U.S. Senator Mazie K. Hirono, representing Hawaii and a member of the Senate Committee on Small Business and Entrepreneurship, has joined forces with Senator Dan Sullivan from Alaska and U.S. Representatives Vicente Gonzalez from Texas and Brian Fitzpatrick from Pennsylvania to introduce the Veterans Member Business Loan Act. This bipartisan legislation aims to expand access to capital for veteran-owned small businesses by removing lending caps imposed on credit union member business loans.
Senator Hirono emphasized the importance of veteran businesses in both Hawaii’s economy and nationwide. She stated, “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.” Hirono also highlighted the necessity of providing veterans with resources as they transition to civilian life.
Research conducted by the U.S. Small Business Administration’s Office of Advocacy indicates that military service is linked with a higher likelihood of self-employment, showing that veterans are 45 percent more likely than non-veterans to be self-employed.
Despite this correlation, a study by the Institute of Veteran Military Families reveals that “accessing capital is a top challenge in starting and growing a business for 75 percent of surveyed veterans.” The study also shows that while veteran-owned businesses apply for financing at higher rates than their non-veteran counterparts, they receive less funding and have lower approval rates across major credit sources by 10 percent compared with non-veterans.
The Veterans Member Business Loan Act seeks to address these disparities by providing an additional source of capital, ensuring veteran entrepreneurs have better opportunities for success.
