Title 38 — Veterans' BenefitsRelease 119-73
§3745 Interest on loans
Title 38 › Part PART III— - READJUSTMENT AND RELATED BENEFITS › Chapter CHAPTER 37— - HOUSING AND SMALL BUSINESS LOANS › Subchapter SUBCHAPTER IV— - SMALL BUSINESS LOANS › § 3745
Summary
Guaranteed loans must have interest no higher than the market rate the Secretary decides, and the Secretary must consult the Administrator of the Small Business Administration when setting that rate. Direct loans made by the Secretary cannot charge more than that maximum rate in effect when the loan is made.
Full Legal Text
Title 38, §3745
Veterans' Benefits — Source: USLM XML via OLRC
(a)Loans guaranteed under this subchapter shall bear interest not in excess of such rate as the Secretary may from time to time find the loan market demands. In establishing the rate of interest that shall be applicable to such loans, the Secretary shall consult with the Administrator of the Small Business Administration.
(b)The rate of interest on any direct loan made by the Secretary under this subchapter may not exceed the maximum rate in effect under subsection (a) of this section at the time the direct loan is made.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1994—Subsec. (a). Pub. L. 103–446 substituted “Administrator” for “Secretary” before “of the Small Business Administration”. 1991—Pub. L. 102–83, § 5(a), renumbered section 1845 of this title as this section. Subsec. (a). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator” before “of the Small Business Administration”. 1989—Pub. L. 101–237 substituted “Secretary” for “Administrator” wherever appearing other than third place it appears in subsec. (a).
Reference
Citations & Metadata
Citation
38 U.S.C. § 3745
Title 38 — Veterans' Benefits
Last Updated
Apr 6, 2026
Release point: 119-73