[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4253 Enrolled Bill (ENR)]

        H.R.4253

                       One Hundred Tenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Thursday,
            the third day of January, two thousand and eight


                                 An Act


 
To improve and expand small business assistance programs for veterans of 
    the armed forces and military reservists, 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 2008''.
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. 107. Veterans assistance and services program.

                      TITLE II--RESERVIST PROGRAMS

Sec. 201. Reservist programs.
Sec. 202. Reservist loans.
Sec. 203. Noncollateralized loans.
Sec. 204. Loan priority.
Sec. 205. Relief from time limitations for veteran-owned small 
          businesses.
Sec. 206. Service-disabled veterans.
Sec. 207. Study on options for promoting positive working relations 
          between employers and their Reserve Component employees.
Sec. 208. 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 meaning 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.
    (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 redesignating subsection (c) as (f); and
        (2) by inserting after subsection (b) the following:
    ``(c) 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 improve capital and business development 
    opportunities for, and ensure achievement of the pre-established 
    Federal contracting goals 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;
                ``(vii) the Office of Management and Budget; and
                ``(viii) 4 representatives from a veterans service 
            organization or military organization or association, 
            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--
                ``(i) 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;
                ``(ii) ensuring achievement of the pre-established 
            Federal contracting goals for small business concerns owned 
            and controlled by service-disabled veterans and small 
            business concerns owned and controlled by veterans through 
            expanded mentor-protege assistance and matching such small 
            business concerns with contracting opportunities;
                ``(iii) 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;
                ``(iv) 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
                ``(vi) making other improvements relating to the 
            support for veterans business development by the Federal 
            Government.''.
    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 (h).
    SEC. 104. OFFICE OF VETERANS BUSINESS DEVELOPMENT.
    Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by 
inserting after subsection (c) (as added by section 102) the following:
    ``(d) Participation in TAP Workshops.--
        ``(1) In general.--The Associate Administrator shall increase 
    veteran outreach by ensuring that Veteran Business Outreach Centers 
    regularly participate, on a nationwide basis, in the workshops of 
    the Transition Assistance Program of the Department of Labor.
        ``(2) Presentations.--In carrying out paragraph (1), a Veteran 
    Business Outreach Center may provide grants to entities located in 
    Transition Assistance Program locations to make presentations on 
    the opportunities available from the Administration for recently 
    separating or separated veterans. Each presentation under this 
    paragraph shall include, at a minimum, a description of the 
    entrepreneurial and business 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 veterans entrepreneurship, 
        including information on resources available from the 
        Administration on such topics; and
            ``(B) make the materials created under subparagraph (A) 
        available to the Secretary of Labor for inclusion in the 
        Transition Assistance Program manual.
        ``(4) Reports.--The Associate Administrator shall submit to 
    Congress progress reports on the implementation of this subsection.
    ``(e) Women Veterans Business Training.--The Associate 
Administrator shall--
        ``(1) compile information on existing resources available to 
    women veterans for business training, including resources for--
            ``(A) vocational and technical education;
            ``(B) general business skills, such as marketing and 
        accounting; and
            ``(C) business assistance programs targeted to women 
        veterans; and
        ``(2) disseminate the information compiled under paragraph (1) 
    through Veteran Business Outreach Centers and women's business 
    centers.''.
    SEC. 105. INCREASING THE NUMBER OF OUTREACH CENTERS.
    (a) In General.--The Administrator shall use the authority in 
section 8(b)(17) of the Small Business Act (15 U.S.C. 637(b)(17)) to 
ensure that the number of Veterans Business Outreach Centers throughout 
the United States increases--
        (1) subject to subsection (b), by at least 2, for each of 
    fiscal years 2008 and 2009; and
        (2) by the number that the Administrator considers appropriate, 
    based on need, for each fiscal year thereafter.
    (b) Limitation.--Subsection (a)(1) shall apply in a fiscal year if, 
for that fiscal year, the amount made available for the Office of 
Veterans Business Development is more than the amount made available 
for the Office of Veterans Business Development for fiscal year 2007.
    SEC. 106. INDEPENDENT STUDY ON GAPS IN AVAILABILITY OF OUTREACH 
      CENTERS.
    The Administrator shall sponsor an independent study on gaps in the 
availability of Veterans Business Outreach Centers across the United 
States, to inform decisions on funding and on the allocation and 
coordination of resources. Not later than 6 months after the date of 
enactment of this Act, the Administrator shall submit to Congress a 
report on the results of the study.
    SEC. 107. VETERANS ASSISTANCE AND SERVICES PROGRAM.
    Section 21 of the Small Business Act (15 U.S.C. 648) is amended by 
adding at the end the following:
    ``(n) Veterans Assistance and Services Program.--
        ``(1) In general.--A small business development center may 
    apply for a grant under this subsection to carry out a veterans 
    assistance and services program.
        ``(2) Elements of program.--Under a program carried out with a 
    grant under this subsection, a small business development center 
    shall--
            ``(A) create a marketing campaign to promote awareness and 
        education of the services of the center that are available to 
        veterans, and to target the campaign toward veterans, service-
        disabled veterans, military units, Federal agencies, and 
        veterans organizations;
            ``(B) use technology-assisted online counseling and 
        distance learning technology to overcome the impediments to 
        entrepreneurship faced by veterans and members of the Armed 
        Forces; and
            ``(C) increase coordination among organizations that assist 
        veterans, including by establishing virtual integration of 
        service providers and offerings for 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 be 
    for not less than $75,000 and not more than $250,000.
        ``(4) Funding.--Subject to amounts approved in advance in 
    appropriations Acts, the Administration may make grants or enter 
    into cooperative agreements to carry out the provisions of this 
    subsection.''.

                      TITLE II--RESERVIST PROGRAMS

    SEC. 201. 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, may 
    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. 202. RESERVIST LOANS.
    (a) 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.
    (b) Marketing.--The Administrator is authorized--
        (1) 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
        (2) to advertise and promote participation by lenders in such 
    program jointly with trade associations for banks or other lending 
    institutions.
    SEC. 203. 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. 204. 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. 205. 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. 206. 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. 207. STUDY ON OPTIONS FOR PROMOTING POSITIVE WORKING RELATIONS 
      BETWEEN EMPLOYERS AND THEIR RESERVE COMPONENT EMPLOYEES.
    (a) Study Required.--The Comptroller General of the 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 Comptroller General of the 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.
    SEC. 208. 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.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.