S 1784
110th CONGRESS
1st Session
S. 1784
To amend the Small Business Act to improve programs for veterans,
and for other purposes.
IN THE SENATE OF THE UNITED STATES
July 12, 2007
Mr. KERRY (for himself, Ms. SNOWE, Ms. CANTWELL, and Ms. LANDRIEU)
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 and Opportunity 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--VETERANS BUSINESS DEVELOPMENT
SEC. 101. INCREASED FUNDING FOR THE OFFICE OF VETERANS BUSINESS DEVELOPMENT.
(a) In General- There are authorized to be appropriated to the Office
of Veterans Business Development of the Administration, to remain available
until expended--
(1) $2,100,000 for fiscal year 2008;
(2) $2,300,000 for fiscal year 2009; and
(3) $2,500,000 for fiscal year 2010.
(b) Sense of Congress- It is the sense of Congress that any amounts
provided pursuant to this section that are in excess of amounts provided
to the Administration for the Office of Veterans Business Development
in fiscal year 2007, should be used to support Veterans Business Outreach
Centers.
SEC. 102. INTERAGENCY TASK FORCE.
Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by
adding at the end the following:
`(d) Interagency Task Force-
`(1) ESTABLISHMENT- Not later than 90 days after the date of enactment
of this subsection, the President shall establish an interagency task
force to coordinate the efforts of Federal agencies necessary to increase
capital and business development opportunities for, and increase the
award of Federal contracting and subcontracting opportunities to,
small business concerns owned and controlled by service-disabled veterans
and small business concerns owned and controlled by veterans (in this
section referred to as the `task force').
`(2) MEMBERSHIP- The members of the task force shall include--
`(A) the Administrator, who shall serve as chairperson of the task
force;
`(B) a 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 General Services Administration; and
`(vi) the Office of Management and Budget; and
`(C) 4 representatives of veterans service organizations, selected
by the President.
`(3) DUTIES- The task force shall coordinate administrative and regulatory
activities and develop proposals relating to--
`(A) increasing capital access and capacity of small business concerns
owned and controlled by service-disabled veterans and small business
concerns owned and controlled by veterans through loans, surety
bonding, and franchising;
`(B) increasing access to Federal contracting and subcontracting
for small business concerns owned and controlled by service-disabled
veterans and small business concerns owned and controlled by veterans
through increased use of contract reservations, expanded mentor-protege
assistance, and matching such small business concerns with contracting
opportunities;
`(C) increasing the integrity of certifications of status as a small
business concern owned and controlled by service-disabled veterans
or a small business concern owned and controlled by veterans;
`(D) reducing paperwork and administrative burdens on veterans in
accessing business development and entrepreneurship opportunities;
and
`(E) making other improvements relating to the support for veterans
business development by the Federal Government.
`(4) REPORTING- The task force shall submit an annual report regarding
its activities and proposals to--
`(A) the Committee on Small Business and Entrepreneurship and the
Committee on Veterans' Affairs of the Senate; and
`(B) the Committee on Small Business and the Committee on Veterans'
Affairs of the House of Representatives.'.
SEC. 103. PERMANENT EXTENSION OF SBA ADVISORY COMMITTEE ON VETERANS
BUSINESS AFFAIRS.
(a) Assumption of Duties- Section 33 of the Small Business Act (15 U.S.C.
657c) is amended--
(1) by striking subsection (h); and
(2) by redesignating subsections (i) through (k) as subsections (h)
through (j), respectively.
(b) Permanent Extension of Authority- Section 203 of the Veterans Entrepreneurship
and Small Business Development Act of 1999 (15 U.S.C. 657b note) is
amended by striking subsection (h).
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 `Reservist' means any person who is--
`(A) a member of a reserve component of the Armed Forces, as defined
by section 10101 of title 10, United States Code; and
`(B) on active status, as defined by section 101(d)(4) of title
10, United States Code;
`(7) the term `small business development center' means a small business
development center as described in section 21 of the Small Business
Act (15 U.S.C. 648);
`(8) the term `State' means each of the several States of the United
States, the District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, American Samoa, and Guam; and
`(9) the term `women's business center' means a women's business center
described in section 29 of the Small Business Act (15 U.S.C. 656).
