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S 1784 ISPCS

Calendar No. 550

110th CONGRESS

1st Session

S. 1784

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

IN THE SENATE OF THE UNITED STATES

July 12, 2007

Mr. KERRY (for himself, Ms. SNOWEnowe, Ms. CANTWELL, andantwell, Ms. LANDRIEUandrieu, Mr. Hagel, Mr. Lieberman, and Mr. Tester) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

December 19, 2007

Committee discharged; considered, amended, read the third time, and ordered to be placed on the calendar

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A BILL

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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:Sec. 1. Short title.Sec. 2. Table of contents.Sec. 3. Definitions.

TITLE I--VETERANS BUSINESS DEVELOPMENT

Sec. 101. Increased funding for the Office of Veterans Business Development.Sec. 102. Interagency task force.Sec. 103. Permanent extension of SBA Advisory Committee on Veterans Business Affairs.Sec. 104. Office of Veterans Business Development.Sec. 105. Increasing the number of outreach centers.Sec. 106. Independent study on gaps in availability of outreach centers.Sec. 201. Veterans assistance and services program.Sec. 202. Disaster loans.

TITLE III--RESERVIST PROGRAMS

Sec. 301. Reservist programs.Sec. 302. Reservist loans.Sec. 303. Noncollateralized loans.Sec. 304. Loan priority.Sec. 305. Relief from time limitations for veteran-owned small businesses.Sec. 306. Service-disabled veterans.Sec. 307. Study on options for promoting positive working relations between employers and their Reserve Component employees.Sec. 308. Increased Veteran Participation Program.

SEC. 3. DEFINITIONS.

In this Act--

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

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

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

(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;

(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));

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

(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); and

(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).

TITLE I--VETERANS BUSINESS DEVELOPMENT

SEC. 101. INCREASED FUNDING FOR THE OFFICE OF VETERANS BUSINESS DEVELOPMENT.

(a) In General- There are authorized to be appropriated to the Office of Veterans Business Development of the Administration, to remain available until expended--

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

(2) $2,300,000 for fiscal year 2009; and(3) $2,500,000 for fiscal year 2010.

(b) Funding Offset- Amounts necessary to carry out subsection (a) shall be offset and made available through the reduction of the authorization of funding under section 20(e)(1)(B)(iv) of the Small Business Act (15 U.S.C. 631 note).

(c) Sense of Congress- It is the sense of Congress that any amounts provided pursuant to this section that are in excess of amounts provided to the Administration for the Office of Veterans Business Development in fiscal year 2007, should be used to support Veterans Business Outreach Centers.

SEC. 102. INTERAGENCY TASK FORCE.

Section 32 of the Small Business Act (15 U.S.C. 657b) is amended--

(1) by adding at the endredesignating subsection (c) as (f); and

(2) by inserting after subsection (b) the following:

`(dc) Interagency Task Force-

`(1) ESTABLISHMENT- Not later than 90 days after the date of enactment of this subsection, the President shall establish an interagency task force to coordinate the efforts of Federal agencies necessary to increasmprove capital and business development opportunities for, and increase the awardensure achievement of the pre-established Federal contracting and subcontracting opportunities togoals for, small business concerns owned and controlled by service-disabled veterans and small business concerns owned and controlled by veterans (in this section referred to as the `task force').

`(2) MEMBERSHIP- The members of the task force shall include--

`(A) the Administrator, who shall serve as chairperson of the task force; and

`(B) a senior level representative from--

`(i) the Department of Veterans Affairs;

`(ii) the Department of Defense;

`(iii) the Administration (in addition to the Administrator);

`(iv) the Department of Labor;

`(v) the Department of the Treasury;

`(vi) the General Services Administration; and

`(vii) the Office of Management and Budget; and`(C) 4 representatives of veterans service organizations, selected by the President.

