[110th Congress Public Law 186]
[From the U.S. Government Printing Office]
[DOCID: f:publ186.110]
[[Page 122 STAT. 623]]
Public Law 110-186
110th Congress
An Act
To improve and expand small business assistance programs for veterans of
the armed forces and military reservists, and for other
purposes. <<NOTE: Feb. 14, 2008 - [H.R. 4253]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Military Reservist and
Veteran Small Business Reauthorization and Opportunity Act of 2008. 15
USC 631 note.>> assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Military Reservist and Veteran Small
Business Reauthorization and Opportunity Act of 2008''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--VETERANS BUSINESS DEVELOPMENT
Sec. 101. Increased funding for the Office of Veterans Business
Development.
Sec. 102. Interagency task force.
Sec. 103. Permanent extension of SBA Advisory Committee on Veterans
Business Affairs.
Sec. 104. Office of Veterans Business Development.
Sec. 105. Increasing the number of outreach centers.
Sec. 106. Independent study on gaps in availability of outreach centers.
Sec. 107. Veterans assistance and services program.
TITLE II--RESERVIST PROGRAMS
Sec. 201. Reservist programs.
Sec. 202. Reservist loans.
Sec. 203. Noncollateralized loans.
Sec. 204. Loan priority.
Sec. 205. Relief from time limitations for veteran-owned small
businesses.
Sec. 206. Service-disabled veterans.
Sec. 207. Study on options for promoting positive working relations
between employers and their Reserve Component employees.
Sec. 208. Increased Veteran Participation Program.
SEC. 3. <<NOTE: 15 USC 636 note.>> DEFINITIONS.
In this Act--
(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;
[[Page 122 STAT. 624]]
(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 meaning as 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) <<NOTE: Appropriation authorization.>> 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; and
(2) $2,300,000 for fiscal year 2009.
(b) Funding Offset.--Amounts necessary to carry out subsection (a)
shall be offset and made available through the reduction of the
authorization of funding under section 20(e)(1)(B)(iv) of the Small
Business Act (15 U.S.C. 631 note).
(c) 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--
(1) by redesignating subsection (c) as (f); and
(2) by inserting after subsection (b) the following:
``(c) Interagency Task Force.--
``(1) <<NOTE: Deadline. President.>> 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;
[[Page 122 STAT. 625]]
``(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.''.
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).
SEC. 104. OFFICE OF VETERANS BUSINESS DEVELOPMENT.
Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by
inserting after subsection (c) (as added by section 102) the following:
``(d) Participation in TAP Workshops.--
[[Page 122 STAT. 626]]
``(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) <<NOTE: Records.>> 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.''.
SEC. 105. <<NOTE: 15 USC 637 note.>> INCREASING THE NUMBER OF
OUTREACH CENTERS.
(a) In General.--The Administrator shall use the authority in
section 8(b)(17) of the Small Business Act (15 U.S.C. 637(b)(17)) to
ensure that the number of Veterans Business Outreach Centers throughout
the United States increases--
(1) subject to subsection (b), by at least 2, for each of
fiscal years 2008 and 2009; and
(2) by the number that the Administrator considers
appropriate, based on need, for each fiscal year thereafter.
(b) <<NOTE: Applicability.>> Limitation.--Subsection (a)(1) shall
apply in a fiscal year if, for that fiscal year, the amount made
available for the Office of Veterans Business Development is more than
the amount made available for the Office of Veterans Business
Development for fiscal year 2007.
SEC. 106. INDEPENDENT STUDY ON GAPS IN AVAILABILITY OF OUTREACH
CENTERS.
The Administrator shall sponsor an independent study on gaps in the
availability of Veterans Business Outreach Centers across
[[Page 122 STAT. 627]]
the United States, to inform decisions on funding and on the allocation
and coordination of resources. <<NOTE: Deadline. Reports.>> Not later
than 6 months after the date of enactment of this Act, the Administrator
shall submit to Congress a report on the results of the study.
SEC. 107. VETERANS ASSISTANCE AND SERVICES PROGRAM.
