[Congressional Record Volume 153, Number 111 (Thursday, July 12, 2007)]
[Senate]
[Pages S9149-S9153]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

 By Mr. KERRY (for himself, Ms. Snowe, Ms. Cantwell, and Ms. Landrieu):

  S. 1784. A bill to amend the Small Business Act to improve programs 
for veterans, and for other purposes; to the Committee on Small 
Business and Entrepreneurship.
  Mr. KERRY. Mr. President, I am pleased to introduce today the 
Military Reservist and Veteran Small Business Reauthorization and 
Opportunity Act. As the Chairman of the Senate Committee on Small 
Business and Entrepreneurship, I am gratified that I was able to work 
with Ranking Member Senator Snowe on behalf of the 25 million veterans 
currently in America, including over 1 million who have left military 
service since September 11, 2001. As the conflicts in Iraq and 
Afghanistan continue, the number of veterans, including service 
disabled veterans, will increase and reservists will continue to carry 
more of the burden then ever before. As veterans and reservists reenter 
civilian life, the small business programs provided by the Federal 
Government will become even more critical. I am serious about 
addressing the problems affecting veterans and reservists who wish or 
are already engaged in small business and this bill is another step 
forward in doing so.
  The Military Reservist and Veteran Small Business Reauthorization and 
Opportunity Act of 2007 reauthorizes the veteran programs in the Small 
Business Administration. Specifically, this legislation increases the 
funding authorization for the Office of Veteran Business Development 
from $2 million today to $2.5 million over three years. In light of the 
large numbers of veterans returning from Iraq and Afghanistan and 
increased responsibilities placed on this office by Executive Order 
13360, it is high time that the Office of Veteran Business Development 
receive the funding levels that it needs.
  The bill also creates an Interagency Task Force to improve 
coordination between agencies in administrating veteran small business 
programs. One of the biggest complaints that our Committee heard at the 
``Assessing Federal Small Business Assistance Programs for Veterans and 
Reservists'' hearing held on January 31st was that Federal agencies do 
not work together in reaching out to veterans and informing them about 
small business programs. This task force is an attempt to improve that. 
The task force is composed of representatives from Small Business 
Administration, Department of Defense, Department of Veterans Affairs, 
Department of Labor, General Services Administration, Office of 
Management Budget and four veterans service organizations appointed by 
the President. The task force will focus on increasing veterans' small 
business success, including procurement and franchising opportunities, 
access to capital, and other types of business development assistance.
  This bill also permanently extends the SBA Advisory Committee on 
Veterans Business Affairs. The committee was created to serve as an 
independent source of advice and policy recommendations to the SBA, the 
Congress, and the President. The veteran small business owners who 
serve on this committee provide a unique perspective which is sorely 
needed at this challenging time. Unfortunately, continuing uncertainty 
about the Committee's future has, at times, distracted the committee 
from focusing on its core function. Therefore, I have called for its 
permanent extension. It is clear to me that more needs to be done to 
address the issues facing veterans and reservists, and the role this 
committee plays will continue to be important.
  Additionally, I have taken a number of steps to better serve the 
reservists who are serving their country abroad while their businesses 
are suffering at home. Over the past decade, the Department of Defense 
has increased its reliance on the National Guard and reserves. This has 
intensified since September 11, 2001, and increased deployments are 
expected to continue. The affect of this increase on reservists and 
small businesses continues to remain of concern. A 2003 GAO report 
indicated that 41 percent of reservists lost income when mobilized. 
This had a higher effect on self-employed reservists, 55 percent of 
whom lost income.