`(3) DUTIES- The task force shall--

`(A) consult regularly with veterans service organizations and military organizations in performing the duties of the task force; and

`(B) coordinate administrative and regulatory activities and develop proposals relating to--

`(A) increasi) improving capital access and capacity of small business concerns owned and controlled by service-disabled veterans and small business concerns owned and controlled by veterans through loans, surety bonding, and franchising;

`(B) increasing access toii) ensuring achievement of the pre-established Federal contracting and subcontractinggoals for small business concerns owned and controlled by service-disabled veterans and small business concerns owned and controlled by veterans increased use of contract reservations, through expanded mentor-protege assistance, and matching such small business concerns with contracting opportunities;

`(Ciii) increasing the integrity of certifications of status as a small business concern owned and controlled by service-disabled veterans or a small business concern owned and controlled by veterans;

`(Div) reducing paperwork and administrative burdens on veterans in accessing business development and entrepreneurship opportunities;

`(v) increasing and improving training and counseling services provided to small business concerns owned and controlled by veterans; and

`(Evi) making other improvements relating to the support for veterans business development by the Federal Government.

`(4) REPORTING- The task force shall submit an annual report regarding its activities and proposals to--`(A) the Committee on Small Business and Entrepreneurship and the Committee on Veterans' Affairs of the Senate; and`(B) the Committee on Small Business and the Committee on Veterans' Affairs of the House of Representatives.'.SEC. 103. 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--

(1) by striking subsection (h); and

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

(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 TITLE II--NATIONAL RESERVIST ENTERPRISE TRANSITION AND SUSTAINABILITYSEC. 201. SHORT TITLE.This title may be cited as the `National Reservist Enterprise Transition and Sustainability Act of 2007'.(h).

SEC. 202. PURPOSE.104. OFFICE OF VETERANS BUSINESS DEVELOPMENT.

The purposeSection 32 of this titlee Small Business Act (15 U.S.C. 657b) is to establish a program to--amend(1) provide managerial, financial, planning, development, technical, and regulatory assistance to small business concerns owned and operated by Reservists;inserting after subsection (c) (as added by section 102)(2) provide managerial, financial, planning, development, technical, and regulatory assistance to the temporary heads of small business concerns owned and operatedfollowing:

`(d) Participation in TAP Workshops-

`(1) IN GENERAL- The Associate Administrator shall increase veteran outreach by Reservists;ensuring that Veteran Business Outreach Centers regularly participate, on(3) create a partnership betweenationwide basis, in the Small Business Administration,workshops of the DepartmentTransition Assistance Program Defense, and of the Department of Veterans AffairLabor.

`(2) PRESENTATIONS- In carrying out paragraph (1), a Veteran Business Outreach Center may provide grants to assist small business concerns owned and operated by Reservists;entities located in Transition Assistance Program locations to make presentations on(4) utilize the service delivery networkopportunities available from the Administration for recently separating or separated veterans. Each presentation under this paragraph shall include, at a minimum, a description of small business development centers, women'sthe entrepreneurial and business centers, Veterans Business Outreach Centers,training resources available from the Administration.

`(3) WRITTEN MATERIALS- The Associate Administrator shall--

`(A) create written materials that provide comprehensive information on self-employment and centers operated byveterans entrepreneurship, including information on resources available from the National Veterans Business Development CorporationAdministration on such topics; and

`(B) make the materials created under subparagraph (A) available expand to the accessSecretary of small business concerns owned and operated by ReservistsLabor for inclusion in the Transition Assistance Program manual.

`(4) REPORTS- The Associate Administrator shall submit to programs providing business management, development, financial, procurement, technical, regulatory, and marketing assistance;Congress progress reports on(5) utilize the service delivery networkimplementation of small business development centers, women's business centers, Veterans Business Outreach Centers, and centers operated by the Nationalthis subsection.

`(e) Women Veterans Business Development Corporation to quickly respondTraining- The Associate Administrator shall--

`(1) compile information on existing resources available to an activation of Reservists that own and operate small business concerns; andwomen veterans for(6) utilize the service delivery network of small business development centers, women'straining, including resources for--

`(A) vocational and technical education;

`(B) general business centers, Veterans Business Outreach Centers,skills, such as marketing and centers operated byaccounting; and

`(C) business assistance programs targeted to women veterans; and

`(2) disseminate the National Veteransinformation compiled under paragraph (1) through Veteran Business Development Corporation to assist Reservists that ownOutreach Centers and operate smallwomen's business concerns in preparing for future military activationsenters.'.

