The Worcester Business Development Corp. (WBDC) is working to develop a lending program that focuses on the business needs of military veterans. The US Small Business Administration (SBA) and the National Association of Development Companies (NADCO) are also collaborating with the WBDC to launch the program.
The program plans to offer $475 million in business loans across the nation to entrepreneurs who are veterans of the US armed forces.
NADCO, in cooperation with the SBA, hopes to increase small business loans to veterans by 5 percent over the next five years. The goal of the new program is to aid veterans in their transition back into civilian life by offering them funding to start their own small businesses. The WBDC hopes that by facilitating business development, the new program will help to generate new jobs and economic growth within the community.
NADCO hopes to convince 40 percent of its almost 270 certified development companies (CDCs) to offer discounts for the program, known as VetLoan Advantage. The discounts would result in $3,000 to $20,000 savings for qualified veterans who apply for small business loans through affiliated CDCs. The WBDC has reported that in the last year, 10 percent of SBA’s small business or commercial real estate loans were extended to military veterans.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to