Veterans bring exceptional discipline and leadership to entrepreneurship. Here are the specialized programs and financing options available to veteran-owned businesses.
Business Financing for Veterans: A Complete Overview
Veteran entrepreneurs bring discipline, leadership, and mission-orientation to business ownership — and the financing ecosystem has developed specific programs to support this community. Veterans own approximately 3.7% of all U.S. businesses, and targeted programs from the SBA, state agencies, nonprofit lenders, and private foundations provide meaningful advantages for qualifying veteran-owned businesses. Combined with mainstream financing available to any business, veteran entrepreneurs have a broader set of capital options than most business owner demographics.
SBA Programs for Veterans
SBA Veteran Advantage Program
The SBA Veteran Advantage program reduces or eliminates the guarantee fee on SBA 7(a) loans for qualifying veteran-owned businesses. For loans under $150,000, the SBA guarantee fee is waived entirely — a savings of up to $2,625. For loans between $150,000 and $700,000, the upfront guarantee fee is reduced. This is a direct financial benefit that reduces the cost of accessing the SBA 7(a) program — the most favorable mainstream small business financing available.
SBA Boots to Business Program
Boots to Business is an SBA entrepreneurship education program available to transitioning service members, veterans, and military spouses. While not a financing program, it provides the business plan development and financial literacy foundation that improves loan applications. Completing Boots to Business signals seriousness and preparation to SBA lenders.
SBA Microloan Program
SBA Microloans through veteran-focused nonprofit intermediaries provide up to $50,000 with flexible credit requirements, rates of 8%–13% APR, and often include mentoring and technical assistance. Several intermediary lenders specifically serve veteran entrepreneurs with culturally competent advisors who understand military-to-civilian transition dynamics.
Veteran-Specific Grant Programs
Several grant programs specifically serve veteran entrepreneurs:
- Hivers and Strivers Angel Fund: Invests $250,000–$1,000,000 in startups founded by graduates of U.S. military academies
- VetFran (International Franchise Association): Members provide franchise fee discounts of 10%–15% for veterans — reducing the capital needed to start a franchise
- Bunker Labs: Nonprofit providing resources, programming, and connections to capital for veteran entrepreneurs
- StreetShares Foundation: Small business grants specifically for veteran entrepreneurs
- State veterans affairs offices: Many states maintain veteran entrepreneur programs with grant components — check your state's Department of Veterans Affairs or SBDC
CDFI and Nonprofit Lenders for Veterans
Several mission-driven lenders focus on veteran entrepreneurs:
- Accion Opportunity Fund: Flexible credit requirements, strong veteran borrower population
- StreetShares (now Funding Circle): Originally founded specifically for veteran-owned businesses
- PeopleFund: Texas CDFI with veteran-specific programs
- Local SBDCs: Small Business Development Centers provide free consulting and often have veteran entrepreneur programs with connections to preferred lenders
Mainstream Financing: Fully Available to Veteran-Owned Businesses
All mainstream business financing products are available to veteran-owned businesses on the same terms as any qualifying business. Revenue-based financing for fast capital needs, term loans for defined investment needs, lines of credit for working capital management — the qualification criteria are credit, revenue, and time in business, not veteran status.
The strategic advantage for veterans is layering: access mainstream financing at competitive rates, supplement with SBA Veteran Advantage fee waivers, and supplement further with CDFI and grant programs where applicable. Approvd's advisors help veteran entrepreneurs identify the optimal combination of these resources. Apply free with no credit impact.
Frequently Asked Questions
Do veterans get better interest rates on business loans?
Not automatically. The SBA Veteran Advantage program reduces guarantee fees (a one-time cost), not ongoing interest rates. However, several CDFI lenders serving veterans offer below-market rates as part of their mission. For most loan amounts, the biggest financial advantage is the SBA guarantee fee waiver, not a rate reduction.
What is a veteran-owned small business (VOSB)?
A VOSB is a business majority-owned (51%+) and controlled by one or more veterans. Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) have additional contracting set-asides available through the VA's VetBiz program.