I have a new client friend who is a military veteran. In the course of discussion, I wanted to research the possibilities of enhanced financing for veteran small business owners as it pertains laundromats. Turns out, there are quite a few solid options that can help our nation’s former war fighters start a great small business. I want to share what I found, but understand, that a lot of things are state specific, and some are even tied to local municipalities. In general, here are some really great options tailored for our nations military veterans and spouses:
There are several financing, grant, and support programs (federal, state, nonprofit, and private) that are tailored to veterans or give them preferential treatment. None are “automatic” subsidies (in most cases you still must qualify), but they can provide lower fees, better terms, or extra support. Below is a breakdown of the most relevant enhanced financing options for a laundromat (or any small business) for military veterans, along with caveats and strategic tips.
Key Veteran-Focused & Veteran-Friendly Financing / Support Programs
Below is a categorized list of veteran-oriented options you should investigate. Many of them are general small business / SBA tools with veteran add-ons.
| Program / Type | What It Offers / Benefit | Typical Terms / Uses | Eligibility / Considerations | How It Helps for a Laundromat Startup |
|---|---|---|---|---|
| SBA “Veterans Advantage” (7(a) with reduced fees) | A version of the SBA 7(a) loan with reduced guarantee fees (or waiver for smaller loan amounts). United Capital Source | Up to $5 million (depending on lender and business plan). Standard 7(a) purposes (working capital, equipment, real estate, etc.). The guarantee/servicing fee structure is more favorable for veterans. United Capital Source | Business must be at least 51% veteran- (or eligible spouse-) owned. Must meet standard SBA size, credit, and collateral / guarantee criteria. Military Money+1 | Can help reduce upfront costs and lender risk, making it easier to finance washers, dryers, real estate, build-out, etc. |
| SBA Microloan Program | Loans up to $50,000 via nonprofit intermediaries with more flexible underwriting. Wikipedia | Up to 6 years repayment, variable interest (depending on intermediary) Wikipedia | More accessible for startups or those with weaker credit; veterans are among target groups. Wikipedia | Use for equipment, initial working capital, small renovations or ancillary equipment (change machines, vending, etc.) |
| Traditional SBA 7(a) / 504 / Express (with veteran priority or leads via SBA) | Even if not veteran-specific, veterans often get extra support, matchmaking, or promotional preference. The SBA office for veterans helps with accessing these. Nav+2SBA+2 | 7(a) is flexible (working capital, equipment, real estate). 504 is good for real estate / heavy equipment. | Must meet general SBA eligibility (credit, business plan, collateral, etc.). | Use 504 for purchasing land/building or major machinery; 7(a) for balance of startup and working capital. |
| Veterans Business Outreach Centers (VBOCs) | Not direct financing, but critical support: business counseling, training, mentoring, referral to lenders, help with loan packages, etc. SBA+1 | – | Available to veterans, service members, military spouses. SBA | Can significantly improve your ability to get loans (by strengthening business plans, projections, introductions) |
| Private / Alternative Lenders with Veteran Programs | Some fintech / peer-to-peer lenders are veteran-focused (e.g. veteran lending platforms) or have special underwriting for veterans. Example: StreetShares (a platform originally built to help veteran entrepreneurs) Wikipedia+1 | Terms vary (shorter / more expensive) | Must still pass underwriting, but the “veteran affinity” sometimes helps with trust or community backing | Fill gaps (e.g., bridging capital, small equipment, smaller expansions) when other funding is slower |
| Grants & Competitions for Veterans / Veteran Entrepreneurs | Non-repayable funds, often via nonprofits / foundations, for business ideas, community impact, or veteran support. Forbes+2Bankrate+2 | Grants tend to be smaller and competitive, often with strings on how funds may be used | Usually require being a veteran (or spouse) + business plan + community or innovation mission | Can help with parts of build-out, marketing, or special projects (solar, green energy, etc.) |
| State / Local Veteran Business Programs / Incentives | Many states or local governments offer enhanced incentives, low-interest loans, tax credits, or grant programs specifically for veterans | Varies by state & locality | Must check Tennessee / Knoxville / local county / state veteran business offices | Could reduce local borrowing cost, property tax incentives, matching grants, etc. |
Specific Considerations for a Laundromat Business
A laundromat is capital-intensive (large equipment, facility build-out), so your financing package will often combine multiple sources. Here are tactical suggestions:
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Tiered funding structure
Use a combination:-
SBA 504 (or its equivalent via CDCs) for real estate/build-out and major equipment,
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SBA 7(a) or Veterans Advantage for working capital and smaller equipment,
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Microloan or alternative veteran lenders for filling gaps.
