[Congressional Record Volume 154, Number 16 (Thursday, January 31, 2008)]
[Senate]
[Pages S555-S559]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   MILITARY RESERVIST AND VETERAN SMALL BUSINESS REAUTHORIZATION AND 
                        OPPORTUNITY ACT OF 2008

  Mr. REID. Mr. President, I ask the Chair to lay before the Senate a 
message from the House with respect to H.R. 4253, the small business 
veterans military reservist legislation.
  There being no objection, the Presiding Officer (Mr. Whitehouse) laid 
before the Senate the following message from the House of 
Representatives:

[[Page S556]]

                               H.R. 4253

       Resolved, That the House agree to the amendment of the 
     Senate to the bill (H.R. 4253) entitled ``An Act to improve 
     and expand small business assistance programs for veterans of 
     the armed forces and military reservists, and for other 
     purposes'', with the following: House Amendment to Senate 
     Amendment:
       In lieu of the matter proposed to be inserted by the 
     amendment of the Senate, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Military Reservist and 
     Veteran Small Business Reauthorization and Opportunity Act of 
     2008''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

                 TITLE I--VETERANS BUSINESS DEVELOPMENT

Sec. 101. Increased funding for the Office of Veterans Business 
              Development.
Sec. 102. Interagency task force.
Sec. 103. Permanent extension of SBA Advisory Committee on Veterans 
              Business Affairs.
Sec. 104. Office of Veterans Business Development.
Sec. 105. Increasing the number of outreach centers.
Sec. 106. Independent study on gaps in availability of outreach 
              centers.
Sec. 107. Veterans assistance and services program.

                      TITLE II--RESERVIST PROGRAMS

Sec. 201. Reservist programs.
Sec. 202. Reservist loans.
Sec. 203. Noncollateralized loans.
Sec. 204. Loan priority.
Sec. 205. Relief from time limitations for veteran-owned small 
              businesses.
Sec. 206. Service-disabled veterans.
Sec. 207. Study on options for promoting positive working relations 
              between employers and their Reserve Component employees.
Sec. 208. Increased Veteran Participation Program.

     SEC. 3. DEFINITIONS.

       In this Act--
       (1) the term ``activated'' means receiving an order placing 
     a Reservist on active duty;
       (2) the term ``active duty'' has the meaning given that 
     term in section 101 of title 10, United States Code;
       (3) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (4) the term ``Reservist'' means a member of a reserve 
     component of the Armed Forces, as described in section 10101 
     of title 10, United States Code;
       (5) the term ``Service Corps of Retired Executives'' means 
     the Service Corps of Retired Executives authorized by section 
     8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1));
       (6) the terms ``service-disabled veteran'' and ``small 
     business concern'' have the meaning as in section 3 of the 
     Small Business Act (15 U.S.C. 632);
       (7) the term ``small business development center'' means a 
     small business development center described in section 21 of 
     the Small Business Act (15 U.S.C. 648); and
       (8) the term ``women's business center'' means a women's 
     business center described in section 29 of the Small Business 
     Act (15 U.S.C. 656).

                 TITLE I--VETERANS BUSINESS DEVELOPMENT

     SEC. 101. INCREASED FUNDING FOR THE OFFICE OF VETERANS 
                   BUSINESS DEVELOPMENT.

       (a) In General.--There are authorized to be appropriated to 
     the Office of Veterans Business Development of the 
     Administration, to remain available until expended--
       (1) $2,100,000 for fiscal year 2008; and
       (2) $2,300,000 for fiscal year 2009.
       (b) Funding Offset.--Amounts necessary to carry out 
     subsection (a) shall be offset and made available through the 
     reduction of the authorization of funding under section 
     20(e)(1)(B)(iv) of the Small Business Act (15 U.S.C. 631 
     note).
       (c) Sense of Congress.--It is the sense of Congress that 
     any amounts provided pursuant to this section that are in 
     excess of amounts provided to the Administration for the 
     Office of Veterans Business Development in fiscal year 2007, 
     should be used to support Veterans Business Outreach Centers.

