The Veterans Advantage Program is a loan program offered by the Small Business Administration (SBA) that provides reduced fees for veterans and small business owners. Eligibility requirements state that the business must be 51% owned by honorably discharged veterans, active-duty military service members, active reservists, and/or National Guard members; or the spouse of someone in any of the aforementioned groups. This loan can also be extended to the widowed spouse of a service member who died while in service.

Benefits of the Veterans Advantage Program include:

• Loans of up to $150,000: the upfront guaranty fee is zero.
• SBA Express Loans: Upfront guaranty fee is zero.
• Non-SBA Express Loans: Upfront guaranty fee for loans between $150,001 and $500,000 to veteran-owned small businesses will be 50% less than the upfront guaranty fee for non-veteran owned small businesses as follows:
  • For loans with a maturity of over 12 months, the fee will be 1.5% of the guaranteed portion; and
  • For loans with a maturity of fewer than 12 months, the fee will be 0.125% of the guaranteed portion.
• Loans of $500,001 up to and including $5,000,000: The upfront guaranty fees for 7(a) loans for veteran-owned small businesses will depend on the loan amount and the maturity of the loan as follows:
  • For loans with a maturity of over 12 months, the applicable guaranty fees are:
    • Loans of $500,001 to $700,000: 3% of the guaranteed portion;
    • Loans of $700,001 to $5,000,000: 3.5% of the guaranteed portion up to $1,000,000 plus 3.75% of the guaranteed portion over $1,000,000.
  • For loans with a maturity of no greater than 12 months, the guaranty fee is 0.25% of the guaranteed portion.

For more information, feel free to reach out to one of our SBA loan specialists today!

The Veterans Advantage Program helps small businesses by providing them with access to SBA Express loans. These loans are designed to provide veterans with access to capital quickly and easily. The SBA Express loan program offers veterans up to $350,000 in financing with terms up to 7 years. The program also offers a streamlined application process and reduced paperwork requirements. Additionally, the program offers a reduced interest rate and a longer repayment period than traditional loans.

For more information on the Veterans Advantage Program, please visit the SBA Express Loans for Veterans page.

In order to qualify for the SBA Veterans Advantage program, your business must be 51% owned by an eligible veteran. For the purposes of the program, eligible veterans include:

• Veterans (except for those who have been dishonorably discharged)
• Active duty service members enrolled in the Transition Assistance Program (TAP)
• Current spouse of a veteran, active duty service member, reservist, or member of the National Guard
• Widowed spouses of veterans or service members who died during service or as a result of service-related disabilities

Source: SBA Express Loans for Veterans and SBA 7a Loans Small Business Blog

The Veterans Advantage Program offers SBA 7(a) VA loans of up to $5,000,000 with reduced fees. Until September 30, 2018, SBA 7(a) VA loans of up to $125,000 have no fees and an 85% guarantee; loans from $125,000 to $150,000 have a 1% guarantee fee, and loans from $150,000 to $350,000 have a 1.5% guarantee fee, loans from $350,001 to $700,000 have a 3% guarantee fee, loans from $700,001 to $5,000,000 have a 3.5% guarantee fee for the amount of the loan up to $1,000,000, and a 3.75% guaranteed fee for the amount of the loan over $1,000,000. Source

You can apply for the Veterans Advantage Program by submitting an application to the Small Business Administration (SBA). The application process includes submitting a business plan, financial statements, and other documents. Once your application is approved, you will be eligible for the SBA Express Loan Program, which offers up to $350,000 in financing for veterans. The loan terms vary depending on the size of the loan and the purpose of the loan, but typically include a fixed interest rate, a repayment term of up to 25 years, and no collateral required.

For more information on the SBA Express Loan Program, please visit https://www.sba.gov/funding-programs/loans/sba-express-loans.