$500,000
Not disclosed
Up to 84 months
Chase Bank is our top pick for term loans because it offers loans up to $500,000 — much larger than most other lenders on this list — with repayment terms extending up to 84 months and no origination fees. Plus, the bank offers unique perks for veteran entrepreneurs, like waiving the monthly service fee on one of its business bank accounts for qualifying service members.
Still, like many traditional banks, Chase isn’t very transparent about its eligibility criteria, which can make it hard to tell if this lender is a fit for you. Further, if your loan amount is over $250,000, you’ll have to contend with a prepayment penalty if you want to pay off your loan early.
In order to qualify, you’ll need to meet Chase Bank’s criteria of:
$1,000 to $150,000
9.50% Based on the current prime rate of 7.50% + 2.00% added by Huntington Bank for variable-rate loans
60, 84 or 120 months
If you’re hoping to take out a Small Business Administration (SBA) loan, consider Huntington National Bank’s Lift Local Business Program and its unique perks. For one, the bank will pay your SBA fees for you — for another, it partners with Operation HOPE to offer qualified borrowers access to free business services. Further, this program features some relatively lenient eligibility criteria and generous loan terms.
That said, with a maximum loan amount of just $150,000, the Lift Local Business program may not offer loans large enough to suit every borrower’s needs. Plus, the program doesn’t publicly disclose interest rate information for fixed rate loans, so you’ll have to contact the lender directly if you’re interested in that type of product.
In order to qualify, you’ll need to meet Huntington National Bank’s criteria of:
$5,000 to $250,000
8.49%
12 to 60 months
Since it’s a mission-driven lender seeking to help veterans and other minority entrepreneurs, Accion Opportunity Fund (AOF) is a natural fit as our top working capital loan lender. The fund offers lenient eligibility requirements and affordable starting interest rates on its loans, alongside providing a wealth of supplemental courses and coaching for small business owners.
Still, AOF charges a rather steep origination fee, ranging between 3.00% and 5.00% of the loan amount. Plus, business owners in Montana, North Dakota, South Dakota, Tennessee, Vermont and Washington D.C. aren’t currently eligible to receive financing from this lender.
In order to qualify, you’ll need to meet Accion Opportunity Fund’s criteria of:
$500,000 (Up to 90% of the value of new equipment and 80% of used equipment)
Varies 2.50% + the Federal Home Loan Bank’s 5-year rate.
Up to 120 months
When you’re interested in an equipment financing loan, Service Credit Union may be a smart option. The credit union — whose membership caters primarily to active-duty military members, veterans and their families — offers this financing coupled with affordable interest rates and long repayment terms. What’s more, you won’t have to worry about meeting a specific annual revenue requirement to qualify.
Yet, you’ll have to be prepared to make a 10%-to-20% down payment on your equipment purchase, depending on whether it’s new or used. Plus, you’re required to have a decently long business history and solid credit score.
In order to qualify, you’ll need to meet Service Credit Union’s criteria of:
$10,000 to $50,000
7.50%
Ongoing (90-day notice required to cancel)
BMO Bank is our first choice for veteran-owned businesses looking for a business line of credit. Its Zero Barriers to Business program boasts affordable interest rates (starting at just 7.50%) and offers a substantial rate discount of up to 70 basis points when combined with autopay. Plus, the bank works with partner providers to help vets access other business-related services they may need.
At the same time, though, BMO Bank’s line of credit does come with a few fees, including a loan origination fee, an annual fee (waived for the first year) and a prepayment penalty if you cancel your line of credit within the first 12 months. Further, since it only extends to a maximum borrowing limit of $50,000, it may not offer enough funding to meet all of your business needs.
In order to qualify, you’ll need to meet BMO Bank’s criteria of:
Up to $250,000
Not disclosed
Up to 15 months
Greenbox Capital is our pick for startup business loans, as this lender offers relatively lenient qualifying criteria. You’ll only need a minimum credit score of 500 and just five or more months in business to be eligible for funding up to $250,000 with no use restrictions, making it a good fit for newer businesses.
That said, you will have to be able to show at least $120,000 in annual revenue to qualify. But even if you do, be aware that you’ll be held to a short repayment timeline of 15 months or less and face some pretty steep administrative fees. Greenbox Capital charges up to 4% of the loan amount in a setup fee and a $75 disbursement fee to U.S-based borrowers.
In order to qualify, you’ll need to meet Greenbox Capital’s criteria of:
$750,000,000, although typically between $500,000 to $10 million
Not disclosed
36, 60, 84 or 120 months
As the name suggests, Navy Federal Credit Union (NFCU) is geared toward serving military members and their families —this includes offering them loan discounts of 0.25% APR on select products. In particular, this credit union is our top pick for commercial loans because of its impressively high borrowing amounts (extending all the way to $750,000,000) and flexible annual revenue requirements that can vary depending on how much you need to borrow.
Still, NFCU does charge an origination fee equal to 1.00% of the loan amount, which can get expensive when you’re buying real estate. In addition, it only offers repayment terms of up to 120 months, although the loans amortize over a 20- or 30-year period.
In order to qualify, you’ll need to meet Navy Federal Credit Union’s criteria of:
The Department of Veterans Affairs (VA) doesn’t offer small business loans directly. However, there are many other entrepreneurship resources available to veterans.
If you need funding to start or grow a business, there are other businesses and organizations that offer loans for veterans.
Navigating the process of getting a business loan can seem daunting at first. However, when you understand the necessary steps involved and what each one entails, it becomes significantly more manageable. Below are some crucial steps to guide you toward a successful loan application process.
The Department of Veterans Affairs (VA) doesn’t offer business loans directly. However, it does offer programs and partnerships, including Boots to Business and the Women Veteran Entrepreneurship Training Program, that aid veterans in obtaining the financing they need.
Business loan interest rates are set by the SBA-approved lenders issuing the loans. However, they are subject to SBA maximums.
Those maximum rates depend on the loan amount, loan term and either the prime rate, LIBOR rate or the optional SBA peg rate in effect when the loan is taken out. Currently, rates range from 10.50% to 14.00% on variable-rate loans and 12.50% to 15.50% on fixed-rate loans, based on the current prime rate of 7.50%.
The SBA doesn’t set a minimum credit score — each lender can set their own minimum credit score requirements. However, having a credit score of 680 or higher gives you a better chance of getting approved for a loan.
Yes, getting a veteran business loan with bad credit is possible. Various lenders have different credit requirements — some are more lenient, while others are stricter. However, having a poor credit score can increase the difficulty of getting approved for a loan and may result in less favorable loan terms.
The degree of difficulty behind getting a business loan as a veteran varies based on several factors — these include your personal and business credit score, cash flow and the strength of your business plan.
Fortunately, a variety of programs and initiatives are in place to support veteran entrepreneurs, including providing training, mentorship and help in creating a strong application.
