Intent of bill:
Amend NDCC 37-01 Veterans Aid Loan to allow the maximum loan amount to be $8,000.
Need for bill:
- The national average amount of an unsecured loan in 2024 is $8,018. Source: Transunion: Q4 2022 Quarterly Credit Industry Insights Report (CIIR). Personal Loan Statistics: Average Rates And Debt In 2023 – Forbes Advisor
- Inflation rates have increased dramatically in recent years.
- Requests for higher loan amount from veterans has increased.
- Loan amount not enough to cover needs of applicants resulting in fewer loan applications.
- History of loan amount increases.
- 1943 Established Veterans Aid Commission and $75,000 Fund. $300 Loan. (HB 94)
- 1947 Amend loan to $500
- 1981 increased from $500 to $2,000. (34 years)
- 2001 increased from $2,000 to $5,000. (24 years)
Outcome of bill:
Allowable maximum loan amount will be $8,000.
A BILL for an Act to amend and reenact sections 37-14-04 and 37-14-06 of the North Dakota Century Code, relating to the veterans' aid fund.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 37-14-04 of the North Dakota Century Code is amended and reenacted as follows:
37-14-04. Veterans' aid fund - Purpose.
The purpose of the veterans' aid fund is to make loans to any veteran and to a surviving spouse of a veteran. A qualified applicant may be permitted to receive more than one loan providing the total amount of all loans does not exceed fiveeight thousand dollars.
SECTION 2. AMENDMENT. Section 37-14-06 of the North Dakota Century Code is amended and reenacted as follows:
37-14-06. Department may provide aid.
If the department of veterans' affairs is satisfied that an applicant is a veteran or the surviving spouse of a veteran and has not remarried, and that the applicant is a citizen and resident of this state, and that the applicant meets the criteria set forth in rules adopted pursuant to section 37-14-10 regarding qualifications to obtain a loan, the department may loan to the applicant a sum from the veterans' aid fund not to exceed fiveeight thousand dollars. Additional loans may be made to an applicant if the applicant still meets the loan criteria and if the total of all loans does not exceed fiveeight thousand dollars. If an applicant is provided more than one loan, the amounts will be consolidated into one payment.