SEC. 203. NATIONAL GUARD AND RESERVE BUSINESS ASSISTANCE105. INCREASING THE NUMBER OF OUTREACH CENTERS.

(a) In General- Section 21(a)(1The Administrator shall use the authority in section 8(b)(17) of the Small Business Act (15 U.S.C. 64837(b)(17)) to ensure that the number of(a)(1)) is amended by inserting `any small business development center, women's business center, Veterans Business Outreach Center, or center operated bys throughout the National Veterans Business Development Corporation providing enterprise transition and sustainability assistance to Reservists under section 37,' after `any women's business center operating pursuanUnited States increases--

(1) subject to section 29,'.ubsection (b),(b) Program- The Small Business Act (15 U.S.C. 631 et seq.) is amended--(1) by redesignating section 37 (at least 2, for each of fiscal years 2008 and 200915 U.S.C. 631 note) as section 38; and

(2) inserting after section 36 by the following:number that t`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.considers appropriate, based on need, for each fiscal year thereafter.

`(b) Definitions- In this section--Limitation- Subsection (a)(1) shall apply in`(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;fiscal year if, for that fiscal year,`(2) the term `Administrator' meansamount made available for the AdministratorOffice of the Small Business Administration, acting through the Associate Administrator for SmallVeterans Business Centers;`(3) the term `Association' means the association established under section 21(a)(3)(A);`(4) the term `eligible applicant' means--`(A) a small business development center that Development is accredited under section 21(k);more than the amount made available for`(B) a women's business center;`(C) a Veterans Business Outreach Center that receives funds from the Office of Veterans Business Development; or for fiscal year 2007.

`(D) SEC. 106. INDEPENDENT STUDY ON GAPS IN AVAILABILITY OF OUTREACH CENTERS.

The Administrator shall sponsor an information and assistance center operated bydependent study on gaps in the Nationalavailability of Veterans Business Development Corporation under section 33;Outreach Centers across`(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 monthUnited States, to developinform decisions on funding implement a business strategy for the period while the owner is and on active dutythe allocation and coordination of resources. Not later than 6 months after the date of the returnenactment of this Act, the owner;Administrator shall submit to Congress`(6) the term `Reservist' means any person who is--`(A) a member of a reserve component of the Armed Forces, as defined by section 10101 of title 10, United States Code; andport`(B) on active status, as defined by section 101(d)(4)the results title 10, United States Code;`(7) of the term `small business development center' means a small business development center as described in sstudy.

SEC. 201. VETERANS ASSISTANCE AND SERVICES PROGRAM.

Section 21 of the Small Business Act (15 U.S.C. 648); is amended by adding at`(8) the term `State' means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico,end the Virgin Islands, American Samoa,following:

`(n) Veterans Assistance and Guam; andServices Program-

`(9) the term `women's business center' means a women's`(1) IN GENERAL- A small business development described in section 29 of the Small Business Act (15 U.S.C. 656).`(c) Authority- The Administrator center may award grants, in accordance with the regulations developedpply for a grant under this (d), to eligible applicants to assist small business concerns owned and operated by Reservists by--`(1) providing management, development, financing, procurement, technical, regulatory, and marketing assistance;`(2) providing access subsection to information and resources, including Federal and State businescarry out a veterans programs;`(3) distributing contact information provided by the Department of Defense regarding activated Reservists to corresponding State directors;`(4) offering free, one-on-one, in-depth counseling regarding management, development, financing, procurement, regulations, assistance and marketing;services program.

`(5) assisting in developing`(2) ELEMENTS OF PROGRAM- Under a long-term plan for possible future activation; andprogram carried`(6) providing enterprise transition and sustainability assistance.`(d) Rulemaking-`(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.with a grant`(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 and Opportunity Act of 2007.`(3) CONTENTS- The regulations developed by the Administrator under this subsection shall establish, a small business development center shall--

