Today’s Top Lenders for Veteran-Owned Businesses

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
4 Types of Small Business Loans for Veterans
1. SBA 7(a) Loan
What is it?
Why choose it?
Keep in mind
2. SBA Express Loan
What is it?
Why choose it?
Keep in mind
The maximum amount you can borrow: Standard: $5 million Express: $350,000 The maximum amount guaranteed by the SBA: Standard: 85% for loans up to $150,000; 75% for loans greater than $150,000 Express: 50% for all loan amounts The duration of revolving lines of credit (excluding extensions): Standard: Up to 10 years Express: Up to 7 years
3. Military Reservist Economic Injury Disaster Loan (MREIDL)
What is it?
Cover lost income or profit Expand your business Refinance long-term debt Replace typical commercial debt
Why choose it?
MREIDL interest rates will not exceed 4% a year Loan maturity is based on your ability to repay the loan, with a maximum maturity of 30 years The maximum loan amount is $2 million
Keep in mind
4. Non-Government Small Business Loans for Veterans
Loan from an online lender: Online lenders tend to have less stringent qualification requirements than banks. However, their interest rates may be higher and borrowing amounts may be lower. Business line of credit: A business line of credit is similar to a personal credit card, with a credit limit and interest accrual only on the expenses you have not repaid. Banks and online lenders both offer business lines of credit. Peer-to-Peer Network: A peer-to-peer network matches borrowers with independent investors. Because it doesn’t involve borrowing from a bank or online lender, a peer-to-peer network may be a good option when it comes to small business loans for veterans with brand-new businesses or bad credit.
11 Non-SBA Small Business Loans for Veterans: Our Top Picks
1. Avant
2. Best Egg
3. BlueVine
4. Fundbox
5. Kabbage
6. OnDeck
7. Payoff
8. Prosper
9. Upstart
10. Fifth Third Bank
11. Lendio
Applying for a Small Business Loan for Veterans
SBA Veterans Advantage: Eligibility Requirements
Active duty Service-disabled Reservists and/or active National Guard members A spouse of a service member
Veteran: Copy of Form DD 214, which is provided to veterans who were not dishonorably discharged Service-disabled veteran: Copy of Form DD 214 or a letter from the Department of Veteran Affairs (DVA) that you have a disability connected to your time in service. Transitioning active duty military member: Any of the following: DD Form 2, U.S. Armed Forces Identification Card (Active) DD Form 2, Armed Forces of the United States Geneva Conventions Identification Card (Active) and DD Form 2648, Active Duty Military Member DD Form 2648-1, Reserve Component member
Reservist and National Guard member: DD Form 2, Armed Forces of the United States Identification Card (Reserve) Current spouse of a veteran: Current proof of your spousal relationship and the veteran’s Form DD 214 Current spouse of a transitioning active duty military member or current Reservist/National Guard member: Current proof of your spousal relationship and DD Form 1173, Department of Defense Guard Reserve Family Member Identification Card Widow of an active duty military member who died in service or veteran who died of a service-related disability: A letter from the Department of Defense (DOD) or DVA explaining your situation.
Small Business Loan for Veterans: Applying in 7 Steps
1. Determine the Needs of Your Business
2. Choose the Type of Small Business Loan for Veterans
3. Choose the Type of Lender
An online lender, like those you can compare and apply with using our online form A bank A credit union, which is a group of contributing members who deposit and lend out their own money to other union members. Credit unions tend to have lower loan fees compared to banks and may offer better customer service A peer-to-peer network, which connects borrowers directly to investors
4. Check Your Business and Personal Credit History
5. Prepare Appropriate Documentation
6. Research and Compare Small Business Lenders
7. Apply for Loans
Small Business Support for Veterans with Disabilities
The company must operate as a small business. The business must be owned and controlled by one or more service-disabled veterans, at a minimum of 51%. One or more service-disabled veterans must be responsible for managing operations and making long-term decisions. Eligible veterans must have a disability connected to their past service.
Top Picks Methodology
Minimum credit score is 650 Minimum time in business is 1 year or less Minimum annual revenue is $100,000 or less No collateral required Interest rates starting at no more than 20% Maximum loan term is 25 years or longer Max loan amount is $500,000 Simple application (online, no mailing or going into bank required) Time to funds is less than a week Whether it offers 24/7 support (online or phone) Special benefits/terms for the interest group, if applicable (veterans)
Lantern Business Loan Rates
Frequently Asked Questions
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About the Author
Nancy Bilyeau writes about student loans, mortgages, car insurance, medical debt and many other finance topics for Lantern. A veteran of the magazine business, she has edited stories on personal finance for Good Housekeeping and DuJour magazines and has written articles for The Wall Street Journal, Readers' Digest, Parade, Town & Country and Lifetime/A&E, among others. She is a graduate of the University of Michigan.
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