Veteran entrepreneurs have access to specialized business loan options for veterans, including SBA Veterans Advantage for general use, MREIDL for deployment-related losses, and StreetShares for expansion. Equity funding via Hivers & Strivers supports high-growth startups. Key factors for choosing a loan include purpose, amount, terms, and qualifications.
Why Business Loans Matter for Veterans
Starting or expanding a business requires capital. Whether it’s for equipment, inventory, or marketing, the right funding can mean the difference between success and struggle. Business loans for veterans offer:
✅ Lower Interest Rates: Many programs offer reduced interest rates compared to traditional business loans.
✅ Flexible Terms: Some loans provide extended repayment terms to ease financial pressure.
✅ Exclusive Benefits: Special programs recognize the contributions of veterans by offering grants, mentorship, and business support.
Now, let’s explore the top loan programs tailored for veteran entrepreneurs.
1. SBA Veterans Advantage Loan Program
The Small Business Administration (SBA) offers the Veterans Advantage program, which provides reduced fees on SBA 7(a) loans for eligible veterans.
Key Features:
- Loan amounts: Up to $5 million
- Reduced or waived guarantee fees for loans up to $500,000
- Can be used for working capital, equipment, inventory, and real estate
Who Qualifies?
- Veterans
- Service-disabled veterans
- Active-duty members participating in the Transition Assistance Program (TAP)
- Reservists and National Guard members
Example:
If you apply for a $200,000 loan, the SBA’s usual 3% fee on the guaranteed portion would be waived, saving you $3,000 in upfront costs.
2. Military Reservist Economic Injury Disaster Loan (MREIDL)
The MREIDL is designed to help businesses cover operational costs if an essential employee is called to active duty.
Key Features:
- Loan amounts: Up to $2 million
- Interest rate: 4% fixed
- Repayment terms: Up to 30 years
- Purpose: Covers operating expenses but not for expansion or debt refinancing
Who Qualifies?
- Small businesses facing economic hardship due to a deployed essential employee
Example:
A veteran-owned construction firm loses a key manager to deployment. The company secures a $100,000 MREIDL loan at 4% interest over 15 years, keeping the business stable during the transition.
3. StreetShares Veteran Business Loan
StreetShares, a veteran-founded lender, offers flexible funding options for small businesses.
Key Features:
- Loan amounts: $2,000 to $250,000
- Interest rates: As low as 8% APR
- Repayment terms: 3 to 36 months
- Quick funding process
Who Qualifies?
- Veteran-owned businesses with at least one year of operating history
- Minimum annual revenue of $25,000
Example:
A veteran entrepreneur applies for a $50,000 loan to buy new equipment. With an 8% interest rate over 24 months, the monthly payment would be approximately $2,260, helping the business expand efficiently.
4. Hivers & Strivers Angel Investment Program
For veterans looking for equity funding rather than loans, Hivers & Strivers provides venture capital to early-stage veteran-owned businesses.
Key Features:
- Investments: Typically $250,000 to $1 million
- Designed for high-growth startups
- No repayment required (equity-based funding)
Who Qualifies?
- Veteran entrepreneurs with scalable business models
- Strong leadership team and business plan
Example:
A tech startup founded by a veteran secures $500,000 from Hivers & Strivers in exchange for a 10% stake, allowing them to scale operations without debt.
How to Choose the Right Loan Program
Choosing the best funding option depends on several factors:
🔹 Loan Purpose – Expansion, working capital, or emergency funds?
🔹 Loan Amount Needed – Small or large funding?
🔹 Repayment Terms – Long-term stability vs. short-term cash flow?
🔹 Qualification Criteria – Credit scores, revenue, and business history?
Comparison Table:
Loan Program |
Loan Amount |
Interest Rate |
Best For |
| SBA Veterans Advantage | Up to $5M | Varies | General business use |
| MREIDL | Up to $2M | 4% fixed | Covering deployment-related losses |
| StreetShares Loan | Up to $250K | 8%+ | Small business expansion |
| Hivers & Strivers | $250K – $1M | Equity-based | High-growth startups |
Final Tips for Securing a Business Loan
Here are a few tips to improve your chances of getting approved:
- Build a Strong Business Plan – Lenders look for clear financial projections.
- Maintain Good Credit – A score of 680+ improves loan options.
- Prepare Financial Documents – Tax returns, bank statements, and profit-loss statements.
- Explore Multiple Options – Compare lenders for the best terms.
Conclusion: Take the Next Step
Securing funding is a crucial step in your business journey. Whether you need a loan for expansion, day-to-day operations, or startup capital, the right program can set you up for success.
🔹 Need help choosing the best loan? Use our business loan calculator to estimate your potential loan payments.
🔹 Want expert guidance? Connect with financial advisors specializing in veteran business loans.
By leveraging the resources available, veteran entrepreneurs can continue to drive economic growth and innovation. Take the next step today!