---
kind: "section"
citation: "38 U.S.C. § 3744"
title: "38"
title_heading: "Veterans’ Benefits"
number: "3744"
heading: "Approval of loans by the Secretary"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/3744"
units:
  - "Part III — Readjustment and Related Benefits"
  - "Chapter 37 — Housing and Small Business Loans"
  - "Subchapter IV — Small Business Loans"
---

# §3744. Approval of loans by the Secretary

- (a) Except as provided in [subsection (b)](#b) of this section, a loan may not be guaranteed under this subchapter unless, before the closing of the loan, it is submitted to the [Secretary](/usc/38/4101.md?p=8) for approval and the [Secretary](/usc/38/4101.md?p=8) grants approval.
- (b) The [Secretary](/usc/38/4101.md?p=8) may exempt any lender of a class of lenders listed in [section 3702(d) of this title](/usc/38/3702.md?p=d) from the prior approval requirement in [subsection (a)](#a) of this section if the [Secretary](/usc/38/4101.md?p=8) determines that the experience of such lender or class of lenders warrants such exemption.
- (c) The [Secretary](/usc/38/4101.md?p=8) may at any time upon thirty days’ [notice](/usc/38/4303.md?p=8) require loans to be made by any lender or class of lenders under this subchapter to be submitted to the [Secretary](/usc/38/4101.md?p=8) for prior approval. No guaranty shall exist with respect to any such loan unless evidence of the guaranty is issued by the [Secretary](/usc/38/4101.md?p=8).

## Source credit

(Added Pub. L. 97–72, title III, § 302(a), Nov. 3, 1981, 95 Stat. 1057, § 1844; amended Pub. L. 101–237, title III, § 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; renumbered § 3744 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.)

## Notes

### Editorial Notes

### Amendments

1991—Pub. L. 102–83, § 5(a), renumbered section 1844 of this title as this section.

Subsec. (b). Pub. L. 102–83, § 5(c)(1), substituted “3702(d)” for “1802(d)”.

1989—Pub. L. 101–237 substituted “Secretary” for “Administrator” in section catchline and wherever appearing in text.