SBA loans for veterans, spouse, too

Q:  I wanted to know if there were any veteran programs through the Small Business Administration (SBA) to start up a new business or invest in an existing one?

-Brian, Los Angeles, Calif.

A:  It’s exciting to have a great idea for a new business.  Now all you need is cash!  Yes, there are monies available, but it’s a big step so be sure to think through every detail before you leap!  In recent years the government has ramped up support of our service members and veterans.  A vastly expanded GI Bill, robust incentives for service and continued service, and programs like the Patriot Express loan program through the SBA are all examples. 

 

And the Patriot Express may be exactly what you’re looking for.  As is true with all SBA offerings, you’ll have to work through a participating lender, but it’s a huge opportunity with loan amounts up to $500,000.  Available to veterans, disabled vets, reservists, transitioning active duty, and even spouses of all of these groups, the loans carry low interest rates and can be used for most business purposes, including: start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases.  The SBA also offers small business training.  This looks as though it might be just what the doctor ordered!  Good luck.

 

Direct deposit easy as 1. 2. 3

Q:  I am Air Force retired, just changed banks, and am having problems finding the necessary information I need to change the direct deposit from my old bank to the new.  Who do I contact to have that done?  Thank you very much.  I appreciate you and what you do.

--Barry, Statham, Ga.

Answer: It’s as easy as 1, 2, 3 – and you have choices about how to do it!  You can log onto www.mypay.dfas.mil and select the top option which allows you to start direct deposit or change account information.  It makes the direct deposit application process very easy.  Option 2 is to complete the Direct Deposit Standard Form, SF 1199A and mail or fax it in.  If you prefer to talk to a person, call a DFAS customer service representative at 1-800-321-1080 (toll-free) or commercial (216) 522-5955.

Payday Loan Pitfalls

Q:  My husband keeps taking out pay day loans even though I have done everything but leave him to make him understand they are BAD. The last one he took out, he gave them a check from my account. I read that Bush passed a new law so they can't connect anything to an account, especially mine. It doesn't even have his name on it. I feel like I am never going to get out of this hole he put us in. What can I do to get rid of these loans instead of getting rid of him?

- Tera

A:  Bad is right!  And you are right!  For years I’ve been an outspoken critic of payday loans and you’re now living the vicious cycle nightmare – borrowing to pay off one loan and then borrowing to pay off that loan too.  I am so sorry to hear that and I understand your frustration.  As part of the 2007 Defense Authorization, a 36% rate cap was placed on payday loans to military servicemembers.  The same legislation forbids the use of personal checks to access the borrower’s bank account.  If you have concerns of non-compliant loans, I would recommend you contact your state’s attorney general. 

I don’t know how you can fix your husband. Borrowing that money has become an easy fix for him and he needs to understand the long term ramifications of those decisions.  By continuing to borrow at super high interest rates, he is possibly robbing your family of the opportunity to own a home, educate children, retire later down the road. He also needs to know that the military my revoke, suspend or deny a security clearance based on personal debt. Family and financial counseling may be in order. You may consider starting at the chaplain’s office. USAA does offer free financial advice as well. Best wishes to you both.

"Banking" on ATM fees

Q: My son is stationed at Sheppard Air Force Base in Wichita Falls, Texas, for his tech training, and then he will be stationed thereafter at Yokota Air Base in Tokyo, Japan. Is there a bank (or federal credit union) that would provide him free ATM withdrawals anywhere in the U.S.? Is there a bank on Yokota Air Base that provides the same service?

- Hilary, Newport News, Va.

A: First off, thanks to your son for his service; what a good boy, right, Mom? Your question does highlight one of the nice advantages of banking with us here at USAA Federal Savings Bank—we refund up to $15 per month in ATM fees incurred anywhere in the world. Not a bad deal. When out and about, your son will make purchases or pay dinner bills with Japanese Yen. He can conveniently withdraw Yen from the ATM machines provided on base. However, if your son plans to “live on the economy,” that complicates things a bit. He may need to get a local bank account to make transactions such as paying rent. He can check it out when he gets there. My Army Reserve assignment is at Camp Zama in Japan – what a beautiful country!