[Congressional Record (Bound Edition), Volume 153 (2007), Part 23]
[House]
[Pages 32241-32247]
[From the U.S. Government Publishing Office, www.gpo.gov]




   MILITARY RESERVIST AND VETERAN SMALL BUSINESS REAUTHORIZATION AND 
                        OPPORTUNITY ACT OF 2007

  Ms. VELAZQUEZ. Madam Speaker, I move to suspend the rules and pass 
the bill (H.R. 4253) to improve and expand small business assistance 
programs for veterans of the armed forces and military reservists, and 
for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 4253

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Military 
     Reservist and Veteran Small Business Reauthorization and 
     Opportunity Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. 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.

 TITLE II--NATIONAL RESERVIST ENTERPRISE TRANSITION AND SUSTAINABILITY

Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. National Guard and Reserve business assistance.
Sec. 204. Veterans Assistance and Services program.

                     TITLE III--RESERVIST PROGRAMS

Sec. 301. Reservist programs.
Sec. 302. Reservist loans.
Sec. 303. Noncollateralized loans.
Sec. 304. Loan priority.
Sec. 305. Relief from time limitations for veteran-owned small 
              businesses.
Sec. 306. Service-disabled veterans.
Sec. 307. Study on options for promoting positive working relations 
              between employers and their Reserve Component employees.
Sec. 308. Increased Veteran Participation Program.

     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 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 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 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; and
       ``(vii) the Office of Management and Budget; and
       ``(C) 4 representatives from a veterans service 
     organization or military organization or association, 
     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 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;
       ``(E) increasing and improving training and counseling 
     services provided to small business concerns owned and 
     controlled by veterans; and
       ``(F) 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.''.

[[Page 32242]]



     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), as 
     amended by section 102, is further 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 
     Center may provide grants to eligible entities located in 
     Transition Assistance Program locations to make presentations 
     on the opportunities available from the Administration for 
     recently separating veterans. Each such presentation must 
     include, at a minimum, the entrepreneurial and business 
     training resources available from the Administration.
       ``(3) Written materials.--The Associate Administrator of 
     Veterans Business Development shall create written materials 
     that provide comprehensive information on self-employment and 
     veterans entrepreneurship, including information on Small 
     Business Administration resources available for such topics, 
     and shall make these materials available 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 Resource Program.--
     The Associate Administrator shall establish a Women Veterans 
     Business Training Resource Program. The program shall--
       ``(1) compile information on 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 through Veteran Business 
     Outreach Centers and women's business centers.''.

     SEC. 105. INCREASING THE NUMBER OF OUTREACH CENTERS.

       The Administrator of the Small Business Administration 
     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) by at least 2, for each of fiscal years 2008 and 2009, 
     in accordance with funding provided in sections 101(a)(1) and 
     (a)(2) of this Act; and
       (2) by the number that the Administrator considers 
     appropriate, based on existing need, for each fiscal year 
     thereafter.

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

       The Administrator of the Small Business Administration 
     shall sponsor an independent study on gaps in the 
     availability of Veterans Business Outreach Centers across the 
     United States. The purpose of the study shall be to identify 
     the gaps that do exist so as to inform decisions on funding 
     and on the allocation and coordination of resources. Not 
     later than 6 months after the date of the enactment of this 
     Act, the Administrator shall submit to Congress a report on 
     the results of the study.

 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 receiving funding from 
     the National Veterans Business Development Corporation, and 
     any other Veterans Business Assistance program which receives 
     federal funding, 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 receiving funding from 
     the National Veterans Business Development Corporation, and 
     any other Veterans Business Assistance program which receives 
     federal funding, 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 receiving funding from 
     the National Veterans Business Development Corporation, and 
     any other Veterans Business Assistance program which receives 
     federal funding, to assist Reservists that own and operate 
     small business concerns in preparing for future military 
     activations.

     SEC. 203. NATIONAL GUARD AND RESERVE BUSINESS ASSISTANCE.

