Why Veterans Are Uniquely Positioned for SBA Loan Success
Military veterans bring something to the business world that can’t be taught in any MBA program: leadership under pressure, disciplined execution, and the ability to adapt to rapidly changing circumstances. These qualities don’t just make veterans great business owners — they make veterans excellent loan candidates.
The Small Business Administration recognizes this, which is why the SBA has created specific programs and fee reductions designed to help veterans access affordable business financing. And at GoSBA, we’re proud to have helped facilitate over $320 million in SBA loan funding in 2025, with veteran-owned businesses representing a significant and growing portion of our portfolio.
Whether you’re transitioning out of active duty, you’ve been a civilian for decades, or you’re a spouse of a service member, this guide covers everything you need to know about SBA loans for veterans.
SBA Veterans Advantage: Reduced Fees That Save You Thousands
One of the most tangible benefits for veteran borrowers is the SBA Veterans Advantage program. Under this initiative, the SBA has historically reduced or eliminated certain guarantee fees for veteran-owned businesses. Here’s what you need to know:
- Fee reductions on SBA 7(a) loans: Veterans may qualify for reduced upfront guarantee fees, which can save thousands of dollars on larger loans
- Eligibility extends broadly: The program covers veterans, service-disabled veterans, active-duty military members eligible for the Transition Assistance Program (TAP), and current National Guard or Reserve members
- Spouse eligibility: In many cases, spouses of veterans who own at least 51% of the business also qualify for fee reductions
- No separate application: The fee reduction is applied automatically when the lender identifies you as a veteran during the SBA loan process
On a $500,000 SBA 7(a) loan, the standard guarantee fee can be $15,000 or more. Fee reductions through the Veterans Advantage program can put real money back in your pocket — money you can invest directly into your business.
SBA Loan Programs Available to Veterans
Veterans have access to all standard SBA loan programs, plus some additional resources specifically designed for military entrepreneurs:
SBA 7(a) Loans
The flagship SBA loan program offers up to $5 million in financing for virtually any business purpose:
- Working capital and operational expenses
- Equipment purchases
- Commercial real estate acquisition or construction
- Business acquisitions
- Debt refinancing
- Inventory and supplies
With terms up to 25 years for real estate and 10 years for equipment and working capital, SBA 7(a) loans provide the long-term, affordable financing that growing businesses need.
SBA 504 Loans
If you’re looking to purchase commercial real estate or major equipment, the 504 loan program offers some of the best terms available:
- Up to $5.5 million in financing (higher for certain energy or manufacturing projects)
- As little as 10% down payment
- Fixed interest rates on the CDC portion (typically below market rates)
- Terms of 10, 20, or 25 years
SBA Microloans
For veterans who need smaller amounts of capital — up to $50,000 — the SBA Microloan program provides funding through nonprofit intermediary lenders. These loans are particularly useful for:
- Startups that need initial working capital
- Home-based businesses looking to scale
- Veterans transitioning from military service who need seed funding
SBA Express Loans
Need funding fast? SBA Express loans offer an expedited approval process with a 36-hour SBA turnaround time. Loans up to $500,000 are available, making this a great option for veterans who need quick access to capital.
Veteran-Specific Resources Beyond SBA Loans
The SBA loan is often the centerpiece of a veteran’s business financing strategy, but several other programs and resources complement it:
Boots to Business (B2B)
This SBA-sponsored program is offered as part of the Department of Defense’s Transition Assistance Program (TAP). It provides entrepreneurship training to transitioning service members, veterans, and their spouses. The program includes:
- A two-day introductory course on entrepreneurship
- An eight-week online course for deeper business planning
- Access to mentorship and resource networks
Veterans Business Outreach Centers (VBOCs)
The SBA funds 28 Veterans Business Outreach Centers across the country that provide:
- Business plan development assistance
- Entrepreneurship training and counseling
- Mentorship from experienced business owners
- Help navigating the SBA loan process
Service-Disabled Veteran-Owned Small Business (SDVOSB) Certification
If you’re a service-disabled veteran, getting SDVOSB certification through the SBA opens doors to federal contracting set-asides. The federal government has a goal of awarding at least 3% of all federal contracting dollars to SDVOSBs, creating a significant revenue opportunity.
Veteran-Owned Small Business (VOSB) Certification
Even without a service-connected disability, VOSB certification can provide advantages in federal contracting and demonstrate your veteran status to customers and partners who value supporting veteran-owned businesses.
Why Veterans Make Exceptional Business Owners
Lenders love working with veteran borrowers, and for good reason. Military service develops qualities that directly translate to business success:
Leadership and Team Building
Veterans know how to lead teams under pressure, delegate effectively, and build organizational structures that work. These skills are essential for managing employees, contractors, and business operations.
