Hello RW, that’s a very valid risk mitigation concern as with any lending/borrowing relationship. Generally speaking there are no guaranties and thus the credit risk accepted by lenders. However, lenders attempt to lessen the exposure to credit risk by the loan underwriting/decision making methodology. For example, we start with a lending philosophy that I call “creating a psychological sense of military community” which relies heavily on the effect of “peer” behavior and accountability in groups or communities.
Essentially we will put our “non-guaranteed” faith in the power of military group social capital and reputational risk (honor code) that we believe our military entrepreneurial community will monitor for credit performance. We are also “banking” on the fact that the military community already operates with a sense of community mentality as evidenced by the mantras such as “no man left behind”, which interpreted in borrowing terms, they will work together as community to help each other and hold each other accountable as to not put their honor code at risk. Thanks and Great Question.
Greg those are great suggestions! In fact I have three direct connections with local universities that I'm currently working with and will be seeking to expand the relationships as I move forward. 1. I'm working with the Social Enterprise & Nonprofit Law Clinic at Georgetown University Law Center to assist me with legal matters primarily around organizational structure and contracts. The Social Enterprise & Nonprofit Law Clinic at Georgetown University Law Center offers pro bono corporate and transactional legal services to social enterprises, nonprofit organizations, and select small businesses in Washington, D.C. and internationally. Through the Clinic, law students learn to translate theory into practice by engaging in the supervised practice of law for educational credit 2. The Beeck Center for Social Impact & Innovation at Georgetown which promotes collaboration among students, faculty and the private sector to foster innovation and provide a unique skill-set to generate concrete, solution-based social change. 3. Graziella Pagliarulo McCarron George Mason University Concentration Head, Social Entrepreneurship; Dr McCarron serves as my academic advisor at George Mason University MAIS. Ashoka Changemaker Campus.