110th CONGRESS
1st Session
S. 1005
To amend the Small Business Act to improve programs for veterans,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
March 28, 2007
Mr. KERRY (for himself, Mr. HAGEL, Mr. CARDIN, Mr. PRYOR, and Mr. TESTER)
introduced the following bill; which was read twice and referred to the
Committee on Small Business and Entrepreneurship
A BILL
To amend the Small Business Act to improve programs for veterans,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Military Reservist and Veteran Small Business
Reauthorization Act of 2007'.
SEC. 2. DEFINITIONS.
(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 meanings given those terms 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--MILITARY RESERVIST LOANS
SEC. 101. GRANT ASSISTANCE FOR MILITARY RESERVISTS' SMALL BUSINESSES.
(a) Authorization of Grants- Section 7(b)(3)(B) of the Small Business Act
(15 U.S.C. 636(b)(3)(B)) is amended by inserting `or grants' after `or a
deferred basis)'.
(b) Grant Specifications- Section 7(b)(3) of the Small Business Act (15
U.S.C. 636(b)(3)) is amended by inserting after subparagraph (F) the following:
`(G) Grants made under subparagraph (B)--
`(i) may be awarded in addition to any loan made under subparagraph
(B);
`(ii) shall not exceed $25,000; and
`(iii) shall be made only to a small business concern--
`(I) that provides a business plan demonstrating viability for not
less than 3 years after the date of the application for that grant;
`(II) with 10 or fewer employees; and
`(III) that has not received a grant under subparagraph (B) during
the 2-year period ending on the date of the application for that
grant.'.
(c) Authorization of Appropriations- Section 20(e)(2) of the Small Business
Act (15 U.S.C. 631 note) is amended by inserting after subparagraph (B)
the following:
`(C) GRANT ASSISTANCE FOR MILITARY RESERVISTS' SMALL BUSINESSES- There
are authorized to be appropriated for grants under section 7(b)(3)(B)--
`(i) $5,000,000 for the first fiscal year beginning after the date
of enactment of the Military Reservist and Veteran Small Business
Reauthorization Act of 2007; and
`(ii) $5,000,000 for each of the 2 fiscal years following the fiscal
year described in clause (i).'.
SEC. 102. NONCOLLATERALIZED LOANS.
Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) is amended
by inserting after subparagraph (G), as added by this Act, the following:
`(H)(i) Notwithstanding any other provision of law, the Administrator
may make a loan under this paragraph of not more than $100,000 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. 103. APPLICATION PERIOD.
Section 7(b)(3)(C) of the Small Business Act (15 U.S.C. 636(b)(3)(C)) is
amended by striking `90 days' and inserting `1 year'.
SEC. 104. PREAPPROVAL PROCESS.
(a) Definition- In this section, the term `eligible Reservist' means a Reservist
who--
(1) has not been ordered to active duty;
(2) expects to be ordered to active duty during a period of military conflict
(as that term is defined in section 7(n)(1) of the Small Business Act
(15 U.S.C. 636(n)(1)); and
(3) 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.
(b) Establishment- Not later than 6 months after the date of enactment of
this Act, the Administrator shall establish a preapproval process, under
which--
(1) the Administrator may approve a loan or grant to a small business
concern under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)),
as amended by this Act, before an eligible Reservist employed by that
small business concern is activated; and
(2) the Administrator shall distribute funds for any loan or grant approved
under paragraph (1) if that eligible Reservist is activated.
SEC. 105. OUTREACH AND TECHNICAL ASSISTANCE PROGRAM.
(a) 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 section referred to as the `program')
to--
(1) market the loans and grants available under section 7(b)(3) of the
Small Business Act (15 U.S.C. 636(b)(3)), as amended by this Act, to Reservists,
and family members of Reservists, that are on active duty and that are
not on active duty; and
(2) provide technical assistance to a small business concern applying
for a loan or grant under that section.
(b) Components- The program shall--
(1) incorporate appropriate websites maintained by the Administration,
the Department of Veterans Affairs, and the Department of Defense; and
(2) require that information on the program is made available to small
business concerns directly through--
(A) 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
(B) other Federal agencies, including the Department of Veterans Affairs
and the Department of Defense.
