SBA Veterans Advantage Program – Supporting America's Veterans
To help veteran-owned small businesses, the SBA waives the upfront fee on loans of less than $350,000 to qualified applicants. Usually, SBA loans worth $150,001 to $350,000 require an upfront guaranty fee of 3%. Under Veterans Advantage, the fee is reduced to 0% if the business is at least 51% owned and controlled by qualifying individuals.
Qualifying individuals under SBA Veterans Advantage include veterans, reservists, National Guard members, and active military participating in the Transition Assistance Program (TAP). Current or widowed spouses of veterans may also qualify under the program.
Loan proceeds can be used for revolving lines of credit or other business purposes permitted under SBA 7(a). Those purposes include capital expenditures, refinancing of existing debt, working capital, inventory, and seasonal lines of credit.