     SEC. 102. INTERAGENCY TASK FORCE.

       Section 32 of the Small Business Act (15 U.S.C. 657b) is 
     amended--
       (1) by redesignating subsection (c) as (f); and
       (2) by inserting after subsection (b) the following:
       ``(c) Interagency Task Force.--
       ``(1) Establishment.--Not later than 90 days after the date 
     of enactment of this subsection, the President shall 
     establish an interagency task force to coordinate the efforts 
     of Federal agencies necessary to improve capital and business 
     development opportunities for, and ensure achievement of the 
     pre-established Federal contracting goals for, small business 
     concerns owned and controlled by service-disabled veterans 
     and small business concerns owned and controlled by veterans 
     (in this section referred to as the `task force').
       ``(2) Membership.--The members of the task force shall 
     include--
       ``(A) the Administrator, who shall serve as chairperson of 
     the task force; and
       ``(B) a senior level representative from--
       ``(i) the Department of Veterans Affairs;
       ``(ii) the Department of Defense;
       ``(iii) the Administration (in addition to the 
     Administrator);
       ``(iv) the Department of Labor;
       ``(v) the Department of the Treasury;
       ``(vi) the General Services Administration;
       ``(vii) the Office of Management and Budget; and
       ``(viii) 4 representatives from a veterans service 
     organization or military organization or association, 
     selected by the President.
       ``(3) Duties.--The task force shall--
       ``(A) consult regularly with veterans service organizations 
     and military organizations in performing the duties of the 
     task force; and
       ``(B) coordinate administrative and regulatory activities 
     and develop proposals relating to--
       ``(i) improving capital access and capacity of small 
     business concerns owned and controlled by service-disabled 
     veterans and small business concerns owned and controlled by 
     veterans through loans, surety bonding, and franchising;
       ``(ii) ensuring achievement of the pre-established Federal 
     contracting goals for small business concerns owned and 
     controlled by service-disabled veterans and small business 
     concerns owned and controlled by veterans through expanded 
     mentor-protege assistance and matching such small business 
     concerns with contracting opportunities;
       ``(iii) increasing the integrity of certifications of 
     status as a small business concern owned and controlled by 
     service-disabled veterans or a small business concern owned 
     and controlled by veterans;
       ``(iv) reducing paperwork and administrative burdens on 
     veterans in accessing business development and 
     entrepreneurship opportunities;
       ``(v) increasing and improving training and counseling 
     services provided to small business concerns owned and 
     controlled by veterans; and
       ``(vi) making other improvements relating to the support 
     for veterans business development by the Federal 
     Government.''.

     SEC. 103. PERMANENT EXTENSION OF SBA ADVISORY COMMITTEE ON 
                   VETERANS BUSINESS AFFAIRS.

       (a) Assumption of Duties.--Section 33 of the Small Business 
     Act (15 U.S.C. 657c) is amended--
       (1) by striking subsection (h); and
       (2) by redesignating subsections (i) through (k) as 
     subsections (h) through (j), respectively.
       (b) Permanent Extension of Authority.--Section 203 of the 
     Veterans Entrepreneurship and Small Business Development Act 
     of 1999 (15 U.S.C. 657b note) is amended by striking 
     subsection (h).

     SEC. 104. OFFICE OF VETERANS BUSINESS DEVELOPMENT.

