Hoping to help veterans who transition to small business owners, U.S. Sen. Mike Rounds (R-SD) introduced a bill to make permanent a U.S. Small Business Administration (SBA) policy to waive up-front fees for veterans securing capital under its Export Express Loan Program.
The Veteran Small Business Export Promotion Act would permanently waive up-front fees for veterans applying for Export Working Capital and International Trade loans of $150,000 or less.
“The Veteran Small Business Export Promotion Act is a win for South Dakota veterans looking to start a small business when their service is up,” said Rounds, a member of the Senate Veterans’ Affairs Committee and the Senate Small Business and Entrepreneurship Committee.
“Our bill would simultaneously help them transition to civilian life and promote entrepreneurship among our vets. Our men and women in uniform risk everything to protect our freedoms; this legislation is but one way we can thank them for their service,” he said.
Export Working Capital and International Trade loans help small business owners secure working capital to fill export orders, export receivables or letters of credit through SBA loan guarantees. This helps entrepreneurs compete in competitive markets overseas.
U.S. Sen. Mazie Hirono (D-HI), who introduced the bipartisan legislation with Rounds, said more than 11,000 veteran-owned businesses in Hawaii alone support the local economy and generate jobs.
“Veterans, including those transitioning to civilian life, often face a number of barriers to accessing the capital needed to start and grow a business which is why I am proud to introduce this bill to provide long-term fee relief on SBA loans while promoting Hawaii exports around the world,” Hirono said.
The policy to waive fees on export loans for veterans was established in 2013 and has been renewed each year since. The current renewal is scheduled to sunset on Sept. 30.