WASHINGTON, DC – U.S. Senator Mazie K. Hirono (D-HI), a member of the Senate Committee on Small Business and Entrepreneurship, joined Senator Dan Sullivan (R-AK) and U.S. Representatives Vicente Gonzalez (D-TX) and Brian Fitzpatrick (R-PA) in introducing the Veterans Member Business Loan Act. This bipartisan and bicameral legislation expands access to capital for veteran-owned small businesses by removing arbitrary lending caps imposed on credit union member business loans.
“Veteran businesses play a significant role in the economy in Hawaii and across the country,” said Senator Hirono. “By promoting commercial lending for these businesses through credit unions, the Veterans Member Business Loan Act will give businesses increased access to capital, helping them to grow and expand while supporting the community. As they transition to civilian life, it is critical to provide our veterans with these kinds of resources to enable their success. I will continue to advocate for this legislation during the 119th Congress.”
A study from the U.S. Small Business Administration’s (SBA) Office of Advocacy found that military service is strongly correlated with a higher probability of self-employment, with veterans being 45 percent more likely than non-veterans to be self-employed.
Unfortunately, according to the Institute of Veteran Military Families, “accessing capital is a top challenge in starting and growing a business for 75 percent of surveyed veterans.” While veteran and non-veteran owned businesses request financing and capital at almost identical rates, veterans obtain less money than non-veterans. ?Additionally, veteran-owned businesses also apply for financing at higher rates than non-veteran owned businesses. Yet, veterans see lower approval rates across the top three sources of credit by 10 percent compared with non-veterans.
The Veterans Member Business Loan Act would correct this shortfall, allowing an additional source of capital and ensuring veteran entrepreneurs are set up for success.
The full text of the legislation is available here.
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