By Daniel Lewis,
/ Advertising Disclosure

Veterans play a significant role in the business world. Their contribution to the USA goes beyond their years of dedicated service. Over 7% of the 5.5 million active businesses with employees are owned by Veterans, according to the latest data from the US Census Bureau. And according to a report from the Small Business Administration (SBA) Office of Advocacy in 2017, Veterans employed over 5 million people with annual pay of nearly $2 billion, as well as receipts totalling over $1 trillion.  It is in the government’s best interest to supply Veterans with the proper funding programs as they play a pivotal role in the economy. This is a large reason as to why there are specialized loan programs designed specifically to help Veterans gain access to funding.

Veterans will understand better than most that nothing in life comes easy, and they are more than able to succeed in the world of business if they can secure the badly needed funding to get them started.

Starting a Small Business

There are many pitfalls to starting a small business. And there are many things to consider before you begin, which include a strategic plan, the brand name, the ownership model, the web presence, management, cash flow, market strategy, market analysis, office space, utilities, and social media. Any of these can lead to failure if not effectively managed, but the most crucial element would have to be the startup costs and the loan. There are also some statistics that you need to take into consideration when embarking on any small business venture, whether you are a veteran or not:

It is a clever idea to familiarize yourself with these types of statistics before you start your business.

When considering whether to pursue a small business, there are some questions that you need to ask yourself. If the answer to any of the questions is not an absolute yes, then you may need to reconsider.

Am I Passionate About this Business Endeavour?

You need to ask whether you are passionate about what you are doing. Passion is a key ingredient and you need to be improving and perfecting your business every single day to succeed. You cannot afford to take a back seat in any industry. Motivation and passion are a prerequisite to success.

Is this Business Idea Financially Viable?

Given that you have passion as a key ingredient, the second question you need to ask is if you have a chance of succeeding. Your profit margins need to be high and costs low to cover the many bills of utilities, employees, rent, legal fees, licenses, furniture, and more. And you need to consider the financial surprises that will inevitably crop up. What are the profit margins and is it a niche industry?

Am I Solving a Problem?

If you are setting up a pizzeria in an area with 5 high quality and established pizzerias, then your business will not succeed. There are too many other people with a similar passion in a similar area. If there is no need for your business, you do not have a business. At the very least, it must solve a problem or need better than other existing models.

Consider your financial backing when starting a company. Effective financial planning can catapult your business years into the future if you can secure the right funding at the start of the campaign. Veterans have an added disadvantage when it comes to securing this type of funding. This is largely because they have gaps in their credit history while on active service. But they can offset this disadvantage with the Veterans Advantage (VA) loan, which reduces the fees on SBA loans.

Financing a Small Business

When considering a small business loan, alternative lenders are more likely to approve the request. According to Biz2Credit, alternative lenders approve 58% of loan requests in comparison to smaller banks (48%) and larger banks (24%). Therefore, your chances of securing a loan are likely to improve if you choose a reliable alternative lender.

Alternative Lenders, Small Banks & Large Banks: % of Approved Requests:

Alternative lenders
Small banks
Large banks

Given the failure rate for small businesses, it helps to secure a loan of some kind to increase your chances, and having some extra security is of paramount importance in any business venture. For Veterans who wish to start a small business, it is essential that they are familiar with the best loan available to them, in the form of an SBA loan.

SBA Loans

An SBA loan is a loan given to small business owners by the government through the Small Business Association at a low-interest rate. You have a guarantee on your loan on the part of the government, which cuts a lot of risk from the financial institution that issues the loan. It is not technically the SBA that is doing the lending. It is banks and alternative lenders. The government guarantees their loans, so the lending institution has less risk of borrower default. Small businesses have a high failure rate and it is necessary for the government to step in and give a stimulus. Otherwise, there would be a risk that small business owners would never get access to finance. The partial guarantee can extend all the way to 85% in some cases.

But these loans can be difficult to buy, and the government provides a very rigorous process with stringent requirements. You will need to find a reliable and stable lender, like SmartBiz, to increase your chances of success. Many applicants can choose the wrong lender and waste months in a restrictive SBA process.


