Veterans Disability Compensation

In 1981 the VA was authorized to guarantee graduated payment mortgages by Public Law 97-66.  The Act also increased the specially adapted housing grant from $30,000 to $32,500 and extended maximum loan terms on manufactured homes.  Terms were extended to 15 years for manufactured home lots, to 20 years for single-wide units and to 23 years for double-wide manufactured homes.  The law also added a new minimum active-duty service requirement, which was codified at 38 U.S.C. 3103A, and later amended by Public Law 97-306.  Essentially, a person who enlists after September 7, 1980 is eligible for home loan benefits only if he or she completes the shorter of:  a) 24 months of continuous active duty; or  b) the full period for which called or ordered to active duty.  The law provides exceptions from the requirement, including an exception for persons discharged or released from active duty for a disability incurred or aggravated in the line of duty.

Public Law 97-72 authorized until September 30, 1986 a small business loan program in the Veterans Administration for disabled and Vietnam era veterans.  The Administrator was authorized to make or guarantee business loans up to $200,000 to business concerns at least 51% owned by veterans of the Vietnam-era or rated by the VA as 30 percent or more disabled.  There were no appropriations of money to the VA to implement this program.  Funds were provided to the Small Business Administration to make business loans especially to veterans, as that agency had greater expertise in business loan matters.

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