Best Small Business Loans For Veterans

Get Started With SmartBiz

Total Rating	4.7
Rates & Fees4.8
Services4.8
Eligibility Requirements4.8
Application4.5
Sales & Advertising Transparency4.9
Customer Service4.9
User Reviews3.5

Pros

Faster turnaround than regular SBA loans
Low interest rates
Accepts fair credit

Cons

Funding takes longer than other types of online loans
Loans max out at $500K
Requires 2 years in business

Why We Chose SmartBiz For SBA Loans

SmartBiz is the #1 facilitator of SBA loans under $500K. That's probably because this lender offers online SBA loans with a fast turnaround time, an easy application process, and low interest rates. Loan offerings include SBA Working Capital and Debt Refinancing Loans, Bank Term Loans (non-SBA loans), and lines of credit.

SmartBiz is a smart choice for veterans who want to get an SBA loan but are frustrated by the lengthy signup process and want a faster turnaround -- as soon as a week. SmartBiz can determine your loan eligibility in just a few minutes.

SmartBiz Rates & Fees

Interest rates on SmartBiz SBA loans range from 11.25% – 13.25% with a 10-year repayment term. Loan amounts range from $30,000 to $500,000.

SmartBiz Eligibility Requirements

SmartBiz loans are most appropriate for established veteran-owned businesses with at least fair credit (650 FICO) and 2 years in business. SmartBiz also says most of its approved businesses have annual revenues of $50,000 to $5 million and are profitable with positive cash flow.

When To Use SmartBiz

You want a more convenient way to apply for and receive an SBA loan.

OnDeck: Best Short-Term Loans For Veterans

OnDeck

Total Rating	3.9
Rates & Fees4.6
Services2.9
Eligibility Requirements3.8
Application4.5
Sales & Advertising Transparency3.8
Customer Service4.1
User Reviews4.0

Pros

Same-day funding
Accepts fair credit
Lower costs on repeat loans
Term lengths can be as long as 2 years

Cons

High APRs
Loans max out at $250K
Startups are ineligible

Why We Chose OnDeck For Short-Term Loans

OnDeck is America's largest small business lender with 15+ years in the industry. OnDeck specializes in short-term business financing, offering short-term loans up to $250,000 and lines of credit up to $100,000. Borrower qualifications are far less stringent than those of banks; veterans with fair credit can easily qualify as long as they have strong business credentials.

OnDeck’s loans typically aren’t the cheapest, but they are quite fast -- you can potentially get the funds to expand your vet-owned small business within just 24 hours, or even the same day you apply. Startups should look elsewhere for financing, as OnDeck will not lend to businesses that have been operating for less than a year.

OnDeck Rates & Fees

OnDeck APRs start at 29.9%, but the average borrower’s APR is closer to 50 or 60%. OnDeck’s fees include both interest on the loan as well as an origination fee that’s taken off the top of the loan. The origination fee may be waived on subsequent loans.

OnDeck Eligibility Requirements

OnDeck requires a 625 FICO, 1 year in business, and $100K annual business revenue. You also need to have a business checking account.

When To Use OnDeck

You want a small, fast loan to help grow your business and build your business credit score.

Get Started With OnDeck

BusinessLoans.com: Best Loans For Veterans With Established Businesses

BusinessLoans.com

Get Started With BusinessLoans.com

Total Rating	4.0
Rates & Fees4.6
Services4.0
Eligibility Requirements4.1
Application3.0
Sales & Advertising Transparency3.6
Customer Service4.1
User Reviews4.4

Pros

Get funded up to $3M as fast as same day
Multiple types of financing available
No minimum credit score to apply

Cons

No information about rates on company website
Some loans take up to a week

Why We Chose BusinessLoans.com For Established Businesses

BusinessLoans.com is a business lending marketplace that allows you to apply for and compare multiple lenders at once. Though BusinessLoans.com has options for bad credit businesses and newer businesses, most loans offered through the service are better suited to veterans with established businesses. If you meet the borrower criteria, you will have many options to choose from at this one-stop-shop for veteran business loans.

BusinessLoans.com Rates & Fees

Since BusinessLoans.com works with many different lenders, your rates and fees will vary depending on which lender you choose. Using the lending marketplace itself is free.

BusinessLoans.com Eligibility Requirements

BusinessLoans.com has no stated minimum credit score, time in business, or business revenue requirements to apply for funding. However, most loans available through the service require at least 1 year in business and $75,000 in annual revenue.

When To Use BusinessLoans.com

You have been in business at least a year and want to see what types of financing you qualify for.

