Fee Relief Under The SBA Veterans Advantage Program

.If you qualify for the SBA Veterans Advantage program, and you want to take out an SBA Express loan, your upfront guaranty fee will be reduced to 0%. For SBA 7(a) loans, veterans can get a 50% discount on all guaranty fees. This comes out to:

• Loans between $125,001 and $150,000:

  • 1.0% for loans with a term off more than 12 months

  • 0.125% for loans with a term of 12 months or less

• Loans between $150,001 and $300,000:

  • 1.5% for loans with a term off more than 12 months

  • 0.125% for loans with a term of 12 months or less

• Loans between $150,001 and $300,000:

  • 3.0% for loans between $300,001 and $700,000

  • 3.75% for loans between $700,001 and $5 million (3.5% of amount guaranteed up to $1 million, and 3.75% for the guaranteed amount above $1 million)

  • 0.25% for loans with a term of 12 months or less

Who Qualifies For The SBA Veterans Advantage Program?

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

Other SBA Benefits for Veterans

In addition to the SBA Veterans Advantage program, the Small Business Administration also offers a variety of other resources for veteran business owners. These include:

• 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.

Related Questions

What are the eligibility requirements for SBA Express Loans for Veterans?

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 7a Loans Small Business Blog and 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:

• Lower interest rates than traditional loans
• Faster processing times
• No collateral required for loans up to $25,000
• No personal guarantees required for loans up to $25,000
• No fees for loans up to $25,000
• No prepayment penalties

For more information, please visit SBA Express Loans for Veterans and SBA 7a Loans Small Business Blog.

What documents are required to apply for SBA Express Loans for Veterans?

To apply for SBA Express Loans 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
• Business plan
• Personal financial statement
• Collateral documents

For more information, please visit SBA Express Loans for Veterans.

How long does it take to get approved for SBA Express Loans for Veterans?

SBA Express loans are very fast and typically take up to three days for a determination on your application. After that, funds will typically be dispersed in as few as 20 days.

For Veterans, SBA Microloans may be the fastest form of SBA funding. They can only offer up to $50,000 and have slightly higher interest rates, but SBA microloans can often close even faster than SBA Express loans, with an average closing time of 28-30 days. Plus, microloans don’t require businesses to have great credit.

What is the maximum loan amount for SBA Express Loans for Veterans?

The maximum loan amount for SBA Express Loans for Veterans is $5 million.

This information can be found on the SBA 7(a) Loans Small Business Blog and the SBA Express Loans for Veterans page.

In this article:
1. Fee Relief Under The SBA Veterans Advantage Program
2. Who Qualifies For The SBA Veterans Advantage Program?
3. Other SBA Benefits for Veterans
4. Related Questions
5. Get Financing