`(A) procedures for identifying, in consultation with the Secretary of Defense, States that have hadcreate a recent activmarketing campaign to promote awareness and education Reservists;`(B) priorities for of the typservices assistance to be provided under of the program authorized by this section;center`(C) standards relating to educational, technical, and support services to be provided by a grantee;`(D) standards relating to any national service delivery and support function to be provided by a grantee;`(E) standards relating to any work plan that the Administrator may require a grantee to develop; andare available`(F) standards relating to the educational, technicalveterans, professional competency of any expert or other assistance provider to whom a small business concern may be referred for assistance by a grantee.`(e) Application-`(1) IN GENERAL- Each eligible applicant desiring a grant under this section shall submit an application and to target the Administrator at such time, in such mannercampaign toward veterans, service-disabled veterans, military units, Federal agencies, and accompanied by such information as the Administrator may reasonably require.veterans organizations;

`(2) CONTENTS- Each application submitted under paragraph (1) shall describe--`(A) the activities for which the applicant seeks assistance under this section; and`(B) howuse technology-assisted online counseling and distance learning technology to overcome the applicant planimpediments to allocate funds within its network.entrepreneurship faced by veterans`(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.members`(f) Award Grants-`(1) DEADLINE- The Administrator shall award grants not later than 60 days after of the promulgArmed Forces; and

`(C) increase coordination among organizations that assist veterans, including by establishing virtual integration of final ruleservice providers and regulations under subsection (d).offerings for`(2) AMOUNT- Each eligible applicant awarded a one-stop point of contact for veterans who are entrepreneurs or owners of small business concerns.

`(3) AMOUNT OF GRANTS- A grant under this subsection shall receive a grant in an amount--be for`(A) not less than $75,000 per fiscal year; andand`(B) not greater than $300,000 per fiscal year.`(g) Report-`(1) IN GENERAL- The Comptroller General of the United States shall--`(A) initiate an evaluation of the program not later than 30 months after the disbursement of the first grant under this section; and`(B) submit a report not latermore than 6 months after the initiation of the evaluation under paragraph (1) to--$250,000.

`(i) the Administrator;`(4) FUNDING- Subject`(ii) the Committee on Small Business and Entrepreneurship of the Senate; and`(iii) the Committee on Small Business of the House of Representatives.`(2) CONTENTS- The report under paragraph (1) shall--`(A) address the results of the evaluation conducted under paragraph (1); and`(B) recommend changes to law, if any, that it believes would be necessary or advisable to achievemounts approved in advance in appropriations Acts, the goals of this section.Administration may make grants or enter into cooperative agreements`(h) Authorization of Appropriations-`(1) IN GENERAL- There are authorized to be appropriated to carry this section--`(A) $5,000,000 for the first fiscal year beginning after out the dateprovisions of enactmentthis subsection.'.

SEC. 202. DISASTER LOANS.

Section 7(b)(3) of Military Reservist and Veteran the Small Reauthorization and Opportunity Business Act of 2007; and(15 U.S.C. 636(b)(3)) is amended--

`(B) $5,000,000 for each of the 3 fiscal years following the fiscal year described(1) in subparagraph (A).E),`(2) LIMITATION ON USE OF OTHER FUNDS- The Administrator may carry out the program authorized by striking `unless' and all that follows and inserting a period; and

(2) by inserting after subparagraph (I), the following:

`(J) There shall be reasonable assurance that a loan recipient under this section only with amounts appropriated in advance specifically to carry out this sectionparagraph can repay the loan of personal or business cash flow.'.

TITLE III--RESERVIST PROGRAMS

SEC. 301. RESERVIST PROGRAMS.

(a) Application Period- Section 7(b)(3)(C) of the Small Business Act (15 U.S.C. 636(b)(3)(C)) is amended--

(1) by striking `90 days' and inserting `1 year'; and

(2) by adding at the end the following: `The Administrator may, when appropriate (as determined by the Administrator), extend the ending date specified in the preceding sentence by not more than 1 year.'.

(b) Pre-Consideration Process-

(1) DEFINITION- In this subsection, the term `eligible Reservist' means a Reservist who--

(A) has not been ordered to active duty;

(B) expects to be ordered to active duty during a period of military conflict; and

(C) 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.

