S 1005 ISCommentsClose CommentsPermalink

To amend the Small Business Act to improve programs for veterans, and for other purposes.CommentsClose CommentsPermalink

March 28, 2007

Mr. KERRY (for himself, Mr. HAGEL, Mr. CARDIN, Mr. PRYOR, and Mr. TESTER) introduced the following bill; which was read twice and referred to the Committee on Small Business and EntrepreneurshipCommentsClose CommentsPermalink

To amend the Small Business Act to improve programs for veterans, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Military Reservist and Veteran Small Business Reauthorization Act of 2007'.CommentsClose CommentsPermalink

SEC. 2. DEFINITIONS.

In this Act--CommentsClose CommentsPermalink





(1) the term `activated' means receiving an order placing a Reservist on active duty;CommentsClose CommentsPermalink





(2) the term `active duty' has the meaning given that term in section 101 of title 10, United States Code;CommentsClose CommentsPermalink





(3) the terms `Administration' and `Administrator' mean the Small Business Administration and the Administrator thereof, respectively;CommentsClose CommentsPermalink





(4) the term `Reservist' means a member of a reserve component of the Armed Forces, as described in section 10101 of title 10, United States Code;CommentsClose CommentsPermalink





(5) the term `Service Corps of Retired Executives' means the Service Corps of Retired Executives authorized by section 8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1));CommentsClose CommentsPermalink





(6) the terms `service-disabled veteran' and `small business concern' have the meanings given those terms in section 3 of the Small Business Act (15 U.S.C. 632);CommentsClose CommentsPermalink





(7) the term `small business development center' means a small business development center described in section 21 of the Small Business Act (15 U.S.C. 648); andCommentsClose CommentsPermalink





(8) the term `women's business center' means a women's business center described in section 29 of the Small Business Act (15 U.S.C. 656).CommentsClose CommentsPermalink

TITLE I--MILITARY RESERVIST LOANS

SEC. 101. GRANT ASSISTANCE FOR MILITARY RESERVISTS' SMALL BUSINESSES.

(a) Authorization of Grants- Section 7(b)(3)(B) of the Small Business Act (15 U.S.C. 636(b)(3)(B)) is amended by inserting `or grants' after `or a deferred basis)'.CommentsClose CommentsPermalink





(b) Grant Specifications- Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) is amended by inserting after subparagraph (F) the following:CommentsClose CommentsPermalink





`(G) Grants made under subparagraph (B)--CommentsClose CommentsPermalink





`(i) may be awarded in addition to any loan made under subparagraph (B);CommentsClose CommentsPermalink





`(ii) shall not exceed $25,000; andCommentsClose CommentsPermalink





`(iii) shall be made only to a small business concern--CommentsClose CommentsPermalink





`(I) that provides a business plan demonstrating viability for not less than 3 years after the date of the application for that grant;CommentsClose CommentsPermalink





`(II) with 10 or fewer employees; andCommentsClose CommentsPermalink





`(III) that has not received a grant under subparagraph (B) during the 2-year period ending on the date of the application for that grant.'.CommentsClose CommentsPermalink





(c) Authorization of Appropriations- Section 20(e)(2) of the Small Business Act (15 U.S.C. 631 note) is amended by inserting after subparagraph (B) the following:CommentsClose CommentsPermalink





`(C) GRANT ASSISTANCE FOR MILITARY RESERVISTS' SMALL BUSINESSES- There are authorized to be appropriated for grants under section 7(b)(3)(B)--CommentsClose CommentsPermalink





`(i) $5,000,000 for the first fiscal year beginning after the date of enactment of the Military Reservist and Veteran Small Business Reauthorization Act of 2007; andCommentsClose CommentsPermalink





`(ii) $5,000,000 for each of the 2 fiscal years following the fiscal year described in clause (i).'.CommentsClose CommentsPermalink

SEC. 102. NONCOLLATERALIZED LOANS.

Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) is amended by inserting after subparagraph (G), as added by this Act, the following:CommentsClose CommentsPermalink





`(H)(i) Notwithstanding any other provision of law, the Administrator may make a loan under this paragraph of not more than $100,000 without collateral.CommentsClose CommentsPermalink





`(ii) The Administrator may defer payment of principal and interest on a loan described in clause (i) during the longer of--CommentsClose CommentsPermalink





`(I) the 1-year period beginning on the date of the initial disbursement of the loan; andCommentsClose CommentsPermalink





`(II) the period during which the relevant essential employee is on active duty.'.CommentsClose CommentsPermalink

SEC. 103. APPLICATION PERIOD.

