Main Street Monday: Waived SBAExpress Guaranty Fees, Faster SBA Loan Processing for Veterans 

With a salute to those who serve our country, this week’s Main Street Monday focuses on the veteran-specific eligibility and fee relief features under the Veterans Advantage portion of the SBA 7(a) loan program.

SBA Express Loans up to $500,000 carry no upfront guarantee fee for businesses owned and controlled by veterans. 

This fee waiver, combined with priority processing and lender-level incentives, makes the program one of the most veteran-friendly options available through the SBA.

Eligibility includes:

 • Veterans (other than those dishonorably discharged)

 • Service-disabled veterans

 • Active duty military service members participating in the Transition Assistance Program (TAP)

 • Reservists and National Guard members

 • Current spouses of any of the above

 • Widowed spouses of service members or veterans who died while in service or from a service-connected disability

The SBA has formally recognized the importance of giving special consideration to veterans in its loan programs. Pages 111 and 327 of SOP 50 10 8 for the 7(a) and 504 programs state:

“SBA recognizes the importance of giving special consideration to veterans in its loan programs. SBA will prioritize processing applications from businesses that are owned by veterans when those loans are processed by SBA under non-delegated procedures. For loans processed under delegated procedures, SBA encourages Lenders to give special consideration to veterans during application processing.”

With the government backlog impacting Citrus Heights and other offices when operations resume, this directive moves veteran applications to the top of the pile.

In addition to funding support, veterans can access specialized training and counseling through the Office of Veterans Business Development (OVBD) and the Veterans Business Outreach Centers (VBOCs). These programs provide guidance on business planning, financing strategies, and SBA certification.

Many lenders further enhance SBA’s veteran initiatives with additional fee and rate reductions. 

At First Bank of the Lake, headquartered in Missouri, veteran borrowers receive a 0.50 percent rate discount along with waived packaging fees. 

“First Bank of the Lake is proud to support veteran-owned small businesses through the SBA loan process. Whether you’re launching a new business, buying into a franchise, or expanding an existing business, our team is here to guide you through the SBA veterans financing process with clarity, support, and unmatched experience. Our SBA loan group includes former service members who understand the financial challenges veterans face and how to overcome them.”

Veteran Lending Snapshot

For FY 2025 just over 3,300 loans went to veterans, totaling more than $1.34 billion in SBA financing. 

• Other Veterans: 2,257 approvals — $919,369,500 (2.9% of total)
• Service-Disabled Veterans: 1,047 approvals — $418,402,300 (1.3% of total)
• Vietnam Era Veterans: 5 approvals — $2,951,000 (0.0% of total)

The Critical Role of Technical Insurance Expertise in SBA-Required Life Insurance

It only takes a one-week course to obtain a life insurance license; therefore the low barrier of entry invites quite a lot of less-then-competent “bad actors”. It can be challenging as to how a lender and/or business broker can determine where to direct a borrower when life insurance is a condition for the close of their business loan. This article explores the importance of experience, education and training, and offers a means to vet potential insurance providers in a professional manner.

Executive Summary

When an SBA-approved lender conditions a loan on life insurance, the difference between a smooth closing and a costly delay often comes down to the insurance provider’s technical depth. Complexities around underwriting, policy design, collateral assignment, ownership and beneficiary structure, community property rules, and documentation standards require practitioners with years of pattern recognition and advanced credentials. Engaging a specialist with proven SBA experience and designations such as CFP, CLU, or ChFC measurably reduces cycle time, prevents structural errors, and aligns coverage with lender and borrower objectives.

What’s at Stake for Borrowers and Lenders

• Closing certainty: Securing the right type and amount of coverage on time prevents last-minute funding delays.

• Capital efficiency: Proper product and term selection can lower total premium outlay over the loan’s life.

• Compliance: Correct collateral assignment and documentation meet lender and SBA expectations.

• Risk transfer: The policy must actually protect the lender’s position while preserving the borrower’s financial flexibility.

• Tax and legal hygiene: Missteps in ownership/beneficiary structure can trigger unintended taxes, gift issues, or enforceability risks.

Technical Complexities That Demand Expertise

• Underwriting strategy: Accurate field underwriting, carrier selection matched to health/avocation, and proactive Attending Physician Statement (APS) management.

• Product suitability: Matching loan term and amortization with level term, term with conversion privileges, or guaranteed universal life for longer horizons.

• Collateral assignment: Perfecting and recording the assignment, confirming lender rights, and ensuring it supersedes beneficiary proceeds up to the loan balance.

• Ownership and beneficiary design: Balancing personal vs. business ownership, avoiding transfer-for-value risks, and keeping beneficiary design consistent with the assignment.

• Community property and spousal consent: Navigating state-specific rules (e.g., California) to secure required consents without jeopardizing timing.