(2) ESTABLISHMENT- Not later than 6 months after the date of enactment of this Act, the Administrator shall establish a pre-consideration process, under which the Administrator--

(A) may collect all relevant materials necessary for processing a loan to a small business concern under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) before an eligible Reservist employed by that small business concern is activated; and

(B) shall distribute funds for any loan approved under subparagraph (A) if that eligible Reservist is activated.

(c) Outreach and Technical Assistance Program-

(1) 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, shallmay develop a comprehensive outreach and technical assistance program (in this subsection referred to as the `program') to--

(A) market the loans available under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) to Reservists, and family members of Reservists, that are on active duty and that are not on active duty; and

(B) provide technical assistance to a small business concern applying for a loan under that section.

(2) COMPONENTS- The program shall--

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

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

(i) 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; and

(ii) other Federal agencies, including the Department of Veterans Affairs and the Department of Defense.

(3) REPORT-

(A) 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.

(B) CONTENTS- Each report submitted under subparagraph (A) shall include--

(i) for the 6-month period ending on the date of that report--

(I) the number of loans approved under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3));

(II) the number of loans disbursed under that section; and

(III) the total amount disbursed under that section; and

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

SEC. 302. RESERVIST LOANS.

(a) In General- Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 636(b)(3)(E)) is amended by striking `$1,500,000' each place such term appears and inserting `$2,000,000'.

(b) Loan Information-

(1) IN GENERAL- The Administrator and the Secretary of Defense shall develop a joint website and printed materials providing information regarding any program for small business concerns that is available to veterans or Reservists.

(2) MARKETING- The Administrator is authorized--

(A) to advertise and promote the program under section 7(b)(3) of the Small Business Act jointly with the Secretary of Defense and veterans' service organizations; and

(B) to advertise and promote participation by lenders in such program jointly with trade associations for banks or other lending institutions.

SEC. 303. NONCOLLATERALIZED LOANS.

Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) is amended by adding at the end the following:

`(G)(i) Notwithstanding any other provision of law, the Administrator may make a loan under this paragraph of not more than $50,000 without collateral.

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

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

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

SEC. 304. LOAN PRIORITY.

Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)), as amended by this Act, is amended by adding at the end the following:

`(H) The Administrator shall give priority to any application for a loan under this paragraph and shall process and make a determination regarding such applications prior to processing or making a determination on other loan applications under this subsection, on a rolling basis.'.

SEC. 305. RELIEF FROM TIME LIMITATIONS FOR VETERAN-OWNED SMALL BUSINESSES.

Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) is amended by adding at the end the following:

`(5) RELIEF FROM TIME LIMITATIONS-

`(A) IN GENERAL- Any time limitation on any qualification, certification, or period of participation imposed under this Act on any program that is available to small business concerns shall be extended for a small business concern that--

`(i) is owned and controlled by--

`(I) a veteran who was called or ordered to active duty under a provision of law specified in section 101(a)(13)(B) of title 10, United States Code, on or after September 11, 2001; or

`(II) a service-disabled veteran who became such a veteran due to an injury or illness incurred or aggravated in the active military, naval, or air service during a period of active duty pursuant to a call or order to active duty under a provision of law referred to in subclause (I) on or after September 11, 2001; and

`(ii) was subject to the time limitation during such period of active duty.

`(B) DURATION- Upon submission of proper documentation to the Administrator, the extension of a time limitation under subparagraph (A) shall be equal to the period of time that such veteran who owned or controlled such a concern was on active duty as described in that subparagraph.

`(C) EXCEPTION FOR PROGRAMS SUBJECT TO FEDERAL CREDIT REFORM ACT OF 1990- The provisions of subparagraphs (A) and (B) shall not apply to any programs subject to the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).'.

SEC. 306. 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--

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

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

SEC. 307. STUDY ON OPTIONS FOR PROMOTING POSITIVE WORKING RELATIONS BETWEEN EMPLOYERS AND THEIR RESERVE COMPONENT EMPLOYEES.

(a) Study Required- The SecretaryComptroller General of Defensethe United States shall conduct a study on options for promoting positive working relations between employers and Reserve component employees of such employers, including assessing options for improving the time in which employers of Reservists are notified of the call or order of such members to active duty other than for training.

(b) Report-

(1) IN GENERAL- Not later than 180 days after the date of enactment of this Act, the SecretaryComptroller General of Defensethe United States shall submit to the appropriate committees of Congress a report on the study conducted under subsection (a).

