Veteran Loans-Department of Veteran Affairs (VA)

Thank You to Our Veterans

Perseverance. Will-power. Self-empowerment. Leadership.

These qualities and characteristics pertain to both military training and entrepreneurship.

 In the most recent census, there were 2.45 million veteran-owned businesses in the U.S., contributing over $1 trillion in sales to the country's economy.

We know that as a veteran, your determination to defend our freedom as a nation will translate to success as an entrepreneur or small business owner.

We thank you for your service, and we hope that the following resources on veteran small business loans will help you along your way.



If you or your spouse served in the military and would like to fund your small business, you can take advantage of a few different favorable loan options geared towards veterans.

These loans do not actually originate from the VA or Veterans Administration. The Small Business Administration has an Office of Veterans Affairs that oversees business loans to veterans. These funds are not provided as grants. They are standard loans that require repayment, with an interest rate attached. 

The SBA offers a Veterans Advantage program that waives or discounts guarantee fees for veteran business owners. To clarify, the Veterans Advantage program doesn't offer a separate form of loan specifically available to veteran-owned businesses. Rather, the SBA VA business loans program offers veteran perks attached to more general types of SBA loans.

Through these VA business loans, veteran business owners are able to access guarantee fee discounts for SBA Express loans and SBA 7(a) loans. As mentioned, SBA Express loans of up to the maximum program loan amount—$350,000—will have a 0% guarantee fee for veteran business owner borrowers.

As for SBA 7(a) loans, the Veterans Advantage program, all business loans of less than $125,000 will have a 0% guarantee fee. For SBA 7(a) loans of greater than $125,000, the guarantee fee discount for veteran business loans will depend on the loan amount and the repayment term length. VA business loans of more than $125,000 through the SBA 7(a) loan program can have a guarantee fee of anywhere from 0.125% to 3.75%. Among the other types of loan that can be utilized by a veteran or non-veteran, is the business bank statement loan, business term loan, and business line of credit. These only require 3 months bank statements.


Eligibility for VA Loans

All active military personnel, veterans, service-disabled veterans, and their current spouses or widows are eligible for these loans. Veterans who received a dishonorable discharge are not eligible for the loan programs. If you are active duty personnel within 12 months of separation or a retiree within 24 months of retirement, you can qualify for the SBA Express Loan Program. Reservists and National Guard are also eligible as well.

VA Home Loan Types

We offer several home loan programs to help you buy, build, or improve a home or refinance your current home loan—including a VA direct loan and 3 VA-backed loans. Learn how these different home loans work, and find out if you can get a Certificate of Eligibility for a loan that meets your needs.

What is a VA Loan?

The VA loan is a $0 down payment, 100% financing mortgage option available to Veterans, Service Members and select military spouses. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA).

The VA Home Loan was created in 1944 by the United States government to help returning service members purchase homes without needing a down payment or excellent credit. This historic benefit program has guaranteed more than 22 million VA loans to help veterans, active duty military members and their families purchase homes or refinance their mortgages.

Today, the VA Mortgage is more important than ever. In recent years, lenders nationwide have tightened their lending requirements in the wake of the housing market collapse, making the VA loan a lifeline for Veterans and active Military homebuyers, many of whom find difficulty when faced with tough credit standards and down payment requirements.


How does a VA-backed home loan work?

With a VA-backed home loan, we guarantee (or stand behind) a portion of the loan you get from a private lender. If your VA-backed home loan goes into foreclosure, the guaranty allows the lender to recover some or all of their losses. Since there's less risk for the lender, they're more likely to give you the loan under better terms. In fact, nearly 90% of all VA-backed home loans are made without a down payment.

Lenders follow our VA standards when making VA-backed home loans. They may also require you to meet additional standards before giving you a loan. These standards may include having a high enough credit score or getting an updated home appraisal (an expert's estimate of the value of your home).




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