[House Report 117-139]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 117-139
======================================================================
VETERAN ENTREPRENEURSHIP TRAINING ACT OF 2021
_______
October 12, 2021.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Velazquez, from the Committee on Small Business, submitted the
following
R E P O R T
[To accompany H.R. 3469]
The Committee on Small Business, to whom was referred the
bill (H.R. 3469) to amend the Small Business Act to codify the
Boots to Business Program, and for other purposes, having
considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Bill Summary........................................1
II. Background and Need for Legislation.............................2
III. Hearings........................................................2
IV. Committee Consideration.........................................3
V. Committee Votes.................................................3
VI. Section-by-Section Analysis for H.R. 3469.......................3
VII. Congressional Budget Cost Estimate..............................4
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure4
IX. Committee Oversight Findings and Recommendations................4
X. Statement of General Performance Goals and Objectives...........4
XI. Duplication of Federal Programs.................................5
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits........................................................5
XIII. Federal Mandates Statement......................................5
XIV. Federal Advisory Committee Statement............................5
XV. Applicability to Legislative Branch.............................5
XVI. Constitutional Authority Statement..............................5
XVII. Changes in Existing Law Made by the Bill, as Reported...........5
I. Purpose and Bill Summary
The purpose of H.R. 3469, the ``Veteran Entrepreneurship
Training Act of 2021'', is to amend the Small Business Act to
authorize the Boots to Business program for five years.
II. Background and Need for Legislation
The Boots to Business program is a two day, in person
entrepreneurship program offered by the Small Business
Administration (SBA) as part of the Department of Defense's
Transition Assistance Program (TAP). Initially launched in
2012, the Boots to Business program offers transitioning
service members and military spouses' information about self-
employment and business ownership. The Veterans Business
Outreach Centers (VBOCs) deliver these services to
approximately 180 military installations.
The Boots to Business curriculum focuses on the key steps
for evaluating business concepts and developing business plans.
In addition, participants are connected with SBA resources,
including access to capital, counseling and training, and
contracting opportunities. In FY 2020, more than 21,799
veterans, service-members, and military spouses stationed at
military installations nationwide participated in the two-day
course.
The Boots to Business program is specifically designed to
instill the knowledge necessary to take a business from concept
to execution and facilitate the road to entrepreneurship for
our nation's veterans. Research has shown that servicemembers
are especially qualified to start and run their own businesses.
While serving in the military, they learn how to make good
decisions in chaotic environments and are natural leaders,
confident, and driven.
Every year, more than 200,000 servicemembers make the
transition from military to civilian life.\1\ Transition
assistance is critical to ensure that those who serve in the
military have opportunities for meaningful employment. The
National Defense Authorization Act of Fiscal Year 2019 required
servicemembers participating in TAP to enroll in one of three
capstone classes, which include: Accessing Higher Education,
Career and Technical Training, and Entrepreneurship (Boots to
Business). It is expected that this new requirement will
significantly increase the number of servicemembers who
participate in the Boots to Business program. H.R. 3469 was
introduced by Reps. Bradley Schneider (D-IL) and Roger Williams
(R-TX). Cosponsors include: Reps. Mikie Sherrill (D-NJ) and
Chrissy Houlahan (D-PA).
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\1\U.S. Department of Veterans Affairs, Transition and Economic
Development, Your VA Transition Assistance Program (TAP), https://
www.benefits.va.gov/transition/
tap.asp#: :text=About%20200%2C000%20service%20members%20transition%20to%
20civilian% 20life%20each%20year.
---------------------------------------------------------------------------
III. Hearings
In the 116th Congress, the Committee held two hearings
exploring the Boots to Business program. On February 27, 2019,
the Committee held a hearing titled ``Supporting America's
Startups: Review of the Small Business Administration's
Entrepreneurial Development Programs.''\2\ The hearing
considered each of the SBA's entrepreneurial development
programs, including the Boots to Business program and how it
impacts entrepreneurship. On July 10, 2019, the Committee held
a hearing titled, ``Continuing to Serve: From Military to
Entrepreneur.''\3\ The hearing examined the role of veteran
entrepreneurs in growing the economy and efforts to foster
veteran entrepreneurship. At both hearings, witnesses testified
in support of codifying the Boots to Business program.
