[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1784 Introduced in Senate (IS)]







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. Snowe, Ms. Cantwell, and Ms. Landrieu) 
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 and Opportunity 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--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;
            (2) $2,300,000 for fiscal year 2009; and
            (3) $2,500,000 for fiscal year 2010.
    (b) 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 by 
adding at the end the following:
    ``(d) 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 increase capital and business development 
        opportunities for, and increase the award of Federal 
        contracting and subcontracting opportunities to, 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;
                    ``(B) a 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 General Services Administration; 
                        and
                            ``(vi) the Office of Management and Budget; 
                        and
                    ``(C) 4 representatives of veterans service 
                organizations, selected by the President.
            ``(3) Duties.--The task force shall coordinate 
        administrative and regulatory activities and develop proposals 
        relating to--
                    ``(A) increasing 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 to Federal contracting and 
                subcontracting for small business concerns owned and 
                controlled by service-disabled veterans and small 
                business concerns owned and controlled by veterans 
                through increased use of contract reservations, 
                expanded mentor-protege assistance, and matching such 
                small business concerns with contracting opportunities;
                    ``(C) 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;
                    ``(D) reducing paperwork and administrative burdens 
                on veterans in accessing business development and 
                entrepreneurship opportunities; and
                    ``(E) 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 (h).

 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 `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; 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 and Opportunity 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 $75,000 per fiscal year; and
                    ``(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 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 
                and Opportunity 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--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 by striking ``90 days'' and 
inserting ``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, 
        shall 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 
                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.''.

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 Secretary of Defense 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 Secretary of Defense 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.
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