[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.