       Section 32 of the Small Business Act (15 U.S.C. 657b) is 
     amended by inserting after subsection (c) (as added by 
     section 102) the following:
       ``(d) Participation in TAP Workshops.--
       ``(1) In general.--The Associate Administrator shall 
     increase veteran outreach by ensuring that Veteran Business 
     Outreach Centers regularly participate, on a nationwide 
     basis, in the workshops of the Transition Assistance Program 
     of the Department of Labor.
       ``(2) Presentations.--In carrying out paragraph (1), a 
     Veteran Business Outreach Center may provide grants to 
     entities located in Transition Assistance Program locations 
     to make presentations on the opportunities available from the 
     Administration for recently separating or separated veterans. 
     Each presentation under this paragraph shall include, at a 
     minimum, a description of the entrepreneurial and business 
     training resources available from the Administration.
       ``(3) Written materials.--The Associate Administrator 
     shall--
       ``(A) create written materials that provide comprehensive 
     information on self-employment and veterans entrepreneurship, 
     including information on resources available from the 
     Administration on such topics; and
       ``(B) make the materials created under subparagraph (A) 
     available to the Secretary of Labor for inclusion in the 
     Transition Assistance Program manual.
       ``(4) Reports.--The Associate Administrator shall submit to 
     Congress progress reports on the implementation of this 
     subsection.
       ``(e) Women Veterans Business Training.--The Associate 
     Administrator shall--
       ``(1) compile information on existing resources available 
     to women veterans for business training, including resources 
     for--
       ``(A) vocational and technical education;
       ``(B) general business skills, such as marketing and 
     accounting; and
       ``(C) business assistance programs targeted to women 
     veterans; and
       ``(2) disseminate the information compiled under paragraph 
     (1) through Veteran Business Outreach Centers and women's 
     business centers.''.

     SEC. 105. INCREASING THE NUMBER OF OUTREACH CENTERS.

       (a) In General.--The Administrator shall use the authority 
     in section 8(b)(17) of the Small Business Act (15 U.S.C. 
     637(b)(17)) to ensure that the number of Veterans Business 
     Outreach Centers throughout the United States increases--
       (1) subject to subsection (b), by at least 2, for each of 
     fiscal years 2008 and 2009; and
       (2) by the number that the Administrator considers 
     appropriate, based on need, for each fiscal year thereafter.
       (b) Limitation.--Subsection (a)(1) shall apply in a fiscal 
     year if, for that fiscal year, the amount made available for 
     the Office of Veterans Business Development is more than the 
     amount made available for the Office of Veterans Business 
     Development for fiscal year 2007.

     SEC. 106. INDEPENDENT STUDY ON GAPS IN AVAILABILITY OF 
                   OUTREACH CENTERS.

       The Administrator shall sponsor an independent study on 
     gaps in the availability of

[[Page S557]]

     Veterans Business Outreach Centers across the United States, 
     to inform decisions on funding and on the allocation and 
     coordination of resources. Not later than 6 months after the 
     date of enactment of this Act, the Administrator shall submit 
     to Congress a report on the results of the study.

     SEC. 107. VETERANS ASSISTANCE AND SERVICES PROGRAM.

       Section 21 of the Small Business Act (15 U.S.C. 648) is 
     amended by adding at the end the following:
       ``(n) Veterans Assistance and Services Program.--
       ``(1) In general.--A small business development center may 
     apply for a grant under this subsection to carry out a 
     veterans assistance and services program.
       ``(2) Elements of program.--Under a program carried out 
     with a grant under this subsection, a small business 
     development center shall--
       ``(A) create a marketing campaign to promote awareness and 
     education of the services of the center that are available to 
     veterans, and to target the campaign toward veterans, 
     service-disabled veterans, military units, Federal agencies, 
     and veterans organizations;
       ``(B) use technology-assisted online counseling and 
     distance learning technology to overcome the impediments to 
     entrepreneurship faced by veterans and members of the Armed 
     Forces; and
       ``(C) increase coordination among organizations that assist 
     veterans, including by establishing virtual integration of 
     service providers and offerings for a one-stop point of 
     contact for veterans who are entrepreneurs or owners of small 
     business concerns.
       ``(3) Amount of grants.--A grant under this subsection 
     shall be for not less than $75,000 and not more than 
     $250,000.
       ``(4) Funding.--Subject to amounts approved in advance in 
     appropriations Acts, the Administration may make grants or 
     enter into cooperative agreements to carry out the provisions 
     of this subsection.''.

