If you’re a veteran looking to start or grow a business—whether you’re opening a storefront, working from home, or investing in commercial property—low-interest loans can help you secure the funding you need while honoring your service.
This guide highlights the best business loans for veterans in 2025, with insights on rates, perks, and practical steps to apply.
Why Veterans Need Business Loans
Building a successful business often requires extra cash flow, and as a veteran, you might qualify for low-interest financing that recognizes your service and reduces the cost of borrowing.
Why It Matters:
- Starting or expanding a business can be expensive.
- Low-interest loans help you focus on growth, without sky-high monthly payments.
- Veteran-specific programs may offer fee waivers and faster approval times.
In a thriving economy—showing a 3.1% GDP rise in 2024—these veteran-focused loans can be a powerful tool to help you launch or scale up your venture.
The Veteran Advantage
Your military background can open doors to discounts, waived fees, and more favorable terms.
Why It’s a Game-Changer:
- Special Rates and Perks: Agencies like the SBA (U.S. Small Business Administration) and certain banks provide unique perks for veterans.
- Experience Matters: Your leadership, discipline, and problem-solving skills from military service often impress lenders.
- Nationwide Support: Whether you’re in Texas or across the country, these veteran-oriented financing options ensure you don’t miss out on opportunities.
Top Low-Interest Business Loan Options for Veterans
Below are five standout loans with competitive interest rates, flexible terms, and perks designed for veterans. Each option can be used for different goals—whether buying equipment, purchasing real estate, or simply adding working capital.
SBA Express Loans – Veteran Advantage
Amount & Rates: Up to $500,000, with interest rates ranging from 6.5%–9% (as of March 2025).
Veterans who need quick access to funding can benefit from SBA Express Loans, which provide fast approval and fee waivers that can save thousands of dollars. Whether you’re purchasing equipment, hiring staff, or covering operational expenses, these loans help veteran-owned businesses grow without the long wait times of traditional financing.
✅ Fast Approval: Get funds within 36 hours, ideal for urgent business needs.
✅ Fee Waiver: Veterans skip the upfront guarantee fee, saving up to $5,000.
✅ Flexible Use: Perfect for equipment, inventory, payroll, and expansion costs.
SBA 7(a) Loans
Amount & Rates: Up to $5 million, with interest rates of 6%–8.5%.
For veterans planning larger business investments, the SBA 7(a) Loan offers longer repayment terms and higher loan amounts. These funds can be used for real estate purchases, expanding operations, or acquiring other businesses. With terms of up to 25 years, monthly payments remain affordable, even on multi-million-dollar loans, making business growth more manageable.
✅ Large Loan Amounts: Borrow up to $5 million for major business investments.
✅ Long Repayment Terms: Terms up to 25 years, keeping monthly payments lower.
✅ Flexible Use: Can be used for real estate, working capital, or expansion.
Military Reservist Economic Injury Disaster Loan (MREIDL)
Amount & Rates: Up to $2 million at a fixed 4% interest rate, with 12-month deferred payments after funding.
The MREIDL program is designed to support veteran-owned businesses when the owner or a key employee is called to active duty. This loan helps cover essential expenses such as rent, payroll, and operational costs so that businesses don’t suffer financial setbacks while their key personnel serve. The fixed 4% rate makes repayment manageable.
✅ Low-Interest Rate: Fixed at 4%, keeping costs predictable and manageable.
✅ Deferred Payments: No payments required for 12 months after receiving funds.
✅ Crisis Protection: Ensures business stability when a reservist is deployed.
Navy Federal Credit Union Business Loans
Amount & Rates: Up to $50,000, with interest rates ranging from 5.5%–7%.
For smaller financing needs, Navy Federal Credit Union provides affordable business loans with fast approval and minimal collateral requirements. Whether you need funds for a company vehicle, marketing efforts, or short-term expansion, these loans are a simple and flexible solution for veteran entrepreneurs looking for reliable funding with reasonable repayment terms.
✅ No Collateral Required: Loans under $25,000 do not require collateral.
✅ Competitive Interest Rates: Rates start at 5.5%, keeping costs low.
✅ Quick Access to Funds: Approval and funding within a few business days.
StreetShares (Now Second Service Foundation)
Amount & Rates: Loans range from $5,000–$250,000, with 6%–8% interest rates and repayment terms between 3–36 months.
StreetShares (now Second Service Foundation) is a veteran-run lender that provides funding tailored to veteran entrepreneurs. Designed to support startups and small businesses, these loans feature low-interest rates, flexible repayment options, and a streamlined application process. Veterans can apply with minimal paperwork, making it easier to secure funding quickly.
✅ Veteran-Focused Lender: Founded by veterans, exclusively for veterans.
✅ Flexible Repayment: Choose terms from 3 to 36 months based on business needs.
✅ Great for Startups: Ideal for new businesses with lower revenue history.
Comparing Low-Interest Loan Options
Different loans suit different needs. Use this chart to pinpoint which one works best for your situation—startup, expansion, or property purchase.
| Loan Option | Max Amount | Interest Rate | Term Length | Veteran Perk |
|---|---|---|---|---|
| SBA Express | $500,000 | 6.5%–9% | Up to 10 years | No guarantee fee |
| SBA 7(a) | $5 million | 6%–8.5% | Up to 25 years | Flexible use, larger loans |
| MREIDL | $2 million | 4% | Up to 30 years | Deferred payments |
| Navy Federal | $50,000 | 5.5%–7% | Up to 5 years | No collateral under $25K |
| StreetShares | $250,000 | 6%–8% | 3–36 months | Veteran-run lender |
How to Secure a Veteran Business Loan
Approaching lenders is straightforward when you break it down into a few simple steps. Being prepared increases your chances of a quick, positive response.
