More than 30% of non-profits cease to exist after a decade. That’s why I’m especially proud that this fall PeopleFund, will celebrate 30 years of impact supporting small businesses across Texas.
As we celebrate this important milestone, we reflect on the power of collaboration and community support. Since its establishment in 1994, PeopleFund has made a significant contribution to the state's economy, generating over $1 billion in direct economic impact. Our organization has supported over 5,500 small businesses, played a role in creating thousands of jobs, and empowered countless Texans to achieve financial security and self-reliance. We remain deeply committed to supporting underserved communities in building thriving small businesses, and we recognize that our work is far from over.
The U.S. Bureau of Labor Statistics reports that 23.2% of businesses fail within their first year. To address this challenge, we offer more than just the financial capital needed to launch a small business. We provide ongoing education and resources to help entrepreneurs build and sustain thriving businesses. As part of our commitment to improving our state, we've expanded our programs, notably our Veteran Programs as part of our participation in the Veteran Loan Fund, a collaborative effort of a growing number of CDFIs supporting Veterans across the country.
The Veteran Loan Fund has had a remarkable impact since its inception in 2021. As of June 2024, its members have provided over 900 loans and 21,000 hours of technical assistance to veteran-owned businesses across the country, deploying nearly $74 million and contributing to the creation or retention of almost 5,300 jobs. Close to 30% of the veterans served were low or moderate-income, 55% were minorities, and 35% were women. PeopleFund represents 20% of the lending activity of the group, having deployed close to $15 million to veterans in Texas.
This success would not have been possible without the generous and transformative support of Wells Fargo. In 2021, a $1.5 million grant from Wells Fargo to PeopleFund, combined with a $3.5 million investment from the community lending and investment team, facilitated the initial $15 million round of funding. Wells Fargo backing has enabled the Veteran Loan Fund to offer nationwide expertise in areas crucial for business success, including marketing, accounting, inventory management, and more.
Given the significant veteran population in Texas being part of the Veteran Loan Fund was a crucial part of PeopleFund strategy to support Veterans. Support from elected officials such as Congresswoman Sylvia Garcia (TX-29) and Congressman Al Green (TX-09) has been crucial in advocating for economic opportunities for veterans at the federal level. Their efforts, including co-sponsoring legislation including the Veterans Entrepreneurs Act and fighting for reforms to improve healthcare and combat homelessness, have created a more supportive environment for local veterans to prosper after their service.
Transitioning from military to civilian life can be a complex journey for veterans, often fraught with unique challenges. However, many veterans find empowerment and renewed purpose through entrepreneurship, with nearly one in ten small businesses in the U.S. being veteran-owned. Simply put, business ownership can provide a renewed sense of purpose. Through our Veteran Programs, PeopleFund offers vital financial and technical support while cultivating a supportive community of fellow veteran entrepreneurs in Texas. Together, we ensure that veterans do not navigate this transition alone.
As Texans, we cherish the values of resilience, independence, and entrepreneurial spirit. These values are deeply ingrained in our veterans and small business owners, who play a crucial role in the prosperity of our communities. As we look to the future, we are dedicated to empowering underserved small businesses, fostering a vibrant and inclusive economy, and ensuring prosperity for all, regardless of their socioeconomic backgrounds.
With heartfelt appreciation, we thank our dedicated supporters for their steadfast partnership and for celebrating this milestone of 30 years with us. Your support has been integral to our success. Together, we remain committed to empowering small business owners across Texas, fostering innovation, and building a thriving economic landscape for all.
About the Author
Gustavo Lasala is the President and CEO of PeopleFund.
