By MAE ANDERSON, Associated Press

NEW YORK (AP) — Many veterans who have started small businesses tell a similar story: Their military service prepared them mentally for the task, but they were at a financial disadvantage.

“Vetrepreneurs”—veterans who found small businesses or startups—own nearly 2 million small businesses that employ 5.5 million people in the U.S., according to the Small Business Administration. They take in about $1.3 trillion annually. Their numbers have dwindled, however, as the veteran population has aged. In a 2023 report, the SBA found that veteran ownership declined from 11 percent of businesses in 2014 to 8.1 percent in 2020.

Veterans enter the business world prepared with skills they acquire in the field, such as leadership and problem solving. But they didn’t have the chance to build up credit or savings that civilians had more time to do. This can cause problems because banks use this information to approve loans. Not to mention the mental toll it takes to transition from military to civilian life.

According to data from SCORE, a business coaching non-profit, about one-third of veteran companies have limited access to capital or lack of financing. That compares to a quarter of non-veteran-owned firms.

SCORE CEO Bridget Weston says the good news is veterans have plenty of places to turn for help. These include nonprofits aimed at getting them on their feet and building financial literacy, veteran-only loans and grants, and contracts awarded to veteran-owned and veteran-owned small businesses with disabilities.

The place many start is the Small Business Administration, which offers a program to get certified as a veteran-owned or disabled small business, which can make it easier to get certain federal loans and contracts.

That’s the path Jackson Dalton decided to take when he started Black Box Safety, a manufacturer of personal protective equipment, in 2017. Dalton enlisted in the US Navy in 2000 and was selected for the prestigious Marine Corps Special Operations . But a badly broken leg suffered during training eventually forced him to medically retire after two years of active duty.

Although the transition back to civilian life was difficult, Dalton went on to earn a master’s degree in public health and spent 10 years working in the health and safety industry. When he ventured out on his own, he decided to focus on federal contracts and became certified by the SBA. He thought prisons would be a good place to start because 3 percent of their contracts go to disabled veteran companies. His first contract was selling gloves to a Minnesota prison. Today, he serves major clients such as the Department of Veterans Affairs and the State of California.

Dalton credits his military training for his success.

“The skills and attributes that I picked up in the military were resilience and grit and the ability to adapt, to improvise, to overcome when you know, when you encounter resistance or obstacles and barriers,” he said.

Veteran-focused nonprofits can be another key place to look for help.

Adam Isch, a Marine Corp veteran. who served two tours in Iraq, worked with the nonprofit Warrior Rising in Salt Lake City to find a mentor to help him start his business, Fort Worth, Texas-based Isch Body Works, which sells hygiene products for men. . The company donates a portion of its proceeds to charities that support Texas children in foster care and awaiting adoption. Similar nonprofits include Bunker Labs, Tactical Launch and others around the country.

“Anyone who wants to start a business, especially a veteran, goes to find a group like Warrior Rising, there are all kinds of different groups like that that get mentorship,” he said. “There are people who do what you do. They do what I do, they love it, and they want to talk about it.”

For some, a veterans loan can be what makes or breaks a business. Elizabeth Gore, co-founder and president of Hello Alice, a financial technology firm that works with small businesses to obtain financing, including 117,000 military small business owners. “They really have to fight harder than other groups and demographics for access to capital,” she said.

John Griveas of Buffalo, NY spent two years as a Navy Seal in the mid-1990s and the remaining four years in New York in the active reserves, ending his tenure in 2002. After that, he “jumped” around work and spent 10 years. in the local collections industry.