• Impaired-risk cases: Negotiating table ratings and flat extras, leveraging trial and informal inquiries to favor competitive outcomes.

• Business structures: Coordinating for C-corp, S-corp, LLC, or sole proprietor nuances, plus buy-sell interactions where relevant.

• Foreign nationals and visa status: Carrier appetite and documentation requirements vary materially and must be anticipated early.

• Replacement and 1035 exchanges: Avoiding gaps, understanding surrender costs, and preserving tax advantages when appropriate.

• Data privacy and releases: Timely HIPAA authorizations and medical orders to prevent underwriting stalls…..

Read full white paper here.

Learn more about LifeEase here.

Nominations are now open for Coleman’s 2026 SBA Lender Professional Awards! These prestigious awards recognize outstanding SBA lending professionals and companies that have made significant contributions to the small business lending community. Nominate a colleague or yourself to be honored for your exceptional work in SBA lending, and help celebrate the positive impact you or your nominee has had on small businesses across the nation. Submit Your Nomination Today!

The SBA’s new SOP 50 57 4 went into effect November 1, 2025. With major changes to liquidation deadlines, servicing standards, PPP record retention, and lender liability, now is the time to make sure you’re prepared Coleman Webinar on November 12 – For your SBA Servicing Team What sets Coleman training apart? Lance Sexton, Coleman’s SBA training expert and former Deputy Director of SBA’s Little Rock Servicing Center, leads both sessions. Lance has walked in your shoes and sat on SBA’s side of the table—bringing a rare dual perspective. He knows where lenders trip up, how SBA evaluates servicing and liquidation decisions, and what practical steps protect the guaranty. Coleman’s webinars go beyond reading rules. They deliver clear explanations, real-world examples, and lender-focused strategies your team can use immediately. Don’t wait until November to adjust—get ahead of the curve with Coleman’s trusted training.

Bob Coleman will lead a full-day workshop teaching how to use AI tools like ChatGPT and Microsoft Co-Pilot to streamline SBA 7(a) credit memo preparation. Attendees will receive hands-on training, work through real loan examples, and get ready-to-use templates to improve their underwriting process. The event takes place on November 18 from 8AM to 4PM PT at TMC Financing in Oakland, CA, with a networking dinner the evening before. It is designed for SBA underwriters, credit analysts, lending managers, and bank executives looking to boost efficiency and accuracy. Registration is $795 per attendee, and seats are limited. Read more and register here

Coleman’s SBA Franchise Risk Grade Report — $295 Per Report The Coleman Franchise Report is the only franchise intelligence tool built specifically for SBA loan underwriters. Packed with up-to-date SBA loan data, FDD analysis, and impartial Coleman Franchise Risk Grades, it delivers the transparency and confidence underwriters need to make better lending decisions. This report is tailored to your specific needs and evaluates franchises using key SBA criteria, saving you countless hours of research. Empower your underwriters with precise, reliable data and our simple Grading Scale (AAA to F), helping you determine the viability of a franchise with confidence! Read more and order here

SBA Secondary Market Summit — December 4, 2025 Coleman’s SBA Secondary Market Summit is back for 2025! For our 18th year, we’re excited to partner with the National Rural Lenders Roundtable (NRLR) to bring you two premier events under one roof in Washington, DC. Bob Judge will bring his decades of industry knowledge and expert insight to give us a glimpse of what to expect in 2026. Bob Coleman will moderate and put together the only program that brings together the Big Four of the SBA secondary market: Brokers, Investors, Sellers and SBA. Early registration for the Summit is now open with a special early bird offer — one seat for just $995 if purchased by August 15. Don’t miss this opportunity to save! Read more and register here

UPCOMING COLEMAN WEBINARS New SOP 50 57 4 Effective November 1: SBA Mandatory Deadlines and Expanded Guaranty Repair and Denial Guidance — 11/12 AI for SBA 7(a) Credit Memos: How to Turn Numbers into Narrative — 11/19 SBA Loan Insurance Compliance Under SOP 5010 8: The Top 15 Requirements for Underwriters and Closers — 11/21 104 Items Underwriters “Must” Include in the SBA 7(a) Credit Memo, For Loans Over $350K According to the SOP 5010 8 — 11/25 Unlock the Power of AI: Data-Mine Public SBA Data to Skyrocket Your Loan Volume — 12/5 SBA Form 159 Compliance: What Brokers Must Disclose, and How to Stay Out of Trouble — 12/10 Construction Loan Closing Documentation and Draw Administration: Meeting the SOP Requirements with Perfection — 12/11 Avoid Unforced Errors: Top 20 Reasons SBA Denies or Repairs the 7(a) Guaranty — 12/17 The SBA Lender and its LSP: What SBA and OCC Examiners Expect in 2026 from Your LSP Third-Party Vendor Relationship — 12/18