                      TITLE II--RESERVIST PROGRAMS

     SEC. 201. RESERVIST PROGRAMS.

       (a) Application Period.--Section 7(b)(3)(C) of the Small 
     Business Act (15 U.S.C. 636(b)(3)(C)) is amended--
       (1) by striking ``90 days'' and inserting ``1 year''; and
       (2) by adding at the end the following: ``The Administrator 
     may, when appropriate (as determined by the Administrator), 
     extend the ending date specified in the preceding sentence by 
     not more than 1 year.''.
       (b) Pre-Consideration Process.--
       (1) Definition.--In this subsection, the term ``eligible 
     Reservist'' means a Reservist who--
       (A) has not been ordered to active duty;
       (B) expects to be ordered to active duty during a period of 
     military conflict; and
       (C) can reasonably demonstrate that the small business 
     concern for which that Reservist is a key employee will 
     suffer economic injury in the absence of that Reservist.
       (2) Establishment.--Not later than 6 months after the date 
     of enactment of this Act, the Administrator shall establish a 
     pre-consideration process, under which the Administrator--
       (A) may collect all relevant materials necessary for 
     processing a loan to a small business concern under section 
     7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) 
     before an eligible Reservist employed by that small business 
     concern is activated; and
       (B) shall distribute funds for any loan approved under 
     subparagraph (A) if that eligible Reservist is activated.
       (c) Outreach and Technical Assistance Program.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of Veterans Affairs and the Secretary of 
     Defense, may develop a comprehensive outreach and technical 
     assistance program (in this subsection referred to as the 
     ``program'') to--
       (A) market the loans available under section 7(b)(3) of the 
     Small Business Act (15 U.S.C. 636(b)(3)) to Reservists, and 
     family members of Reservists, that are on active duty and 
     that are not on active duty; and
       (B) provide technical assistance to a small business 
     concern applying for a loan under that section.
       (2) Components.--The program shall--
       (A) incorporate appropriate websites maintained by the 
     Administration, the Department of Veterans Affairs, and the 
     Department of Defense; and
       (B) require that information on the program is made 
     available to small business concerns directly through--
       (i) the district offices and resource partners of the 
     Administration, including small business development centers, 
     women's business centers, and the Service Corps of Retired 
     Executives; and
       (ii) other Federal agencies, including the Department of 
     Veterans Affairs and the Department of Defense.
       (3) Report.--
       (A) In general.--Not later than 6 months after the date of 
     enactment of this Act, and every 6 months thereafter until 
     the date that is 30 months after such date of enactment, the 
     Administrator shall submit to Congress a report on the status 
     of the program.
       (B) Contents.--Each report submitted under subparagraph (A) 
     shall include--
       (i) for the 6-month period ending on the date of that 
     report--

       (I) the number of loans approved under section 7(b)(3) of 
     the Small Business Act (15 U.S.C. 636(b)(3));
       (II) the number of loans disbursed under that section; and
       (III) the total amount disbursed under that section; and

       (ii) recommendations, if any, to make the program more 
     effective in serving small business concerns that employ 
     Reservists.

     SEC. 202. RESERVIST LOANS.

       (a) In General.--The Administrator and the Secretary of 
     Defense shall develop a joint website and printed materials 
     providing information regarding any program for small 
     business concerns that is available to veterans or 
     Reservists.
       (b) Marketing.--The Administrator is authorized--
       (1) to advertise and promote the program under section 
     7(b)(3) of the Small Business Act jointly with the Secretary 
     of Defense and veterans' service organizations; and
       (2) to advertise and promote participation by lenders in 
     such program jointly with trade associations for banks or 
     other lending institutions.

     SEC. 203. NONCOLLATERALIZED LOANS.