`(c) Authority- The Administrator may award grants, in accordance with
the regulations developed under subsection (d), to eligible applicants
to assist small business concerns owned and operated by Reservists by--
`(1) providing management, development, financing, procurement, technical,
regulatory, and marketing assistance;
`(2) providing access to information and resources, including Federal
and State business assistance programs;
`(3) distributing contact information provided by the Department of
Defense regarding activated Reservists to corresponding State directors;
`(4) offering free, one-on-one, in-depth counseling regarding management,
development, financing, procurement, regulations, and marketing;
`(5) assisting in developing a long-term plan for possible future
activation; and
`(6) providing enterprise transition and sustainability assistance.
`(1) IN GENERAL- The Administrator, in consultation with the Association
and after notice and an opportunity for comment, shall promulgate
regulations to carry out this section.
`(2) DEADLINE- The Administrator shall promulgate final regulations
not later than 180 days of the date of enactment of the Military Reservist
and Veteran Small Business Reauthorization and Opportunity Act of
2007.
`(3) CONTENTS- The regulations developed by the Administrator under
this subsection shall establish--
`(A) procedures for identifying, in consultation with the Secretary
of Defense, States that have had a recent activation of Reservists;
`(B) priorities for the types of assistance to be provided under
the program authorized by this section;
`(C) standards relating to educational, technical, and support services
to be provided by a grantee;
`(D) standards relating to any national service delivery and support
function to be provided by a grantee;
`(E) standards relating to any work plan that the Administrator
may require a grantee to develop; and
`(F) standards relating to the educational, technical, and professional
competency of any expert or other assistance provider to whom a
small business concern may be referred for assistance by a grantee.
`(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 $75,000 per fiscal year; and
`(B) not greater than $300,000 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 and Opportunity 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--RESERVIST PROGRAMS
SEC. 301. RESERVIST PROGRAMS.
(a) Application Period- Section 7(b)(3)(C) of the Small Business Act
(15 U.S.C. 636(b)(3)(C)) is amended by striking `90 days' and inserting
`1 year'.
(b) Pre-Consideration Process-
(1) DEFINITION- In this subsection, the term `eligible Reservist'
means a Reservist who--
(A) has not been ordered to active duty;
(B) expects to be ordered to active duty during a period of military
conflict; and
(C) can reasonably demonstrate that the small business concern for
which that Reservist is a key employee will suffer economic injury
in the absence of that Reservist.
(2) ESTABLISHMENT- Not later than 6 months after the date of enactment
of this Act, the Administrator shall establish a pre-consideration
process, under which the Administrator--
(A) may collect all relevant materials necessary for processing
a loan to a small business concern under section 7(b)(3) of the
Small Business Act (15 U.S.C. 636(b)(3)) before an eligible Reservist
employed by that small business concern is activated; and
(B) shall distribute funds for any loan approved under subparagraph
(A) if that eligible Reservist is activated.
(c) Outreach and Technical Assistance Program-
(1) IN GENERAL- Not later than 6 months after the date of enactment
of this Act, the Administrator, in consultation with the Secretary
of Veterans Affairs and the Secretary of Defense, shall develop a
comprehensive outreach and technical assistance program (in this subsection
referred to as the `program') to--
(A) market the loans available under section 7(b)(3) of the Small
Business Act (15 U.S.C. 636(b)(3)) to Reservists, and family members
of Reservists, that are on active duty and that are not on active
duty; and
(B) provide technical assistance to a small business concern applying
for a loan under that section.
(2) COMPONENTS- The program shall--
(A) incorporate appropriate websites maintained by the Administration,
the Department of Veterans Affairs, and the Department of Defense;
and
(B) require that information on the program is made available to
small business concerns directly through--
(i) the district offices and resource partners of the Administration,
including small business development centers, women's business
centers, and the Service Corps of Retired Executives; and
(ii) other Federal agencies, including the Department of Veterans
Affairs and the Department of Defense.
(A) IN GENERAL- Not later than 6 months after the date of enactment
of this Act, and every 6 months thereafter until the date that is
30 months after such date of enactment, the Administrator shall
submit to Congress a report on the status of the program.
(B) CONTENTS- Each report submitted under subparagraph (A) shall
include--
(i) for the 6-month period ending on the date of that report--
(I) the number of loans approved under section 7(b)(3) of the
Small Business Act (15 U.S.C. 636(b)(3));
(II) the number of loans disbursed under that section; and
(III) the total amount disbursed under that section; and
(ii) recommendations, if any, to make the program more effective
in serving small business concerns that employ Reservists.
SEC. 302. RESERVIST LOANS.
(a) In General- Section 7(b)(3)(E) of the Small Business Act (15 U.S.C.
