---
kind: "section"
citation: "38 U.S.C. § 3745"
title: "38"
title_heading: "Veterans’ Benefits"
number: "3745"
heading: "Interest on loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/3745"
units:
  - "Part III — Readjustment and Related Benefits"
  - "Chapter 37 — Housing and Small Business Loans"
  - "Subchapter IV — Small Business Loans"
---

# §3745. Interest on loans

- (a) Loans guaranteed under this subchapter shall bear interest not in excess of such rate as the [Secretary](/usc/38/4101.md?p=8) 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](/usc/38/4101.md?p=8) shall consult with the Administrator of the Small Business Administration.
- (b) The rate of interest on any direct loan made by the [Secretary](/usc/38/4101.md?p=8) under this subchapter may not exceed the maximum rate in effect under [subsection (a)](#a) of this section at the time the direct loan is made.

## Source credit

(Added Pub. L. 97–72, title III, § 302(a), Nov. 3, 1981, 95 Stat. 1058, § 1845; amended Pub. L. 101–237, title III, § 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; renumbered § 3745 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406; Pub. L. 103–446, title XII, § 1201(a)(3), Nov. 2, 1994, 108 Stat. 4682.)

## Notes

### 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).