Key takeaways
- The Veterans Advantage program was an SBA 7(a) fee-relief program for small businesses owned by veterans or their spouses, and it ran from 2014 to 2018.
- SBA Express loans, which top out at $500,000, still carry 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 fee discount.
The Veterans Advantage program was an SBA 7(a) fee-relief program that ran from January 2014 through September 2018. It supported small businesses that were at least 51% owned and controlled by veterans, active-duty service members in the military's Transition Assistance Program, Reserve or National Guard members, their current spouses, or the widowed spouse of a service member who died in service or of a service-connected disability.
SBA ended the program for loans approved after September 30, 2018. What remains is set by statute: SBA charges no upfront guaranty fee on SBA Express loans to businesses owned and controlled by a veteran or a veteran's spouse.
Financing Terms
The financing terms for SBA 7(a) Veterans Advantage loans were the same as a standard 7(a) loan in many respects. For example, loans could be up to $5 million, and they could have terms of up to 10 years, or up to 25 years when real estate or long-lived equipment was involved.
There was one major difference compared to a standard SBA 7(a) loan: the fees. Veterans Advantage cut or waived the upfront guaranty fee on many of these loans. For loans approved October 1, 2025 through September 30, 2027, a veteran-owned business pays the same upfront guaranty fee as any other 7(a) borrower, unless the loan is an SBA Express loan, which carries no upfront guaranty fee for a business owned and controlled by a veteran or a veteran's spouse.
The table below shows the upfront guaranty fee a veteran-owned business pays on loans approved October 1, 2025 through September 30, 2027. The standard 7(a) rates are the same in both fiscal years, per SBA Information Notices 5000-872051 (fiscal year 2026) and 5000-881797 (fiscal year 2027). SBA sets these fees for each fiscal year, which starts October 1.
Loan Amount | Loan Type | Maturity | Upfront Guaranty Fee for Veteran-Owned Small Businesses |
|---|---|---|---|
Up to $500,000 | SBA Express Loans | Any | 0% (set by statute) |
$150,000 or less | 7(a) Loans | More than 12 months | 2% of the guaranteed portion |
$150,001 to $700,000 | 7(a) Loans | More than 12 months | 3% of the guaranteed portion |
$700,001 to $5 million | 7(a) Loans | More than 12 months | 3.5% of the guaranteed portion up to $1 million, plus 3.75% of the guaranteed portion over $1 million |
Any amount | 7(a) Loans | 12 months or less | 0.25% of the guaranteed portion |
The SBA Express waiver comes from 15 U.S.C. 636(a)(31)(G) and does not change with the annual notice. 7(a) Working Capital Pilot (WCP) and Export Working Capital Program (EWCP) loans follow their own maturity-based fee schedules. A veteran-owned business pays 0% on a standard 7(a) loan only if it separately qualifies for a fiscal-year exception open to all borrowers: 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.
Case Study: Scott's Fitness Center
Scott, a U.S. Army veteran, and his wife Jenny had a dream of opening a state-of-the-art fitness center in Rochester, New York. They wanted to create a space that offered cutting-edge equipment, group classes, and personalized training for their community. Scott's military background instilled in him the importance of physical fitness and discipline, and he was eager to share his passion with others.
Together, they developed a solid business plan and started searching for financing options to bring their vision to life. While searching for the right financing package, they learned about the SBA 7(a) Veterans Advantage program. The program caught their attention because it was specifically designed to support small businesses owned by veterans and their spouses.
Scott and Jenny saw that the Veterans Advantage program offered similar financing terms as the standard SBA 7(a) loan. They also learned that the program had ended in 2018, so a loan of the size they needed would carry the standard upfront guaranty fee. SBA's remaining veteran fee waiver covers only SBA Express loans of up to $500,000.
They approached a bank experienced in SBA lending and presented their business plan. Impressed by their well-prepared proposal, the bank approved a $1.2 million SBA 7(a) loan for the fitness center. The loan helped them secure the necessary funding.
With the financial support provided by the SBA 7(a) loan, Scott and Jenny successfully opened their fitness center, offering top-notch facilities and services to their community. The loan enabled them to turn their passion for fitness and wellbeing into a thriving business.
This is a fictional case study provided for illustrative purposes.
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Related questions
What is the Veterans Advantage Program?
The Veterans Advantage Program was a Small Business Administration (SBA) program that reduced loan fees for veteran-owned small businesses from January 2014 through September 2018. Veterans Advantage eligibility rules required the business to be at least 51% owned and controlled by veterans (other than those dishonorably discharged), active-duty service members in the military's Transition Assistance Program, Reserve or National Guard members, or the current spouse of someone in any of these groups. The program could also cover a business owned by the widowed spouse of a service member who died in service or of a service-connected disability.
SBA ended the program for loans approved after September 30, 2018. Fees for veteran-owned businesses now work like this:
- SBA Express Loans, up to $500,000: no upfront guaranty fee for a business owned and controlled by a veteran or a veteran's spouse. The waiver is set by statute.
- Standard 7(a) loans approved October 1, 2025 through September 30, 2027: no veteran discount. Under SBA Information Notices 5000-872051 and 5000-881797, the upfront fee on loans with a maturity over 12 months is 2% of the guaranteed portion for loans of $150,000 or less, 3% for loans of $150,001 to $700,000, and 3.5% of the guaranteed portion up to $1 million plus 3.75% above $1 million for loans of $700,001 to $5 million. Loans with a maturity of 12 months or less pay 0.25%. 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.
For more information, feel free to reach out to one of our SBA loan specialists today!
How does the Veterans Advantage Program help small businesses?
The Veterans Advantage Program, which ran from 2014 to 2018, helped small businesses by cutting SBA loan fees. Today an SBA Express loan to a veteran-owned business, which the lender can approve under its own SBA delegated authority without prior SBA review, still carries no upfront guaranty fee. SBA Express loans go up to $500,000.
For more information on the Veterans Advantage Program, please visit the SBA Express Loans for Veterans page.
What are the eligibility requirements for the 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 Express Loans for Veterans and SBA 7a Loans Small Business Blog
What types of financing are available through the Veterans Advantage Program?
The Veterans Advantage Program cut upfront guaranty fees for veteran-owned businesses from January 2014 until it ended for loans approved after September 30, 2018, and the loans it covered changed each year. In 2014 it cut the fee to 0% on SBA Express loans over $150,000. From fiscal year 2015 it also halved the fee on standard 7(a) loans of $150,001 to $5,000,000, a range SBA narrowed to $150,001 to $500,000 in fiscal year 2017 and to $125,001 to $350,000 in fiscal year 2018. SBA Express loans to a business owned and controlled by a veteran or a veteran's spouse still carry no upfront guaranty fee. Standard 7(a) loans approved October 1, 2025 through September 30, 2027 carry no veteran discount. Sources: SBA Notice 5000-1354, 5000-1955 and 5000-180010.
How can I apply for the Veterans Advantage Program?
The Veterans Advantage Program ended in 2018, so there is no separate program to apply for. To get the SBA Express veteran fee waiver, you apply for an SBA Express loan through a participating lender, which documents that your business is owned and controlled by a veteran or a veteran's spouse. SBA Express loans go up to $500,000.
For more information on the SBA Express Loan Program, see SBA's overview of 7(a) loan types.