  In 1999, I created the Military Reservist Economic Injury Disaster 
Loan, MREIDL, program to provide loans to small businesses that incur 
economic injury as a result of an essential employee being called to 
active duty. However, since 2002, fewer than 300 of these loans have 
been approved by the SBA, despite record numbers of reservists being 
called to active duty. It is clear that changes need to be made, so 
that reservists are informed about the availability of the MREIDL 
program and that the program better meets their needs.
  At the hearing on January 31, we heard suggestions for a number of

[[Page S9150]]

changes which would improve the Military Reservist Economic Injury 
Disaster Loan program, and I have included those changes in this bill. 
They include increasing the application deadline for such a loan from 
90 days to 1 year following the date of discharge; creating a 
predeployment loan approval process; and improved outreach and 
technical assistance.
  This bill also increases to $50,000 the amount SBA can disburse 
without requiring collateral under the MREIDL program. Reservist 
families have already sacrificed enough when a family member goes away 
to serve their country and when their business is harmed as a result. 
This loan program would allow reservist dependent businesses to access 
the capital they need to stay afloat without having to sacrifice beyond 
the service of the key employees. In order to give reservists time to 
repay the loans, the non-collaterized loan created in this bill would 
not accumulate interest or require payments for one year or until after 
the deployment ends, whichever is longer.
  While addressing the funding needs of reservists is essential, I also 
want to make sure that reservists receive the technical and management 
assistance they need to succeed. For that reason, this bill also 
includes the establishment of the Reservists Enterprise Transition and 
Sustainability Task Force. This grant program would allow Small 
Business Development Centers, Women's Business Centers and veteran 
centers to compete for grants to create programs that help small 
businesses prepare for and cope with the mobilization of reservist-
employees and owners.
  There are two more provisions which will help this Nation's service 
members. One section of the bill will require the SBA to give priority 
to MREIDL loans during loan processing. Another provision will give 
activated service members an extension of any SBA time limitations 
equal to the time spent on active duty. This will make it easier for 
service members to serve their country while continuing to meet their 
obligations at home.
  Lastly, this bill calls for two reports. One report will look at the 
needs of service-disabled veterans who are interested in becoming 
entrepreneurs. As a result of the war on terror and improved medicine, 
we are seeing more service-disabled veterans than we have seen in 
decades. For some service-disabled veterans, entrepreneurship is the 
best or only way of achieving economic independence. Therefore, it is 
essential that we understand and take steps to address the needs of the 
service-disabled veteran entrepreneur or small business owner.
  This bill also calls for a study to investigate how to improve 
relations between reservists and their employers. In January, the 
Committee heard that recent changes by the Department of Defense to 
policies regulating the length and frequency of reservist deployments 
is harming the ability of reservists to find jobs and the ability of 
small business owners to continue hiring them. Witnesses testified 
about reservists being turned down or not considered for jobs because 
they are reservists. I have heard reservists talk about being pressured 
to leave the reserves if they would like to continue to advance at 
work. I have also heard the concerns of small business owners who want 
to support servicemembers; however, they cannot do so if it means the 
survival of their business. Understanding more about this issue is 
important and essential to making sure that policymakers can continue 
to support citizen soldiers and the small businesses that employ them 
across the Nation.

  Veterans possess great technical skills and valuable leadership 
experience, but they require financial resources and small business 
training to turn that potential into a viable enterprise. A recent 
report by the Small Business Administration stated that 22 percent of 
veterans plan to start or are starting a business when they leave the 
military. For service-disabled veterans, this number rises to 28 
percent. This bill is another step forward in providing the necessary 
resources for veterans and reservists to succeed in starting or growing 
a small business.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1784

       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--

[[Page S9151]]

       ``(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

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     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.

