PenFed, Foundation Launch Seed Fund for Vet Startups
PenFed CU to give up to $1 million in matching funds.
PenFed Credit Union and its affiliated nonprofit have launched a seed capital fund to help launch veteran-owned businesses.
PenFed of Tysons, Va. ($22.9 billion in assets, 1.6 million members), the nation’s second-largest credit union, said Thursday it will contribute up to $1 million this year to match contributions by individuals and groups to The Pentagon Federal Credit Union Foundation.
The donations fund the PenFed Foundation’s new seed fund called the Veteran Entrepreneur Investment Program designed to provide capital for veterans to build their businesses, create a network for veteran-owned businesses and enable the PenFed Foundation to perpetually re-invest returns in future veteran-owned businesses.
About 200,000 veterans leave active duty each year, and 25% of them plan to start their own business.
“There is no shortage of talent or ideas, just capital and a powerful network of support,” said PenFed CU President/CEO James Schenck. “PenFed is dedicated to innovating new ways to support the service men and women who fight and win our nation’s wars. Investing in veteran entrepreneurs is not only the right thing to do, it is good for the economy, will create new jobs and help businesses thrive.”
The program plans to invest in three to five selected businesses a year. Returns on all investments will go back into the program to help launch subsequent waves of veteran businesses.
The institutions said the program will benefit from their own internal expertise plus a network of more than 1,700 business partners to provide professional advice for planning, personnel, sales, marketing and other areas as needed.
“The Veterans Entrepreneur Investment Program builds on the mission of the PenFed Foundation to provide those who have served, their families and caregivers the skills and resources they need to build a strong financial future,” said Bruce Kasold, the PenFed Foundation’s acting president/COO. “Veterans are tested, strong leaders who are especially mission driven. the VEIP will help veterans build a strong financial future for themselves, their families and communities.”
PenFed CU, which was established in 1935 as the War Department Credit Union, founded the PenFed Foundation in 2001. Since then, the foundation has provided more than $30 million in financial support to veterans, active duty service members, families and caregivers. Its key programs include:
- Emergency financial assistance for veterans with disabilities;
- Caregiver assistance, such as childcare or educational assistance;
- Homeownership grants for low- to moderate-income veterans and service members to purchase their first home;
- Interest-free microloans for service members and reservists to combat and provide alternatives to predatory lending.