NADCO’s Push for VetLoan Advantage Program
May 17, 2013
By Bob Coleman
Editor, Coleman Report
This week we attended the 2013 NADCO Annual Meeting at the Hotel Del Coronado in San Diego. We sat down with NADCO Board Member Patrick MacKrell, President & CEO, NYBDC, Empire State CDC and Mike Owen, CCO of CDC Small Business Finance to disuss the new VetLoan Advantage Program.
Here is the transcription of the interview:
Bob Coleman: NADCO Initiative, VetLoan Advantage, Patrick tell us about it.
Patrick MacKrell: The idea is for NADCO as a trade organization to draw out it’s constituents, the CDC’s across the country to incent and encourage each of them to develop a verteran advantage loan program.
Bob Coleman: Why would a CDC want to embrace the NADCO initiative?
Patrick MacKrell: Well first and foremost as a veteran myself I would say it’s out of a sense of obligation. We each give in accordance with our ability and this is something that the CDC’s can do. Veterans have the training, background, experience, discipline, and focus to operate a small business. With the ability to provide financing and the capital necessary to make that happen, it’s very important.
Bob Coleman: Mike, do you see this as a marketing advantage for a CDC?
Mike Owen: Most definitely. We have offered SBA loans to veterans for years and this just gives us another angle to give them an advantage as they return home. Bringing them back into the main stream, getting businesses and getting the economy going.
Bob Coleman: Let’s get into the weeds, what specifically do you give the vets if they take these loans?
Mike Owen: As a qualified applicant and as a veteran we would give them a cost inducement up to $3000. Reduced fees for some of our other programs, Community Advantage, SBA micro loans, really lowering the cost.
Bob Coleman: Do you get the first mortgage lienholder to also reduce their fees?
Mike Owen: That’s the hope here, we would like to encourage volunteers of all programs to embrace this initiative.
Bob Coleman: This is a voluntary program, this is not a SBA sponsored program, this is something the community has embraced.
Patrick MacKrell: And also the financial incentives that vary from CDC to CDC. Mike is focused on appraisals and environmentals, our focus is different. We are reducing prices, eliminating the 3rd party lender, we’re reducing the servicing fee. Theorhetically if you are vet and you get a $5 million loan, the cost savings would be about $30,000 in fees.
Bob Coleman: Well I think it’s a great program, congratulations for NADCO taking the initiative for the VetLoan Advantage program. Mike Owen, CDC Small Business Finance and Patrick MacKrell, Empire State CDC out of New York, gentlemen thank you.