       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;
       ``(D) an information and assistance center receiving 
     funding from the National Veterans Business Development 
     Corporation under section 33; or
       ``(E) any other Veterans Business Assistance program which 
     receives federal funding;
       ``(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) Other Federal Departments and Agencies.--The 
     Administrator shall make

[[Page 32243]]

     available informational materials established by this section 
     to other Federal departments and agencies for their own 
     internal programs.
       ``(e) 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.
       ``(f) 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.
       ``(g) 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 (e).
       ``(2) Amount.--Each eligible applicant awarded a grant 
     under this section shall receive a grant in an amount not 
     greater than $300,000 per fiscal year.
       ``(h) 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.
       ``(i) 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 the fiscal year following the fiscal 
     year described in subparagraph (A).
       ``(2) Funding offset.--Amounts necessary to carry out this 
     section 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).''.

     SEC. 204. 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 an additional grant to carry out a veterans 
     assistance and services program.
       ``(2) Elements of program.--Under a program under paragraph 
     (1), the 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, 
     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 small business 
     owners.
       ``(3) Minimum amount.--Each grant under this subsection 
     shall be for at least $75,000.
       ``(4) Maximum amount.--A grant under this subsection may 
     not exceed $250,000.
       ``(5) 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 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--
       (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), 
     waive the ending date specified in the preceding sentence and 
     provide a later ending date.''.
       (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

[[Page 32244]]

     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 that is not subject to 
     the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.) 
     and 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. 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 Comptroller General of the United 
     States shall conduct a study on options for promoting 
     positive working relations between employers and Reserve 
     component employees of such employers, including assessing 
     options for improving the time in which employers of 
     Reservists are notified of the call or order of such members 
     to active duty other than for training.
       (b) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the appropriate committees of Congress 
     a report on the study conducted under subsection (a).
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) provide a quantitative and qualitative assessment of--
       (i) what measures, if any, are being taken to inform 
     Reservists of the obligations and responsibilities of such 
     members to their employers;
       (ii) how effective such measures have been; and
       (iii) whether there are additional measures that could be 
     taken to promote positive working relations between 
     Reservists and their employers, including any steps that 
     could be taken to ensure that employers are timely notified 
     of a call to active duty; and
       (B) assess whether there has been a reduction in the hiring 
     of Reservists by business concerns because of--
       (i) any increase in the use of Reservists after September 
     11, 2001; or
       (ii) any change in any policy of the Department of Defense 
     relating to Reservists after September 11, 2001.
       (c) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committee on Armed Services and the Committee on 
     Small Business and Entrepreneurship of the Senate; and
       (2) the Committee on Armed Services and the Committee on 
     Small Business of the House of Representatives.

     SEC. 308. INCREASED VETERAN PARTICIPATION PROGRAM.

       (a) In General.--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.--The 
     Administrator shall carry out an Increased Veteran 
     Participation Program. For a loan made under this paragraph, 
     the following shall apply:
       ``(A) The loan shall be made to a business concern the 
     majority ownership interest of which is directly held by 
     individuals who are veterans of the Armed Forces or members 
     of the reserve components of the Armed Forces.
       ``(B) The loan shall include the participation by the 
     Administration equal to 90 percent of the balance of the 
     financing outstanding at the time of disbursement.
       ``(C) The fees on the loan under paragraphs (18) and (23) 
     shall not apply.''.
       (b) Notice and Comment.--The program required by section 
     7(a)(32) of the Small Business Act, as added by subsection 
     (a), shall be established after the opportunity for notice 
     and comment and not later than 180 days after the date of the 
     enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Ms. Velazquez) and the gentleman from Ohio (Mr. Chabot) each 
will control 20 minutes.
  The Chair recognizes the gentlewoman from New York.


