Worcester Business Journal

wbjournal.com | October 2, 2023 | Worcester Business Journal 13 FOCUS BA N K I N G & F I N A N C E A military MINDSET As veteran entrepreneurs seek to bridge the gap between their military expertise and the business world, a credit union works to help them tap into the vast array of resources BY EMILY MICUCCI Special to WBJ I t's never easy to get a business loan when you're a fledgling entrepreneur. According to Federal Reserve Data, 31% of small businesses nationally received all of the funding they sought in 2021, and the number of business owners who even applied for traditional financing is steadily dropping as borrowing becomes more expensive. Veterans face added challenges, and at least one local credit union is seeking to make business loans more accessible for entrepreneurs who have served in the military. Peter Rice was hired as president and CEO of Hanscom Federal Credit Union 18 months ago, in part because of his experience with business lending programs targeting veterans. Headquartered in Littleton, Hanscom FCU has locations in major U.S. Department of Defense buildings in Massachusetts and serves about 100,000 members, most of whom are connected to the military. According to the U.S. Small Business Administration, veterans own nearly 2 million U.S. small businesses, employing more than 5 million people. But they're less likely to receive the funding they've applied for compared with non- veteran applicants, according to the Federal Reserve. It's a missed opportunity for lenders, Rice said. As home loans have declined, Hanscom FCU doubled down on commercial lending – a relatively untapped front for credit unions – adding a U.S. SBA loan program specifically for veterans. It offers more favorable terms and special carve-outs for veterans. "It's not about charity. It's about investing," Rice said. Funding options Traditional financing isn't the only way forward for veterans in business. More veteran entrepreneurs are turning to crowdfunding platforms like Kiva or Kickstarter, which rely on cash donations from supporters online, said Lisa Ducharme, executive director of the Massachusetts Veterans Chamber of Commerce, which was founded this year. As new funding options grow, Ducharme said her organization is focused on connecting veteran entrepreneurs with resources for starting and growing their businesses. "My goal is to start getting veterans thinking about their businesses," said Ducharme, a retired U.S. Air Force veteran and 3D animation and interactive media entrepreneur. Pitch competitions are another avenue, and one Hanscom FCU started offering through the Continued on next page Michael Kerwin, a Groton native and former Army infantry officer, patented a sunscreen bottle that ensures sunscreen is evenly applied. Peter Rice, CEO and president of Hanscom Federal Credit Union PHOTO | COURTESY OF MICHAEL KERWIN

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