SBA Veteran’s Advantage



SBA Procedural Notice




TOAll SBA Employees                                                    CONTROL NO.: 5000-1299

SUBJECT: SBA Veterans Advantage                         EFFECTIVE: 12/18/2013



 The purpose of this notice is to inform employees of the SBA Veterans Advantage. This will begin January 1, 2014 and continue through September 30, 2014, and is intended to facilitate lending to veteran-owned small businesses so that they have the tools they need to start and grow their businesses.


Guaranty Fee Reduction


Currently, SBA Express loans of $150,001 to $350,000 have an up-front guaranty fee of 3%. To continue supporting America’s veterans, the SBA Veterans Advantage reduces the up-front guaranty fee from 3% to 0% for SBA Express loans over $150,000 approved to small businesses owned by qualified veterans. This will encourage greater participation in SBA lending programs with a direct benefit to veteran-owned small businesses. (All 7(a) loans of $150,000 or less have an up-front guaranty fee of 0%, as announced in SBA Information Notice #5000-1288.) Note that there is no reduction in the Lender’s annual service fee for loans over $150,000.


SBA Veterans Advantage Qualifications


In order to qualify for this, businesses must be 51% or more owned and controlled by an individual or individuals in one or more of the following groups:

• Veterans (other than dishonorably discharged);

• Service-Disabled Veterans;

• Active Duty Military service member participating in the military’s Transition Assistance Program (TAP);

• Reservists and National Guard Members; or

• Current spouse of any Veteran, Active Duty service member, or any Reservist or National Guard member; or widowed spouse of a service member who died while in service or of a service-connected disability.


Lenders must document in their loan file a borrower’s eligibility using the documentation identified in the attachment to this Notice and must present copies of that documentation with any request to SBA to purchase.


SBA currently assists veterans through its 68 local SBA district offices, 15 Veterans Business Outreach Centers nationwide, its partnership with approximately 1,000 Small Business Development Centers and approximately 12,000 SCORE Counselors. Questions concerning this Notice should be directed to the lender relations specialist in the local SBA field office. The local SBA field office may be found at


Ann Marie Mehlum

Associate Administrator

Office of Capital Access

For free, confidential assistance for veterans contact: