Pioneering Fund to Grow to $100 million for Former Military Personnel
Entrepreneurs
AUSTIN,
Texas, Nov. 8, 2023 /PRNewswire/ --
PeopleFund is honored to be one of twelve Community
Development Financial Institutions (CDFIs) announcing the expansion
of the Veteran Loan Fund, with Bank of America as the lead capital
investor. Bank of America is seeding a second round of financing
for Veteran Loan Fund, doubling a two-year-old commitment that has
already funded more than 500 small businesses built by former
military personnel across 37 states.
The Veteran Loan Fund, a collaborative effort of a growing
number of CDFIs and specialized veteran service organizations,
offers an online platform that connects military veterans and their
spouses with mission-focused lenders and education partners to help
them build and sustain small businesses. Eligible veterans
benefit from loan capital at below market interest rates and free
business coaching.
"PeopleFund is deeply proud of representing the Veteran Loan
Fund in Texas," said
Gustavo Lasala, President and CEO
of PeopleFund. "This fund is a prime example of the immense
positive impact that CDFIs, Banks, Foundations, Community Partners,
Corporations and Individuals can accomplish when working together
with purpose and focusing in resolving issues that unite our
communities across the country."
PeopleFund, an Austin-based CDFI and managing member of the
Veteran Loan Fund, helps underserved veteran entrepreneurs across
the state of Texas. Since
inception, PeopleFund has deployed more than $30 million to close to 600 small businesses
owned by veterans and veteran spouses in Texas. Close to 30% of this lending activity
took place since July 2021 and was
supported by the Veteran Loan Fund.
"Bank of America has a longstanding commitment to supporting
veterans in a multitude of ways, and this investment to provide
capital to small businesses owned by veterans and veteran spouses
is just another demonstration of that," said David Bader, Bank of America Austin President. "This Veteran's
Day and every day, we honor our veterans and recognize veteran
entrepreneurs for fueling our local economies."
Veteran Loan Fund plans to grow to $100
million across the nation by 2027 an amount equal to the
estimated annual demand for capital from veteran entrepreneurs who
lack any funding for their businesses. Its first $15 million round was made possible by a
$5 million commitment of long-term,
below market rate lending capital from Bank of America as lead
investor, along with historic support from other major
institutions. Bank of America will lend $10
million to the new $25 million
round this year.
Bank of America is the largest investor in CDFIs, with
$2 billion in financing to more than
260 CDFIs across all 50 U.S. states and the District of Columbia.
Veteran Loan Fund
Member CDFIs currently
include: Access to Capital For Entrepreneurs (GA), Appalachian
Community Capital (VA), Black Business Investment Fund (FL),
Business Impact Northwest (WA), Colorado Enterprise Fund (CO),
Dream Spring (NM), Economic and Community Development Institute
(OH), Pathway Lending (TN), Justine
Petersen (MO), PeopleFund (TX), Pursuit (NY), and Wisconsin
Women's Business Initiative Corporation (WI).
Specialized technical assistance partners currently include:
Bunker Labs, Vet Met, Vet to CEO, as well as local partnerships
with Veteran Business Outreach Centers, SCORE and SBDCs.
For more information, please visit
https://www.veteranloanfund.com
Bank of America
Bank 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 69 million consumer and small
business clients with approximately 3,900 retail financial centers,
approximately 15,000 ATMs (automated teller machines) and
award-winning digital banking with approximately 57 million
verified digital 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 4 million
small business households 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 is listed on the New York Stock
Exchange (NYSE: BAC).
For more Bank of America news, including dividend announcements
and other important information, visit the Bank of America newsroom
and register for news email alerts.
PeopleFund
PeopleFund is a nonprofit Community
Development Financial Institution (CDFI), an SBA lender and serves
as the managing member of Veteran Loan Fund. Established in 1994,
PeopleFund has almost 30 years of experience helping thousands on
the path to financial security. PeopleFund programs focus on
advancing economic opportunities for low and moderate-income people
regardless of color, gender or creed, by providing capital,
training and other resources needed to grow healthy small
businesses. Since inception, PeopleFund has delivered almost
$220 million in financial assistance
to over 5,000 small businesses and $187
million in New Market Tax Credit allocations that attracted
$800 million in investments, creating
and retaining over 22,000 jobs. This puts PeopleFund's direct
impact in the Texas economy as
surpassing $1 billion.
Reporters may contact:
Carla Molina, Bank of
America
Phone: 1.512.397.2402
carla.molina@bofa.com
Jenny Palecek, PeopleFund
Phone: 1.512.222.1005
JPalecek@peoplefund.org
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SOURCE Bank of America Corporation