The Daily Alaska empire., 1945-02-05
BUSINESS LOANS FOR VETS UNDER
 GI ACT EXPLAINED

The necessary machinery fc- pro- cessing applications by veterans of World War II for business loans un- der the Selvicemen's Readjustment Act of 1914 6G. l. Bill of Rights has been set up in the Seattle Loan Agency of the Reconstruction Fin ance Corporation, Richard M. Price, Manager of that Agency, announced today.
 MT. Prices statement followed an announcement from Washington, D. C., that the Veterans Administration had designated the Reconstruction Finance Corporation as an Agency to review applications to banks by veterans for the guaranty of busi- ness loans. Under the program, REC will recommend to the appropriate office of the Administrator of Vet eran's Affairs whether that office should approve or disapprove such applications.
 Loans applied for may be used in purchasing any business, supplies, equipment, machinery or tools to be used by the veteran in pursuing a gainful occupation. The Govern ment may guarantee repayment of such loans to the extent of 50 per cent, but not in an amount. exceed ing S2,000 as it's maximum guaran- ty Thus, the veteran who quail flies for a business loan by obtain Q guarantee of 50 per. cent, of any loan up to s4,c0O. He may of couse, obtain from his banker loan of greater amount, for instance $6,0o0; but the guaranty is limited to s2Ooo In loans of less than $4,000, the Government guarantees half; thus, in a $3,000 loan the guaranty amounts to $500, not more.
 MT. Price outlined the following essential steps for veterans desiring guaranteed business loans:
 1 The veteran should first con-
 tact his local banker.
 
 2. If the veteran is unable to ob-
 tain loan from his local bank
 CT, he should then apply to his
 nearest REC Loan Agency for a
 loan. The address of the ap-
 pfopriate agency fer this region ] is 40 Dexter Horton Building i Seattle, Washington.
 Banks desiring to assist veterans in this program may obtain the nec- essary regulations and loan appli- cation blanks from the local region al office of the Veterans Adminis- tration" MT. Price said.
 | "The requirements of the Law art that the veteran must be found qualified by training or experienc, to engage in the type of business fol which he seeks loan, the property sought to be acquired is reasonable in price and suited to it's intended purpose, and that the venture il likely to succeed.
 Since the Act does not provide for loans to run businesses, the len der viii want to know whether thS veteran has sufficient funds for thi! purpose, as well as ability, dependi bility, business experience. and bus mess character, to assume req ] sonable likelihood that the veter ans contemplated operations will bt successful The lender will alst want to know whether the veteran has heen in such business before en. tering the service and the nature O his service experience and training
 Veterans are well advised to bt on guard asainst fraudulent or ab surd propositions and careful of ex. ploiters. With the aid of the bank CT, who is schooled in such matters veterans should investigate yer. carefully all propositions presented to them. There are many pitfall, and diffic lties, and hardwork il operating ones own business.