                             General Leave

  Ms. VELAZQUEZ. Madam Speaker, I ask unanimous consent that all 
Members may have 5 legislative days to revise and extend their remarks 
and include extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  Ms. VELAZQUEZ. Madam Speaker, I yield myself as much time as I may 
consume.
  In their service to the Nation, veterans have demonstrated strength, 
discipline and dedication to preserving security. At home, they have 
proven to be invaluable components of a strong economy.
  We have already seen the impact veterans can have on the business 
community. Currently, approximately 22 percent of servicemembers in the 
United States have either purchased or started a new business. These 
entrepreneurs are significant contributors to job growth and expansion 
of local economies.
  I wish to commend Congressman Jason Altmire and Congressman Vern 
Buchanan for their leadership in crafting this bill that will further 
this effort. H.R. 4253 promotes veterans' continued pursuit of self-
employment and provides them with the support for growth that they 
deserve. It accomplishes this objective by comprehensively updating 
several of the Small Business Administration's programs to better meet 
the current needs of veteran entrepreneurs.
  The bill addresses several of the impediments to veterans' success as 
entrepreneurs. Because servicemembers are removed from the workforce 
for an extended period of time, they can often then face difficulties 
securing capital or technical assistance upon their return from 
service. Additionally, while many veterans receive specialized skills 
during their service, it is often quite difficult transforming those 
skills into profitable resources. We can increase veteran 
entrepreneurial opportunities by creating the right tools to ensure 
their success.
  H.R. 4253 responds to these challenges by establishing a strong role 
for the Federal Government to help veterans overcome obstacles to 
entrepreneurship. The legislation increases veterans' access to 
affordable capital, enhances entrepreneurial development resources, and 
sharpens the focus of Federal resources on this key member of the small 
business community.
  Veterans will have improved access to capital with specially tailored 
initiatives in the SBA's 7(a) and disaster

[[Page 32245]]

loan programs. This will help returning servicemen and women bridge the 
gap for financial capital that they need to start and grow a new 
endeavor. By increasing outreach assistance centers and entrepreneurial 
development program resources, the bill also improves access to 
assistance that will help veteran entrepreneurs evaluate business 
ideas, conduct market research, and receive technology training.
  This legislation will also establish an interagency task force that 
will take a lead role in altering the institutional culture at the 
Federal level to promote increased veteran entrepreneurship. This will 
significantly improve the coordination of various Federal agencies' 
veteran service programs. Additionally, new initiatives will improve 
transition assistance for separating servicemembers, and provide 
customized support to service disabled, women veterans, and the members 
of the reserves. This will ensure that all sectors are considered in 
Federal veteran policymaking.
  As new troops are added to the already 13,000 that have returned home 
just from Iraq and Afghanistan, it is imperative that our resources and 
initiatives are designed to effectively prepare them for economic 
success.
  With their tremendous potential to thrive as entrepreneurs and their 
critical service for which we all greatly benefit, we must continue to 
work to allow these budding entrepreneurs to realize the American Dream 
of business ownership. I believe this bill is a major step towards 
realizing this goal, and I strongly support this legislation.
  I urge my colleagues to support H.R. 4253.
  I reserve the balance of my time.
  Mr. CHABOT. Madam Speaker, I yield myself such time as I may consume.
  Today, Madam Speaker, I rise in support of the request to suspend the 
rules and pass H.R. 4253, the Military Reservist and Veteran Small 
Business Reauthorization and Opportunity Act of 2007. I would like to 
thank Chairwoman Velazquez for working in a cooperative and bipartisan 
manner to bring this bill, which incorporates provisions of a bill 
authored by Mr. Buchanan, who is a freshman member of the Small 
Business Committee and who has already shown tremendous initiative and 
leadership on that committee, to the House floor.
  While we could never adequately repay the debt we owe to America's 
fighting men and women for their service and sacrifice, today's bill 
takes important steps to help our Nation's veterans make a smoother 
transition to civilian life.
  While serving in the Armed Forces, service men and women learn and 
practice technical skills valued in today's civilian workforce, in 
addition to the leadership and decisionmaking skills that they learn on 
the battlefield. All of these attributes are critical to success in the 
business world and are particularly important traits for successful 
small business owners.
  Despite the success that veterans have shown in starting and 
operating small businesses, more must be done to assist our veterans in 
the startup and operation of their businesses. Outreach must improve to 
ensure that veterans wishing to start their own businesses will have 
the training and advice needed to transfer their skills to 
entrepreneurship without first working for someone else.
  Title I of H.R. 4253 represents an excellent start in the efforts to 
expand and ensure that our veterans have the technical support they 
need to start their own businesses.
  I want to especially thank the chairwoman for incorporating Mr. 
Buchanan's interest in expanding the number of Veterans Business 
Outreach Centers, which will play an increased role in providing 
assistance to veterans wishing to start small businesses.
  The technical advice and assistance are not limited to veterans 
continuing their service in the Reserves. Title II of the bill 
recognizes Reservists who operate small businesses have their own 
unique set of operational problems associated with their call-up to 
duty. They may not know how long their call-up will last and they need 
assistance in ensuring they have a plan in place to operate their 
business while they are on active duty. This legislation builds on the 
existing network of entrepreneurial partners to deliver key technical 
and operational assistance to Reservists.