       Section 7(b)(3) of the Small Business Act (15 U.S.C. 
     636(b)(3)) is amended by adding at the end the following:
       ``(G)(i) Notwithstanding any other provision of law, the 
     Administrator may make a loan under this paragraph of not 
     more than $50,000 without collateral.
       ``(ii) The Administrator may defer payment of principal and 
     interest on a loan described in clause (i) during the longer 
     of--
       ``(I) the 1-year period beginning on the date of the 
     initial disbursement of the loan; and
       ``(II) the period during which the relevant essential 
     employee is on active duty.''.

     SEC. 204. LOAN PRIORITY.

       Section 7(b)(3) of the Small Business Act (15 U.S.C. 
     636(b)(3)), as amended by this Act, is amended by adding at 
     the end the following:
       ``(H) The Administrator shall give priority to any 
     application for a loan under this paragraph and shall process 
     and make a determination regarding such applications prior to 
     processing or making a determination on other loan 
     applications under this subsection, on a rolling basis.''.

     SEC. 205. RELIEF FROM TIME LIMITATIONS FOR VETERAN-OWNED 
                   SMALL BUSINESSES.

       Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) 
     is amended by adding at the end the following:
       ``(5) Relief from time limitations.--
       ``(A) In general.--Any time limitation on any 
     qualification, certification, or period of participation 
     imposed under this Act on any program that is available to 
     small business concerns shall be extended for a small 
     business concern that--
       ``(i) is owned and controlled by--

       ``(I) a veteran who was called or ordered to active duty 
     under a provision of law specified in section 101(a)(13)(B) 
     of title 10, United States Code, on or after September 11, 
     2001; or
       ``(II) a service-disabled veteran who became such a veteran 
     due to an injury or illness incurred or aggravated in the 
     active military, naval, or air service during a period of 
     active duty pursuant to a call or order to active duty under 
     a provision of law referred to in subclause (I) on or after 
     September 11, 2001; and

       ``(ii) was subject to the time limitation during such 
     period of active duty.
       ``(B) Duration.--Upon submission of proper documentation to 
     the Administrator, the extension of a time limitation under 
     subparagraph (A) shall be equal to the period of time that 
     such veteran who owned or controlled such a concern was on 
     active duty as described in that subparagraph.
       ``(C) Exception for programs subject to federal credit 
     reform act of 1990.--The provisions of subparagraphs (A) and 
     (B) shall not apply to any programs subject to the Federal 
     Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).''.

     SEC. 206. SERVICE-DISABLED VETERANS.

       Not later than 180 days after the date of enactment of this 
     Act, the Comptroller General of the United States shall 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report 
     describing--
       (1) the types of assistance needed by service-disabled 
     veterans who wish to become entrepreneurs; and
       (2) any resources that would assist such service-disabled 
     veterans.

     SEC. 207. STUDY ON OPTIONS FOR PROMOTING POSITIVE WORKING 
                   RELATIONS BETWEEN EMPLOYERS AND THEIR RESERVE 
                   COMPONENT EMPLOYEES.

       (a) Study Required.--The Comptroller General of the United 
     States shall conduct a study on options for promoting 
     positive working relations between employers and Reserve 
     component employees of such employers, including assessing 
     options for improving the time in which employers of 
     Reservists are notified of the call or order of such members 
     to active duty other than for training.
       (b) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the appropriate committees of Congress 
     a report on the study conducted under subsection (a).
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) provide a quantitative and qualitative assessment of--
       (i) what measures, if any, are being taken to inform 
     Reservists of the obligations and responsibilities of such 
     members to their employers;
       (ii) how effective such measures have been; and
       (iii) whether there are additional measures that could be 
     taken to promote positive working relations between 
     Reservists and their employers, including any steps that 
     could be taken to ensure that employers are timely notified 
     of a call to active duty; and

[[Page S558]]

       (B) assess whether there has been a reduction in the hiring 
     of Reservists by business concerns because of--
       (i) any increase in the use of Reservists after September 
     11, 2001; or
       (ii) any change in any policy of the Department of Defense 
     relating to Reservists after September 11, 2001.
       (c) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committee on Armed Services and the Committee on 
     Small Business and Entrepreneurship of the Senate; and
       (2) the Committee on Armed Services and the Committee on 
     Small Business of the House of Representatives.