Section 7(b)(3)(C) of the Small Business Act (15 U.S.C. 636(b)(3)(C)) is amended by striking `90 days' and inserting `1 year'.CommentsClose CommentsPermalink

SEC. 104. PREAPPROVAL PROCESS.

(a) Definition- In this section, the term `eligible Reservist' means a Reservist who--CommentsClose CommentsPermalink





(1) has not been ordered to active duty;CommentsClose CommentsPermalink





(2) expects to be ordered to active duty during a period of military conflict (as that term is defined in section 7(n)(1) of the Small Business Act (15 U.S.C. 636(n)(1)); andCommentsClose CommentsPermalink





(3) can reasonably demonstrate that the small business concern for which that Reservist is a key employee will suffer economic injury in the absence of that Reservist.CommentsClose CommentsPermalink





(b) Establishment- Not later than 6 months after the date of enactment of this Act, the Administrator shall establish a preapproval process, under which--CommentsClose CommentsPermalink





(1) the Administrator may approve a loan or grant to a small business concern under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)), as amended by this Act, before an eligible Reservist employed by that small business concern is activated; andCommentsClose CommentsPermalink





(2) the Administrator shall distribute funds for any loan or grant approved under paragraph (1) if that eligible Reservist is activated.CommentsClose CommentsPermalink

SEC. 105. OUTREACH AND TECHNICAL ASSISTANCE PROGRAM.

(a) In General- Not later than 6 months after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Veterans Affairs and the Secretary of Defense, shall develop a comprehensive outreach and technical assistance program (in this section referred to as the `program') to--CommentsClose CommentsPermalink





(1) market the loans and grants available under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)), as amended by this Act, to Reservists, and family members of Reservists, that are on active duty and that are not on active duty; andCommentsClose CommentsPermalink





(2) provide technical assistance to a small business concern applying for a loan or grant under that section.CommentsClose CommentsPermalink





(b) Components- The program shall--CommentsClose CommentsPermalink





(1) incorporate appropriate websites maintained by the Administration, the Department of Veterans Affairs, and the Department of Defense; andCommentsClose CommentsPermalink





(2) require that information on the program is made available to small business concerns directly through--CommentsClose CommentsPermalink





(A) the district offices and resource partners of the Administration, including small business development centers, women's business centers, and the Service Corps of Retired Executives; andCommentsClose CommentsPermalink





(B) other Federal agencies, including the Department of Veterans Affairs and the Department of Defense.CommentsClose CommentsPermalink





(c) Report-CommentsClose CommentsPermalink





(1) IN GENERAL- Not later than 6 months after the date of enactment of this Act, and every 6 months thereafter until the date that is 30 months after such date of enactment, the Administrator shall submit to Congress a report on the status of the program.CommentsClose CommentsPermalink





(2) CONTENTS- Each report submitted under paragraph (1) shall include--CommentsClose CommentsPermalink





(A) for the 6-month period before the date of that report--CommentsClose CommentsPermalink





(i) the number of loans and grants approved under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)), as amended by this Act;CommentsClose CommentsPermalink





(ii) the number of loans and grants disbursed under that section; andCommentsClose CommentsPermalink





(iii) the total amount disbursed under that section; andCommentsClose CommentsPermalink





(B) recommendations, if any, to make the program more effective in serving small business concerns that employ Reservists.CommentsClose CommentsPermalink

TITLE II--NATIONAL RESERVIST ENTERPRISE TRANSITION AND SUSTAINABILITY

SEC. 201. SHORT TITLE.

This title may be cited as the `National Reservist Enterprise Transition and Sustainability Act of 2007'.CommentsClose CommentsPermalink

SEC. 202. PURPOSE.