                              {time}  1700

  Another important element of the bill is the recognition of the 
changing nature of the military with a greater involvement of women. 
The legislation requires the administrator to expand assistance to 
women veterans and Reservists. Given the rapid expansion and success of 
women-owned businesses, it makes sense to ensure that the needs of 
women Reservists are met when they seek to start and operate small 
businesses.
  Our fighting men and women are the best in the world. Let us help 
them become the best entrepreneurs in the world by enacting this 
legislation, H.R. 4253.
  Again, I want to thank Mr. Buchanan for his leadership in this 
effort, and I also want to thank the gentleman from Pennsylvania, Mr. 
Altmire, who also has worked very hard in this area as well and is 
responsible for this bill being here today.
  Madam Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Madam Speaker, I recognize Mr. Altmire, the sponsor of 
the legislation, for as much time as he may consume.
  Mr. ALTMIRE. I thank the Chair and the ranking member for their 
continued leadership on these issues, and I especially want to thank my 
good friend from Florida, Mr. Buchanan. It was a pleasure working with 
him to craft this legislation. He was an equal partner in putting this 
bill on the floor today, and I want to recognize his leadership as 
well.
  Madam Speaker, with nearly 25 million veterans and over 1 million 
Reservists in the United States, there is a need, and a growing need, 
for an increased commitment by the government to assist veterans and 
Reservists both during and after their service to our Nation. As more 
and more servicemembers return to civilian life after their deployments 
in Iraq and Afghanistan, the opportunities and economic benefits that 
the Federal Government can provide will become even more critical, 
especially for businesses that are owned and operated by veterans.
  The brave men and women that put their lives on hold to defend our 
Nation should not have to sacrifice their jobs and their livelihoods. 
Starting and maintaining a small business presents challenges for 
anyone, and, unfortunately, veterans often face unique barriers as a 
result of their military service. The unemployment rate among veterans 
is double the overall national unemployment rate, and over half of all 
self-employed Reservists experience significant income loss when they 
are called to duty.
  Over the past 3 years, we have watched as the number of returning 
veterans and Reservists has increased, and that number is only going to 
continue to grow.
  While Congress has passed legislation and provided Federal agencies 
with some of the resources necessary to provide entrepreneurial 
opportunities for veterans, I believe that more can be done to relieve 
the burden that is placed on small business owners during and after 
their deployment.
  To ensure that the Federal Government is there to assist our 
country's servicemembers, I have introduced the bill that we are 
debating here today, the Military Reservist and Veteran Small Business 
Reauthorization and Opportunity Act. This legislation will support and 
expand entrepreneurial opportunities for veterans and Reservists to 
ensure that their livelihoods are not compromised because of their 
military service.
  My bill increases funding for the Small Business Administration's 
Office of Veteran Business Development to $4.4 million and facilitates 
the coordination of all Federal agencies to focus attention on 
increasing the success rate of and opportunities for veteran-owned 
small businesses.
  This legislation will make the Advisory Committee on Veterans 
Business

