If you are a veteran, or the spouse of one, and you own a business, you can use the same SBA-backed loan programs as any other small business owner. Some of them also carry veteran-specific fee relief. The right choice depends on what you are financing. Working capital, an acquisition or equipment usually points to the SBA 7(a) program. A building or heavy equipment you will use for years often points to the SBA 504 program. This guide explains how each one works, who qualifies, what the ownership rules are, and how to apply.
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Explore 504 Financing for Your Business
CDC New England offers SBA 504 financing for commercial real estate and equipment, with programs that include benefits for veterans.
TL;DR
Table of Contents
Which SBA loan programs veterans can use
There is no separate “veteran SBA loan.” Veterans and military spouses apply for the standard SBA programs, and some of those programs add benefits for them. According to the SBA’s workbook for military spouse entrepreneurs, the main options are:
The SBA’s 7(a) page says these loans can fund short- and long-term working capital, refinance current business debt, and finance real estate, buildings, machinery and equipment. They can also finance a complete or partial change of ownership, which matters if you plan to buy an existing business.
7(a) versus 504 at a glance
SBA 7(a)SBA 504Best forWorking capital, acquisitions, refinancing, mixed needsOwner-occupied real estate, construction, long-lived equipmentTypical structureOne loan from a participating lenderA lender loan paired with a CDC debentureStrengthFlexibility of useLow down payment and fixed rates on the CDC portion
If your need is flexible, such as inventory, payroll and a partner buyout together, 7(a) is usually the better fit. If you are buying or building a facility you will operate from, 504 is built for that.
Do military spouses qualify?
Yes. The SBA workbook states that military spouses can use the same SBA-backed programs as veterans, provided the business is at least 51% owned and controlled by an eligible individual. Eligible individuals include veterans, active-duty service members, reservists and the spouses of each.
The 51% test matters in practice. If you and a non-veteran partner each own 50%, the business does not meet it. Before you apply, check that your ownership documents and operating agreement show an eligible person holding a controlling share. Ownership structure is easier to fix before a loan application than during one.
How the SBA 504 loan works for veterans
The 504 program is the one we know best, and it suits veterans who plan to put down roots. A 504 project is typically split into three parts:
We are a CDC, and the CDC portion carries a fixed rate for up to 25 years. The workbook lists up to $5.5 million for real estate, construction and equipment under the 504 program. In May 2026 the SBA doubled the cumulative limit: effective July 4, qualified borrowers who secure a 7(a) loan first can access up to $5 million through each program, for a combined $10 million. If your plans are large, our guide to up to $10M SBA loans and the 2026 rules walks through how the pairing works.
What 504 can and cannot finance
504 funds are for fixed assets: buying an existing building, constructing or renovating, buying land, and purchasing long-term machinery. They are not for inventory, payroll or general working capital. The business must also occupy the property. Our overview of 51% occupancy and SBA 504 eligibility explains the owner-occupancy rule for existing buildings.
Rates and terms we publish
Our site lists these fixed rates on the CDC portion, as read in September 2026. Rates move with the market, so confirm the current figure with us before you plan around it.
ProgramTermPublished rateEquipment10-year fixed6.58%Real estate20-year fixed6.73%Real estate25-year fixed6.77%
A long, fixed term keeps your payment predictable for the life of the loan, which preserves working capital for hiring, inventory and growth. For help choosing between them, see 10, 20 or 25 year 504 terms.
Fee relief for veteran-owned businesses
Veteran fee relief comes in two forms, and it helps to keep them apart.
SBA Express. For all SBA Express loans made to veteran-owned small businesses, the SBA has permanently reduced the upfront guaranty fee to zero, as of October 1, 2021, according to the SBA’s workbook. That applies to Express loans, not to every SBA product.
504 through our VetLoan Advantage Program. For veterans and spouses buying property or equipment, we offer the VetLoan Advantage Program, which carries a processing fee of 1.0%. If you are comparing 504 against other financing, ask every lender for a written fee schedule so you can compare the total cost of closing, not only the rate.
