VA Business Loans: What to Know Before You Apply

Last Updated on January 5, 2021

So, your business is growing or needs to solve a problem, and now, you’re looking for the best low-interest financing option available. Can a VA small business loan from the Small Business Administration help?

While you can apply for SBA funding, the SBA doesn’t actually offer its own VA SBA funding. However, you’re fully entitled to apply for a normal SBA 7(a) loan, and may even qualify for unique advantages because of your service.

But in a world filled with new opportunities—which may not always last forever—it’s crucial to find a financing solution that gives you the cash you need, when you need it. There are a number of financing options you can apply for and learn about to get cash to either grow or solve a problem.

Read on to learn everything you need to know about how to get the veteran business loan you need quickly and easily, with the respect you deserve.

VA Business Loan Benefits

At one point or another, all small businesses need a cash injection to move forward. As a veteran, a business loan can help you obtain the cash you need to fulfill your goals. 

While this can vary based on the loan you receive, most financing solutions can be used to cover a number of expenses, without any limitations. You can put extra cash toward any expenses that are holding you back, like:

  • Payroll and other employee-related expenses (such as insurance)
  • Hiring new employees as you grow your team
  • The costs of taking on a new job
  • Buying additional inventory, materials and/or supplies
  • Expanding your business
  • Adapting to the new norm by adding a new product line or service
  • Opening a new location
  • Consolidating existing debts through a refinancing loan

As a veteran, you’re also eligible to apply for other veteran-specific loans, such as the VA home loans provided by the US Department of Veterans Affairs. Keep in mind, though, that a home loan may not be the best solution available. In most cases, it makes more sense to utilize a business financing product that’s designed to help you grow. You can also learn more about government-sponsored programs to drive your entrepreneurial goals through the Transition Assistance Program.

VA Small Business Loan Requirements

As a veteran, you shouldn’t have to fight for the opportunity to find your financing options. That’s why National offers streamlined financing with qualifications based on your opportunity, rather than your credit score. 

To qualify, all you need is:

  • $120K in annual sales
  • 6 months in business
  • No minimum credit score

Even if you’ve had credit challenges along your growth journey, you can still qualify for the best options available. We approve 90% of businesses, including veteran-owned businesses!

Although there’s no VA SBA loan offered by the Small Business Administration, you can still apply for a standard 7(a) loan. However, the qualifications can be more difficult to meet. 

To qualify for an SBA loan, you need:

  • 2+ years in business
  • $100K in annual sales
  • A 685 credit score (or higher)

Unfortunately, underwriters can be a lot more particular about qualifications for an SBA loan. Beyond these qualifications, you’ll also need a clean financial profile. This means that any potential blemishes, like a tax lien, may take you out of the running for this government-backed loan. 

However, you can still apply for other financing options!

Veteran Loan Approval Rates

Approval standards including minimum credit scores, annual sales, and time in business all entirely depend on the lender you apply through.

Banks are often the hardest to get funding from, as they tend to have the toughest requirements.

Most veterans who apply are denied VA small business loans due to low credit scores and blemished financial histories—two things that are often out of their control altogether.

At National, we think this is wrong. Rather than looking at you as a number, we’re more interested in your opportunity to reach the next level. 

Through this process, we approve 90% of all applicants, including veterans!

How Long Does it Take to Get One?

Small business loans for veterans are usually pretty difficult to apply for. Finding the best lender that matches your needs and acts in your best interest requires a lot of time spent shopping around.

And being that VA loans could potentially involve governmental agencies, it’s no surprise that getting funds comes only after long periods of waiting, and mountains of red tape and paperwork.

National is a company that does all the shopping for you, and finds the best VA business lender in their exclusive global marketplace that perfectly matches your business needs, no matter what they may be.

We also have a team of experts that specialize in preparing all the necessary paperwork needed, so you can spend less time stressing, and get back to growing your business.

Through our expedited and simplified veteran funding process, we can secure you with funds in as little as a few hours.

VA Small Business Loan Online

Here’s all you need to do to apply: fill out our 1-minute application online, and a Business Financing Advisor will get in contact with you in minutes to discuss your options moving forward.

Why wait—get started learning your options now!

Additional Resources

For more information, download our FREE eBook on avoiding the 10 common pitfalls in business financing.

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

Avatar

About the Author, Matt Carrigan

Matt Carrigan is the Content Writer at National Business Capital & Services. He loves spending every day creating content to educate business owners across every industry about business growth strategies, and how they can access the funding they need!


Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.