Glossary · The loan itself
Veteran-owned business
In short
A business where at least 51% of the ownership is held by one or more veterans. The SBA offers specific incentives and reduced fees for loans to acquire or operate these businesses, which can lower your overall deal costs.
What it means in a deal
If the business you're buying qualifies as veteran-owned, you may benefit from a reduced upfront guaranty fee on your SBA 7(a) loan. Verify the seller's veteran status and ownership percentage during due diligence to ensure eligibility for these benefits.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Veteran-owned business
- Does the SBA loan program offer any specific benefits for veteran-owned businesses?
- Does the SBA program have any specific requirements for minority or women-owned businesses?
- What if the business property is owned personally by the seller?
- What if the business real estate is owned separately by the seller?
- What happens if a business real estate is owned separately by the seller?
- How can life insurance facilitate a smooth succession plan for a family-owned business?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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