JPMorgan Chase has announced that it will be making an investment of $4.2 million in order to offer support to businesses that are owned by veterans. The investment will enhance the ability of organizations such as PeopleFund of Texas, the Carolina Small Business Development Fund of Florida, South Carolina and North Carolina, Main Street Launch of California and Community Development Financial Institutions to offer loans to veterans who are interested in starting or growing their own businesses.
“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,” said JPMorgan Chase’s Business Banking chief executive officer, Andrew Kresse.
Additionally JPMorgan Chase also renewed the partnership it has with Bunker Lab, an organization dedicated to equipping veteran business owners with the resources and tools they need to achieve their business goals.
In the course of the coming five years, one million people will leave the military and close to a quarter of these are interested in starting their own enterprises. However only 4.5% will succeed mainly because of lacking the right networks and access to capital. Currently about 9% of the businesses in the United States are owned by veterans and these businesses create employment for close to six million people and generate revenues of $1.2 trillion.
In its Small Business Forward initiative, JPMorgan Chase has made a commitment of investing approximately $75 million in the course of the coming three years to support small businesses owned by veterans, women and minorities. The U.S. lender intends to do this using data-driven approaches.
Chase Business Leaders Outlook
According to a study done by Chase Business Leaders Outlook, businesses owned by veterans are more optimistic of business prospects in 2018 than businesses owned by non-veterans. In the next one year there are more veteran-owned enterprises who are expecting to report a rise in credit needs, capital expenditures and profits compared to enterprises owned by non-veterans. Businesses owned by veterans also have stronger hiring projections compared to enterprises owned by people who have never served in the military.
Other findings of the study include the fact that veteran-owned enterprises have a higher likelihood of being certified as women-owned, minority-owned or green compared to their non-veteran counterparts. There is also a higher likelihood of a veteran-owned business to spend resources on mobile advertising compared to an enterprise owned by a non-veteran. In absolute numbers 42% of veteran-owned businesses spend on mobile ads compared to only 19% of non-veteran enterprises.