SBA Secures Pledge from Banks to Lend More to Veteran Entrepreneurs The government's small-business agency announces a pledge to support approximately 2,000 additional businesses.

By Catherine Clifford

Opinions expressed by Entrepreneur contributors are their own.

If you are a U.S. veteran looking to start or grow a business, your likelihood of accessing capital may have improved today.

Ahead of Memorial Day, the U.S. Small Business Administration announced it has secured a commitment from 120 banks to lend to more veteran entrepreneurs.

Related: The Startup Money Hunt: When Entrepreneurs Bring In Investors (Infographic)

The SBA's top 20 national lending partners and another 100 smaller, regional lenders in the U.S, have said they will increase their lending to veterans by 5 percent each year for each of the next five years. Wells Fargo, Bank of America and TD Bank are among those who have taken the pledge.

The SBA estimates that the pledge from banks will mean that roughly another 2,000 SBA-backed loans will be made to veteran entrepreneurs totaling approximately $475 million.

Related: From Renting Bedrooms on Airbnb to $1.5 Million in Venture Capital: Lessons in Resourceful Startup Funding

SBA Administrator Karen Mills announced the measure, called the SBA Veteran Pledge Initiative, from Fort Bragg, N.C. The effort to support veterans comes as federal programs have come under scrutiny for taking an unreasonably long time to get veterans their benefits.

Veterans are more likely than their civilian counterparts to start their own businesses, says the SBA. Currently, 9 percent of small businesses are veteran owned. The definition of a small business depends on the industry, according to the SBA. Those 2.45 million small-businesses owned by veterans employ upwards of 5 million people, the SBA says.

Related: Obama Offers $200 Million Prize to Build 3 Manufacturing Innovation Hubs

If you are a U.S. veteran, have you tried to obtain a loan for your small-business from a bank recently? What was your experience like? Leave a note below and let us know.

Catherine Clifford

Senior Entrepreneurship Writer at CNBC

Catherine Clifford is senior entrepreneurship writer at CNBC. She was formerly a senior writer at Entrepreneur.com, the small business reporter at CNNMoney and an assistant in the New York bureau for CNN. Clifford attended Columbia University where she earned a bachelor's degree. She lives in Brooklyn, N.Y. You can follow her on Twitter at @CatClifford.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

Uber's CEO Says Drivers Have About 10 Years Left Before They Will Be Replaced

Uber CEO Dara Khosrowshahi says the jobs of human drivers are safe for the next decade, but after that, another type of driver will take over.

Business News

'Everyone Can Profit From It': What Is DeepSeek? China's 'Cheap' to Make AI Chatbot Climbs to the Top of Apple, Google U.S. App Stores

DeepSeek researchers claim it was developed for less than $6 million, a contrast to the $100 million it takes U.S. tech startups to create AI.

Business News

'I Love Doing Product Reviews': Bill Gates Stepped Down from Microsoft in 2020, But Admits He Still Spends 15% of His Time Working at the Company

In a new interview with the Wall Street Journal, Gates also said he is still close with Microsoft's CEO Satya Nadella.

Branding

How to Build a Strong Brand Identity for Your Early-Stage Startup

Branding might not be your first priority, but neglecting it can hurt your startup. A strong brand identity early on sets the stage for marketing success.

Business News

Elon Musk's DOGE Is Hiring People Eager to 'Work Long Hours' to Eliminate 'Waste, Fraud and Abuse' in the Government. Here's How to Apply.

The Department of Government Efficiency is hiring U.S. citizens to help cut spending and headcounts in the federal government.