BofA Doubles Support for Veteran Loan Fund to Aid Growth of Veteran-Led Small Businesses

Rhea-AI Summary

BAC: Bank of America doubles support for Veteran Loan Fund, aiming to grow to $100 million by 2027. The fund provides responsible capital and technical assistance to former military personnel building small businesses, with the first $15 million round funding over 500 businesses and creating/retaining 3,000 jobs across 37 states.

Pioneering Fund aims to grow to $100 million for Former Military Personnel

NEW YORK, Nov. 8, 2023 /PRNewswire/ -- Bank of America is seeding a second round of financing for Veteran Loan Fund, doubling a two-year-old commitment that has already funded more than 500 small businesses built by former military personnel that have created or retained more than 3,000 jobs across 37 states. The fund's first $15 million round, closed in 2022, was deployed in less than 12 months.

The Veteran Loan Fund is a national collaborative of a growing number of Community Development Financial Institutions (CDFIs) and specialized veteran service organizations providing responsible capital and technical assistance to underserved veteran entrepreneurs. The fund offers an online platform that connects military veterans and their spouses with mission-focused lenders and education partners to help them build and sustain small businesses. Eligible veterans benefit from below market rate funding and free business coaching.   

"Many veterans have the drive, discipline and leadership skills to fuel small business growth but lack the funding or network to help them grow. We have seen the benefits of low-cost capital in catalyzing entrepreneurship and are pleased to continue to support this work," said Dan Letendre, head of CDFI Lending at Bank of America.

"Access to responsible capital is a key issue for military veteran entrepreneurs," says Grant Bennett, Director of Veteran Programs and Operating Manager of the Veteran Loan Fund. "Now is the time to scale our impact within the veteran business community. We can only do this through the work of our CDFI partners and support of organizations like Bank of America."

The Veteran Loan Fund plans to grow to $100 million across the nation by 2027, an amount equal to the estimated annual demand for capital from veteran entrepreneurs who lack any funding for their businesses. Its first $15 million round, fully deployed in less than 12 months, was made possible by a $5 million commitment of long-term, below market rate lending capital from Bank of America as lead investor in 2021, along with support from other major institutions. In this round, Bank of America will provide $10 million in support of the new $25 million fund.   

Bank of America is the largest investor in CDFIs, with $2 billion in financing to more than 260 CDFIs across all 50 U.S. states and the District of Columbia.

Veteran Loan Fund
Member CDFIs currently include: Access to Capital For Entrepreneurs (GA), Appalachian Community Capital (VA), Black Business Investment Fund (FL), Business Impact Northwest (WA), Colorado Enterprise Fund (CO), Dream Spring (NM), Economic and Community Development Institute (OH), Pathway Lending (TN), Justine Petersen (MO), PeopleFund (TX), Pursuit (NY), and Wisconsin Women's Business Initiative Corporation (WI).

Specialized technical assistance partners include: Bunker Labs, Vet Met, Vet to CEO, as well as local partnerships with Veteran Business Outreach Centers, SCORE and SBDCs.

For more information, please visit https://www.veteranloanfund.com.

Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact:

Susan Atran, Bank of America
Phone: 1.646.599.3300
susan.atran@bofa.com

Jenny Palecek, PeopleFund
Phone: 1.512.222.1005
JPalecek@peoplefund.org

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SOURCE Bank of America Corporation

FAQ

What is the purpose of the Veteran Loan Fund?

The Veteran Loan Fund aims to provide responsible capital and technical assistance to former military personnel to help them build and sustain small businesses.

What is the investment commitment from Bank of America?

Bank of America has committed $10 million in support of the new $25 million fund, after previously committing $5 million in 2021.

What is the goal for the Veteran Loan Fund's growth?

The fund plans to grow to $100 million across the nation by 2027, an amount equal to the estimated annual demand for capital from veteran entrepreneurs.

What are the benefits for eligible veterans?

Eligible veterans benefit from below market rate funding and free business coaching.

What are the current member CDFIs of the Veteran Loan Fund?

The current member CDFIs include Access to Capital For Entrepreneurs, Appalachian Community Capital, Black Business Investment Fund, and others.