The multi-million dollar commitment benefits Community Development Financial Institutions (CDFIs), Main Street Launch (California), Carolina Small Business Development Fund (North Carolina, South Carolina and Florida), and PeopleFund (Texas), to provide loans for veterans looking to start or grow their own businesses. The firm also renewed its partnership with Bunker Labs to support their mission to equip veteran entrepreneurs with the tools and resources they need to succeed.
One million service members will transition out of the military over the next five years, nearly a quarter of whom will try to start their own businesses, but only 4.5 percent will succeed due to lack of access to capital and networking. Veterans bring tremendous value to the economy, with nine percent of all businesses in the country veteran-owned, representing nearly six million employees and $1.2 trillion in sales.
“Veterans make excellent business owners, so it makes perfect sense for us to help connect them with the access to capital they need to succeed,” said Andrew Kresse, CEO of Business Banking at Chase. “We’re pleased to work with outstanding partners who serve the veteran business community, and in turn, help strengthen the communities in which we all live and work.”
The investments are a part of JPMorgan Chase’s Small Business Forward program to invest $75 million over the next three years in support of women, minority and veteran-owned small businesses through a series of data-driven approaches to help build their long term success, while also creating local and inclusive economic growth. Additionally, a new Chase Business Leaders Outlook study reveals that veteran-owned businesses report a stronger business outlook for 2018 than their non-veteran peers.
• Veteran-owned small business leaders tend to have a more strongly optimistic outlook than non-veteran business leaders;
• In the next 12 months, more veteran-owned businesses expect to increase: profits, capital expenditures, and credit needs compared to non-veteran peers;
• Veteran-owned businesses also have stronger employment projections–more plan to increase employees compared to non-veteran businesses;
• Veteran-owned businesses are more likely than non-veterans to consider financing within the next 12 months;
• Veteran-owned businesses are more likely than non-veteran businesses to be certified as “Green,” “Minority Owned,” or “Women-Owned;”
• The majority of veteran-owned businesses are also mobile-and social-centric–73% have used mobile banking apps for their businesses, and 66% say social media has had a positive impact on their business;
• Veteran-owned businesses are more likely than non-veteran businesses to spend money on mobile advertising (42% vs 19% of non-veterans).
“Our partnership with JP Morgan Chase ensures that the 250,000 service members who will leave active duty this year and for the next five years have access to the community, education, and financial resources to pursue their dreams of small business ownership,” said Todd Connor, CEO of Bunker Labs. “While 25% of transitioning veterans aspire to start their own business, only 4% will. This partnership helps us close the ‘dream-deficit’.”
“Those who have served bring invaluable skills like fortitude, leadership and integrity to everything they do in the civilian sector,” said JPMorgan Chase’s Head of Military and Veterans Affairs Ross A. Brown. “Supporting our veterans isn’t just the right thing to do; it’s also makes good business sense.”
JPMorgan Chase has supported veterans since before World War I. The Office of Military and Veterans Affairs (MVA), started in 2011, has hired more than 12,000 veterans and facilitated more than 400,000 veteran hires through the Veteran Jobs Mission coalition; awarded more than 900 mortgage-free homes to military families in need; helped 7,700 veterans and military spouses complete 10,500 career certifications through Veterans Career Transition Program at the Institute for Veterans and Military Families, which was co-founded and is supported by JPMorgan Chase and Syracuse University.