Credibly: Best Small Business Loans For Veterans With Bad Credit

Credibly

Get Started With Credibly

Total Rating	3.6
Rates & Fees3.1
Services3.7
Eligibility Requirements3.3
Application4.0
Sales & Advertising Transparency3.6
Customer Service4.3
User Reviews4.0

Pros

Accepts poor credit
Multiple financing types available
Same-day approvals
Daily, weekly, & monthly repayment options

Cons

Fees can be high
Origination fees are charged on term loans
Must have strong monthly revenues to qualify

Why We Chose Credibly For Bad Credit

Many veterans leave the military with low credit scores because their careers have prevented them from participating in credit-building activities, such as paying off a mortgage. Credibly is one of the few reputable small business lenders that might lend your business capital even if you have poor credit.

Credibly is an online lender offering short-term working capital loans, business lines of credit, merchant cash advances, equipment loans, invoice factoring, and more. Credibly is fast and reliable, offering multiple bad credit business loan options for veteran businesses.

Credibly Rates & Fees

Credibly offers mostly short-term financing products, whose total cost is normally calculated using something called a factor rate. In Credibly’s case, factor rates start at 1.11. Term loans are also subject to a 2.5% origination fee.

Credibly Eligibility Requirements

Credibly requires a minimum $15,000 monthly business revenue ($180,000 per year), 6 months in business, and a minimum credit score of 500. (Some Credibly products may have stricter eligibility requirements; these minimums apply to working capital loans and merchant cash advances.)

When To Use Credibly

You have bad credit but steady monthly revenues and need a fast loan.

Fundbox: Best Loans For Veterans With Startup Businesses

Fundbox

Total Rating	3.8
Rates & Fees3.1
Services3.6
Eligibility Requirements4.5
Application4.8
Sales & Advertising Transparency3.8
Customer Service3.0
User Reviews4.4

Pros

Startup-friendly
Accepts subprime credit
Apply and draw funds using Fundbox mobile app
No prepayment penalty

Cons

Low maximum borrowing amount
Fast repayments required
Only offers one type of financing

Why We Chose Fundbox For Veteran-Owned Startups

Fundbox offers an easy-to-qualify-for business line of credit. A line of credit is useful for veteran businesses with ongoing working capital needs, since you can draw from it whenever you need funds and your line replenishes as you repay.

While most business lines of credit require at least a year or two in business, Fundbox will (in some cases) accept businesses newer than 6 months. Fundbox is also suitable for startups with bad credit.

Fundbox Rates & Fees

Fundbox repayment takes place weekly, with a maximum term length of 24 weeks. Estimated fees on Fundbox’s loan calculator are listed at 4.66% for 12-week terms and 8.99% for 24-week terms. You can choose your term every time you make a draw, and you will see the total cost and schedule of each repayment upfront.

Fundbox Eligibility Requirements

Fundbox requires a credit score of 600 (which is lower than most other LOCs) and $100K in annual business revenues. Fundbox prefers that applicants have at least 6 months in business but will sometimes accept less.

When To Use Fundbox

Your business credentials don’t qualify you for a bank loan, but you need a fast, convenient line of credit to draw from as needed.

Get Started With Fundbox

Bluevine: Best Fast Loans For Veteran-Owned Businesses

Bluevine

Get Started With Bluevine

Total Rating	3.7
Rates & Fees3.8
Services3.6
Eligibility Requirements3.6
Application4.5
Sales & Advertising Transparency3.4
Customer Service3.4
User Reviews3.4

Pros

Same-day funding
Larger LOC than Fundbox or OnDeck
Competitive rates

Cons

Borrower qualifications may be difficult to meet
Not available in certain states
Rates can be high if you don’t have excellent credit

Why We Chose Bluevine For Speed

Bluevine is a little harder to qualify for than the other LOC lenders on our list, but qualified veteran-owned businesses can borrow larger amounts with Bluevine -- up to $250K. Bluevine is also extremely fast, offering same-day loans. Once Bluevine approves your application -- your initial pre-approval decision will take about 5 minutes -- you can have funds deposited in your bank account within a few hours, provided that you choose the $15 bank wire option.

Additionally, Bluevine offers longer term lengths than other online business lines of credit (6 or 12 months).

Bluevine Rates & Fees

Bluevine APRs range from 15-78%. Bluevine charges interest on each weekly repayment, but there are no monthly fees, and you can repay your draw early at no penalty.