636(b)(3)(E)) is amended by striking `$1,500,000' each place such term
appears and inserting `$2,000,000'.
(1) IN GENERAL- The Administrator and the Secretary of Defense shall
develop a joint website and printed materials providing information
regarding any program for small business concerns that is available
to veterans or Reservists.
(2) MARKETING- The Administrator is authorized--
(A) to advertise and promote the program under section 7(b)(3) of
the Small Business Act jointly with the Secretary of Defense and
veterans' service organizations; and
(B) to advertise and promote participation by lenders in such program
jointly with trade associations for banks or other lending institutions.
SEC. 303. NONCOLLATERALIZED LOANS.
Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) is amended
by adding at the end the following:
`(G)(i) Notwithstanding any other provision of law, the Administrator
may make a loan under this paragraph of not more than $50,000 without
collateral.
`(ii) The Administrator may defer payment of principal and interest
on a loan described in clause (i) during the longer of--
`(I) the 1-year period beginning on the date of the initial disbursement
of the loan; and
`(II) the period during which the relevant essential employee
is on active duty.'.
SEC. 304. LOAN PRIORITY.
Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)), as
amended by this Act, is amended by adding at the end the following:
`(H) The Administrator shall give priority to any application for
a loan under this paragraph and shall process and make a determination
regarding such applications prior to processing or making a determination
on other loan applications under this subsection, on a rolling basis.'.
SEC. 305. RELIEF FROM TIME LIMITATIONS FOR VETERAN-OWNED SMALL BUSINESSES.
Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) is amended
by adding at the end the following:
`(5) RELIEF FROM TIME LIMITATIONS-
`(A) IN GENERAL- Any time limitation on any qualification, certification,
or period of participation imposed under this Act on any program
available to small business concerns shall be extended for a small
business concern that--
`(i) is owned and controlled by--
`(I) a veteran who was called or ordered to active duty under
a provision of law specified in section 101(a)(13)(B) of title
10, United States Code, on or after September 11, 2001; or
`(II) a service-disabled veteran who became such a veteran due
to an injury or illness incurred or aggravated in the active
military, naval, or air service during a period of active duty
pursuant to a call or order to active duty under a provision
of law referred to in subclause (I) on or after September 11,
2001; and
`(ii) was subject to the time limitation during such period of
active duty.
`(B) DURATION- Upon submission of proper documentation to the Administrator,
the extension of a time limitation under subparagraph (A) shall
be equal to the period of time that such veteran who owned or controlled
such a concern was on active duty as described in that subparagraph.'.
SEC. 306. SERVICE-DISABLED VETERANS.
Not later than 180 days after the date of enactment of this Act, the
Comptroller General of the United States shall submit to the Committee
on Small Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives a report describing--
(1) the types of assistance needed by service-disabled veterans who
wish to become entrepreneurs; and
(2) any resources that would assist such service-disabled veterans.
SEC. 307. STUDY ON OPTIONS FOR PROMOTING POSITIVE WORKING RELATIONS
BETWEEN EMPLOYERS AND THEIR RESERVE COMPONENT EMPLOYEES.
(a) Study Required- The Secretary of Defense shall conduct a study on
options for promoting positive working relations between employers and
Reserve component employees of such employers, including assessing options
for improving the time in which employers of Reservists are notified
of the call or order of such members to active duty other than for training.
(1) IN GENERAL- Not later than 180 days after the date of enactment
of this Act, the Secretary of Defense shall submit to the appropriate
committees of Congress a report on the study conducted under subsection
(a).
(2) CONTENTS- The report submitted under paragraph (1) shall--
(A) provide a quantitative and qualitative assessment of--
(i) what measures, if any, are being taken to inform Reservists
of the obligations and responsibilities of such members to their
employers;
(ii) how effective such measures have been; and
(iii) whether there are additional measures that could be taken
to promote positive working relations between Reservists and their
employers, including any steps that could be taken to ensure that
employers are timely notified of a call to active duty; and
(B) assess whether there has been a reduction in the hiring of Reservists
by business concerns because of--
(i) any increase in the use of Reservists after September 11,
2001; or
(ii) any change in any policy of the Department of Defense relating
to Reservists after September 11, 2001.
(c) Appropriate Committees of Congress Defined- In this section, the
term `appropriate committees of Congress' means--
(1) the Committee on Armed Services and the Committee on Small Business
and Entrepreneurship of the Senate; and
(2) the Committee on Armed Services and the Committee on Small Business
of the House of Representatives.
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