Title 38 — Veterans' BenefitsRelease 119-73not60
§3743 Liability on Loans
Title 38 › Part III— READJUSTMENT AND RELATED BENEFITS › Chapter 37— HOUSING AND SMALL BUSINESS LOANS › Subchapter IV— SMALL BUSINESS LOANS › § 3743
Summary
If a veterans' small business gets a direct loan or a loan guaranteed under this law, each person who owns part of that business must sign a note or other paper showing the loan. Each owner must repay the full amount to the United States: for a direct loan, the loan amount; for a guaranteed loan, any amount the Secretary paid on the loan.
Full Legal Text
Title 38, §3743
Veterans' Benefits — Source: USLM XML via OLRC
Each individual who has an ownership interest in a veterans’ small business concern that is provided a direct loan under this subchapter, or that obtains a loan guaranteed under this subchapter, shall execute a note or other document evidencing the direct or guaranteed business loan, and such individuals shall be jointly and severally liable to the United States for the amount of such direct loan or, in the case of a guaranteed loan, for any amount paid by the Secretary on account of such loan.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1991—Pub. L. 102–83 renumbered section 1843 of this title as this section. 1989—Pub. L. 101–237 substituted “Secretary” for “Administrator”.
Reference
Citations & Metadata
Citation
38 U.S.C. § 3743
Title 38 — Veterans' Benefits
Last Updated
Apr 5, 2026
Release point: 119-73not60