U.S. Sen. Joni Ernst (R-IA) made a bipartisan request to the Government Accountability Office (GAO) to conduct a review of federal efforts to ensure veterans, reservists, and military spouses are not being left behind when it comes to accessing capital for starting or growing small businesses.
Sen. Ernst, who serves as ranking member of the Senate Committee on Small Business and Entrepreneurship, along with U.S. Sen. Jeanne Shaheen (D-NH), chair of the committee, sent a Feb. 13 letter to U.S. Comptroller General Gene Dodaro regarding veterans small business lending programs.
Congress needs more information on issues facing veterans trying to access capital, what financial literacy programs are available to them, and how they can be more effective, the letter said.
“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,” Sens. Ernst and Shaheen wrote. “Moreover, veteran-owned small businesses’ loan approval rates were lower than their civilian counterparts.”
The senators requested that the GAO’s report include an analysis of any gaps in the availability of credit for veteran, reservist, or military/veteran spouse-owned small businesses that are not being filled by the federal government or private sources. They also asked for details on obstacles veterans, transitioning service members, and military spouses face when trying to build credit and access capital, among other issues.