SBA Lending Program Recognizes
Service and Sacrifice of Veterans

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The VetLoan Advantage Program

Veterans of the American Armed forces are being given a special consideration for securing business loans from the Small Business Administration (SBA). The VetLoan Advantage Program, created in part by the National Association of Development Companies (NADCO), enforces the SBA’s efforts to grow SBA 504 loans to Veterans by 5 percent each year for the next five years.

As part of the program, participating Certified Development Companies typically are waiving or reducing application fees and dramatically reducing closing costs for Veterans who take advantage of the SBA 504 loan program. This incentive gives entrepreneurial Veterans access to the resource of the 504 loan program to obtain capital to start, grow, or expand a business.

Requirements of the program include that the company must be 51% or more owned/controlled by:

  • Veteran (other than dishonorably discharged)
  • Active Duty Military: potential retiree within 24 months of separation and discharging Active Duty member within 12 months of discharge (TAP eligible)
  • Reservist and National Guard
  • Current spouse of above or spouse of service member or veteran who died of a service-connected disability


SBA 504 loans are designed to help small business owners get long-term financing for capital assets such as the purchase of real estate and equipment. In most cases, a 504 project includes three funding sources: a first mortgage from a private-second lender that covers 50 percent of the cost, the SBA-504 second mortgage from a Certified Development Companiy that covers 40 percent, and 10 percent equity from the borrower. More than 130,000 businesses have obtained SBA 504 loans over the past 25 years, and $50 billion in debentures have been funded, leading to more than $100 billion in small business financing projects.

Need help sourcing a Certified Development Company? Contact Podolsky|Circle.