The requirements for Veterans to obtain a Veterans Advantage (VA) SBA loan are less strict than the standard loan, which is a major relief. Through the VA lending program, upfront fee reductions are available to veterans who seek SBA loans. To obtain a VA SBA loan, applicants must own 51% of the business in question and must be either a veteran, a reservist, a national guard member, a spouse of a veteran or a widow of a veteran.

There is no minimum VA SBA Loan and the average loan is $370,000. The maximum is $5 million. The repayment time for these types of loans can range from 5 to 25 years, but the general repayment time is 10 years. There are three main types of SBA loans. These include the VA SBA Loan, the 7(a) Express Loan and The Military Reservist Economic Injury Disaster Loan Program (MREIDL). These details can be found on the official SBA website.

Other Financial Options for Veterans

While the VA SBA loan is the most widely regarded business loan, there are alternative options available to veterans. Below is a list of five of the best platforms for small business loans in general. Veterans can make use of these loans, as depending on their personal circumstances it may make more sense. These include:

  1. SmartBiz – The Professional SBA Lender.
  2. Blue Vine – BlueVine offers a credit line of up to $200,000 which they can extend to you in less than 24 hours. They are a highly regarded platform with an extremely intuitive interface. The fees are transparent and there are no maintenance fees or prepayment penalties.
  3. Funding Circle – Funding Circle is a peer to peer lending platform. Its focus is on small and medium businesses. Funding Circle is based in the UK. In the USA, you can borrow up to $500,000 online with a term of up to 5 years. It is possible to obtain funding in as little as 5 days and a decision in less than 24 hours.
  4. FundBox – Like Funding Circle, FundBox can be a straightforward way to gain access to finance quickly. You do not need any paperwork or credit check, and they brand themselves as a “common-sense approach to business funding”. The approach is incredibly streamlined. Register with an email or phone number, connect your accounting software/bank account for business insights and you can then withdraw funds if approved. It is best suited for people who are already business owners, as opposed to people who are just starting off.
  5. Kabbage – Kabbage allows loans of up to $250,000. It allows 6 or 12-month terms and it is possible to qualify in less than ten minutes. By linking revenue data, you can get a decision in a brief period.
  6. National Funding – National Funding has a high approval rate and there is no need for a down payment when applying for a small business loan. Loans can range up to $500,000 and equipment leasing up to $150,000. National Funding has been in operation since 1999 and has a solid record of accomplishment. National Funding provides businesses with a diverse array of financial solutions.

These are excellent platforms if you need access to funding quickly and with minimal hassle. And they are perfect for those with a short or weak credit history. However, the terms will be less generous when compared to a VA SBA loan, as VA SBA loans are government-mandated and specifically designed to make it easier for veterans to gain access to finance.

Maintaining a Small Business

Of course, thinking of a brilliant business idea and obtaining a loan are just the first steps. They will increase your chances of success, but by no means is success a guarantee. There are several ongoing tasks that you will need to perform to keep your business going.

  1. Constantly lower costs and increase profits without compromising on quality.
  2. Do not micromanage employees and learn to delegate responsibility.
  3. Reinvent your business or adjust every couple of years to keep things fresh
  4. Keep track of all the numbers
  5. Keep up to speed with the legal changes in your industry
  6. Listen to feedback and do not be afraid to change the business model
  7. Be prepared to work nonstop for the first couple of years. And take your personal health and wellbeing into account.

The numbers are the most critical part of any small business. You will have to balance wages, utilities, rent, debt management, product purchases, licenses, consultancy charges, internet fees, and more with estimated profits. Therefore, it is crucial to have cash reserves as there are so many black swans that can eat into your money supply.


