Title 38, Veterans' BenefitsRelease 119-102
§3745 Interest on Loans
Title 38 › PART III — READJUSTMENT AND RELATED BENEFITS › CHAPTER 37 — HOUSING AND SMALL BUSINESS LOANS › SUBCHAPTER IV — SMALL BUSINESS LOANS › § 3745
Summary
The Secretary sets the maximum interest rate for loans under this law and can change it as the loan market requires after consulting the Small Business Administration’s Administrator. Any direct loan the Secretary makes cannot charge a higher rate than that maximum at the time 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
Aug 21, 2026
Release point: 119-102