The purpose of this title is to establish a program to--CommentsClose CommentsPermalink





(1) provide managerial, financial, planning, development, technical, and regulatory assistance to small business concerns owned and operated by Reservists;CommentsClose CommentsPermalink





(2) provide managerial, financial, planning, development, technical, and regulatory assistance to the temporary heads of small business concerns owned and operated by Reservists;CommentsClose CommentsPermalink





(3) create a partnership between the Small Business Administration, the Department of Defense, and the Department of Veterans Affairs to assist small business concerns owned and operated by Reservists;CommentsClose CommentsPermalink





(4) utilize the service delivery network of small business development centers, women's business centers, Veterans Business Outreach Centers, and centers operated by the National Veterans Business Development Corporation to expand the access of small business concerns owned and operated by Reservists to programs providing business management, development, financial, procurement, technical, regulatory, and marketing assistance;CommentsClose CommentsPermalink





(5) utilize the service delivery network of small business development centers, women's business centers, Veterans Business Outreach Centers, and centers operated by the National Veterans Business Development Corporation to quickly respond to an activation of Reservists that own and operate small business concerns; andCommentsClose CommentsPermalink





(6) utilize the service delivery network of small business development centers, women's business centers, Veterans Business Outreach Centers, and centers operated by the National Veterans Business Development Corporation to assist Reservists that own and operate small business concerns in preparing for future military activations.CommentsClose CommentsPermalink

SEC. 203. NATIONAL GUARD AND RESERVE BUSINESS ASSISTANCE.

(a) In General- Section 21(a)(1) of the Small Business Act (15 U.S.C. 648(a)(1)) is amended by inserting `any small business development center, women's business center, Veterans Business Outreach Center, or center operated by the National Veterans Business Development Corporation providing enterprise transition and sustainability assistance to Reservists under section 37,' after `any women's business center operating pursuant to section 29,'.CommentsClose CommentsPermalink





(b) Program- The Small Business Act (15 U.S.C. 631 et seq.) is amended--CommentsClose CommentsPermalink





(1) by redesignating section 37 (15 U.S.C. 631 note) as section 38; andCommentsClose CommentsPermalink





(2) by inserting after section 36 the following:CommentsClose CommentsPermalink

`SEC. 37. RESERVIST ENTERPRISE TRANSITION AND SUSTAINABILITY.

`(a) In General- The Administrator shall establish a program to provide business planning assistance to small business concerns owned and operated by Reservists.CommentsClose CommentsPermalink





`(b) Definitions- In this section--CommentsClose CommentsPermalink





`(1) the terms `activated' and `activation' mean having received an order placing a Reservists on active duty, as defined by section 101(1) of title 10, United States Code;CommentsClose CommentsPermalink





`(2) the term `Administrator' means the Administrator of the Small Business Administration, acting through the Associate Administrator for Small Business Development Centers;CommentsClose CommentsPermalink





`(3) the term `Association' means the association established under section 21(a)(3)(A);CommentsClose CommentsPermalink





`(4) the term `eligible applicant' means--CommentsClose CommentsPermalink





`(A) a small business development center that is accredited under section 21(k);CommentsClose CommentsPermalink





`(B) a women's business center;CommentsClose CommentsPermalink





`(C) a Veterans Business Outreach Center that receives funds from the Office of Veterans Business Development; orCommentsClose CommentsPermalink





`(D) an information and assistance center operated by the National Veterans Business Development Corporation under section 33;CommentsClose CommentsPermalink





`(5) the term `enterprise transition and sustainability assistance' means assistance provided by an eligible applicant to a small business concern owned and operated by a Reservist, who has been activated or is likely to be activated in the next 12 months, to develop and implement a business strategy for the period while the owner is on active duty and 6 months after the date of the return of the owner;CommentsClose CommentsPermalink





`(6) the term `Reservists' means any person who is--CommentsClose CommentsPermalink





`(A) a member of a reserve component of the Armed Forces, as defined by section 10101 of title 10, United States Code; andCommentsClose CommentsPermalink





`(B) on active status, as defined by section 101(d)(4) of title 10, United States Code;CommentsClose CommentsPermalink





`(7) the term `small business development center' means a small business development center as described in section 21 of the Small Business Act (15 U.S.C. 648);CommentsClose CommentsPermalink





`(8) the term `State' means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, American Samoa, and Guam; andCommentsClose CommentsPermalink





`(9) the term `women's business center' means a women's business center described in section 29 of the Small Business Act (15 U.S.C. 656).CommentsClose CommentsPermalink





`(c) Authority- The Administrator may award grants, in accordance with the regulations developed under subsection (d), to eligible applicants to assist small business concerns owned and operated by Reservists by--CommentsClose CommentsPermalink





