collects $25,000.
- Warrior Rising Business Shower Grants: A nonprofit organization for veterans and military families, Warrior Rising provides grants to entrepreneurs who complete its training programs. Grants go up to $20,000 and are created for active-duty service members, veterans, Guard and Reserve members, military spouses, and immediate family members.
Where to look for grants
Check out these resources to find more grants for veterans:
- Grants.gov: This is the official site for searching for government grants. There are numerous opportunities listed so plan to take time to review grant opportunities to see whether they may apply to your business.
- Grantwatch.com: This site continually updates available grants, and you can search by many different criteria. There is a subscription fee to access the Grantwatch database and you can join for a short period of time to see if it’s a good fit.
- OpenGrants.io: You can search for many different types of grants at OpenGrants.io. While you can try the site out for free, there is a monthly or annual membership fee. You can also find pros to hire to help you with your grant applications.
Grant qualifications for veterans
Most grants available to veterans will look for a business with potential, either to make a large financial impact or community impact. Again, don’t limit your search for grants to just those available to veteran-owned businesses.
Veteran business loan requirements
While every lender has its own eligibility requirements, most small business loans consider the following criteria to qualify:
Credit score requirements
Good personal credit scores and/or strong business credit scores can open up funding options, including funding with lower interest rates and/or better repayment terms. Each type of loan and lender has their own credit score criteria but here’s an overview of what you might expect:
- Bank loans: 680+
- Online lenders: 580+
- SBA microloans: 620+
- Business credit cards: 670+
Revenue and time in business
Lenders often want to understand whether the business makes enough money (or
will make enough money) to repay the loan. Business bank account statements and/or tax returns will be used to document revenues, while a business plan with
financial projections will be used for pre-revenue businesses. In addition, most lenders prefer to lend to businesses with at least six months to two years of operating experience.
Documentation needed
Each lender has their own documentation criteria but most will look for the following when you apply for veteran small business loans:
- DD-214 issued by the U.S. Department of Defense to confirm your military service
- Business plan
- Balance sheets
- Profit and loss statements
- Bank account statements
- Personal and business tax returns for the last 2 to 3 years
- Business licenses and permits
- EIN confirmation
- Proof of insurance and/or collateral
- Commercial mortgage or lease agreements
Free resources for veteran business owners
While it may be challenging to secure free money for your business, you can get free expert help from several organizations that want to help veteran business owners succeed.
Below are some excellent organizations that may help:
Veteran business outreach centers (VBOCs)
A program of the U.S. Small Business Administration, the Veterans Business Outreach Center (VBOC) program is designed to provide entrepreneurial development services such as business training, counseling, and resource partner referrals to transitioning service members, veterans, National Guard & Reserve members, and military spouses interested in starting or growing a small business.
Free services include pre-business plan workshops, business plan preparation, comprehensive feasibility analysis, entrepreneurial training and counseling, mentorship, and more. Find your VBOC here.
Boots to business
Boots to Business (B2B) is a highly regarded and well-established training program for transitioning service members and their spouses who are considering becoming entrepreneurs. It is offered by SBA as part of the Department of Defense’s Transition Assistance Program (TAP).
Bunker Labs
Bunker Labs offers community, programs, and courses to help military veterans and military spouses start and grow successful small businesses. It was acquired by Syracuse University’s D’Aniello Institute for Veterans and Military Families (IVMF).
V-WISE
Veteran Women Igniting the Spirit of Entrepreneurship (V-WISE)is a premier training program in entrepreneurship and small business management, including a four week online course and three day in-person conference. It helps women veterans and female military spouses/partners through a low-cost program that includes training, mentoring and ongoing networking.
Warrior Rising
Warrior Rising provides education, training, coaching, mentorship, potential access to clients & investors, and funding opportunities to veterans and their family members – all for free.
Second Service Foundation
The Second Service Foundation is a 501(c)(3) nonprofit organization that supports military entrepreneurs through coaching, resources and capital, as well as an innovative mentorship program.
Office of Small & Disadvantaged Business Utilization (OSDBU)
The U.S. Department of Veterans Affairs Office of Small and Disadvantaged Business Utilization (OSDBU) helps veteran-owned small businesses compete for federal contracts.
While these are not government grants or loans, these contracts could mean money in the bank if your business qualifies. If you’d like to pursue contract opportunities, you’ll need to obtain your Veteran Small Business Certification (VetCert).
Veteran owned business certification
Veteran Small Business Certification (VetCert) through the SBA can be valuable. It allows businesses to compete for sole-source and set-aside contracts at the Department of Veterans Affairs (VA) under its VA’s Vets First program. To be eligible, your business must have at least 51% of veteran ownership and must be registered on Sam.gov. It also needs to be considered small by the SBA.
Certified service-disabled veteran-owned small businesses (SDVOSBs) will have the opportunity to compete for federal sole-source and set-aside contracts across the federal government. However, this certification is generally not required to get loans or grants for veterans.
How to get certified
Follow these steps to complete the certification process:
- Register for Sam.gov: If you’re not already registered, you’ll need to create an account with Sam.gov. Sam.gov stands for “System for Award Management.” It should take about 10 to 12 business days for your application to get approved.
- Verify your veteran status: Log in to the Department of Affairs website to confirm your veteran or service disabled status. Under your personal information tab, you should find your military status. You may need to call the VA or visit an in-person office to resolve your status if it’s incorrect.
- Look at your NAICS codes: Your NAICS codes will verify the SBA considers your business “small.” The NAICS code spreadsheet can help you do so. If you have a question related to this step, feel free to contact your local SBA office.
- Go to the SBA VetCert portal: Lastly, visit the VetCert portal, which will connect to your Sam.gov and VA accounts. Follow the prompts to create an account and wait about 30 to 90 days to confirm the certification.
Benefits of certification
By taking the time to get certified by the SBA, your veteran-owned business may qualify for sole-source and set-aside contracts. This is a huge plus when you consider that at least 5% of federal contract dollars are set aside for certified businesses.
You may also be eligible to compete for contracts that fall under other socioeconomic programs. Put simply, a certification opens the doors to a variety of contracts that can set your venture up for success through credibility, steady revenue, and long-term customers.
Does the VA offer business loans?
The U.S. Department of Veterans Affairs does not offer small business loans to veterans, however, it does offer a variety of informational resources for veterans and their family members about federal contracting opportunities (including with the VA, Department of Defense, etc.), small business liaisons for vets, and more on its website.