Dayton Business Journal
SBA lenders provide veterans with breaks on business loans
By Kent Hoover

Veterans interested in starting or growing a business can expect more help from lenders thanks to a new initiative by the National Association of Government Guaranteed Lenders.

More than 100 lenders who make Small Business Administration loans already have signed up for NAGGL's Operation: Vet Access. Participants pledge to increase their lending to veterans, and many are reducing fees on SBA loans or offering lower interest rates to veteran-owned businesses.

The association's initiative complements a drive started by the SBA in May to get lenders to commit to increasing their lending to veterans by 5 percent a year for the next five years. This push could get an additional $475 million in SBA loans into the hands of 2,000 veterans, according to the agency.

As of Aug. 16, SBA lenders had approved $562 million in 7(a) loans to 2,047 veteran-owned business so far this fiscal year. (SBA's fiscal year ends Sept. 30.) That's slightly above the dollar amount loaned to veterans during the same time a year ago, but far below the $878 million loaned during the same time period in 2011, which was a record-setting year for SBA lending thanks to temporary breaks on fees and higher government guarantees.

Another $461 million in loans has been approved for 672 veteran-owned businesses so far this year through the SBA's 504 program, which primarily is used to finance owner-occupied commercial real estate.

The National Association of Development Companies, which represents 504 lenders, has its own initiative for veterans, VetLoan Advantage, which offers financing discounts and training for small business owners who are veterans.

Read this and other articles at Dayton Business Journal