If you are a veteran thinking about starting or growing a business, the SBA has your back in ways a lot of people do not know about. There are real, tangible benefits baked into the SBA loan process specifically for veterans, and they can save you thousands of dollars.

Here is what you need to know.

The SBA Actually Prioritizes Veterans

This is not just a feel-good statement. It is official SBA policy. According to SBA Standard Operating Procedures (SOP 50.10.8), the SBA will prioritize processing applications from veteran-owned businesses when those loans go through non-delegated procedures. For delegated loans, the SBA encourages lenders to give special consideration to veterans during the application process.

In plain terms: if you are a veteran, your application gets moved to the front of the line.

What Is the SBA Veterans Advantage Program?

The Veterans Advantage Program is the SBA's way of reducing costs and removing obstacles for veteran entrepreneurs. It applies to the SBA's most popular loan products, including the SBA 7(a) loan and SBA Express loan.

Here is what makes it worth paying attention to:

Reduced or waived guarantee fees. SBA loans typically come with an upfront guarantee fee. For veteran-owned businesses, that fee is waived entirely on SBA Express loans. On larger 7(a) loans, veterans pay a reduced fee compared to standard applicants. Depending on your loan size, this can mean thousands of dollars back in your pocket.

Faster approvals on SBA Express. The SBA Express loan gives qualifying veterans access to decisions in as little as 36 hours. It is designed for smaller funding needs and covers things like working capital, equipment, and operational expenses.

Access to larger 7(a) loans. For bigger business goals like buying real estate or making a major acquisition, the SBA 7(a) program offers up to $5 million with longer repayment terms and competitive rates.

Who Qualifies?

To qualify for veteran benefits under SBA loan programs, your business must be at least 51% owned and controlled by one or more of the following:

• Veterans with an honorable discharge
• Veterans with a general discharge under honorable conditions
• Active-duty service members
• National Guard members and Reservists
• The spouse of any of the above
• The surviving spouse of a veteran who died in service or from a service-connected disability

You will need your DD-214 (Certificate of Release or Discharge from Active Duty) to verify your service and discharge status. This is the document that proves your eligibility, so make sure you have a copy on hand before you apply.

If your DD-214 shows a general discharge under honorable conditions, you may still qualify. Programs may accept this discharge type, so do not count yourself out before talking to a lender.

What Can You Use an SBA Loan For?

SBA loans for veterans are flexible. Common uses include:

• Purchasing commercial real estate for your business
• Buying equipment or machinery
• Covering working capital needs
• Acquiring an existing business
• Refinancing existing debt under certain conditions

The SBA 504 loan program is particularly powerful for veterans looking to buy or renovate owner-occupied commercial real estate. It offers up to 90% financing with as little as 10% down, making property ownership far more accessible than conventional financing typically allows.

How to Get Started

Here are a few simple steps to move forward:

1. Pull your DD-214 and confirm your discharge status.
2. Make sure your business is at least 51% veteran-owned.
3. Talk to an SBA lender or a Certified Development Company (CDC) like CDC New England about which loan program fits your needs.
4. You can also use the SBA's free Lender Match tool at sba.gov to find an approved lender near you.
5. For free counseling and help putting together your application, reach out to a Veterans Business Outreach Center (VBOC). The SBA operates 31 VBOCs nationwide.

You put in the work. These programs exist to make sure that work pays off when you are ready to build something of your own.

If you are in New England and want to explore SBA 504 financing, reach out to our team at cdcnewengland.com. We are happy to walk you through your options.

META TITLE: SBA Loans for Veterans: Benefits, Priority Processing, and How to Apply META DESCRIPTION: Veterans may qualify for priority SBA loan processing, reduced guarantee fees, and waived fees on SBA Express loans. Here is what you need to know to get started.

BLOG 3

My Bank Loan Rate Is About to Reset at a Much Higher Rate. What Are My Options?

If your commercial loan is coming up on a rate reset and the new rate is going to be significantly higher than what you have been paying, you are not alone and you are not out of options. Rate adjustments on commercial loans can be a real shock, especially after years of historically low rates. But there are several practical steps you can take to manage the impact and potentially improve your situation.