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Maximize the veterans’ discount / fee reduction side
The key tangible benefit to veterans in many SBA programs is reduced guarantee fees or waived fees on smaller loans (i.e. your lender and you pay less in “risk premium” to get SBA guarantee). United Capital Source
For instance, under Veterans Advantage, loans under certain thresholds (e.g. under $150,000) may have no guarantee fee. United Capital Source
That reduction can materially improve your cash flow or reduce required margins. -
Leverage mentoring / package help via VBOC
Presenting a clean, credible loan package is essential for a laundromat (especially because lenders will scrutinize traffic, utility costs, equipment maintenance, etc.). The veteran outreach programs can help you assemble financial projections, market studies, and introduce you to preferred lenders. -
Local / regional veteran business incentive mapping
Because financing programs vary from state to state, investigate if Tennessee has a “Veteran Business Loan Program” or a state-level veteran small business division that offers low-interest loans or grants (or guarantee support) for veteran entrepreneurs. -
Use of grants / competitions as supplemental, not primary
While grants are attractive (non-repayable), they are not reliable or large enough typically to fund the bulk of a laundromat. But they can finance peripheral items (e.g. eco-friendly upgrades, green infrastructure, signage, community outreach) or reduce your capital burden in parts. -
Collateral & guarantee planning
Even with SBA backing or veteran preferential policies, expect to provide collateral (equipment, real estate) and personal guarantees. Structure your ownership so the veteran owner(s) control the needed equity (51%+), and consider “pledgeable assets” from other partners or investors to strengthen your position in negotiating with lenders. -
Lean cash reserves for ramp-up / buffer
A laundromat may have ramp-up time (customer acquisition, utility optimization, repair) — ensure your package includes significant working capital buffer. Veteran programs can ease this burden via more favorable terms.
Potential Challenges & Caveats
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Veteran-specific loan programs change over time — some programs (e.g. “Patriot Express”) have been discontinued. seniorhelpersfranchise.com+1
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Still subject to creditworthiness — even with veteran status, you must satisfy credit, collateral, cash flow, debt coverage, and lender risk criteria.
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Grant competition is stiff — many veterans compete for the same limited funds.
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State/local variation — you must check what is available in Tennessee / Knoxville / your county for veteran small business support.
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Documentation burden is high — lender will expect financials, projections, evidence of veteran status, business plan, leases, vendor quotes, etc.
Steps You Should Take Next (for the specific laundromat case)
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Contact your local Veterans Business Outreach Center (VBOC) in your area to get assistance with your loan package and connections to veteran-friendly lenders. SBA+1
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Check state / municipal veteran business programs (e.g. Tennessee Department of Veterans Services, economic development offices) for low-interest or matching loans or grants for veteran entrepreneurs.
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Scout SBA-approved lenders with veteran programs or special experience — explain upfront that you are seeking a veteran-advantage SBA backing to reduce fees.
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Build a strong financial forecast tailored to laundromats (projected loads, utility usage, equipment maintenance, location traffic) — veteran programs will expect strong underwriting.
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Include grant / competition pitches as supplemental: look into veteran entrepreneur grants like the Second Service Foundation, Warrior Rising, etc. Bankrate+2Forbes+2
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Layer your financing: real estate + major capital via SBA 504 or CDCs, working capital via SBA 7(a) / Veterans Advantage, gap funding via microloan or alternative lenders.