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\2\Supporting America's Startups: Review of the Small Business
Administration's Entrepreneurial Development Programs, Hearing Before
the H. Comm. On Small Bus., 116th Cong. (2019).
\3\Continuing to Serve: From Military to Entrepreneur, Hearing
Before the H. Comm. On Small Bus., 116th Cong. (2019).
---------------------------------------------------------------------------
In the 117th Congress, on May 19, 2021, the Committee held
a hearing entitled, ``The Small Business Administration's
Entrepreneurial Ecosystem: An Update and Next Steps with SBA's
Resource Partners.''\4\ The hearing included testimony from a
veteran small business owner, Mr. Patrick Montgomery, who
testified about the importance of government assistance to
support small businesses. In addition, Mr. Montgomery testified
that government assistance for small businesses is not easy to
find or access and that more should be done to make government
assistance more readily available for entrepreneurs and small
business owners.
---------------------------------------------------------------------------
\4\The Small Business Administration's Entrepreneurial Ecosystem:
An Update and Next Steps with SBA's Resource Partners, Hearing Before
the H. Comm. On Small Bus., 117th Cong. (2021).
---------------------------------------------------------------------------
IV. Committee Consideration
The Committee on Small Business met in open session, with a
quorum being present, on July 29, 2021 and ordered H.R. 3469
reported to the House of Representatives. During the markup, no
amendments were offered.
V. Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the recorded
votes on the motion to report legislation and amendments
thereto. The Committee voted by voice vote to favorably report
H.R. 3469 to the House of Representatives at 10:38 AM.
VI. Section-by-Section Analysis for H.R. 3469
Section 1. Short title
This Act may be cited as the ``Veteran Entrepreneurship
Training Act of 2021''.
Section 2. Boots to Business Program
Amends section 32 of the Small Business Act (15 U.S.C.
Sec. 657b) by inserting a new subsection (h):
Updates the definitions of Members of the Armed
Forces, including National Guard and Reserves; individuals
participating in the Transition Assistance Program; individuals
discharged or released from service under non-dishonorable
conditions; and spouse or dependent of any of the above.
Authorizes the Boots to Business program for five
years.
Sets the goals of the program, which include in-
depth training for servicemembers interested in owning a
business; and development of tools to identify opportunities,
draft business plans, identify sources of capital, connect with
local resources for small business, and launch a small
business.
Delineates the program components, which include a
two-day, in-person entrepreneurship program. It also gives SBA
the authority to collaborate with public and private entities
to develop the curricula; and it ensures VBOCs regularly
participate in the program, and to the reasonable maximum
extent, allows the participation of other resource partners as
well. The new subsection also facilitates the sharing of course
and outreach materials with the Secretary of Defense for
inclusion in DOD websites, manuals, and other materials related
to TAP and the Secretary of Veterans Affairs (VA) for
distribution and display at local VA facilities.
Requires a report to be submitted to the Committee
on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives
within 180 days after enactment of the legislation and annually
thereafter. The report will evaluate the performance and
effectiveness of the Boots to Business program.
VII. Congressional Budget Cost Estimate
Pursuant to 3(c)(2) of rule XIII of the Rules of the House
of Representatives, the Committee adopts as its as its own the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974. The Committee has requested but not
received from the Director of the Congressional Budget Office a
cost estimate for the Committee's provisions.
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, the Committee provides the
following opinion and estimate with respect to new budget
authority, entitlement authority, and tax expenditures. While
the Committee has not received an estimate of new budget
authority contained in the cost estimate prepared by the
Director of the Congressional Budget Office pursuant to Sec.
402 of the Congressional Budget Act of 1974, the Committee does
not believe that there will be any additional costs
attributable to this legislation. H.R. 3469 does not direct new
spending, but instead reallocates funding independently
authorized and appropriated.