Here is a straightforward breakdown of what to consider.

First, Understand What Is Happening

Many commercial loans are structured with a fixed rate for an initial term, typically 5 or 10 years, followed by a rate adjustment or a balloon payment requiring you to refinance. When rates were low, this was rarely a concern. Now that rates have moved higher, borrowers who are hitting these reset dates are finding themselves facing significantly higher monthly payments.

The good news is that you have more leverage than you might think, and your bank generally wants to work with you.

Option 1: Go Back to Your Bank and Negotiate

Your existing lender is often your best first call. Banks want performing loans to stay performing. If your business has been making payments on time and your financials are solid, you have a real seat at the table.

Here are a few things you can ask for:

A rate negotiation. Just because the loan documents say the rate adjusts to a specific index plus a margin does not always mean there is zero flexibility. Ask your banker directly whether there is any room to negotiate the margin, especially if you have a strong payment history or additional business with the bank.

A longer amortization schedule. This is one of the most practical and underused tools available. If you can extend the amortization period, say from 20 years to 25 or even 30 years, your monthly payment drops even if the interest rate stays the same. The total interest paid over the life of the loan will be higher, but the immediate cash flow relief can be significant. For many businesses, protecting monthly cash flow is the priority, and this option is absolutely worth discussing.

A rate lock or fixed-rate extension. Some lenders will offer to fix your rate for another term rather than letting it float. This gives you predictability and protection against further rate increases.

Option 2: Refinance With a New Lender

If your current bank is not flexible, it is worth shopping your loan to other lenders. The commercial lending market is competitive, and another institution may offer better terms, a lower rate, or more favorable amortization.

When you refinance, you are essentially paying off your existing loan with a new one. This can come with closing costs and prepayment penalties on the original loan, so make sure you run the full math before assuming a refinance saves you money.

Option 3: Refinance Into an SBA 504 Loan

If your loan is secured by owner-occupied commercial real estate, the SBA 504 program may be one of the best refinancing tools available to you.

The SBA 504 refinance program allows eligible business owners to refinance existing commercial real estate debt into a long-term, fixed-rate structure. Here is why that matters right now:

Long fixed-rate terms. The SBA 504 debenture portion of the loan carries a fixed rate for 10, 20, or 25 years. That means no future surprises on rate resets.

Lower monthly payments. The combination of a competitive fixed rate and a long amortization period often results in meaningfully lower monthly payments compared to a conventional commercial loan that just reset.

Predictability. For a business owner trying to plan ahead, locking in a fixed rate for the next two decades removes one of the biggest variables from your financial planning.

To qualify for SBA 504 refinancing, you generally need to show that you occupy at least 51% of the property, that your existing loan is not in default, and that the refinance provides a tangible net benefit to your business.

Option 4: Sell and Lease Back

This is less common but worth knowing about. If you own your commercial real estate and the loan payments have become difficult to manage, a sale-leaseback arrangement allows you to sell the property to an investor and then lease it back from them at an agreed-upon rate. You free up the equity in the property, eliminate the loan entirely, and continue operating out of the same space.

This is a significant decision with long-term implications, so it warrants careful consideration and advice from a financial advisor or attorney before moving forward.

What to Do Right Now

If your reset date is coming up in the next 6 to 12 months, here is a practical action plan:

1. Pull your loan documents and confirm exactly when the reset occurs and what the new rate will be based on.
2. Calculate what your new monthly payment will be under the reset terms.
3. Contact your banker and ask directly about your options, including rate negotiation and amortization extension.
4. Reach out to a CDC or SBA lender to get a sense of whether an SBA 504 refinance could work for your situation.
5. Compare the total cost of each option, including fees, closing costs, and the long-term interest picture, not just the monthly payment.

The earlier you start this process, the more options you will have. Waiting until the reset has already happened limits your leverage significantly.

If you own commercial real estate in New England and want to explore whether an SBA 504 refinance makes sense, reach out to our team at cdcnewengland.com. We can walk you through the numbers with no pressure.