The SBA supports veteran-owned businesses by offering loans with reduced fees. To be eligible for the Veterans Advantage Loan program, your business must be at least 51% owned by those in the following groups:
- Honorably discharged veterans
- Active duty service members eligible for the Transition Assistance Program
- Service-disabled veterans
- Members of the military reserves or National Guard
- The current spouse of one of the previously listed groups
- The widow/widower of someone who died in combat or because of service-related injuries
If you qualify for SBA loans for veterans, you will pay a reduced guaranty fee. The discount depends on the loan size. For example, for loans between $125,000 to $350,000, the SBA reduces its business loan upfront guaranty fee in half versus what they charge non-veteran owned businesses.