In honor of Veterans Day, which was yesterday, today we have an infographic from CreditDonkey that shows the impact of veteran-owned businesses in the US economy. Here are some quick facts:
- There are 2.45 million veteran-owned businesses, which is 9 percent of US firms
- These businesses employ 5.79 million people, and pay $210 billion in payroll annually
- They generate $1.22 trillion in sales, which is 4.1 percent of all US firm receipts
- 90.2 percent of veteran-owned businesses have less than 20 employees
The infographic also shows that veterans rely heavily on personal or family savings in order to start up or expand. Only 9.8 percent were able to obtain a loan from a bank or commercial lender to start up. Veterans have faced some significant barriers in accessing capital they need in order to launch businesses, despite the important role that their businesses play in our economy. In addition, as soldiers return home having gained valuable skills while deployed, it is critical that they are able to access the financial resources to become entrepreneurs and start their own businesses.
The Small Business Administration (SBA) just announced that it will be working to expand access to capital for veteran businesses by waiving borrower fees in its Express Loan Program. The current fee is three percent, and program provides loans up to $350,000. The aim with this new initiative is to eliminate the fee for loans of up to $150,000 in order to make these loans more affordable for veterans.
Given all the sacrifices and contributions that veterans make, they should be able to fulfill their goals and achieve financial security when they are back at home. Starting a businesses provides a pathway for veterans to do just that. Making sure that they can access the resources they need is one way that we can help to ensure their success.
Accessed from: http://www.entrepreneur.com/dbimages/article/by-numbers-us-veteran-owned-businesses-infographic.jpg