Case Histories of Veterans Back in Business
Orlando Ida operates his own truck.
Orlando had four years experience driving trucks before the war. As a GI he drove a truck on the Alcan Highway. Upon his discharge he obtained a priority to buy a new truck. He arranged a loan from a bank under the GI Bill of Rights. The government guaranteed half the loan and the bank took a mortgage on the truck as collateral for the other half. He succeeded in paying off the loan in half the time allowed and now owns his truck outright.
Joseph Coyle buys half of grocery.
Joe was offered an opportunity to buy half interest in his uncle’s grocery store. Through a bank he applied for a GI loan for this purpose. His application was approved, the bank advanced him the money, and now he is paying it off regularly. Joe was permitted to use the loan to pay for groceries already on hand because he was buying a going business. In starting a new business, GI loans may be used to buy equipment or supplies, but not merchandise for resale.
Mickey Gilmore buys his own gas station.
Mickey worked in a gas station for a year after leaving the Navy. He wanted to purchase his own station. Under the GI Bill, the longest time he was entitled to for repayment of the loan was three years. His state government had a veteran’s plan which allowed up to six years to repay loans. He invested $500 of his own and borrowed a like amount from the bank under the state plan. Mickey is working twelve hours a day to build up the business.
James Koenigsberg resumes prewar business.
Jim operated a fur-dressing business before the war. When drafted he stored his equipment. After his discharge he lacked the working capital he needed to get started again. He applied for a GI loan but was refused because GI loans may not be used to provide working capital. He then applied to the Reconstruction Finance Corporation and received a loan of several hundred dollars, using his machinery for collateral. RFC has a department for veterans.