(1) 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.
(2) CONTENTS- Each report submitted under paragraph (1) shall include--
(A) for the 6-month period before the date of that report--
(i) the number of loans and grants approved under section 7(b)(3)
of the Small Business Act (15 U.S.C. 636(b)(3)), as amended by this
Act;
(ii) the number of loans and grants disbursed under that section;
and
(iii) the total amount disbursed under that section; and
(B) recommendations, if any, to make the program more effective in serving
small business concerns that employ Reservists.
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 operated by the National Veterans Business Development Corporation
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 operated by the National Veterans Business Development Corporation
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 operated by the National Veterans Business Development Corporation
to assist Reservists that own and operate small business concerns in preparing
for future military activations.
SEC. 203. NATIONAL GUARD AND RESERVE BUSINESS ASSISTANCE.
(a) In General- Section 21(a)(1) of the Small Business Act (15 U.S.C. 648(a)(1))
is amended by inserting `any small business development center, women's
business center, Veterans Business Outreach Center, or center operated by
the National Veterans Business Development Corporation providing enterprise
transition and sustainability assistance to Reservists under section 37,'
after `any women's business center operating pursuant to section 29,'.
(b) Program- 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; or
`(D) an information and assistance center operated by the National Veterans
Business Development Corporation under section 33;
`(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 `Reservists' 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.
`(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 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.
`(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.
`(3) MATCHING NOT REQUIRED- Subparagraphs (A) and (B) of section 21(a)(4),
requiring matching funds, shall not apply to grants awarded under this
section.
`(1) DEADLINE- The Administrator shall award grants not later than 60
days after the promulgation of final rules and regulations under subsection
(d).
`(2) AMOUNT- Each eligible applicant awarded a grant under this section
shall receive a grant in an amount--
`(A) not less than $150,000 per fiscal year; and
`(B) not greater than $500,000 per fiscal year.
`(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--
`(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.
`(h) 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
Act of 2007; and
`(B) $5,000,000 for each of the 3 fiscal years following the fiscal
year described in subparagraph (A).
`(2) LIMITATION ON USE OF OTHER FUNDS- The Administrator may carry out
the program authorized by this section only with amounts appropriated
in advance specifically to carry out this section.'.
TITLE III--VETERAN ENTREPRENEUR LOANS
SEC. 301. AUTHORIZATION.
The first sentence of section 7(a) of the Small Business Act (15 U.S.C.
636) is amended by inserting `new veteran entrepreneurs under paragraph
(32) and' and after `loans to any qualified small business concern, including'.
SEC. 302. SPECIFICATIONS.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by
adding after paragraph (31) the following:
`(32) VETERAN ENTREPRENEUR LOANS- Each loan to a new veteran entrepreneur
under this subsection shall--
`(A) be made directly to the new veteran entrepreneur;
`(B) not exceed $100,000; and
`(C) be made at the same interest rate as loans made under the second
proviso of the unnumbered paragraph of subsection (b).'.
SEC. 303. DEFINITIONS.
Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) is amended by
adding after paragraph (4) the following:
`(5) NEW VETERAN ENTREPRENEUR- The term `new veteran entrepreneur' means
a person who--
`(B) is establishing a new small business concern or established a new
small business concern during the 6-month period ending on the date
of the request for a loan; and
`(C) does not own or control any other business.'.
TITLE IV--OTHER PROVISIONS
SEC. 401. INCREASED FUNDING FOR THE OFFICE OF VETERANS BUSINESS DEVELOPMENT.
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;
(2) $2,300,000 for fiscal year 2009; and
(3) $2,500,000 for fiscal year 2010.
SEC. 402. 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. 403. RESERVISTS STUDY.
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 regarding whether there has been a
reduction in the hiring of Reservists by business concerns because of--
(1) any increase in the use of Reservists after September 11, 2001; or
(2) any change in any policy of the Department of Defense relating to
Reservists after September 11, 2001.
SEC. 404. 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.
END
