By Alvin E. Terry, MBA
Business Consultant, Dynamic Business Builders
After participating in the “Houston Money Week” initiative for Financial Literacy, April 7 – 13, as a Veteran Volunteer, US Air Force, I was able to assist over 300 Veterans gain information on how to get their financial houses in order and to discuss the aspects of owning and running a small business. Financing was the primary concern of those veterans that wanted to start their own businesses. Fortunately there was a Lender that specializes in Veteran Owned Businesses. That Bank is “People Fund,” www.peoplefund.org. They have offices in Houston, Austin, and Dallas.
They have lent over $1,000,000.00 to Veterans through PeopleVet and is eager to lend an additional $1,000,000.00 to veteran business owners. They have created more than 2700 jobs for in-need populations across Texas, including Veterans. PeopleFund is a one-stop resource for “Vetrepreneurs” with access to capital and business educational resources. Texas is home to 1.76 million Veterans, equal to 8.67 percent of the total Texas population. The facts are that there are 878,000 veterans in the Texas Workforce, 90,000 Veterans in Texas are self-employed and over 35,000 new veterans are expected to move to Texas each year.
They are Texas registered as a Non-Profit 501©3 and is a U.S Treasury certified Community Development Financial Institution (CDFI), a certified SBA Lender that have microloans up to $50,000, and SBA 7A Community Advantage up to $250,000. They actually provide loans to small businesses, non profits and startups up to $250,000. Their Commitment is to Texas small businesses and entrepreneurs. Their core values include integrity, service and excellence.
The biggest challenge to any small business is access to capital. Money alone is not the answer, particularly for small startups, mentorship, business education & training increase odds in favor of success.
What Makes PeopleFund Different?
- Non-Profit Business Lender
- CDFI – Support Underserved Populations which includes Veterans
- No Application Fee
- No Established Minimum FICO Score
- Low Loan Equity Contribution
- Flexible Loan Terms and No Pre-Payment Penalty
- Post Loan Business Training and Support
- A variety of Loan Products: PeopleFund Loans, SBA Micro loan, SBA Community Advantage Loans, Lines of Credit up to $250,000
Who PeopleFund Helps?
- Businesses that lack access to bank loans
- Half of their referrals are from bankers unable to make a loan to a client
- Start- ups (12 months or less) – look for relevant experience, some equity, alternative source of income during start-up phase
- Businesses that require only working capital
- Business equipment purchase
- Business leasehold improvements
- Real Estate acquisition and construction – owner occupied
- Real Estate acquisition and construction – affordable housing
- Non – profit organizations
- Provide post loan training, education, and support
- Texas Veteran Residents
Their “Business Loan Portfolio,“ consists of Small Businesses (46 percent), Nonprofits (20 percent), and Startups (34 percent). Of startups and small business loans, 15 percent are to veterans.
PeopleVet Program
- Support entrepreneurial businesses of military active duty, retired and honorably discharged veterans, Reserve or National Guard
- Military spouse also eligible
- Loans from $1,000 to $250,000
- Normal Interest rates of 7.5 percent to 15 percent
- Veteran rates 6 percent – 13.5 percent (or lower)
- Startups welcome
- Must be a Texas resident
- Military ID or copy of DD 214 required with other required documents
THEIR MARKET – TEXAS
- Small business is BIG Business in Texas
- 254 Counties
- 2.2 million Businesses with 5 or fewer employees
- Represents 89.4 percent of all Texas businesses
- Access to capital cited as the biggest challenge
- PeopleFund relies on strategic partnerships and local agreements to provide statewide lending along with business assistance and education
TEXAS VETERANS
- Texas has 76 million Veterans, 8.6 percent of the population
- 572,355 Gulf War Era I and II Veterans
- Over 50 percent of Veterans live in 10 Texas Counties
- In the next 10 years, 35,000 new Veterans will arrive annually
- 878,060 working -90,208 (10.2 percent) are self employed
HOW TO APPLY
- Online at peoplefund.org, click on “get a loan”
- Call 888-222-0017, ask to speak to a loan officer
THEIR MISSION
PeopleFund creates economic opportunity by helping people through Texas to
- Build healthy small businesses (business loans, education & assistance)
Achieve financial security and independence
CDFI’s
- Community Development Financial Institutions
- S. Treasury Designation
Underserved Population: minorities, women owned businesses in low income census tracts
PeopleFund leads the National effort to have “Veterans” listed as an underserved population
WWW.CDFIfund.org for the list of CDFI’s
500 Community Development Loan Funds
350 Community Development Banks
290 Community Development Credit Unions
VET * FRAN
- VET * FRAN inspired by the late Don Dwyer, Sr., envisioned helping Veterans that wants to own Franchises
The Help Veterans Own Franchises (HVOF) establishes a tax credit to Veterans who become franchisees, equal to 25% of franchise fees.
The International Franchise Association (IFA) provides Veterans franchise opportunities through training, financial assistance, and industry support.
IFA’s expanded “Operation Enduring Opportunity” benefits include:
Veteran Franchise Career Exchange
Self – Assessment Tools
Training and support
Financial Resources and Ownership Incentives
Their Resource Partners
- Veterans Affairs (Vet Biz)
Small Business Development Centers
Texas Veterans Commission
Office of the Governor
SBA Veteran Business Development Offices and Outreach Centers
Texas Military Installations
Business Capital affiliates, Banks, SBA, CDFI’s
Once again, it has been a pleasure to bring to you valuable information that will get you thinking in the right direction which can ultimately save you time and money! Good luck, stay diligent and be prosperous!
You may contact Alvin E. Terry, MBA at alvin.terry@rocketmail or Cell @ 713.392.9107
