Four years after the General Assembly approved a mentorship program for veterans starting new businesses with low-interest loans, the Missouri Department of Economic Development has not yet begun its efforts.
HB1503, approved by Congress in 2018, demanded that veterans be given priority to low-interest loans through a linked deposit program called MoBUCK $ managed by the office of State Treasurer Scott Fitzpatrick. did. He also called on the Department of Economic Development to establish a Boots-to-Business mentorship program to ensure the success of these veterans’ ventures.
To date, the bill hasn’t moved the needle much.
Lin Rouder, the founder of a veteran business project, persuaded lawmakers at the time. R-La Monte’s Dean Dohrman will push the bill in 2018.
“One thing we know is that the law will come into force over time,” he said. “Doing it and defending it to individuals is something else.”
Mr Dorman, who is no longer a member of parliament, said he was interested in boosting veterans who tried to strike on their own.
“If you can lose any interest, it’s saved money that can bring you back to building your business,” Dohrman said. “I think this will be a real opportunity in the future.”
Lauder founded 501 © 3 over nine years ago. As a Vietnamese veteran, he said he knew the importance of helping veterans returning to normal life after the battle.
“Many of them are much better off being captains of their rowing boats than being buried in the engine room of a large ocean liner or somewhere else,” he said.
The Fitzpatrick office has worked hard to raise awareness of linked deposit programs. Spokesperson Mary Compton said the office contacted more than 1,200 financial institutions and encouraged borrowers to advertise.
Fitzpatrick also recently held a press conference in Colombia with Greg Bexen, regional president of Hawthorne Bank.
“We haven’t used this program much in the last few years because interest rates are so low,” says Bexen. “But as interest rates go up, it’s a great program to deposit and lend that money. It’s a little cheaper.”
“The loan program can be very important to give businesses access to affordable capital, especially when the economy is uncertain,” Fitzpatrick said.
“If we lack access to these funds, we will prioritize or prioritize veterans,” Fitzpatrick said of the HB1503. I think this program has been around $ 40 million over the last decade. “
According to accounting firm data, the state has actually supported about $ 38.9 million in loans to veteran-owned businesses since 2012, including a total of $ 10.7 million in 201817. Includes loans. Since then, the amount of loans to veterans backed by the Link Deposit Program has plummeted. In 2021, only one such loan worth $ 68,000 was issued.
In an email, Compton said accounting firms are already increasing their participation in MoBUCK $ as the Federal Reserve raises interest rates in the fight against inflation. According to Compton, the Link Deposit Program supported a total of $ 27.9 million in low interest rate loans in 2021. In the first six months of 2022, he invested $ 58.7 million in linked deposits.
The Boots-to-Business program, on the other hand, is not yet on track.
Amy Berenzen, a spokesman for the Department of Economic Development, told the Missouri News Network that the program is awaiting final approval. “We are proud to partner with the State Treasury because we support veteran military business owners through the MOBUCK $ Link Deposit Program,” she said in her email.
“We are ready to connect veteran business owners who are participants in MoBUCK $ with Boots-to-Business mentors in Missouri who support and advise on building and maintaining a business,” said Berendzen.
According to Compton, when the Boots-to-Business program is implemented, the Treasury Department will help connect the Department of Economic Development with veterans receiving low-interest loans.
Lauder said he has worked with economic development staff to develop mentorship efforts. Although moving slowly, he said Missouri as a whole has helped veterans trying to launch their businesses.
“I don’t think Missouri will occupy a second seat for anyone anywhere, when it comes to people in states who generally support veterans and really understand what veterans are,” Lauder said. Said. “So if there is a state where veterans can grasp this notion of starting a business for themselves, it’s Missouri.”
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