(2) CONTENTS- The report submitted under paragraph (1) shall--

(A) provide a quantitative and qualitative assessment of--

(i) what measures, if any, are being taken to inform Reservists of the obligations and responsibilities of such members to their employers;

(ii) how effective such measures have been; and

(iii) whether there are additional measures that could be taken to promote positive working relations between Reservists and their employers, including any steps that could be taken to ensure that employers are timely notified of a call to active duty; and

(B) assess whether there has been a reduction in the hiring of Reservists by business concerns because of--

(i) any increase in the use of Reservists after September 11, 2001; or

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

(c) Appropriate Committees of Congress Defined- In this section, the term `appropriate committees of Congress' means--

(1) the Committee on Armed Services and the Committee on Small Business and Entrepreneurship of the Senate; and

(2) the Committee on Armed Services and the Committee on Small Business of the House of Representatives.

(d) Additional Study- Not later than 180 days after the date of enactment of this Act, the Office of Advocacy of the Administration shall submit to Congress a report describing--

(1) the barriers in place arising from Federal regulations for veterans who wish to become entrepreneurs;(2) the barriers in place arising from the tax code for veterans who wish to become entrepreneurs; and(3) any recommendations for how best to eliminate those barriers to better assist current or prospective veteran small business owners.

SEC. 308. INCREASED VETERAN PARTICIPATION PROGRAM.

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following:`(32) INCREASED VETERAN PARTICIPATION PROGRAM-`(A) DEFINITIONS- In this paragraph--`(i) the term `cost' has the meaning given that term in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a);`(ii) the term `pilot program' means the pilot program established under subparagraph (B); and`(iii) the term `veteran participation loan' means a loan made under this subsection to a small business concern owned and controlled by veterans of the Armed Forces or members of the reserve components of the Armed Forces.`(B) ESTABLISHMENT- The Administrator shall establish and carry out a pilot program under which the Administrator shall reduce the fees for veteran participation loans.`(C) DURATION- The pilot program shall terminate at the end of the second full fiscal year after the date that the Administrator establishes the pilot program.`(D) MAXIMUM PARTICIPATION- A veteran participation loan shall include the maximum participation levels by the Administrator permitted for loans made under this subsection.`(E) FEES-`(i) IN GENERAL- The fee on a veteran participation loan shall be equal to 50 percent of the fee otherwise applicable to that loan under paragraph (18).`(ii) WAIVER- The Administrator may waive clause (i) for a fiscal year if--`(I) for the fiscal year before that fiscal year, the annual estimated rate of default of veteran participation loans exceeds that of loans made under this subsection that are not veteran participation loans;`(II) the cost to the Administration of making loans under this subsection is greater than zero and such cost is directly attributable to the cost of making veteran participation loans; and`(III) no additional sources of revenue authority are available to reduce the cost of making loans under this subsection to zero.`(iii) EFFECT OF WAIVER- If the Administrator waives the reduction of fees under clause (ii), the Administrator--`(I) shall not assess or collect fees in an amount greater than necessary to ensure that the cost of the program under this subsection is not greater than zero; and`(II) shall reinstate the fee reductions under clause (i) when the conditions in clause (ii) no longer apply.`(iv) NO INCREASE OF FEES- The Administrator shall not increase the fees under paragraph (18) on loans made under this subsection that are not veteran participation loans as a direct result of the pilot program.`(F) GAO REPORT-`(i) IN GENERAL- Not later than 1 year after the date that the pilot program terminates, the Comptroller General of the United States shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report on the pilot program.`(ii) CONTENTS- The report submitted under clause (i) shall include--`(I) the number of veteran participation loans for which fees were reduced under the pilot program;`(II) a description of the impact of the pilot program on the program under this subsection;`(III) an evaluation of the efficacy and potential fraud and abuse of the pilot program; and`(IV) recommendations for improving the pilot program.'.

Calendar No. 550

110th CONGRESS

1st Session

S. 1784

A BILL

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

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December 19, 2007

Committee discharged; considered, amended, read the third time, and ordered to be placed on the calendar