Bank of America Launches $20 Million Lending Program for U.S. Military Veteran Entrepreneurs
June 08 2018 - 8:30AM
Business Wire
Program Will Increase Access to Affordable
Loans for Veteran-Owned Businesses
Bank of America today announced a $20 million Veteran
Entrepreneur Lending Program to connect U.S. military veteran
business owners with affordable capital to help kick-start and grow
their businesses.
“Helping our veterans translate their skills and become
entrepreneurs driving the U.S. economy is one of the ways Bank of
America is thanking them for their service,” said Chief Executive
Officer Brian Moynihan.
Loans will be administered through participating community
development financial institutions (CDFIs) – nonprofit institutions
with expertise in lending to small businesses and an understanding
of local circumstances, including economic development and job
creation opportunities. In addition to deploying capital, the Bank
of America Charitable Foundation is providing $1.3 million in
grants over two years to help CDFIs manage operating costs.
Each year, more than 200,000 U.S. service members return to
civilian life, including 10 percent with a desire to own a
business, creating a pipeline of potential borrowers. Additionally,
there are more than 2.5 million businesses in the U.S. that are
majority-owned by veterans. Of those, more than 440,000
veteran-owned businesses have employees1, which helps drive
economic growth and job creation in local communities. The lending
program will kick off in seven U.S. states with the following CDFIs
administering the loans and offering an interest rate reduction on
loans for qualifying borrowers:
- Carolina Small Business Development
Fund – North and South Carolina.
- Colorado Enterprise Fund –
Colorado.
- Excelsior Growth Fund (an affiliate of
New York Business Development Corporation) – New York.
- Main Street Launch – California.
- PeopleFund – Texas and Oklahoma.
Prior to receiving a loan, borrowers will participate in a
two-month training program led by learning partners – IVMF at
Syracuse University, Veterans Entrepreneurship Program at Oklahoma
State University, and VETToCEO by Veterans for Veterans – offering
technical assistance and other resources to help borrowers stay on
a path of success and grow their businesses.
Entrepreneur Marc Smith, an Army veteran and owner of Patriotic
Pig BBQ in Texas, illustrates the impact of this program. Smith and
his wife Gina own and operate a BBQ catering company located in
Dallas, with a mission to source local food and give back to the
veteran community. The Smiths used working capital to buy a large
military-themed smoker, which enables them to serve four times as
many customers – about 1,000 customers each weekend. With the help
of 10 employees, the Smiths’ catering business accommodates up to
five barn- and rustic-style weddings per day, with plans to grow in
the future.
“We started the business in 2016 and to see it continually grow
since then has been incredibly rewarding,” said Smith. “Being able
to get a loan was a game-changer and an important factor in our
ability to grow our business. We’re thankful and plan to pay it
forward by using the smoker on Veterans Day and feeding local
veterans.”
Today, Bank of America will host a thought leadership event,
“Empowering Small Businesses to Drive Economic Growth,” on Capitol
Hill, including a discussion about the role of small business in
the U.S. economy and the opportunities and challenges small
business owners and veteran entrepreneurs face in a time of rapid
change. Featured speakers include Bank of America CEO Brian
Moynihan, SBA Associate Administrator Bill Manger, and Bank of
America Head of Small Business Sharon Miller.
Bank of America is the largest investor in CDFIs, with $1.6
billion in financing to more than 260 CDFIs across all 50 U.S.
states and the District of Columbia.
1
https://smallbusiness.com/resources/military-owned-businesses
Bank of AmericaBank of America is one of the world’s leading
financial institutions, serving individual consumers, small and
middle-market businesses and large corporations with a full range
of banking, investing, asset management and other financial and
risk management products and services. The company provides
unmatched convenience in the United States, serving approximately
47 million consumer and small business relationships with
approximately 4,400 retail financial centers, approximately 16,000
ATMs, and award-winning digital banking with approximately 36
million active users, including 25 million mobile users. Bank of
America is a global leader in wealth management, corporate and
investment banking and trading across a broad range of asset
classes, serving corporations, governments, institutions and
individuals around the world. Bank of America offers
industry-leading support to approximately 3 million small business
owners through a suite of innovative, easy-to-use online products
and services. The company serves clients through operations across
the United States, its territories and more than 35 countries. Bank
of America Corporation stock (NYSE: BAC) is listed on the New York
Stock Exchange.
For more Bank of America news, including dividend announcements
and other important information, visit the Bank of America
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Reporters May Contact:Noelle Bell, Bank of America,
1.980.388.6791noelle.bell@bankofamerica.com
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