Would you use your Post 9/11 GI Bill benefits as a small start-up loan if you could?

2014-07-05T11:27:14-04:00

I am putting together information in preparation for an effort to change the way Post 9/11 GI Bill benefits can be used. Did you know that after WWII, veterans could use their GI Bill benefits to start a small business? The idea is to allow post 9/11 GI Bill benefits to be used as a start-up loan worth $35,000. This loan would have a low interest rate with the interest being used to help administer the loans to veterans. The best part of my idea is to create milestones for veterans entrepreneurs that if they hit these milestones, the loan would turn into a grant that would not have to be repaid. The milestones would be to create 5-8 full time jobs and be in business continuously for 3 years and of course meet all of your tax & regulation obligations.

Approximately, 250,000 veterans will be leaving active duty service each year for the next five years. Even if 25% used their benefits to start a small business, that has the potential to create hundreds of thousands of jobs. Additionally, there are emerging industries like cyber-security and industrial technology (Internet of Things) that are looking for new vendors (small businesses). When you add on the fact that baby boomers are retiring and looking to sell or turn-over their businesses, there is a huge opportunity for entrepreneurs.

Anyway, please comment using this format below and leave any additional comments.

1. Would you use this benefit or go to college?
2. What city/state or region would you start a new small business?
3. In which industry (retail, food & beverage, mobile app tech, consulting, government contracting, etc) or franchise would you start your small business in?
4. Would you go it alone or seek to partner with another veteran?

Response by CMDCM Gene Treants made Jul 5 at 2014 12:00 PM

2014-07-05T12:00:44-04:00

What a great idea. Of course many Soldiers go into the Army just like many Sailors go into the Navy expecting to go to college. When life happens, their plans change.

The ability to shift money from College to Business would make a difference for many Veterans and even Retired personnel.

As you can see I am retired, so your questions may not seem to apply, but they might have when I retired if this option had been available.
1. I would have probably still gone to college. If not,
2. The Piedmont Area of NC
3. Consulting - Counseling
4. In with at least on or more Vets

Response by SFC(P) Private RallyPoint Member made Aug 22 at 2014 6:31 PM

2014-08-22T18:31:32-04:00

Sir-I just noticed your post, late responce but your question captured my attention. I think it's a fantastic idea, but believe it would be difficult to manage.

I believe the post 9/11 GI Bill offers a sustainable employment mechanism for vets, education. Where as a a small business loan could very easy turn into a failed venture if not planned and analyzed properly. Even if the borrow did all the right things the business could go belly up. Now the vet has a debt and no education benefits.

I'm sure there would have to be an appropriate business model/plan presented before the loan was granted. The difference is see is that this is a program the vet has paid into like everyone else. So denying loan request might prove problematic. If given the option to pursue a MBA or open a franchised Subway after retirement, I would bet most folks would take the path of least resistance. Not to mention the up front cost and the dent it would take out of the budget annually with the risk of no return.

Maybe a combination of both would be ideal. If a six month program was developed and required before being eligible for the loan benefit, that might be a safer investment for both parties. It would accomplish two things, determining the ambition of the potential beneficiary, and educating that individual on market analysis, consumer trends, employee and tax laws..etc. I think that would weed out potential defaulted loan returns immediately.

My final though is this. Paying interest on a veterans benefit seems a little grimy. Now the government would be profiting from your failed business attempt in the worst cases. If it is a benefit then it should be just that, pay back to loan and not a cent more.

Response by TSgt Joshua Copeland made Nov 15 at 2014 4:59 PM

2014-11-15T16:59:07-05:00

I would be onboard with that! In a way, that's what I am doing any ways! I am starting my own business while also taking online classes just to get the partial BAH to sustain myself until business is rolling. If it weren't for the BAH, I wouldn't be doing college online.

Response by LT Sean McIntosh made Nov 29 at 2014 4:00 PM

2014-11-29T16:00:28-05:00

The National Commander of the American Legion posted this article last January online.

http://www.legion.org/magazine/218113/extend-gi-bill-business-owners

I think it is spot on and shares many of the same ideas I have for changing how post 9/11 benefits can be used.

Extend the GI Bill for business owners

Response by Laura Dufrene made Mar 6 at 2015 9:09 PM

2015-03-06T21:09:28-05:00

I know this is late but I saw a post on Facebook about this and started searching on behalf of my husband, a Marine. He would LOVE if this would happen. He has a dream of owning a farm/cattle ranch where he could provide fresh meat and vegetables to restaurants and individuals in the big cities. It would be amazing if we could hire vets to come, especially the ones who have severe PTSD issues and need to be in a calm place.... praying this happens!