Donovan Capital Group’s Top 5 Commercial Banks for Defense & Government Services Businesses
As a small business, choosing a commercial bank is one of the most important long-term decisions you will make. That’s particularly true in industries like Defense & Government Services, which requires a partner with specialized expertise in government contracting, not just a standard business bank. In addition to the myriad of compliance requirements, it is critical to have a team that understands the nature of your business - from budgetary cycles to setaside contracts. As your business grows, the right bank can also become a strategic resource by providing asset-based loans and other services.
DCG frequently works with banks to support their clients - most typically by providing the additional capital that is required to finance an acquisition, fund growth, or buyout an owner. Based on that experience, we’ve identified those regional banks that are the most active and have some of the deepest industry knowledge.
Atlantic Union: https://www.atlanticunionbank.com/
Atlantic Union Bank is headquartered in Richmond, Virginia and operates a network of over 100 branch offices across Virginia, Maryland, and North Carolina. The bank offers a full spectrum of financial services including consumer and business checking & savings, mortgage and real estate lending, commercial and equipment financing, and wealth/asset management. It has a dedicated Government Contractor Banking group with specialty bankers focused entirely on the sector. They offer tailored solutions including working capital, M&A, cash flow, deposit and treasury management and ESOPs, and understand the full lifecycle of GovCon business needs.
Eagle Bank: https://www.eaglebankcorp.com/
EagleBank is headquartered in Bethesda, Maryland. With approximately a dozen branches and multiple lending offices, it specializes in serving the mid-Atlantic region. It has a dedicated GovCon-specialist team with over 150 years combined experience in the sector. The bank understands contract vehicles (e.g. GSA Schedules, GWAC, ID/IQ), and has experience with working capital financing, M&A, recapitalizations, owner-occupied real estate, and equipment leases for government contractors. It can be a strong partner bank, especially those working with federal grants / USAID and complex contract structures.
Live Oak: https://www.liveoak.bank/
Live Oak Bank is a digitally oriented bank (branchless) that focuses heavily on serving small businesses and niche industries via specialized lending (especially SBA and USDA loans). It positions itself as “America’s small business bank,” combining technological efficiency with sector expertise. It has invested significantly in internal expertise with GovCon with its finance group focusing on key areas including contract mobilization, acquisition, working capital, and related financing solutions. This bank has strength in its ability to serve small and mid-sized firms that need both transactional financing and advisory support in the government contracting world.
Pinnacle Financial Partners: https://www.pnfp.com/
Pinnacle began operations in a single location in downtown Nashville, TN and now operates in 11 primarily urban markets in Tennessee, the Carolinas and Virginia. The firm provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners. The bank positions itself as a partner to clients and maintains a strong community orientation and culture. The firm has made several strategic hires to support its GovCon business in the Washington, DC area. It also recently announced (mid-2025) a merger with Synovus which will double its current footprint and bring its location count to more than 400 offices in nine states.
Ocean First: https://oceanfirst.com/
Established in 1902, OceanFirst Bank, N.A., is a regional bank headquartered in New Jersey that offers a full range of business, consumer, and commercial banking services—including checking, savings, mortgages, and treasury management. It services major metro markets including New York, Philadelphia, Baltimore, and Washington, D.C. The firm’s Aerospace, Defense, and Government Services (“AD&G”) business line is based out of it’s Reston, VA office in metro D.C.
About Donovan Capital Group: Donovan Capital Group (DCG) is a specialized private credit firm that invests exclusively in Aerospace, Defense & Government Services businesses. Investments range from $10 Million to $30 Million and are generally structured as secured term loans or preferred equity. Typical transactions include acquisition financing, growth, refinancing, recapitalization, and special situations. For more information, please visit www.Donovan-Capital.com.
