Best VA Small Business Loans
In 2015, Forbes magazine found that 3 million companies in the U.S. were veteran-owned. The reasons for this are manifold, but some financial experts attribute veterans' business successes to lessons learned in the military: the ability to thrive in small groups and unique situations, flexibility, leadership skills, teamwork, competitive spirit, mission-orientation and focus.
Resources designed specifically for veterans include the Entrepreneurship Bootcamp for Veterans (EBV) program, government certification as a veteran-owned business, and the Small Business Administration's (SBA) Boots2Business. The SBA also supports veterans by providing access to business counseling and training, capital and business development opportunities through government contracts, as well as through their Veterans Advantage program, which eliminates the upfront guaranty fee for SBA Express Loans.
Given the particular needs of our country's servicemembers, and also the special programs and assistance for which they may qualify, we've compiled this list of the best small business loan providers for veterans. We encourage you to get quotes from several, as all companies provide access to different types of small business loans with varying terms and qualifications.
Top 4 VA Small Business Loans
OnDeck conveniently offers small business loans for veterans of up to $500,000 that are ideal for expansion capital, with more speed and fewer qualifications than a traditional lender. They also provide expert, intensively trained advisors to help assess each borrower's business, across a range of 700 different industries. OnDeck's commitment to encouraging and developing veteran-run small businesses is evidenced by their flexible terms and rates based on the business’ performance, and not solely on personal credit history. In less than ten minutes, OnDeck's loan applications are available both online or over the phone. Businesses generally receive responses within minutes, and access to funds in as little as 24 hours. Though their minimum personal credit score requirement for term loans is just 500, most of their borrowers' scores are 660 or higher. Average gross revenue for businesses that receive funding generally exceeds $450,000, and they have a median of seven years in operation.
Kabbage looks at a business' accounting, banking and e-commerce data to determine loan approval. Their minimal reliance on credit scores makes them an ideal fit for former servicemembers with problematic credit histories. Kabbage's loans for veterans with rocky credit histories, however, can be expensive, with a complicated fee structure and annual percentage rates between 24% and 99%. Borrowers looking for speedy access to working capital will find Kabbage an ideal fit, as they may be approved and funded in the space of a few days. Most of their loans are given to borrowers with credit scores above 500, but Kabbage mainly evaluates the company's linked accounts, average monthly revenue and number of years in business.
Fundbox links vets seeking a loan with small business lenders, brokers, and private investors who provide loans with low rates and affordable payments. They not only work with existing companies, but also with startups, and hard to place loans. Fundbox loans are best used for invoice financing for up to $100,000. It's also a great option if you are a veteran with less than stellar credit, as they don't have a minimum credit requirement or a minimum time in business. Funding time is excellent, averaging between 1-3 days. One thing to keep in mind, however, is that your business must use software compatible with Fundbox, such as QuickBooks, FreshBooks or Xero.
LendingTree connects veterans looking for small business and funding partners from their network. The online platform offers the widest variety of small business loan types, including short term loans, term loans, business lines of credit, working capital loans, equipment loans, and accounts receivable financing. LendingTree has helped finance over 40 million people, and is one of the largest and most respected online lenders in the industry. The application process is simple and straightforward, and can be completed in minutes. They then put former servicemember borrowers in contact with a maximum of four lenders, greatly increasing the chances of obtaining better rates and loan terms.
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