     SEC. 208. INCREASED VETERAN PARTICIPATION PROGRAM.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
     is amended by adding at the end the following:
       ``(32) Increased veteran participation program.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `cost' has the meaning given that term in 
     section 502 of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a);
       ``(ii) the term `pilot program' means the pilot program 
     established under subparagraph (B); and
       ``(iii) the term `veteran participation loan' means a loan 
     made under this subsection to a small business concern owned 
     and controlled by veterans of the Armed Forces or members of 
     the reserve components of the Armed Forces.
       ``(B) Establishment.--The Administrator shall establish and 
     carry out a pilot program under which the Administrator shall 
     reduce the fees for veteran participation loans.
       ``(C) Duration.--The pilot program shall terminate at the 
     end of the second full fiscal year after the date that the 
     Administrator establishes the pilot program.
       ``(D) Maximum participation.--A veteran participation loan 
     shall include the maximum participation levels by the 
     Administrator permitted for loans made under this subsection.
       ``(E) Fees.--
       ``(i) In general.--The fee on a veteran participation loan 
     shall be equal to 50 percent of the fee otherwise applicable 
     to that loan under paragraph (18).
       ``(ii) Waiver.--The Administrator may waive clause (i) for 
     a fiscal year if--

       ``(I) for the fiscal year before that fiscal year, the 
     annual estimated rate of default of veteran participation 
     loans exceeds that of loans made under this subsection that 
     are not veteran participation loans;
       ``(II) the cost to the Administration of making loans under 
     this subsection is greater than zero and such cost is 
     directly attributable to the cost of making veteran 
     participation loans; and
       ``(III) no additional sources of revenue authority are 
     available to reduce the cost of making loans under this 
     subsection to zero.

       ``(iii) Effect of waiver.--If the Administrator waives the 
     reduction of fees under clause (ii), the Administrator--

       ``(I) shall not assess or collect fees in an amount greater 
     than necessary to ensure that the cost of the program under 
     this subsection is not greater than zero; and
       ``(II) shall reinstate the fee reductions under clause (i) 
     when the conditions in clause (ii) no longer apply.

       ``(iv) No increase of fees.--The Administrator shall not 
     increase the fees under paragraph (18) on loans made under 
     this subsection that are not veteran participation loans as a 
     direct result of the pilot program.
       ``(F) GAO report.--
       ``(i) In general.--Not later than 1 year after the date 
     that the pilot program terminates, the Comptroller General of 
     the United States shall submit to the Committee on Small 
     Business of the House of Representatives and the Committee on 
     Small Business and Entrepreneurship of the Senate a report on 
     the pilot program.
       ``(ii) Contents.--The report submitted under clause (i) 
     shall include--

       ``(I) the number of veteran participation loans for which 
     fees were reduced under the pilot program;
       ``(II) a description of the impact of the pilot program on 
     the program under this subsection;
       ``(III) an evaluation of the efficacy and potential fraud 
     and abuse of the pilot program; and
       ``(IV) recommendations for improving the pilot program.''.

