Key takeaways
- The SBA Veterans Advantage Program cut fees on loans to veteran-owned small businesses from 2014 until it ended in 2018.
- SBA also offers counseling and online training courses to help veterans become lender-ready.
- To be eligible for the SBA Express veteran fee waiver, businesses must be at least 51% owned and controlled by an individual or individuals who meet certain criteria.
- Veterans using SBA Express loans do not have any upfront guaranty fees.
The Small Business Administration guarantees loan products for small businesses in hopes that lenders are able to be more flexible and provide better terms for business owners. As a way of honoring small business owners who are veterans of the armed services, they went even further with the Veterans Advantage Program, which ran from 2014 to 2018.
The Small Business Administration had a program in place designed to assist veterans of the U.S. armed forces in acquiring capital to start, grow, or succeed in their business endeavors. The Veterans Advantage Program was established to support veterans, who play a large role in stimulating economic growth in local communities. In an effort to encourage lending to veterans with small businesses, the SBA provided reductions for some loan program fees.
In addition to the reduced fees, the small business administration offers counseling and online training courses aimed at making veterans lender ready. The SBA does this in line with its singular goal of reducing barriers for veteran business owners so that they may have access to more capital and create more jobs. The Veterans Advantage Program extended to any business that was at least 51% owned and controlled by an individual or individuals who met the following criteria:
Veterans, other than those dishonorably discharged
Active Reservist and/or Active National Guard Member
Active Duty Military service members who qualify for the Transition Assistance Program
Current Spouse of any veteran, active duty service member, reservist, or national guard member
Widowed spouse of a service member who died while in service, or as a result of a service-related disability
Upfront Guaranty Fees
There are some special benefits veterans receive when it comes to upfront guaranty fees owed to the SBA to cover its risk in backing the debt.
For SBA Express loans to a business owned and controlled by a veteran or a veteran's spouse, the upfront guaranty fee is zero.
For other 7(a) loans, a veteran-owned business pays the same upfront fee as any other borrower, and the fee depends on term length and loan amount; see the fee table on our What Is the Veterans Advantage Program? page.
For more information, feel free to reach out to one of our SBA loan specialists today!
Related questions
What are the eligibility requirements for the SBA Veterans Advantage Program?
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 financing are available through the SBA Veterans Advantage Program?
The SBA Veterans Advantage Program, which ran from 2014 to 2018, covered two types of financing: the SBA 7(a) loan and the SBA Express loan. The SBA 7(a) loan is a general purpose loan that can be used for a variety of business needs, including working capital, equipment purchases, and real estate purchases. The SBA Express loan is a smaller loan that can be used for working capital and other business needs. The SBA Express loan still carries a veteran fee benefit: no upfront guaranty fee for a business owned and controlled by a veteran or a veteran's spouse. Standard 7(a) loans approved October 1, 2025 through September 30, 2027 carry no veteran discount.
For more information on the SBA 7(a) loan, please visit https://www.sba7a.loans/sba-loan-comparison-chart. For more information on the SBA Express loan, please visit https://www.sbaexpress.loans/blog/sba-express-loans-for-veterans.
How do I apply for the SBA Veterans Advantage Program?
The Veterans Advantage Program ended in 2018, so there is no separate program to apply for. The veteran fee benefit that remains comes with an SBA Express loan: you apply for one through a participating lender, which documents that your business is owned and controlled by a veteran or a veteran's spouse.
SBA's overview of 7(a) loan types lists current SBA Express loan terms, including the $500,000 maximum.
You can also contact the SBA directly for more information about its programs for veterans. The SBA Answer Desk can be reached at 1-800-827-5722 or by email at answerdesk@sba.gov.
What are the benefits of the SBA Veterans Advantage Program?
The Veterans Advantage fee program ended in 2018, but SBA still offers a variety of benefits to veteran business owners. These include:
- Waived fees: SBA charges no upfront guaranty fee on SBA Express loans, up to $500,000, to businesses owned and controlled by a veteran or a veteran's spouse. The waiver is set by statute and covers only SBA's upfront guaranty fee, not the annual service fee the lender pays SBA or any fees the lender charges. Standard 7(a) loans approved October 1, 2025 through September 30, 2027 get no veteran discount: a veteran-owned business pays the same upfront fee as any other borrower.
- Boots to Business: Boots to business is an entrepreneurship training program developed by the SBA, and functions as a part of the Department of Defense’s Transition Assistance Program (TAP). Boots to Business helps service members transitioning to civilian life gain the skills to intelligently evaluate business concepts, create an effective business plan, and learn about the SBA’s various loan programs.
- Office of Veteran’s Business Development: The Office of Veteran’s Business Development (OVBD), provides training, counseling and mentorship to veteran business owners, and provides policy recommendations to the SBA about how to make the SBA’s loan guarantee programs more available to veterans.
- Veterans’ Business Outreach Centers: 19 organizations have partnered with the SBA to create Veterans’ Business Outreach Centers, or VBOCs in areas around the U.S. VBOCs help veteran entrepreneurs by providing training, mentoring, counseling, and referrals, and many host classes for the Boots to Business program.
- Veteran Women Igniting the Spirit of Entrepreneurship: This program, also known as V-WISE, helps train female veterans in entrepreneurship and small business management. V-WISE includes three phases of training, including an online course, an in-person training event, and continuing mentorship from experienced women entrepreneurs.
How long does it take to get approved for the SBA Veterans Advantage Program?
The Veterans Advantage Program ended in 2018, so there is no separate approval for it. With an SBA Express loan, the lender makes the credit decision itself, without prior SBA review, so timing depends on the lender. The SBA Express Loan Program is designed to provide quick turnaround times for small business owners. The SBA Express Loan Program offers loan amounts up to $500,000, with terms of up to 25 years for real estate and up to 10 years for a line of credit. The SBA Express Loan Program also offers competitive interest rates and fees.
For more information on the SBA Express Loan Program, please visit https://www.sbaexpress.loans/.