There are also several resources that you can use as a Veteran to maximize your chances of success. For more information, it is best to visit the Small Business Administration resource webpage for Veterans. It has a list of resources including mentoring and training, financing a business, guides on how to write a business plan and more. Common platforms for the aid of US Veterans include:

  • The Office of Veterans Business Development
  • Boots to Business
  • Boots to Business Reboot
  • Veterans Women Igniting the Spirit of Leadership (VWISE)
  • The National Center for Veterans Institute for Procurement
  • Veterans Business Outreach Center
  • The Bunker


While creating, financing, and supporting small business is no easy task, there are plenty of resources out there to aid Veterans in their quest for financial freedom. There will still be many hurdles, but at least obtaining a loan is now painless for Veterans who wish to create their own business. It has never been easier than it is today to start a small business with the aid of a loan from a reputable lending institution.


What Are the Main Resources for US Veterans?

The primary resources for US Veterans are the US Department of Veterans Affairs as well as the National Veterans Foundation (“NVF”). If you visit these sites you will find numerous resources. There are also loans designed specifically for Veterans at the Federal level as well as commercial loans provided specifically for US Army Vets. Grant and minority loans are also available (technically, US Army Vets are a minority group). is another primary resource for Vets looking for a loan.

What Are the Different Types of Veteran Loan Options?

All of the standard online loan options can be used by US Army Veterans. US Army Veterans can use the Veterans Affairs Home Loan program, which is better than a standard mortgage. It is easier to qualify for with improved rates. Benefit programs are available Army Veterans can also avail of the SBA Express loan program up to $350,000. The upfront fee for veterans has not been completely removed. For all other applicants, the fee is a hefty 3%.

Which Loan Option Is Best for the Typical US Vet?

This is hard to answer in isolation. Typically, the online loan option is the best for all of those looking to get a no-hassle loan for a business. The funds will be in your account within 48 hours and the application is swift with minimal application. However, Veterans should definitely look at the myriad of benefits programs and grant options available to them, as well as micro loan options. It is never wise to refuse free money that you are entitled to, due to serving your country. All things considered, the best option is the SBA Express Loan, with a 36 hour approval time. But approval is certainly not guaranteed under this program.

Does the Veterans Association Offer Business Loans?

Yes. One of the most popular options is actually the VA loan provided by the SBA. loans up to $5 Million are available and with reduced fees for veterans. The loan can also be used for nearly anything. The catch is the time to funding and the fact that the US Army Veteran will need to have a lot of experience and business revenue at hand. A better option is the SBA Express Loan Option up to $350,000. Approval times are vastly reduced underneath this limb.

Can a Veterans Advantage Loan Be Used for a Business?

Yes. The Veterans Advantage loan is very flexible. You can use it for nearly anything you want, though one of the most common options is actually business expansion. Other uses include acquiring a new business, financing a franchise, renovations, construction, equipment, working capital, or even refinancing old debt.

How Much Can You Get for a VA Business Loan?

Loans up to $5 Million are available. But qualifying for the VA loan is not as easy as it seems, despite the benefits. For one thing, you have to sign up and become a member of Veterans Advantage, at a cost of $60 a year. For loans less than $150,000, the upfront fee for the VA loan is zero. To qualify for all the Veterans loans that are available, the business will need to be at least 51% owned by a US Army Veteran.

How Do I Get a Small Business Grant for Veterans?

Check out our page of the 88 best grants for small business owners, with a section on the best US Army Veteran Grants. Bear in mind that grant options for veterans are limited in comparison to other minority groups, prompting many to suggest that army veterans are the “invisible minority”. But as a technical minority group, they can use all existing general minority grant programs.

Why Can’t a US Vet Just Go for an Online Loan?

They certainly can! And this is often a far better option. There is a significant amount of paperwork involved with the typical Veteran loan programs, run by the SBA with outrageous levels of documentation that need to be provided to qualify. The SBA Express loan is the only Federal loan that is a reasonable competitor. For veterans that are just starting out with a new business, an online loan is still far superior, with low eligibility criteria requirements.

Daniel Lewis
Daniel Lewis is an MBA accredited investment professional who wants to assist small business owners to gain access to finance. After going through many channels for funding, Lewis has found that getting the first loan right is vitally important for future success.