[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1005 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1005

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             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 Entrepreneurship

_______________________________________________________________________

                                 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 Act of 2007''.

SEC. 2. 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 terms 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--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)''.
    (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:
                    ``(G) Grants made under subparagraph (B)--
                            ``(i) may be awarded in addition to any 
                        loan made under subparagraph (B);
                            ``(ii) shall not exceed $25,000; and
                            ``(iii) shall be made only to a small 
                        business concern--
                                    ``(I) that provides a business plan 
                                demonstrating viability for not less 
                                than 3 years after the date of the 
                                application for that grant;
                                    ``(II) with 10 or fewer employees; 
                                and
                                    ``(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.''.
    (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:
                    ``(C) Grant assistance for military reservists' 
                small businesses.--There are authorized to be 
                appropriated for grants under section 7(b)(3)(B)--
                            ``(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; and
                            ``(ii) $5,000,000 for each of the 2 fiscal 
                        years following the fiscal year described in 
                        clause (i).''.

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:
                    ``(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.
                    ``(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. 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''.

SEC. 104. PREAPPROVAL PROCESS.

    (a) Definition.--In this section, the term ``eligible Reservist'' 
means a Reservist who--
            (1) has not been ordered to active duty;
            (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)); and
            (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.
    (b) Establishment.--Not later than 6 months after the date of 
enactment of this Act, the Administrator shall establish a preapproval 
process, under which--
            (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; and
            (2) the Administrator shall distribute funds for any loan 
        or grant approved under paragraph (1) if that eligible 
        Reservist is activated.

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--
            (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; and
            (2) provide technical assistance to a small business 
        concern applying for a loan or grant under that section.
    (b) Components.--The program shall--
            (1) incorporate appropriate websites maintained by the 
        Administration, the Department of Veterans Affairs, and the 
        Department of Defense; and
            (2) require that information on the program is made 
        available to small business concerns directly through--
                    (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; and
                    (B) other Federal agencies, including the 
                Department of Veterans Affairs and the Department of 
                Defense.
    (c) Report.--
            (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.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include--
                    (A) for the 6-month period before the date of that 
                report--
                            (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;
                            (ii) the number of loans and grants 
                        disbursed under that section; and
                            (iii) the total amount disbursed under that 
                        section; and
                    (B) recommendations, if any, to make the program 
                more effective in serving small business concerns that 
                employ Reservists.

 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''.

SEC. 202. PURPOSE.

    The purpose of this title is to establish a program to--
            (1) provide managerial, financial, planning, development, 
        technical, and regulatory assistance to small business concerns 
        owned and operated by Reservists;
            (2) provide managerial, financial, planning, development, 
        technical, and regulatory assistance to the temporary heads of 
        small business concerns owned and operated by Reservists;
            (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;
            (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;
            (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; and
            (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.

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,''.
    (b) Program.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--
            (1) by redesignating section 37 (15 U.S.C. 631 note) as 
        section 38; and
            (2) by inserting after section 36 the following:

``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.
    ``(b) Definitions.--In this section--
            ``(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;
            ``(2) the term `Administrator' means the Administrator of 
        the Small Business Administration, acting through the Associate 
        Administrator for Small Business Development 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 is 
                accredited under section 21(k);
                    ``(B) a women's business center;
                    ``(C) a Veterans Business Outreach Center that 
                receives funds from the Office of Veterans Business 
                Development; or
                    ``(D) an information and assistance center operated 
                by the National Veterans Business Development 
                Corporation under section 33;
            ``(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;
            ``(6) the term `Reservists' 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; and
                    ``(B) on active status, as defined by section 
                101(d)(4) of title 10, United States Code;
            ``(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);
            ``(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; 
        and
            ``(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).
    ``(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--
            ``(1) providing management, development, financing, 
        procurement, technical, regulatory, and marketing assistance;
            ``(2) providing access to information and resources, 
        including Federal and State business assistance 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, and marketing;
            ``(5) assisting in developing a long-term plan for possible 
        future activation; and
            ``(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.
            ``(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.
            ``(3) Contents.--The regulations developed by the 
        Administrator under this subsection shall establish--
                    ``(A) procedures for identifying, in consultation 
                with the Secretary of Defense, States that have had a 
                recent activation of Reservists;
                    ``(B) priorities for the types of assistance to be 
                provided under the program authorized by this section;
                    ``(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; and
                    ``(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.
    ``(e) Application.--
            ``(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.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall describe--
                    ``(A) the activities for which the applicant seeks 
                assistance under this section; and
                    ``(B) how the applicant plans to allocate funds 
                within its network.
            ``(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.
    ``(f) Award of Grants.--
            ``(1) Deadline.--The Administrator shall award grants not 
        later than 60 days after the promulgation of final rules and 
        regulations under subsection (d).
            ``(2) Amount.--Each eligible applicant awarded a grant 
        under this section shall receive a grant in an amount--
                    ``(A) not less than $150,000 per fiscal year; and
                    ``(B) not greater than $500,000 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 later than 6 months after 
                the initiation of the evaluation under paragraph (1) 
                to--
                            ``(i) the Administrator;
                            ``(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 achieve the 
                goals of this section.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section--
                    ``(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; and
                    ``(B) $5,000,000 for each of the 3 fiscal years 
                following the fiscal year described in subparagraph 
                (A).
            ``(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.''.

                 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''.

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:
            ``(32) Veteran entrepreneur loans.--Each loan to a new 
        veteran entrepreneur under this subsection shall--
                    ``(A) be made directly to the new veteran 
                entrepreneur;
                    ``(B) not exceed $100,000; and
                    ``(C) be made at the same interest rate as loans 
                made under the second proviso of the unnumbered 
                paragraph of subsection (b).''.

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:
            ``(5) New veteran entrepreneur.--The term `new veteran 
        entrepreneur' means a person who--
                    ``(A) is a veteran;
                    ``(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; and
                    ``(C) does not own or control any other 
                business.''.

                       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--
            (1) $2,100,000 for fiscal year 2008;
            (2) $2,300,000 for fiscal year 2009; and
            (3) $2,500,000 for fiscal year 2010.

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--
            (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. 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--
            (1) any increase in the use of Reservists after September 
        11, 2001; or
            (2) any change in any policy of the Department of Defense 
        relating to Reservists after September 11, 2001.

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--
            (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.
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