# Veteran-owned business financing: what exists, what it saves and what to skip

**Short answer:** SBA's veteran page lists no loan reserved for veterans. The main financial benefit is a $0 upfront fee on SBA Express loans in FY2027. That covers businesses owned and controlled by a veteran or the spouse of a veteran. Patriot Express ended December 31, 2013.

Canonical page: https://www.sbaexpress.loans/guides/veteran-owned-business-financing/
Last checked: 2026-11-09

## On this page

- [The SBA Express fee waiver is the main loan benefit](#the-sba-express-fee-waiver-is-the-main-loan-benefit)
- [Weigh the waiver against the interest rate](#weigh-the-waiver-against-the-interest-rate)
- [Regular SBA loans are open to you on the same terms](#regular-sba-loans-are-open-to-you-on-the-same-terms)
- [Check four things before you choose SBA Express](#check-four-things-before-you-choose-sba-express)
- [Free help and disaster loans for reservists](#free-help-and-disaster-loans-for-reservists)
- [Programs that ended, and offers to avoid](#programs-that-ended-and-offers-to-avoid)

## The SBA Express fee waiver is the main loan benefit

For SBA Express loans to businesses owned and controlled by a veteran or a veteran's spouse, the FY2027 upfront guaranty fee is $0. The notice covers loans approved from October 1, 2026 through September 30, 2027. The lender must document your eligibility in its file. Source: SBA Information Notice 5000-881797, p. 3.

SBA Express loans reach $500,000, and SBA guarantees 50% of the loan. The fee is charged on the guaranteed portion. On a loan with a maturity over 12 months, the waiver saves these amounts:

- $100,000 loan: 2% of the guaranteed portion, on $50,000, or $1,000.
- $300,000 loan: 3% of the guaranteed portion, on $150,000, or $4,500.
- $500,000 loan: 3% of the guaranteed portion, on $250,000, or $7,500.

A maturity of 12 months or less carries a smaller fee, 0.25% of the guaranteed portion, so the saving is smaller. On a $100,000 line, 0.25% of the $50,000 guaranteed portion is $125.

## Weigh the waiver against the interest rate

A waived fee is real money, but the interest rate can cost more. On a $100,000 loan, the waiver saves $1,000. First-year interest on a $100,000 balance changes by about $1,000 for each percentage point of rate. A one point rate difference is therefore worth about as much as the whole waiver in year one. It keeps adding up each year you carry a balance.

SBA limits how high a lender can price. For variable-rate loans, the cap is Prime plus 3.0 to 6.5 percentage points, depending on loan size (13 CFR 120.214). SBA publishes a separate maximum for fixed-rate loans (13 CFR 120.213). Inside the caps, rates vary by lender, so compare at least two offers on total cost, not on the fee alone.

The lender's annual service fee, 0.55% of the outstanding guaranteed balance, is paid by the lender and cannot be passed to you. Packaging fees and closing costs that SBA permits can still apply.

## Regular SBA loans are open to you on the same terms

SBA's veteran page points to its general loan programs and to its Lender Match tool, which lists authorized lenders near you. The fee waiver is for SBA Express only (SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.1). Standard 7(a), 7(a) Small, CAPLines, Export Express and 504 loans follow the regular FY2027 fee schedules. Veterans are not excluded from any of them.

SOP Appendix 3 defines a veteran-owned business by citing section 3(q) of the Small Business Act. One or more veterans must own at least 51 percent of the business, or at least 51 percent of a corporation's stock. Veterans must also control management and daily operations. SOP Para. C.1 also lists service-disabled veterans, active-duty members in the Transition Assistance Program, their spouses and certain widowed spouses. A veteran who received a dishonorable or bad conduct discharge does not qualify. Ask your lender what proof it accepts.

## Check four things before you choose SBA Express

SBA Express is not the right fit for every veteran-owned business. Check these before you let a fee waiver decide for you.

1. **Size.** Express tops out at $500,000. Standard 7(a) loans reach $5,000,000, but they do not carry the veteran fee waiver.
2. **Who decides.** On Express, the lender makes the credit decision without prior SBA review. Credit standards therefore vary by lender, so compare at least two.
3. **Collateral.** Express loans of $50,000 or less need no collateral. Above that, the lender may use its own collateral policies for similar non-SBA loans.
4. **Lines of credit.** An Express line can run up to 10 years, including any term-out period.

Then ask each lender in writing whether the waiver will appear on your closing statement, and what proof of veteran ownership it needs.

## Free help and disaster loans for reservists

SBA's veteran page lists help that costs little or nothing.

- **Veterans Business Outreach Centers** offer business plan workshops, concept assessments, mentorship and training for eligible service members, veterans and National Guard and Reserve members.
- **Boots to Business** is part of the Defense Department's Transition Assistance Program and runs on military installations. Boots to Business Reboot extends it to veterans of all eras in their communities. Revenue Readiness is a six-week online course that follows either one.
- **Military Reservist Economic Injury Disaster Loans** help a business meet ordinary operating expenses when an essential employee is called to active military duty. The maximum is $2 million. Businesses that can fund their own recovery are not eligible.
- **Veteran contracting certification** through SBA's VetCert helps you compete for government contracts. It is not financing.

Free counseling will not close a funding gap. It can help you test your numbers before a lender does.

## Programs that ended, and offers to avoid

The Patriot Express pilot ended on December 31, 2013 (80 FR 80872). If a site or lender still advertises it, ask which SBA program it means.

SBA says it does not provide grants for starting and expanding a business. Its grants go to nonprofits, resource partners and educational organizations for counseling and training. The FTC says never to pay for a list of government grants or pay up-front fees to get one. It adds that no government agency will demand payment for a grant. It says the only complete list of federal grants is the free one at grants.gov. If someone offers you a veteran grant for a fee, treat it as a scam.

A veteran label does not change what a product costs. Compare any advance or loan on its total cost, and ask whether the offer is an SBA loan and which program it is.

## Sources

- [SBA Information Notice 5000-881797, FY 2027 7(a) Program Fees, pp. 1-3 (effective October 1, 2026)](https://legacy.sba.gov/document/information-notice-5000-881797-fy-2027-7a-program-fees)
- [SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.1 and App. 3, Definitions: Veteran (pp. 62-63, 307)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 16, Para. B.2, SBA Express guaranty (p. 388)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR 120.214, Conditions for variable interest rates (eCFR)](https://www.ecfr.gov/current/title-13/section-120.214)
- [13 CFR 120.213, Fixed interest rates (eCFR)](https://www.ecfr.gov/current/title-13/section-120.213)
- [SBA, Veteran-owned businesses (read November 9, 2026)](https://www.sba.gov/business-guide/grow-your-business/veteran-owned-businesses)
- [SBA, Veteran small business resources and certifications, VetCert (read November 9, 2026)](https://www.sba.gov/veterans/)
- [SBA, Grants (read November 9, 2026)](https://www.sba.gov/funding-programs/grants)
- [SBA, Disaster assistance, Military Reservist Economic Injury Disaster Loans (page retrieved November 8, 2026)](https://www.sba.gov/disaster/)
- [FTC, Government grant scams (read November 9, 2026)](https://consumer.ftc.gov/articles/government-grant-scams)
- [80 FR 80872 (December 28, 2015), Patriot Express Pilot expired December 31, 2013](https://www.govinfo.gov/link/fr/80/80872)
- [80 FR 80872 (Dec. 28, 2015)](https://www.govinfo.gov/content/pkg/FR-2015-12-28/pdf/2015-32583.pdf)