  Ms. SNOWE. Mr. President, as ranking member of the Senate Committee 
on Small Business and Entrepreneurship, I rise today, with Senator 
Kerry, to introduce the Military Reservist and Veteran Small Business 
Reauthorization and Opportunity Act of 2007. This bill improves the 
programs and resources available to our Nation's veteran entrepreneurs 
and the small businesses that employ our veterans.
  Thank you, Senator Kerry, for working so closely with me on this 
bipartisan legislation and for your long

[[Page S9153]]

standing commitment to our Nation's veterans. This bipartisan measure 
contains key provisions from both S. 904, the Veterans Small Business 
Opportunity Act of 2007, which I introduced in March, and Senator 
Kerry's S. 1005, Military Reservist and Veteran Small Business 
Reauthorization Act of 2007. It is truly critical that all of our 
fellow Senators, on both sides of the aisle, continue to collaborate on 
our veterans' behalf and support swift passage of this legislation.
  In October 2003, I requested a Congressional Budget Office Report 
entitled ``The Effects of Reserve Call-Ups on Civilian Employers.'' 
That report, issued in May 2005, highlighted the problems that our 
nation's small businesses face when their owners or key employees are 
``called up'' to serve in defense of our Nation. In response to that 
report's findings, I offered two bills to improve the resources and 
programs targeted to these veterans and small businesses. Those bills, 
S. 1014, the Supporting our Patriotic Businesses Act, and S. 3122, the 
Patriot Loan Act of 2006, were the genesis of S. 904 that I introduced 
earlier this year. Similarly, Senator Kerry has an established history 
of working on these issues, and the Small Business Committee on January 
31 held its first hearing of the 110th Congress regarding programs to 
assist veterans and reservists.
  In recent years, our Nation's Guard and Reserve forces, which I 
collectively refer to as reservists, have selflessly answered the call 
to duty in both Iraq and Afghanistan. In fact, there have been over 
425,000 reservist deployments, including nearly 3,000 from my home 
State of Maine, to those two countries since September 11, 2001. With 
the majority of nongovernmental reservists either being self-employed 
or working for small businesses, it is easy to see that veteran 
entrepreneurs and small businesses are profoundly and 
disproportionately impacted by these deployments.
  As our reservists answer our Nation's call to duty, we must similarly 
fulfill our obligations to help protect their livelihood back home. In 
addition to addressing this responsibility, our legislation includes 
other broad provisions to help our Nation's veteran entrepreneurs 
across the board.
  First, our bill makes vast improvements to the Small Business 
Administration's, SBA, Military Reservist Economic Disaster Loan, 
MREIDL, program. The MREIDL program provides funds to businesses to 
meet ordinary and necessary business expenses that they could have 
made, if not for the deployment of a reservist who is one of their 
essential employees.
  Specifically, the bill establishes a preapplication process so 
businesses can be prepared, in advance, to apply for an MREIDL and 
includes a provision allowing a businesses up to 1 year, as opposed to 
90 days, to apply. The legislation increases, from $1.5 million to $2 
million, the maximum MREIDL loan a business can take and raises, from 
$5,000 to $50,000, the level of uncollateralized MREIDL loans available 
to businesses. Finally, our changes to the MREIDL program would allow 
the SBA Administrator to defer the payment of principal and interest 
while the employee is deployed.
  Second, the measure also includes a national reservist enterprise 
transition and sustainability provision. This provision would allow the 
SBA to award grants to entities that assist businesses with preparing 
and implementing a business strategy to cover the period of time that 
the owner is called-up on active duty through 6 months after that 
owner's date of return.
  Third, our bill would create a new 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 opportunities to, small businesses owned 
and controlled by veterans. This type of coordinated and targeted 
effort by our Federal Government is long overdue.
  Finally, today's legislation would increase funding for the SBA's 
Office of Veterans Business Development, and permanently extend the 
duties and responsibilities of the SBA Advisory Committee on Veterans 
Business Affairs. It would also allow small businesses owned and 
operated by veterans to extend their SBA program participation time 
limitations by the duration of their owner's deployment.
  While I have not provided an exhaustive list of this bill's 
provisions and all that it would do, a simple review of the legislation 
will reveal that it goes far toward helping our nation's veteran 
entrepreneurs and our patriotic small businesses that employ 
reservists, despite the risk that deployments entail. Our legislation 
is not a silver bullet, but it is certainly a step in the right 
direction. To that end, I urge my colleagues to join us in support of 
this bill.

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