[House Report 118-98]
[From the U.S. Government Publishing Office]
118th Congress } { REPORT
HOUSE OF REPRESENTATIVES
1st Session } { 118-98
======================================================================
VETERAN ENTREPRENEURSHIP TRAINING ACT OF 2023
_______
June 5, 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. 1606]
[Including cost estimate of the Congressional Budget Office]
The Committee on Small Business, to whom was referred the
bill (H.R. 1606) 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. Need for Legislation............................................2
III. Hearings........................................................3
IV. Committee Consideration.........................................3
V. Committee Votes.................................................3
VI. Section-by-Section of H.R. 1606.................................6
VII. Congressional Budget Office Cost Estimate.......................7
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure8
IX. Oversight Findings & Recommendations............................8
X. Performance Goals and Objectives................................8
XI. Statement of Duplication of Federal Programs....................8
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits........................................................8
XIII. Federal Mandates Statement......................................9
XIV. Federal Advisory Committee Statement............................9
XV. Applicability to Legislative Branch.............................9
XVI. Statement of Constitutional Authority...........................9
XVII. Changes in Existing Law, Made by the Bill, As Reported..........9
I. Purpose and Bill Summary
The purpose of H.R. 1606, the ``Veteran Entrepreneurship
Training Act of 2023'' is to codify the Boots to Business
Program, and for other purposes. This bill amends Section 32 of
the Small Business Act by adding a new subsection authorizing
the Boots to Business Program for 5 years.
The bill updates the definition of Members of the Armed
Forces and sets goals for 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 businesses, and launch the business. This
bill delineates the program components including an in-person
entrepreneurship program.
It also gives the Small Business Administration (SBA) the
authority to collaborate with public and private entities to
develop the curricula, ensures Veterans Business Outreach
Centers regularly participate in the program, and to the
reasonable maximum extent, allows the participation of other
resource partners as well.
The bill facilitates the sharing of course and outreach
materials with the Secretary of Defense for inclusion in DOD
websites, manuals, and other materials related to the
Transition Assistance Program (TAP) and the Secretary of
Veterans Affairs for distribution and display at local VA
facilities.
The bill requires the SBA Administrator to provide a report
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.
II. Need for Legislation
The Veterans Business Outreach Center (VBOC) program
provides free counseling, training, and resource partner
referrals to eligible service members, veterans, National Guard
and Reserve members, and military spouses.
One of the primary responsibilities of VBOC is to
administer the Boots to Business (B2B) program. B2B is an
entrepreneurial education and training program offered by SBA
as part of the Department of Defense's TAP. B2B provides
participants with an overview of business ownership and is open
to transitioning service members (including National Guard and
Reserve) and their spouses.
Initially launched as a pilot initiative in 2012, B2B
curriculum focuses on the key steps for evaluating business
concepts and provides the foundational knowledge to develop a
business plan. In addition, participants connect with SBA
resources, including information on access to capital,
counseling, training, and contracting opportunities.
In FY 2018, nearly 17,200 veterans, servicemembers, and
military spouses stationed at military installations nationwide
participated in the two-day course.
The National Defense Authorization Act of FY 2019 requires
servicemembers participating in TAP to enroll in one of three
capstone classes, which include: Accessing Higher Education,
Career and Technical Training, and Entrepreneurship (B2B). It
is expected that this new requirement will significantly
increase the number of servicemembers who participate in B2B
program.
III. Hearings
In the 118th Congress, the Committee on Small Business (the
Committee) held one hearing examining the issues covered in
H.R. 1606 on May 24, 2023, at 2:00 p.m. titled ``Saluting
Service: Supporting Veteran Owned Small Businesses.'' Members
and witnesses discussed efforts to improve service member
transition from the military to civilian life. One witness who
transitioned from the military while Boots to Business was
available noted she found the program helpful.
IV. Committee Consideration
The Committee met in open session, with a quorum being
present, on May 23, 2023, and ordered H.R. 1606 favorably
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 to favorably report H.R. 1606 to
the House of Representatives at 2:51 p.m.
VI. Section-by-Section of H.R. 1606
Section 1. Short title
This section designates H.R. 1606 as the ``Veteran
Entrepreneurship Training Act of 2023.''
Section 2. Boots to Business Program
Subsection (1) Covered Individuals Defined. Covered
Individual is defined as a member of the Armed Forces,
including the National Guard or Reserves; individuals
participating in TAP; Individuals who served active duty in any
branch including National Guard or Reserves and was discharged
under conditions other than dishonorable; and a spouse or
depended of the previous individuals.
Subsection (2) Establishment. The SBA will carry out the
Boots to Business program until September 30, 2028.
Subsection (3) Goals. This section states the Boots to
Business program aims to provide covered individuals with tools
critical to small business ownership.
Subsection (4) Program Components. This subsection outlines
the program components. The program may contain a presentation
on small business ownership, online business courses, in-person
instruction on foundations of small business ownership and
self-employment, and in-depth training online on creating a
business plan. The SBA may collaborate with public and private
entities in developing the program and modify its components in
coordinating with those participating in Warriors in Transition
program.
It requires the SBA to ensure Veterans Business Outreach
Centers (VBOC) participate in Boots to Business and use
district offices and resource partners to the maximum extent
practicable. It also allows SBA to make grants to VBOC, and
resource partners, or other entities to carry out Boots to
Business.
This section requires SBA to provide Boots to Business
information to the Secretaries of DoD and Department of Labor
for inclusion on their websites related to TAP, in the TAP
manual, and in other manuals those Secretaries determine as
necessary. It also requires the SBA to consult with VA
Secretary to provide for distribution on VA's website and at VA
facilities Boots to Business information that at minimum
includes a description of the program and services provided,
and eligibility requirements.