Step-by-Step Guide
| Step | Action | Tip |
|---|---|---|
| Define Your Goal | Set loan amount | Match loan size to your specific business need |
| Verify Eligibility | Confirm vet status | Keep your DD-214 or discharge papers handy |
| Prep Documents | Collect paperwork | Update business plan, tax returns, financials |
| Pick a Lender | Research options | Compare perks from SBA, Navy Federal, etc. |
| Apply and Wait | File application | Follow up regularly to speed up the process |
- Define Your Goal: Determine how much you need—$25,000 for new equipment or $1 million for property.
- Verify Eligibility: Prove veteran status (usually with a DD-214) and confirm you own at least 51% of the business.
- Prep Documents: A concise business plan, recent tax returns, and financial statements will help you qualify and negotiate better terms.
- Pick a Lender: Use SBA’s Lender Match or check with credit unions like Navy Federal.
- Apply and Wait: Submit your application, then monitor the status. Approval timelines range from a couple of days (SBA Express) to a few weeks (larger SBA 7(a) loans).
Resources to Boost Your Loan Search
There’s plenty of free help out there for veterans seeking business financing. Reach out to these groups early for personalized guidance and education.
-
Veterans Business Outreach Center (VBOC)
- Offers free counseling, workshops, and help with loan applications.
- Find a VBOC near you.
-
U.S. Small Business Administration (SBA)
- The Veteran Advantage program reduces fees for various loans (7(a), Express, 504).
- Their Lender Match tool quickly pairs you with suitable local lenders.
-
Texas Veterans Commission (TVC)
- For those in Texas, TVC grants up to $20,000 for new or growing businesses with no repayment required.
- Call 1-800-252-8387 or visit the TVC site for details.
Tips to Lock In Low Rates
Simple strategies can help you secure a lower interest rate and better terms.
- Raise Your Credit Score: Aim for 680 or above. Pay down small debts and keep balances low.
- Prove Steady Income: Show at least six months of consistent revenue to appear more reliable.
- Highlight Your Service: Many programs waive fees or lower rates for veterans—mention your status early.
- Compare Multiple Offers: Even a 1% rate difference can save you thousands over the life of your loan.
FAQs About Business Loans for Veterans
-
What are the best low-interest business loans for veterans?
SBA Express (6.5%–9%) and Navy Federal (5.5%–7%) are popular due to competitive rates, straightforward applications, and waived fees. -
How do veterans qualify for low-interest business loans?
You’ll typically need a DD-214, proof of at least 51% ownership in the business, and a decent credit score (600+). SBA loans require a business plan and financial history. -
Can veterans get SBA loans with low interest?
Absolutely. SBA 7(a) and Express loans range from 6%–9%. Veterans often skip guarantee fees, which can save thousands of dollars. -
What’s the lowest interest rate for veteran business loans?
MREIDL offers 4% if your business is harmed by a reservist being called to active duty. For general expansion, Navy Federal’s 5.5% or StreetShares’ 6% are also strong. -
Are there grants alongside veteran business loans?
Some states, like Texas, offer grants up to $20,000. Check with your local VA office or Veterans Business Outreach Center to explore options. -
How fast can veterans get business loans?
SBA Express funds may arrive in about 36 hours, while Navy Federal typically takes 1–3 days. Larger loans (like SBA 7(a)) can take 2–6 weeks, depending on the loan size. -
Do veteran business loans require collateral?
Not always. Navy Federal doesn’t require collateral for loans under $25,000. However, larger SBA loans (over $250,000) often need collateral such as property. -
Can veteran startups get low-interest loans?
Yes. StreetShares (now Second Service Foundation) offers $5,000–$250,000 at 6%–8%. SBA microloans (up to $50,000) also serve new ventures.
Challenges Veterans Face (And How to Beat Them)
Common pitfalls include low credit scores, complex SBA applications, and limited startup options—but with the right approach, you can overcome each one.
- Credit Under 600: Work on on-time payments and lower your overall debt.
- Application Hurdles: Reach out to VBOCs for free help with the paperwork.
- Skeptical Lenders for Startups: Consider microloans or StreetShares if you’re just getting off the ground.
Why These Loans Are a Game-Changer
Veterans can tap into loans with lower rates, waived fees, and veteran-focused support—making it easier to succeed in business without heavy financial strain.
Whether you’re buying specialized equipment, financing a commercial property, or simply needing working capital, these business loans for veterans transform your hard-earned military service into tangible benefits. For example, one veteran used an SBA Express Loan at 7% interest to open an auto repair shop, while another secured a Navy Federal loan at 5.5% for a company vehicle. With options like these, your dreams of entrepreneurship or business expansion can become a reality—without draining your savings.
Next Steps & Additional Resources
- Internal Link Example: How to Create a Business Plan That Lenders Love
- External Link Example: SBA Official Website
Remember: If you have questions about any of these loans, speak to a reputable lender or consult a financial advisor. Leveraging your veteran status can save you money and time, so don’t hesitate to explore your best options.