Bluevine Eligibility Requirements

Bluevine requires 2 years in business, a credit score of 625, and $40,000/month in business revenues.

When To Use Bluevine

You have an established business and need a fast line of credit you can start drawing from immediately.

Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Rates & Fees 20%

Services 20%

Eligibility Requirements 20%

Application 15%

Sales & Advertising Transparency 10%

Customer Service 10%

User Reviews 5%

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

Best SBA Loans For Veteran-Owned Businesses

SBA loans for veterans have great terms and fees, though these loans are harder to qualify for and take longer to fund. Interested? Learn how to apply for an SBA loan.

Additional Funding Resources For Veteran-Owned Businesses

Don’t qualify for funding yet? Need more help finding options? Consider the following funding ideas for veteran-owned businesses.

Get Certified As A Veteran-Owned Business: Getting certified as a veteran-owned business can increase your appeal to lenders and win federal contracts; service-disabled veteran-owned businesses may qualify for a separate federal contracting program.
Contact Your Bank Or Credit Union: You may be able to obtain a business loan through your bank or credit union if you already have a good business relationship with them.
Look Into Nonprofit Lenders: One example of a nonprofit lender for veterans is the Veterans Business Fund.
Look Into Angel Investors: These organizations can help your veteran-owned business obtain startup funds. Example: Hivers and Strivers.
Research Business Grants: See if you qualify for any business grants for veterans — for example, there are special grants for veteran farmers and grants for veteran franchise owners.
Contact Your Local SBA Office: They may be able to provide additional information on programs for veteran business owners. The Office of Veterans Business Development, SCORE, and Boots to Business are all SBA-powered programs that offer business training and mentoring to veterans.
Consider Non-Government Resources: Some examples of non-government resources for veteran business owners include VetToCEO, the Global Good Fund, and the Coalition for Veteran-Owned Businesses.

How To Get A Veteran Business Loan

1) Draft A Business Plan

Most lenders will want to see a business plan so they know what you plan to do with the funds you’re asking for before they lend you money. Don’t have an updated business plan? Learn how to draft a one-page business plan.

2) Check Credit Score

Make sure you know your credit score so you don’t waste time applying for loans you don’t qualify for based on your credit. In addition to checking your personal credit score with the Equifax, Experian, and TransUnion credit bureaus (you’re entitled to one free credit report from each of these agencies, per year), also be sure to check your business credit score.

3) Calculate Loan Size

How big of a loan do you need and why? What size daily or weekly payments can you afford? How big of a loan will you qualify for, taking into account your business’s debt service coverage ratio (DSCR)? It’s important to determine if you can afford a small business loan before applying.

4) Gather Documents

Gathering all your important business documentation ahead of time will help save time when applying. Make sure you have the documents you need to get a small business loan.

5) Bolster Online Presence

Lenders will often check your business’s website, social media, and online reviews when making lending decisions. All of these elements together make up your online presence.

6) Compare Qualifying Lenders

Once you know your funding needs and what loans you qualify for, it’s time to compare small business lenders. Pay attention not just to the maximum loan amounts and the fees, but also to the repayment frequency and term length since these factors will make a big impact on your payments.

7) Start Applying

If you are well-prepared by taking the above actions, applying for loans should go pretty smoothly. You’ll simply need to prove you can meet the business loan requirements for the financing product you want, supplying all the needed documentation you gathered earlier.

Which Loan Is Right For Your Veteran-Owned Business?

To determine which small business loan is right for your veteran-owned business, first consider your qualifications, including time in business, credit score, and business revenues, and see which lender(s) you qualify for. You’ll also want to consider which lenders can offer the amount of funding you need, with a payment schedule you can afford.

Don’t qualify for any veteran business loans? Look into business grants for veterans.

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Shannon Vissers

Lead Staff Writer at Merchant Maverick

Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.

@ShannonVissers

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1. SmartBiz

❮ ❯

Offers: Online SBA loans
Interest: 11.25-13.25%
FICO: 650

2. OnDeck

❮ ❯

Offers: Short-term loans & lines of credit
APR: 29.9%+
FICO: 625

3. BusinessLoans.com

❮ ❯

Offers: Short-term loans, lines of credit, & more
APR: Unknown
FICO: N/A

4. Credibly

❮ ❯

Offers: Short-term loans, lines of credit, & more
Factor Rate: 1.11+
FICO: 500

5. Fundbox

❮ ❯

Offers: Lines of credit
APR: 4.66%+
FICO: 600

6. Bluevine

❮ ❯

Offers: Lines of credit
APR: 15-78%
FICO: 625