  Mr. REID. Mr. President, I ask unanimous consent that the Senate 
concur in the House amendment to the Senate amendment and that the 
motion to reconsider be laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. KERRY. Mr. President, I am pleased to see the Military Reservist 
and Veteran Small Business Reauthorization and Opportunity Act of 2008, 
a bill that Senator Snowe and I developed, pass the Senate today. 
Veterans have sacrificed in the defense of our country, and they have 
earned the support of their Government in reentering civilian life. 
Senators Hagel, Cantwell, Landrieu, Lieberman, and Tester are 
cosponsors of this bill.
  There are currently 24 million veterans in America, including over 
1.3 million who have left military service since 2001. As the conflicts 
in Iraq and Afghanistan continue, it becomes increasingly vital that 
returning service-members receive the assistance they need to reenter 
civilian life. According to the Department of Labor, the unemployment 
rate among recently discharged veterans is more than double the 
national overall unemployment rate: 11.9 percent compared to 4.6 
percent. In addition, 55 percent of self-employed reservists 
experienced income loss when deployed, and 22 percent said that their 
business suffered serious or very serious harm.
  As chairman of the Committee on Small Business and Entrepreneurship, 
addressing the concerns of veteran entrepreneurs remains a top 
priority. In January 2007, the committee's first hearing, ``Assessing 
Federal Small Business Assistance Programs for Veterans and 
Reservists,'' looked at the issues facing veterans who wish to start or 
grow a small business. In March, the committee released a report, ``The 
State of Veteran Entrepreneurship'' which described the issues facing 
veterans and listed a series of recommendations to fix those problems. 
The Military Reservist and Veteran Small Business Reauthorization and 
Opportunity Act of 2008 is based on those recommendations.
  Senator Snowe and I introduced S. 1784, the Military Reservist and 
Veteran Small Business Reauthorization and Opportunity Act of 2007, on 
July 12, 2007. In September, that bill was added by unanimous consent 
as an amendment to the Department of Defense authorization bill; 
however, unfortunately, it was dropped in the final conference 
negotiations. In November, after working closely to address concerns of 
other Members of the Senate, the bill passed the Senate by unanimous 
consent again, and the House took up the measure on January 16. An 
amended version passed the House on the same day, and the amended bill 
was passed by the Senate today. The House changes included removing a 
study looking at the tax and regulatory barriers facing veterans and 
reinserting Senate language requiring veteran and military service 
organizations to serve on a new interagency task force. Although this 
bill has changed from what I envisioned many months ago, it is an 
important step forward in supporting the American dream of business 
ownership for veterans and reservists, and I am gratified to see it 
pass the Senate and urge the President to sign it as quickly as 
possible.
  The Military Reservist and Veteran Small Business Reauthorization and 
Opportunity Act of 2007 takes a number of steps to improve the 
Government's role in supporting our veterans. Specifically, it 
reauthorizes the veterans programs in the Small Business 
Administration. This legislation increases the funding authorization 
for the Office of Veteran Business Development from $2 million today to 
$2.3 million over 2 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 its 
hearing last January was that Federal agencies do not work together in 
reaching out to veterans and informing them about small business 
programs. This 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

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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, and increased deployments are expected 
to continue. The effect 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 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 our hearing 
last January, we heard suggestions for a number of 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 is called 
to serve their country. They should not have to forfeit the success of 
their business and their livelihood as well. 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 
noncollateralized loan created in this bill would not accumulate 
interest or require payments for 1 year or until after the deployment 
ends, whichever is longer.
  There are two more provisions, which will help this Nation's 
servicemembers. One section of the bill will require the SBA to give 
priority to MREIDL loans during loan processing. Another provision will 
give activated servicemembers an extension of any SBA time limitations 
equal to the time spent on active duty. This will make it easier for 
servicemembers 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. 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.
  The bill also includes a number of other important provisions that 
were added by the House. For instance, this bill includes language 
directing the Office of Veterans Business Development to increase the 
number of Veterans Business Outreach Centers and requires them to 
improve their participation in the Transition Assistance Program. This 
bill also creates a program reducing 7(a) loan fees for veterans, 
improves Small Business Development Centers outreach to the veteran 
community, and instructs the Associate Administrator of the Office of 
Veterans Business Development to create and disseminate information 
aimed at informing women veterans about the resources available to 
them. I am pleased that the House and Senate were able to come to an 
agreement on these provisions.
  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.
  We owe veterans and reservists more than a simple thank you for their 
service. The least we can do is provide critical resources to help them 
start and grow small business and to hold Federal agencies accountable. 
That is what our bill does.

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