Finally, this section requires SBA to, upon request, share
Boots to Business information to agencies that participate in
TAP.
Subsection (5) Competitive Bidding Procedures. This section
requires SBA to use competitive bid procedures to contracts or
cooperative agreements used under Boots to business.
Subsection (6) Publication of Notice of Funding
Opportunity. This section requires SBA to publish a notice of
funding opportunity no later than 30 days before the deadline
to submit applications for Boots to Business program.
Subsection (7) Report. This section requires an initial
report no later than 180 days, then annually after, on the
effectiveness of Boots to Business. The report can be a part of
related Agency reports. The report must summarize grants
awarded, total program cost, number of participants, and
completion rates. The report shall include to the extent
possible, participant demographics, number of participants that
connect with an SBA district office or resource partner, number
of participants that start a small business, results of surveys
that gauge quality, outcome, and results. The report will
include an overall effectiveness evaluation based by SBA
regions, an assessment of additional outcome measures
identified by SBA Administrator, recommendations to improve the
program, explanation of how the program has integrated with
other transition programs and government resources, and any
other information SBA deems necessary.
VII. Congressional Budget Office Cost Estimate
Pursuant to 3(c)(3) 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.
H.R. 1606 would authorize the Small Business Administration
(SBA) to carry out the Boots to Business (B2B) Program over the
2023 2028 period. That program, which the SBA operates under
authorities provided in Public Law 93 237, provides
entrepreneurship training to members of the Armed Forces
(including the National Guard or Reserves), veterans, and the
spouses or dependents of those people. The legislation would
authorize the SBA to make grants to Veteran Business Outreach
Centers and to collaborate with public and private entities to
develop training courses, which it does under its current
program. H.R. 1606 also would require the SBA to share B2B
program information with other veterans' agencies and to submit
annual program reports to the Congress.
CBO estimates that implementing the new requirement in H.R.
1606 to share information would cost less than $500,000 over
the 2023-2028 period, primarily for additional reporting
requirements; any spending would be subject to the availability
of appropriated funds.
The CBO staff contact for this estimate is David Hughes.
The estimate was reviewed by Theresa Gullo, Deputy Director of
Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
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. H.R.
1606 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
with respect to the subject matter contained in the H.R. 1606
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. 1606 is to provide
small business and entrepreneurship counseling and training to
America's veterans and their families by reauthorizing the
SBA's Boots to Business program for five years. The bill
requires an annual report (after an initial report no later
than 180 days), to the Committee on Small Business of the House
and the Small Business and Entrepreneurship of the Senate on
the performance and effectiveness of the Boots to Business
Program.
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. 1606 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 (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.--During the period beginning on
the date of enactment of this subsection and ending on
September 30, 2028, 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 and district
offices.--
(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 district
offices of the Administration
and 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 and
the department of labor.--The Administrator
shall make available to the Secretary of
Defense and the Secretary of Labor 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 websites of the
Department of Defense and the Department of
Labor 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 and the Secretary of Labor.
(E) Availability to department of veterans
affairs.--In consultation with the Secretary of
Veterans Affairs, the Administrator shall make
available for distribution and display on the
website of the Department of Veterans Affairs
and 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.
(F) Availability to other participating
agencies.--The Administrator shall ensure
information regarding the Boots to Business
program, including all course materials and
outreach materials related to the Boots to
Business Program, is made available to other
participating agencies in the Transition
Assistance Program and upon request of other
agencies.
(5) Competitive bidding procedures.--The
Administration shall use relevant competitive bidding
procedures with respect to any contract or cooperative
agreement executed by the Administration under the
Boots to Business Program.
(6) Publication of notice of funding opportunity.--
Not later than 30 days before the deadline for
submitting applications for any funding opportunity
under the Boots to Business Program, the Administration
shall publish a notice of the funding opportunity.
(7) Report.--Not later than 180 days after the date
of enactment of this subsection, and not less
frequently than annually 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--
(A) may be included as part of another report
submitted to such committees by the
Administrator related to the Office of Veterans
Business Development; and
(B) shall summarize available information
relating to--
(i) grants awarded under paragraph
(4)(C);
(ii) the total cost of the Boots to
Business Program;
(iii) the number of program
participants using each component of
the Boots to Business Program;
(iv) the completion rates for each
component of the Boots to Business
Program;
(v) to the extent possible--
(I) the demographics of
program participants, to
include gender, age, race,
ethnicity, and relationship to
military;
(II) the number of program
participants that connect with
a district office of the
Administration, a Veteran
Business Outreach Center, or
another resource partner of the
Administration;
(III) the number of program
participants that start a small
business concern;
(IV) the results of the Boots
to Business and Boots to
Business Reboot course quality
surveys conducted by the Office
of Veterans Business
Development before and after
attending each of those
courses, including a summary of
any comments received from
program participants;
(V) the results of the Boots
to Business Program outcome
surveys conducted by the Office
of Veterans Business
Development, including a
summary of any comments
received from program
participants; and
(VI) the results of other
germane participant
satisfaction surveys;
(C) an evaluation of the overall
effectiveness of the Boots to Business Program
based on each geographic region covered by the
Administration during the most recent fiscal
year;
(D) an assessment of additional performance
outcome measures for the Boots to Business
Program, as identified by the Administrator;
(E) 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;
(F) 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
(G) any additional information the
Administrator determines necessary.
* * * * * * *
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