Lending Activity to Increase 5% for Veteran-Owned Businesses

During the bleak economic climate under Sequestration cuts, high unemployment rates and limited access to capital, there are many challenges facing our Veterans as they transition out of the military into civilian life.

The U.S. Small Business Administration (SBA) announced Tuesday at Fort Bragg the SBA Veteran Pledge Initiative to increase their lending activity by five percent per year over the next five years.

Economic opportunities are about to turn around for Veteran-owned business and for those looking to start a new venture upon retirement or separation. Businesses who hire Veterans know better than anyone that hiring a candidate with prior military experience improves processes and they are more apt to have leadership skills and are able to meet the mission.

Local banks in our area who will work and customize program for Veterans. Chris Ledesma, Vice President SBL of Wells Fargo, shared with Patch that Wells Fargo has been working hard to get the word out to Veterans about their small business lending program, whether it's for start-up plans or to expand an existing business.

Through partnering with the National Association of Development Companies (NADCO) VetLoan Advantage, small business financing discounts and training to Veteran-owned businesses will be increasing.

So far in 2013, 381 Veterans have received loans totaling $2.6 million - approximately 10 percent of all loans offered through NADCO members.

How does it work?

NADCO and its member Certified Development Companies (CDCs) publish their reduced fees, training and incentives on their websites. Veterans can save up to $20,000 on commercial real estate loans and reduced fees on Community Advantage working capital loans under $250,000.

According to a study by the SBA Office of Advocacy, Veterans are at least 45 percent more like to become entrepreneurs than those with no active-duty military experience. The latest statistics from U.S. Census Bureau in 2007, Veterans owned 2.4 million businesses, or 9 percent of all businesses nationwide, generating $1.2 trillion in receipts employing nearly 5.8 million people. One out of every seven franchise businesses are owned and operated by Veterans.

Making it happen

Sworn in as the 23rd Administrator of the Small Business Administration in April 2009, Karen Gordon Mills spoke to an audience at Fort Bragg of just over 100 individuals to make the exciting announcement, kicking off the new initiative.

"Our service men and women have made incalculable contributions and sacrifices for our country, and supporting them as they pursue their dreams to start or grow their own business is one of SBA's highest priorities," said Mills. "Through this partnership with national lending partners and regional and community lenders across the U.S., we stand ready to serve Veteran entrepreneurs with loan-guarantees, entrepreneurial training, and resources that are critical tools to help them start businesses, drive the local economy and create jobs for themselves and their communities."

Mills has served in President Obama's Cabinet since 2012 and is a key member of the President's economic leadership team, reflecting the important role that small businesses and entrepreneurs play in our nation's long-term economic growth and prosperity.

Over the last three years, Administrator Mills has streamlined and simplified SBA's core loan programs, reduced paperwork, shortened turnaround times and increased transparency across the agency.

Starting in June 2013, the VetLoan Advantage Toolkit and VetLoan Advantage directory will be available.

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