[House Report 118-181]
[From the U.S. Government Publishing Office]


118th Congress }                                          { Report 
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                          { 118-181

======================================================================
 
               SUCCESSFUL ENTREPRENEURSHIP FOR RESERVISTS AND 
                             VETERANS ACT

                                _______
                                

 September 1, 2023.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Williams of Texas, from the Committee on Small Business, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 4480]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 4480) to require the Administrator of the Small 
Business Administration to report on the veterans interagency 
task force, to require the Comptroller General of the United 
States to report on access to credit for small business 
concerns owned and controlled by covered individuals, 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........................................2
  II. Need for Legislation............................................2
 III. Hearings........................................................2
  IV. Committee Consideration.........................................2
   V. Committee Votes.................................................3
  VI. Section-by-Section of H.R. 4480.................................6
 VII. Congressional Budget Office Cost Estimate.......................6
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure6
  IX. Oversight Findings & Recommendations............................7
   X. Performance Goals and Objectives................................7
  XI. Statement of Duplication of Federal Programs....................7
 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
      Benefits........................................................7
XIII. Federal Mandates Statement......................................7
 XIV. Federal Advisory Committee Statement............................7
  XV. Applicability to Legislative Branch.............................7
 XVI. Statement of Constitutional Authority...........................8
XVII. Changes in Existing Law, Made by the Bill, As Reported..........8

                      I. Purpose and Bill Summary

    H.R. 4480 was introduced by Rep. Sharice Davids (D-KS) and 
Rep. Mark Alford on July 6, 2023. The purpose of H.R. 4480, the 
``Successful Entrepreneurship for Reservists (SERV) Act,'' is 
to commission a Government Accountability Office report on 
veteran small business owners' access to capital. It also 
requires the Interagency Task Force on Veterans Small Business 
Development to develop an outreach plan for programs veterans 
can access as they return to civilian life, like Small Business 
Administration's (SBA) Boots to Business program. Finally, the 
bill requires the task force to report annually to Congress on 
its appointments and outreach plan.

                        II. Need for Legislation

    Veterans own approximately 1.8 million businesses, nearly 
all of which are small. In addition to the issues that encumber 
the entire entrepreneurial community, veterans face population-
specific challenges upon leaving the military to re-enter 
civilian life. Nearly 200,000 active-duty members leave the 
military as they join the community of American veterans each 
year. Veterans are 45 percent more likely to be self-employed 
than non-veterans, contributing to the small business economy.
    Supporting veteran entrepreneurs has been a priority of the 
SBA since its inception. Like many federal agencies, the SBA 
has an office specific to veteran support called the Office of 
Veterans Business Development (OVBD) and runs a myriad of 
programs providing help to veterans and their families, 
including demographic-specific business support facilities, 
loan programs, dedicated federal contract quotas, and 
entrepreneurial training programs. The Department of Defense, 
in conjunction with the SBA, Department of Labor, Department of 
Veterans Affairs, and several other federal agencies, operates 
the Transition Assistance Program, which provides education and 
training to Transitioning Service Members (TSMs), including the 
optional Boots to Business program which trains TSMs to be 
effective entrepreneurs.
    Even with the availability of veteran specific resources, 
veterans continue to face outsized hurdles when starting or 
growing their business. This bill identifies barriers that 
veterans face as entrepreneurs and pinpoints ways to improve 
outreach about resources available to our nation's veterans.

                             III. Hearings

    In the 118th Congress, the Committee held one hearing 
examining the issues covered in H.R. 4480. On May 24, 2023, the 
Committee held a hearing titled ``Saluting Service: Supporting 
Veteran Owned Small Businesses.'' Witnesses discussed 
challenges they face as veterans who own small businesses. This 
bill seeks to address their challenge such as lack of access to 
capital and limited awareness of programs.

                      IV. Committee Consideration

    The Committee on Small Business met in open session, with a 
quorum being present, on June 18, 2023, and ordered H.R. 4480 
reported favorably 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 to favorably report H.R. 4480 to 
the House of Representatives at 11:55 AM.


                  VI. Section-by-Section of H.R. 4480


Section 1. Short title

    This Act may be cited as the ``Successful Entrepreneurship 
for Reservists and Veterans Act'' and the ``SERV Act''.

Section 2. Reporting requirement for Veterans Interagency Task Force

    This section requires a report to be included in the 
Congressional Budget Justification on the Veterans Interagency 
Task Force. The report must include appointments and activities 
and an outreach plan to promote veteran programs.

Section 3. GAO report on access to credit

    This section requires the Comptroller General to submit a 
report on access to capital for businesses owned by veterans. 
The report shall include an analysis of sources of credit, 
default rates for veteran owned small businesses and those not 
owned by veterans, federal lending programs, gaps in credit 
availability, obstacles toaccessing credit, how military duties 
impact credit history, and how aware veterans are of federal programs 
available to them.
    This section defines ``covered individuals'' as a veteran, 
service-disabled veteran, reservist, a spouse of those 
individuals, or a spouse of a member of the Armed Services.
    Reservist is defined as that in title 10 USC Sec. 10101.
    Service-disabled veteran, small business concern, and 
veteran are defined as those in section 3 of 15 USC 632.

Section 4. Compliance with CUTGO

    This section does not authorize any additional 
appropriations for this bill.

             VII. Congressional Budget Office Cost Estimate

    Pursuant to clause 3(d)(1) of House rule XIII, the 
Committee adopts 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. Once available, the cost estimate will be published 
in the Congressional Record.

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)(I) 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. 4480 does not direct new 
spending, but instead reallocates funding independently 
authorized and appropriated.

                IX. Oversight Findings & 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. 4480 are incorporated into the descriptive portions of 
this report.

                  X. Performance Goals and Objectives

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H.R. 4480 is to require 
additional reporting requirements in the annual Congressional 
Budget Justification that include appointment to the 
Interagency Task Force on Veterans Small Business Development 
and a plan for outreach to veterans. The GAO must report on 
credit availability to veterans, default rates, Federal lending 
programs available, gaps in access to capital, obstacles faced 
by veterans, impact of deployments, and awareness of programs 
available to veterans.

            XI. Statement of 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. 4480 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. Statement of Constitutional Authority

    Pursuant to clause 7 of Rule XII of the Rules of the House, 
the Committee finds that 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, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, 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




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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.
          (4) Report.--Along with the budget justification 
        documents for the Small Business Administration 
        submitted to Congress in connection with the budget for 
        a fiscal year submitted under 1105 of title 31, United 
        States Code, the Administrator shall submit a report--
                  (A) discussing the appointments made to and 
                activities of the task force; and
                  (B) identifying and outlining a plan for 
                outreach and promotion of the programs and 
                services for veterans, including Veteran 
                Business Outreach Centers, Boots to Business, 
                Boots to Business Reboot, Service-Disabled 
                Entrepreneurship Development Training Program, 
                Veteran Institute for Procurement, Women 
                Veteran Entrepreneurship Training Program, and 
                Veteran Women Igniting the Spirit of 
                Entrepreneurship.
  (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.

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