Using an SBA loan to buy an existing business
Many veterans buy a business rather than start one. The SBA says 7(a) loans can finance a complete or partial change of ownership, so a buyout of a retiring owner or a partner is an eligible use. If the deal includes the building, a 504 loan can sometimes cover the real estate while a 7(a) loan covers the business purchase and working capital. That combination is why the higher combined limit matters to acquisition-minded buyers.
For startups, our post on SBA 504 for startups and 7(a)+504 up to $10M covers how a new entity can qualify when it has little operating history.
Refinancing and down payment support
Two situations come up often in our conversations with veteran owners.
You already own the building and carry expensive debt. Our SBA 504 Refinance Program is designed for refinancing existing business debt on eligible property. The SBA also lists debt refinancing as an eligible use of 7(a) loans.
You have the credit and the plan but not the cash. A 10% down payment is lower than many conventional loans ask, and our Down Payment Assistance Program is aimed at owners who need help closing that gap.
Neither of these is a guarantee of approval. Underwriting still looks at your cash flow, credit history and the project itself.
Perspective: what we see working with veteran owners
We have been financing New England businesses for more than 70 years and have invested over $2.3 billion in regional companies. Veteran-owned businesses are a natural fit for the 504 program, because service members tend to think in terms of long-term commitments: a facility to anchor a business for 20 years, not a short-term loan to roll over.
Our advice is plain. First, decide whether your need is fixed assets or working capital, because that decides between 504 and 7(a). Second, get your ownership in order early so the 51% test is never a surprise. Third, compare total closing costs, not rates alone. A low rate with high fees can cost more than a slightly higher rate with lower ones.
As a Premier Certified CDC, we can offer faster approvals on 504 projects, and our team knows the local lenders, appraisers and attorneys in Massachusetts, Rhode Island, Vermont, New Hampshire and Connecticut. Our guide on working with a state-certified CDC explains what that relationship looks like.
How to apply
The SBA does not lend directly. Per its 7(a) guidance, you apply through a local lender, and the SBA’s Lender Match tool can connect you with one. Required documents vary by loan and lender. Eligibility rests on meeting SBA size standards, showing creditworthiness and reasonable ability to repay, and being unable to obtain reasonable credit elsewhere.
A practical sequence:
Where our 504 loans fit in your plan
If you are ready to buy a building or equipment, we can walk you through the numbers: 10% down, fixed rates for up to 25 years, and veteran-specific fee relief through our VetLoan Advantage Program. Start with the VetLoan Advantage Program page, or see our current fixed rates on our home page.
Looking at more than one structure? Weighing a 504 against a conventional equipment loan is covered in our piece on 504 versus equipment financing. Owners who want a wider view of how different kinds of lending are structured can also read about property investor financing options.
FAQ
Are there VA loans for business?
The VA does not make business loans. Veterans use SBA-backed programs through lenders and CDCs, and the SBA also offers counseling and training through Veterans Business Outreach Centers. VA home loans are for residences, not commercial property.
Can a veteran’s spouse get an SBA loan?
Yes. Spouses of veterans, active-duty members and reservists can use the same SBA programs, as long as an eligible individual owns and controls at least 51% of the business. Lenders will ask for ownership documents to confirm it.
Can I use an SBA loan to buy an existing business?
Yes. The SBA says 7(a) loans can finance a full or partial change of ownership, along with real estate, equipment and working capital. If the purchase includes the building, a 504 loan may cover the real estate portion.
What is the maximum SBA loan for a veteran?
There is no separate veteran cap. The 504 program offers up to $5.5 million per the SBA’s workbook for real estate, construction and equipment, and since July 4, 2026, qualified borrowers who secure a 7(a) loan first can reach a combined $10 million across 7(a) and 504, up to $5 million each.