[[Page 32246]]

Affairs permanent, strengthening the focus and input advisory 
committees can provide to the Federal Government to ensure continued 
commitment to our Nation's veterans. The Advisory Committee has been an 
important source of information for the Federal Government. By making 
the committee permanent, we can continue to improve the support 
provided to veteran and Reservist small business owners.
  We will also increase the number of Veteran Business Outreach Centers 
across the country and identify areas that are in need of additional 
assistance to ensure that veterans and Reservists in every region are 
able to keep their businesses afloat.
  Through grants of up to $300,000 per year made to Small Business 
Development Centers, this bill will establish the Reservist Enterprise 
Transition and Sustainability program to provide one-on-one counseling 
on management, financing, procurement and regulatory assistance to 
small business owners to help our returning service men and women 
successfully transition to civilian life.
  Finally, my legislation makes much-needed improvements to the 
Military Reservist Economic Injury Disaster Loan program by requiring 
the SBA to extend the application deadline, raise the maximum loan 
amount and create a pre-consideration process for small businesses 
applying for assistance during military deployment. This is important, 
because currently Reservists can apply for a loan only after 
deployment, when their businesses are already in the red. A pre-
deployment loan would be helpful to many small business owners during 
active duty when the funding is most critical.
  Madam Speaker, there is no question that veterans have a unique 
ability to thrive as entrepreneurs. They have the leadership skills and 
work ethic necessary to run a small business and a successful business. 
But we must do more to help veteran entrepreneurs fully meet their 
needs and overcome the unique challenges that they face.
  I believe that we owe no greater debt than to our brave men and women 
in uniform, and it is essential that they are afforded every 
opportunity for economic success at home, especially given their 
sacrifices for us abroad.
  I strongly support the Military Reservist and Veteran Small Business 
Reauthorization and Opportunity Act, and I ask my colleagues to support 
this important legislation.
  Mr. CHABOT. Madam Speaker, I yield such time as he may consume to the 
gentleman from Florida (Mr. Buchanan).
  Mr. BUCHANAN. Madam Speaker, I want to thank the ranking member for 
yielding me the time, and I rise in support of H.R. 4253. I would also 
like to thank the Congressman from Pennsylvania, Congressman Altmire. 
He has worked on a bipartisan basis. I appreciate it. It has been a 
great partnership. And also Madam Chairman, and the ranking member, you 
guys have done an incredible job this first year. A lot of people said 
we couldn't work together, but it has been great leadership this year. 
I also want to thank you for the opportunity to include a lot of the 
provisions in this bill.
  H.R. 4253 incorporates legislation I introduced in May and was passed 
in the House in June creating an important program within the Small 
Business Administration that will give our veterans a chance to succeed 
in business enterprises but provides them with all the help and 
assistance a grateful Nation can offer.
  My legislation is intended to help veterans through grants, 
information services and contacts with professionals in fields of their 
endeavor. This Federal program will enhance the ability of a veteran to 
become a successful entrepreneur in his or her chosen field. I know 
from personal experience, being a veteran of 6 years and an 
entrepreneur for 30 years, I was able to realize the American Dream, 
and I think this bill does it.
  H.R. 4253 puts an emphasis on providing veterans with the market 
research, financial options and the technological training important to 
become a successful small business owner. This legislation not only 
expands the number and the scope of the Veteran Outreach Centers, it 
ensures the opening of more doors and an opportunity for our women 
veterans. Assisting our women returning from combat is something that 
has long been overlooked and overdue. It is high time that we did 
something about it.
  Today, the House will pass a bill that will help individuals make an 
important transition from being a veteran to a small business 
entrepreneur. I urge my colleagues to support H.R. 4253.
  Mr. CHABOT. Madam Speaker, I have no further speakers, so I yield 
back the balance of my time.