Discipline and Execution
The military teaches you to create a plan and execute it with precision. In business, this translates to following through on business plans, maintaining financial discipline, and staying focused on strategic objectives.
Adaptability and Problem-Solving
No business plan survives first contact with reality — and veterans understand this better than anyone. The ability to adapt, improvise, and overcome challenges is perhaps the most valuable skill a business owner can have.
Risk Management
Military training emphasizes calculated risk-taking — assessing threats, mitigating risks, and making decisions with incomplete information. This translates directly to business decision-making.
Work Ethic and Commitment
When you’ve operated in demanding military environments, the challenges of running a business feel manageable. Veterans consistently demonstrate the work ethic and commitment needed to push through the difficult early years of business ownership.
How to Apply for an SBA Loan as a Veteran
The SBA loan application process for veterans follows the same general path as any SBA loan, with a few veteran-specific considerations:
Step 1: Gather Your Documentation
- DD-214 (Certificate of Release or Discharge): This is your proof of veteran status. Make sure you have a copy — you can request one from the National Archives if needed.
- VA disability rating documentation (if applicable, for SDVOSB benefits)
- Personal financial statement (SBA Form 413)
- Business financial statements (if you have an existing business)
- Business plan with financial projections
- Tax returns (personal and business, last 3 years)
- Resume highlighting relevant experience
Step 2: Develop a Strong Business Plan
Your business plan is your mission briefing for lenders. It should clearly articulate:
- Your business concept and value proposition
- Market analysis and competitive landscape
- Management team qualifications (highlight your military leadership experience)
- Financial projections showing how the loan will be repaid
- Use of loan proceeds
GoSBA provides every client with a free professional business plan and financial projections package valued at $2,500–$5,000. This isn’t a template — it’s a custom-built document designed to present your business in the strongest possible light to lenders.
Step 3: Find the Right Lender
This is where many veterans stumble. Not all SBA lenders are created equal — they have different industry preferences, loan size sweet spots, and levels of experience working with veteran borrowers. Walking into a random bank and applying is like going into a mission without reconnaissance.
GoSBA’s network of 50+ SBA-approved lenders includes lenders who actively seek veteran borrowers and understand the unique aspects of veteran-owned businesses. We match you with lenders based on:
- Your industry and business type
- Loan amount and purpose
- Your credit profile and financial situation
- Geographic location
- Lender appetite for veteran-owned businesses
Step 4: Submit Your Application
Once matched with the right lender, you’ll complete a formal application. GoSBA guides you through every step, ensuring your application is complete, accurate, and presents your strengths effectively.
Step 5: Underwriting and Approval
The lender reviews your application, verifies documentation, and makes a credit decision. This process typically takes 30–60 days for SBA 7(a) loans. During this time, GoSBA acts as your advocate, communicating with the lender and addressing any questions or conditions that arise.
Common SBA Loan Uses for Veterans
We see veteran entrepreneurs using SBA loans for a wide range of purposes:
- Franchise purchases: Many franchise systems actively recruit veterans and offer discounts. SBA loans are ideal for franchise financing.
- Business acquisitions: Buying an existing business with established cash flow is a popular path for veterans who want to hit the ground running.
- Commercial real estate: Purchasing a building for your business operations, whether it’s a retail location, warehouse, or office space.
- Equipment financing: From construction equipment to medical devices to commercial vehicles.
- Working capital: Funding the day-to-day operations of a growing business.
- Government contracting businesses: Leveraging SDVOSB/VOSB status to build a business around federal contracts.
How GoSBA Helps Veterans Succeed
At GoSBA, we understand the veteran community because we serve it every day. Here’s what makes working with us different:
- Our service is 100% free: We’re compensated by the lender when your loan closes. You never pay GoSBA anything — ever.
- 50+ lender network: We match you with lenders who want to work with veteran-owned businesses, not just lenders who will tolerate your application.
- Free business plan and projections: Our professional business plan package (a $2,500–$5,000 value) is included at no cost. For veterans transitioning from military careers, this is especially valuable.
- $320M+ funded in 2025: We have the track record and lender relationships to get deals done.
- End-to-end support: From initial consultation through loan closing, we’re with you every step of the way.
Ready to Deploy Your Business Plan?
You’ve served your country. Now it’s time to build something of your own. Whether you’re buying a franchise, acquiring an existing business, purchasing commercial real estate, or launching a new venture, an SBA loan can provide the affordable, long-term financing you need to succeed.
Take the first step today. Contact GoSBA for a free, no-obligation consultation. We’ll review your situation, identify the best SBA loan programs and lenders for your needs, and help you put together an application that puts your best foot forward.
Thank you for your service — now let us serve you.