IX. Committee Oversight Findings and Recommendations
In accordance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the oversight findings and recommendations of the Committee on
Small Business with respect to the subject matter contained in
the H.R. 3469 are incorporated into the descriptive portions of
this report.
X. Statement of General Performance Goals and Objectives
With respect to the requirements of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goals and objectives of H.R. 3469 is to provide
small business and entrepreneurship counseling and training to
America's veterans and their families by reauthorizing the
Small Business Administration's Boots to Business program for
five years.
XI. Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, no provision of H.R. 3469 is known to
be duplicative of another Federal program, including any
program that was included in a report to Congress pursuant to
section 21 of Public Law 111-139 or the most recent Catalog of
Federal Domestic Assistance.
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee finds that the bill
does not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits as defined in clause 9(e),
9(f), or 9(g) of rule XXI of the Rules of the House of
Representatives.
XIII. Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
XIV. Federal Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
XV. Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
XVI. Constitutional Authority Statement
Pursuant to clause 7 of rule XII of the Rules of the House
of Representatives, the Committee finds the authority for this
legislation in Art. I, Sec. 8, cl. 1 of the Constitution of the
United States.
XVII. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, as shown as follows: existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
SMALL BUSINESS ACT
* * * * * * *
SEC. 32. VETERANS PROGRAMS.
(a) Office of Veterans Business Development.--There is
established in the Administration an Office of Veterans
Business Development, which shall be administered by the
Associate Administrator for Veterans Business Development (in
this section referred to as the ``Associate Administrator'')
appointed under section 4(b)(1).
(b) Associate Administrator for Veterans Business
Development.--The Associate Administrator--
(1) shall be an appointee in the Senior Executive
Service;
(2) shall be responsible for the formulation,
execution, and promotion of policies and programs of
the Administration that provide assistance to small
business concerns owned and controlled by veterans and
small business concerns owned and controlled by
service-disabled veterans. The Associate Administrator
shall act as an ombudsman for full consideration of
veterans in all programs of the Administration; and
(3) shall report to and be responsible directly to
the Administrator.
(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.
(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.
(f) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section--
(1) $1,500,000 for fiscal year 2005; and
(2) $2,000,000 for fiscal year 2006.
(g) Access to Surplus Property for Veteran-owned Small
Businesses.--
(1) Definitions.--In this subsection--
(A) the term ``foreign excess property'' has
the meaning given the term in section 102 of
title 40, United States Code; and
(B) the term ``state agency'' has the meaning
given the term, including the roles and
responsibilities assigned, in section 549 of
title 40, United States Code.
(2) Requirement.--The Administrator, in coordination
with the Administrator of General Services, shall
provide access to and manage the distribution of
surplus property, and foreign excess property returned
to a State for handling as surplus property, owned by
the United States under chapter 7 of title 40, United
States Code, to small business concerns owned and
controlled by veterans (as verified by the Secretary of
Veterans Affairs under section 8127 of title 38, United
States Code) pursuant to a memorandum of agreement
between the Administrator, the Administrator of General
Services, and the head of the applicable state agency
for surplus properties and in accordance with section
549 of title 40, United States Code.
(h) Boots to Business Program.--
(1) Covered individual defined.--In this subsection,
the term ``covered individual'' means--
(A) a member of the Armed Forces, including
the National Guard or Reserves;
(B) an individual who is participating in the
Transition Assistance Program established under
section 1144 of title 10, United States Code;
(C) an individual who--
(i) served on active duty in any
branch of the Armed Forces, including
the National Guard or Reserves; and
(ii) was discharged or released from
such service under conditions other
than dishonorable; and
(D) a spouse or dependent of an individual
described in subparagraph (A), (B), or (C).
(2) Establishment.--Beginning on the first October 1
after the enactment of this subsection and for the
subsequent 4 fiscal years, the Administrator shall
carry out a program to be known as the ``Boots to
Business Program'' to provide entrepreneurship training
to covered individuals.
(3) Goals.--The goals of the Boots to Business
Program are to--
(A) provide assistance and in-depth training
to covered individuals interested in business
ownership; and
(B) provide covered individuals with the
tools, skills, and knowledge necessary to
identify a business opportunity, draft a
business plan, identify sources of capital,
connect with local resources for small business
concerns, and start up a small business
concern.
