Main Street Monday – Veteran Documentation for $0 Upfront Fee on 7(a) Loans in FY23

September 12, 2022

Delaney Sexton
Contributing Editor

Main Street Monday – Veteran Documentation for $0 Upfront Fee on 7(a) Loans in FY23

For all SBA Express loans made to businesses owned and controlled by a veteran or spouse of a veteran, the Upfront Fee will be $0 in fiscal year 2023. To qualify for fee relief, businesses must be 51% or more owned and controlled by an individual or individuals in the following groups:

• Veterans (other than a veteran who received a Dishonorable or Bad Conduct Discharge)
• Service-Disabled Veterans
• Active Duty Military service member participating in the Transition Assistance Program
• Reservists and National Guard Members
• Current spouse of any Veteran, Activity Duty service member, or any Reservist or National Guard member, or widowed spouse of a service member who died while in service or of a service-connected disability

The SBA Veteran documentation requirements are:

• Veteran: Copy of Form DD 214
• Service-Disabled Veteran: Copy of Form DD 214 or documentation from the U.S. Department of Veterans Affairs
• Transitioning Active-Duty Military Member: DD Form 2 and DD Form 2648
• Reservists and National Guard: DD Form 2, Armed Forces of the United States Identification Card (Reserve)
• Current Spouse of Veteran: the veteran’s Form DD214 and evidence of status as a current spouse
• Current Spouse of Transitioning Active Duty Military Member or Current Reservist/National Guard Member: DD Form 1173, Department of Defense Guard Reserve Family Member Identification Card, and evidence of status as current spouse
• Widow of Active Duty Service Member who died in service or who died of a service-connected disability: Documentation from DOD or from DVA showing this to be the case

If the DD Form 214 is unavailable, an NA Form 13038 is an acceptable equivalent. For the photocopy of a military ID requirement, an alternative would be to provide a “statement of service” signed by the adjutant, personnel office, or commander of the unit or higher headquarters to which they are attached.

The statement of service must include the following:
• The Service member’s full name
• The Service member’s Social Security Number or the last four digits of SSN
• The entry date on active duty or of Reserve/Guard duty
• The duration of lost time, if any (for active duty)
• The name of the command providing the information

For more information on 7(a) fees and SBA Veteran Qualifications, read SBA Information Notice 5000-836123.