SBA Veterans Advantage Program – Supporting America's Veterans
To help veteran-owned small businesses, the SBA waives its upfront guaranty fee on SBA Express loans, which go up to $500,000, to qualified applicants. The waiver is set by statute and applies if the business is at least 51% owned and controlled by qualifying individuals. It does not reach standard 7(a) loans. Under SBA Information Notices 5000-872051 and 5000-881797, a standard 7(a) loan of $150,001 to $700,000 approved October 1, 2025 through September 30, 2027 with a maturity over 12 months carries an upfront guaranty fee of 3% of the guaranteed portion, with no veteran discount. Loans that qualify for a fiscal-year exception open to all borrowers pay 0%: for loans approved October 1, 2025 through September 30, 2026, loans of $950,000 or less to manufacturers (not MARC loans); for loans approved October 1, 2026 through September 30, 2027, loans of $700,000 or less to manufacturers, certain food supply chain businesses, and businesses in rural areas. Veterans Advantage also cut fees on some standard 7(a) loans, but that program ended in 2018.
Qualifying individuals under SBA Veterans Advantage included veterans, reservists, National Guard members, and active military participating in the Transition Assistance Program (TAP). Current spouses of those individuals could also qualify, as could the widowed spouse of a service member who died in service or of a service-connected disability. The SBA Express fee waiver covers the same core groups: veterans, service members eligible for the Transition Assistance Program, Reserve and National Guard members, their current spouses, and certain surviving spouses.
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.
Related Questions
What are the eligibility requirements for SBA Express Loans for Veterans?
To qualify for the SBA Express veteran fee waiver, your business must be at least 51% owned and controlled by one or more eligible individuals. Eligible owners include:
- Veterans (except those who received a dishonorable or bad conduct discharge)
- Active duty service members eligible for the Transition Assistance Program (TAP)
- Members of the Reserve or National Guard
- Current spouse of anyone in the groups above
- Widowed spouses of veterans or service members who died during service or as a result of service-related disabilities
Source: SBA 7a Loans Small Business Blog and SBA Express Loans for Veterans
What types of businesses are eligible for SBA Express Loans for Veterans?
Any small business that meets SBA Express eligibility rules can apply for an SBA Express loan. To get the veteran fee waiver, the business must be at least 51% owned and controlled by one or more eligible individuals. Eligible owners include veterans (except those who received a dishonorable or bad conduct discharge), active duty service members eligible for the Transition Assistance Program (TAP), members of the Reserve or National Guard, the current spouse of anyone in these groups, and widowed spouses of veterans or service members who died during service or as a result of service-related disabilities.
For more information, please visit www.sbaexpress.loans/blog/sba-express-loans-for-veterans and www.sba7a.loans/sba-7a-loans-small-business-blog/sba-express-loans-for-veterans.
What are the benefits of SBA Express Loans for Veterans?
The SBA Express Loan Program offers veterans a number of benefits, including:
- Rates capped by SBA against a published base rate
- Faster processing times
- Collateral requirements depend on loan size and are set by SBA policy
- No prepayment penalty on loans with terms under 15 years
- No origination or commitment fees from the lender (a lender may charge a packaging fee for help preparing the application)
- A personal guaranty is required from every owner of 20% or more of the business
For more information, please visit SBA Express Loans for Veterans and SBA 7a Loans Small Business Blog.
How do I apply for an SBA Express Loan for Veterans?
You apply for an SBA Express loan through a participating lender, not through SBA. SBA’s overview of 7(a) loan types lists the current SBA Express loan terms. You will need to provide information about your business, including your business plan, financial statements, and other documents. You will also need to provide proof of your eligibility as a veteran, such as a DD-214 form or other documentation. Once you have submitted your application, the lender reviews it and makes the credit decision, without prior SBA review.
An SBA Express loan can be a term loan or a revolving line of credit. The terms of the loan will vary depending on the type of loan you are applying for. For example, term loans typically have a fixed interest rate and repayment period, while lines of credit have a variable interest rate and repayment period.
What documents are required to apply for an SBA Express Loan for Veterans?
To apply for an SBA Express Loan for Veterans, you will need to provide the following documents:
- Proof of military service
- Proof of ownership of the business
- Business tax returns for the past three years
- Personal tax returns for the past three years
- Business financial statements
- Personal financial statements
- Business plan
- Business license
- Proof of collateral
For more information, please visit the SBA Express Loans for Veterans page.