`(1) providing management, development, financing, procurement, technical, regulatory, and marketing assistance;CommentsClose CommentsPermalink





`(2) providing access to information and resources, including Federal and State business assistance programs;CommentsClose CommentsPermalink





`(3) distributing contact information provided by the Department of Defense regarding activated Reservists to corresponding State directors;CommentsClose CommentsPermalink





`(4) offering free, one-on-one, in-depth counseling regarding management, development, financing, procurement, regulations, and marketing;CommentsClose CommentsPermalink





`(5) assisting in developing a long-term plan for possible future activation; andCommentsClose CommentsPermalink





`(6) providing enterprise transition and sustainability assistance.CommentsClose CommentsPermalink





`(d) Rulemaking-CommentsClose CommentsPermalink





`(1) IN GENERAL- The Administrator, in consultation with the Association and after notice and an opportunity for comment, shall promulgate regulations to carry out this section.CommentsClose CommentsPermalink





`(2) DEADLINE- The Administrator shall promulgate final regulations not later than 180 days of the date of enactment of the Military Reservist and Veteran Small Business Reauthorization Act of 2007.CommentsClose CommentsPermalink





`(3) CONTENTS- The regulations developed by the Administrator under this subsection shall establish--CommentsClose CommentsPermalink





`(A) procedures for identifying, in consultation with the Secretary of Defense, States that have had a recent activation of Reservists;CommentsClose CommentsPermalink





`(B) priorities for the types of assistance to be provided under the program authorized by this section;CommentsClose CommentsPermalink





`(C) standards relating to educational, technical, and support services to be provided by a grantee;CommentsClose CommentsPermalink





`(D) standards relating to any national service delivery and support function to be provided by a grantee;CommentsClose CommentsPermalink





`(E) standards relating to any work plan that the Administrator may require a grantee to develop; andCommentsClose CommentsPermalink





`(F) standards relating to the educational, technical, and professional competency of any expert or other assistance provider to whom a small business concern may be referred for assistance by a grantee.CommentsClose CommentsPermalink





`(e) Application-CommentsClose CommentsPermalink





`(1) IN GENERAL- Each eligible applicant desiring a grant under this section shall submit an application to the Administrator at such time, in such manner, and accompanied by such information as the Administrator may reasonably require.CommentsClose CommentsPermalink





`(2) CONTENTS- Each application submitted under paragraph (1) shall describe--CommentsClose CommentsPermalink





`(A) the activities for which the applicant seeks assistance under this section; andCommentsClose CommentsPermalink





`(B) how the applicant plans to allocate funds within its network.CommentsClose CommentsPermalink





`(3) MATCHING NOT REQUIRED- Subparagraphs (A) and (B) of section 21(a)(4), requiring matching funds, shall not apply to grants awarded under this section.CommentsClose CommentsPermalink





`(f) Award of Grants-CommentsClose CommentsPermalink





`(1) DEADLINE- The Administrator shall award grants not later than 60 days after the promulgation of final rules and regulations under subsection (d).CommentsClose CommentsPermalink





`(2) AMOUNT- Each eligible applicant awarded a grant under this section shall receive a grant in an amount--CommentsClose CommentsPermalink





`(A) not less than $150,000 per fiscal year; andCommentsClose CommentsPermalink





`(B) not greater than $500,000 per fiscal year.CommentsClose CommentsPermalink





`(g) Report-CommentsClose CommentsPermalink





`(1) IN GENERAL- The Comptroller General of the United States shall--CommentsClose CommentsPermalink





`(A) initiate an evaluation of the program not later than 30 months after the disbursement of the first grant under this section; andCommentsClose CommentsPermalink





`(B) submit a report not later than 6 months after the initiation of the evaluation under paragraph (1) to--CommentsClose CommentsPermalink





`(i) the Administrator;CommentsClose CommentsPermalink





`(ii) the Committee on Small Business and Entrepreneurship of the Senate; andCommentsClose CommentsPermalink





`(iii) the Committee on Small Business of the House of Representatives.CommentsClose CommentsPermalink





`(2) CONTENTS- The report under paragraph (1) shall--CommentsClose CommentsPermalink





`(A) address the results of the evaluation conducted under paragraph (1); andCommentsClose CommentsPermalink