(4) Program components.--
(A) In general.--The Boots to Business
Program may include--
(i) a presentation providing exposure
to the considerations involved in self-
employment and ownership of a small
business concern;
(ii) an online, self-study course
focused on the basic skills of
entrepreneurship, the language of
business, and the considerations
involved in self-employment and
ownership of a small business concern;
(iii) an in-person classroom
instruction component providing an
introduction to the foundations of self
employment and ownership of a small
business concern; and
(iv) in-depth training delivered
through online instruction, including
an online course that leads to the
creation of a business plan.
(B) Collaboration.--The Administrator may--
(i) collaborate with public and
private entities to develop course
curricula for the Boots to Business
Program; and
(ii) modify program components in
coordination with entities
participating in a Warriors in
Transition program, as defined in
section 738(e) of the National Defense
Authorization Act for Fiscal Year 2013
(10 U.S.C. 1071 note).
(C) Use of resource partners.--
(i) In general.--The Administrator
shall--
(I) ensure that Veteran
Business Outreach Centers
regularly participate, on a
nationwide basis, in the Boots
to Business Program; and
(II) to the maximum extent
practicable, use a variety of
other resource partners and
entities in administering the
Boots to Business Program.
(ii) Grant authority.--In carrying
out clause (i), the Administrator may
make grants to Veteran Business
Outreach Centers, other resource
partners, or other entities to carry
out components of the Boots to Business
Program.
(D) Availability to department of defense.--
The Administrator shall make available to the
Secretary of Defense information regarding the
Boots to Business Program, including all course
materials and outreach materials related to the
Boots to Business Program, for inclusion on the
website of the Department of Defense relating
to the Transition Assistance Program, in the
Transition Assistance Program manual, and in
other relevant materials available for
distribution from the Secretary of Defense.
(E) Availability to veterans affairs.--In
consultation with the Secretary of Veterans
Affairs, the Administrator shall make available
for distribution and display at local
facilities of the Department of Veterans
Affairs outreach materials regarding the Boots
to Business Program which shall, at a minimum--
(i) describe the Boots to Business
Program and the services provided; and
(ii) include eligibility requirements
for participating in the Boots to
Business Program.
(5) Report.--Not later than 180 days after the date
of the enactment of this subsection and every year
thereafter, the Administrator 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 on the performance and
effectiveness of the Boots to Business Program, which
may be included as part of another report submitted to
such Committees by the Administrator, and which shall
include--
(A) information regarding grants awarded
under paragraph (4)(C);
(B) the total cost of the Boots to Business
Program;
(C) the number of program participants using
each component of the Boots to Business
Program;
(D) the completion rates for each component
of the Boots to Business Program;
(E) to the extent possible--
(i) the demographics of program
participants, to include gender, age,
race, relationship to military,
military occupational specialty, and
years of service of program
participants;
(ii) the number of small business
concerns formed or expanded with
assistance under the Boots to Business
Program;
(iii) the gross receipts of small
business concerns receiving assistance
under the Boots to Business Program;
(iv) the number of jobs created with
assistance under the Boots to Business
Program;
(v) the number of referrals to other
resources and programs of the
Administration;
(vi) the number of program
participants receiving financial
assistance under loan programs of the
Administration;
(vii) the type and dollar amount of
financial assistance received by
program participants under any loan
program of the Administration; and
(viii) results of participant
satisfaction surveys, including a
summary of any comments received from
program participants;
(F) an evaluation of the effectiveness of the
Boots to Business Program in each region of the
Administration during the most recent fiscal
year;
(G) an assessment of additional performance
outcome measures for the Boots to Business
Program, as identified by the Administrator;
(H) any recommendations of the Administrator
for improvement of the Boots to Business
Program, which may include expansion of the
types of individuals who are covered
individuals;
(I) an explanation of how the Boots to
Business Program has been integrated with other
transition programs and related resources of
the Administration and other Federal agencies;
and
(J) any additional information the
Administrator determines necessary.
* * * * * * *
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