  Ms. VELAZQUEZ. Madam Speaker, I would like to yield myself the 
balance of my time.
  Madam Speaker, the wars in Iraq and Afghanistan have produced over 
600,000 new veterans thus far and have created a serious challenge for 
the Nation: how to facilitate our returning servicemembers' successful 
transition back home and into our economy. Given the ongoing nature of 
these conflicts, the shift in economic opportunities and the diverse 
needs of returning veterans, this is an unprecedented situation that 
will require a major and rapid response.
  To promote veterans' abilities to be productive engines of the 
economy, I believe we must comprehensively modernize Federal programs 
designed to assist this key group through self-employment 
opportunities. H.R. 4253 achieves this objective by obtaining the Small 
Business Administration programs to ensure they are customized to meet 
the growing needs of this sector in a changing economy.
  This Nation has a clear obligation to ensure that our returning 
servicemembers have the assistance they need to succeed at 
entrepreneurship. By complementing their individual strengths with 
appropriate Federal resources, we can help them realize their full 
potential, while also growing the economy.
  Madam Speaker, I want to thank the staff that worked on this bill. 
From the majority staff, Michael Day, Adam Minehardt and Andy Jimenez. 
From the minority staff, Barry Pineles and Kevin Fitzpatrick. I also 
want to recognize Max Goodman from Mr. Buchanan's staff and Cara Toman 
and Erik Komendant from Mr. Altmire's staff.
  I strongly urge my colleagues to vote for H.R. 4253.
  Mr. BUCHANAN. Madam Speaker, I thank the Ranking Member for yielding 
me the time and rise in support of H.R. 4253.
  I would like to thank Congressman Altmire for bringing this bill to 
the floor today and for including in the bill a number of provisions 
important to me.
  H.R. 4253 incorporates legislation I introduced in May and the House 
passed in June creating an important program within the Small Business 
Administration that will give our veterans not just a chance at success 
in a business enterprise but provide them with all the help and 
assistance a grateful Nation can offer.
  My legislation is intended to help veterans through grants, 
information services, and contact with professionals in their fields of 
endeavor.
  This federal support will enhance the ability of a veteran to become 
an entrepreneur in his or her own right.
  H.R. 4253 puts an emphasis on providing veterans with the market 
research, financial options and technological training important to 
becoming a successful small business owner.
  This legislation not only expands the number and scope of Veteran 
Outreach Centers, it ensures the opening of more doors and 
opportunities for our women veterans. Assisting our women returning 
from combat has been an area long overlooked and it's high time we did 
something about it.
  Today, the House will pass a bill that will help individuals make an 
important transition from veteran to small business entrepreneur.
  I urge all of my colleagues to support H.R. 4253.
  Mr. KLEIN of Florida. Madam Speaker, I rise today to support the 
Improve & Expand Small Business Assistance Programs for Veterans Act of 
2007. America's veterans have given their best for this country, for 
the freedoms that we cherish so much, and we must give them our best in 
return.
  This legislation would expand the Small Business Administration's 
Office of Veterans Business Development in order to facilitate

[[Page 32247]]

better business outreach to our Nation's veterans. The legislation 
requires that the SBA open two additional Veterans' Outreach offices in 
the coming year and expand opportunities for women veterans. It would 
also allow veterans to obtain reduced fee SBA loans.
  Approximately 5 percent of the 80 million small businesses in this 
country are owned by veterans. Veteran-owned small businesses have a 
higher success rate than other small businesses, perhaps because of the 
strong work ethic and value system that the military imbues in its 
soldiers. I support this legislation because it will help veterans to 
enter and compete in today's business world, and I urge my colleagues 
to support this legislation today.
  Ms. VELAZQUEZ. Madam Speaker, I yield back the balance of my time, 
and urge its adoption.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from New York (Ms. Velazquez) that the House suspend the 
rules and pass the bill, H.R. 4253.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Ms. VELAZQUEZ. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________