`(B) recommend changes to law, if any, that it believes would be necessary or advisable to achieve the goals of this section.CommentsClose CommentsPermalink





`(h) Authorization of Appropriations-CommentsClose CommentsPermalink





`(1) IN GENERAL- There are authorized to be appropriated to carry out this section--CommentsClose CommentsPermalink





`(A) $5,000,000 for the first fiscal year beginning after the date of enactment of the Military Reservist and Veteran Small Business Reauthorization Act of 2007; andCommentsClose CommentsPermalink





`(B) $5,000,000 for each of the 3 fiscal years following the fiscal year described in subparagraph (A).CommentsClose CommentsPermalink





`(2) LIMITATION ON USE OF OTHER FUNDS- The Administrator may carry out the program authorized by this section only with amounts appropriated in advance specifically to carry out this section.'.CommentsClose CommentsPermalink

TITLE III--VETERAN ENTREPRENEUR LOANS

SEC. 301. AUTHORIZATION.

The first sentence of section 7(a) of the Small Business Act (15 U.S.C. 636) is amended by inserting `new veteran entrepreneurs under paragraph (32) and' and after `loans to any qualified small business concern, including'.CommentsClose CommentsPermalink

SEC. 302. SPECIFICATIONS.

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding after paragraph (31) the following:CommentsClose CommentsPermalink





`(32) VETERAN ENTREPRENEUR LOANS- Each loan to a new veteran entrepreneur under this subsection shall--CommentsClose CommentsPermalink





`(A) be made directly to the new veteran entrepreneur;CommentsClose CommentsPermalink





`(B) not exceed $100,000; andCommentsClose CommentsPermalink





`(C) be made at the same interest rate as loans made under the second proviso of the unnumbered paragraph of subsection (b).'.CommentsClose CommentsPermalink

SEC. 303. DEFINITIONS.

Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) is amended by adding after paragraph (4) the following:CommentsClose CommentsPermalink





`(5) NEW VETERAN ENTREPRENEUR- The term `new veteran entrepreneur' means a person who--CommentsClose CommentsPermalink





`(A) is a veteran;CommentsClose CommentsPermalink





`(B) is establishing a new small business concern or established a new small business concern during the 6-month period ending on the date of the request for a loan; andCommentsClose CommentsPermalink





`(C) does not own or control any other business.'.CommentsClose CommentsPermalink

TITLE IV--OTHER PROVISIONS

SEC. 401. INCREASED FUNDING FOR THE OFFICE OF VETERANS BUSINESS DEVELOPMENT.

There are authorized to be appropriated to the Office of Veterans Business Development of the Administration, to remain available until expended--CommentsClose CommentsPermalink





(1) $2,100,000 for fiscal year 2008;CommentsClose CommentsPermalink





(2) $2,300,000 for fiscal year 2009; andCommentsClose CommentsPermalink





(3) $2,500,000 for fiscal year 2010.CommentsClose CommentsPermalink

SEC. 402. PERMANENT EXTENSION OF SBA ADVISORY COMMITTEE ON VETERANS BUSINESS AFFAIRS.

(a) Assumption of Duties- Section 33 of the Small Business Act (15 U.S.C. 657c) is amended--CommentsClose CommentsPermalink





(1) by striking subsection (h); andCommentsClose CommentsPermalink





(2) by redesignating subsections (i) through (k) as subsections (h) through (j), respectively.CommentsClose CommentsPermalink





(b) Permanent Extension of Authority- Section 203 of the Veterans Entrepreneurship and Small Business Development Act of 1999 (15 U.S.C. 657b note) is amended by striking subsection (h).CommentsClose CommentsPermalink

SEC. 403. RESERVISTS STUDY.

Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report regarding whether there has been a reduction in the hiring of Reservists by business concerns because of--CommentsClose CommentsPermalink





(1) any increase in the use of Reservists after September 11, 2001; orCommentsClose CommentsPermalink





(2) any change in any policy of the Department of Defense relating to Reservists after September 11, 2001.CommentsClose CommentsPermalink

SEC. 404. SERVICE-DISABLED VETERANS.

Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report describing--CommentsClose CommentsPermalink





(1) the types of assistance needed by service-disabled veterans who wish to become entrepreneurs; andCommentsClose CommentsPermalink





(2) any resources that would assist such service-disabled veterans.CommentsClose CommentsPermalink