On Tuesday, two U.S. senators asked the Government Accountability Office (GAO) to look into the Veterans’ small business lending programs.
U.S. Sens. Jeanne Shaheen (D-NH), the chair of the U.S. Senate Committee on Small Business and Entrepreneurship, and Joni Ernst (R-IA), the committee’s ranking member, asked the GAO to review the role of the federal government, including the U.S. Small Business Administration (SBA), in helping veterans, reservists and their spouses gain financial literacy and increase their access to capital.
“Veterans, in particular, often submit more applications for loans, lines of credit and cash advances than their nonveteran counterparts but obtain less financing than requested,” the senators said in their letter. “Moreover, veteran-owned small businesses’ loan approval rates were lower than their civilian counterparts.”
Shaheen and Ernst said that in a 2023 SBC hearing about veteran entrepreneurship, testimony given called to attention the issues veteran face when attempting to start or grow a small business, as well as the lack of data available to federal agencies trying to help them.
“At the start of their entrepreneurial journey, Boots to Business and Boots to Business Reboot empower veterans and reservists with the skills and knowledge to launch a business,” the Congresswomen wrote. “Despite this support, access to capital remains a persistent issue for veteran and reservist entrepreneurs and small business owners. Veterans, in particular, often submit more applications for loans, lines of credit and cash advances than their nonveteran counterparts but obtain less financing than requested. Moreover, veteran-owned small businesses’ loan approval rates were lower than their civilian counterparts.”
The law makers requested the GAO provide a report detailing an analysis of the federal lending programs available for veterans, reservists and military/veteran spouse-owned businesses, as well as an analysis of any gaps in the availability of credit and any obstacles veterans, transitioning service members and military spouses may face.