The SBA plans to increase its lending to veterans by $475 million over the next five years, adding an additional 2,000 veterans expanding or starting their own small business.
Chicago, IL (PRWEB) June 09, 2013
While The Federal Savings Bank is busy with some veterans trying to make new home purchases, other veterans are kickstarting small businesses - an endeavor the Small Business Administration would like to support.
The SBA plans to increase its lending to veterans by $475 million over the next five years, adding an additional 2,000 veterans expanding or starting their own small business. According to the SBA, 9 percent of veterans are small business owners. Despite 2.45 million veteran-owned businesses employing more than 5 million people, the SBA notes that they still struggle to secure adequate financing through conventional channels.
A significant pledge to significant people
The 5 percent increase to veteran lending is referred to as the Veteran Pledge Initiative, and will certainly help the more than 21.5 million veterans in the U.S. transition to the civilian workforce and create jobs.
"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 Karen Mills, SBA administrator. "Through this partnership with national and regional and community lending partners, we stand ready to serve veteran entrepreneurs with loan guarantees, entrepreneurial training, and critical tools to help them start businesses, drive the local economy and create jobs for themselves and their communities."
In order to make this pledge reality, the SBA has formed lending partnerships with 20 large financial institutions as well as hundreds of community banks scattered throughout the U.S. The program will be implemented alongside the VetLoan Advantage program that provides training and discounted financing to veteran business owners. In addition, there are 15 Veterans Business Outreach Centers with thousands of integrated small business development centers with even more small business counselor volunteers that assist more than 200,000 reservists, veterans and disabled servicemen, according to FOX Business.
"This new SBA initiative really highlights the Administrations' commitment to helping the nations' veterans," said Terry Robinson, president of Sunovis Financial. "It is ironic that even though our nations' veterans are willing to risk their lives, many lenders are unwilling to risk lending to veterans. I find the program to be an excellent change to this mindset."
Contact Federal Savings Bank, a veteran-owned bank, at (877) 788-3520 if you are a veteran interested in starting your own business and need financing assistance.