Section 21 of the Small Business Act (15 U.S.C. 648) is amended by
adding at the end the following:
``(n) Veterans Assistance and Services Program.--
``(1) In general.--A small business development center may
apply for a grant under this subsection to carry out a veterans
assistance and services program.
``(2) Elements of program.--Under a program carried out with
a grant under this subsection, a small business development
center shall--
``(A) create a marketing campaign to promote
awareness and education of the services of the center
that are available to veterans, and to target the
campaign toward veterans, service-disabled veterans,
military units, Federal agencies, and veterans
organizations;
``(B) use technology-assisted online counseling and
distance learning technology to overcome the impediments
to entrepreneurship faced by veterans and members of the
Armed Forces; and
``(C) increase coordination among organizations that
assist veterans, including by establishing virtual
integration of service providers and offerings for a
one-stop point of contact for veterans who are
entrepreneurs or owners of small business concerns.
``(3) Amount of grants.--A grant under this subsection shall
be for not less than $75,000 and not more than $250,000.
``(4) Funding.--Subject to amounts approved in advance in
appropriations Acts, the Administration may make grants or enter
into cooperative agreements to carry out the provisions of this
subsection.''.
TITLE II--RESERVIST PROGRAMS
SEC. 201. 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--
(1) by striking ``90 days'' and inserting ``1 year''; and
(2) by adding at the end the following: ``The Administrator
may, when appropriate (as determined by the Administrator),
extend the ending date specified in the preceding sentence by
not more than 1 year.''.
(b) <<NOTE: 15 USC 636 note.>> 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.
[[Page 122 STAT. 628]]
(2) <<NOTE: Deadline. Loans.>> 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) <<NOTE: Deadline. Loans.>> 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, may 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.
(3) Report.--
(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.
[[Page 122 STAT. 629]]
SEC. 202. <<NOTE: 15 USC 636 note.>> RESERVIST LOANS.
(a) <<NOTE: Website.>> 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.
(b) Marketing.--The Administrator is authorized--
(1) 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
(2) to advertise and promote participation by lenders in
such program jointly with trade associations for banks or other
lending institutions.
SEC. 203. 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. 204. 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. 205. 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 that is 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
[[Page 122 STAT. 630]]
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.
``(C) Exception for programs subject to federal
credit reform act of 1990.--The provisions of
subparagraphs (A) and (B) shall not apply to any
programs subject to the Federal Credit Reform Act of
1990 (2 U.S.C. 661 et seq.).''.
SEC. 206. <<NOTE: Deadline. Reports.>> 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. 207. STUDY ON OPTIONS FOR PROMOTING POSITIVE WORKING
RELATIONS BETWEEN EMPLOYERS AND THEIR
RESERVE COMPONENT EMPLOYEES.
(a) Study Required.--The Comptroller General of the United States
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.
(b) Report.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Comptroller General of the United
States 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--
[[Page 122 STAT. 631]]
(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.
SEC. 208. INCREASED VETERAN PARTICIPATION PROGRAM.
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended
by adding at the end the following:
``(32) Increased veteran participation program.--
``(A) Definitions.--In this paragraph--
``(i) the term `cost' has the meaning given
that term in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a);
``(ii) the term `pilot program' means the
pilot program established under subparagraph (B);
and
``(iii) the term `veteran participation loan'
means a loan made under this subsection to a small
business concern owned and controlled by veterans
of the Armed Forces or members of the reserve
components of the Armed Forces.
``(B) Establishment.--The Administrator shall
establish and carry out a pilot program under which the
Administrator shall reduce the fees for veteran
participation loans.
``(C) Duration.--The pilot program shall terminate
at the end of the second full fiscal year after the date
that the Administrator establishes the pilot program.
``(D) Maximum participation.--A veteran
participation loan shall include the maximum
participation levels by the Administrator permitted for
loans made under this subsection.
``(E) Fees.--
``(i) In general.--The fee on a veteran
participation loan shall be equal to 50 percent of
the fee otherwise applicable to that loan under
paragraph (18).
``(ii) Waiver.--The Administrator may waive
clause (i) for a fiscal year if--
``(I) for the fiscal year before
that fiscal year, the annual estimated
rate of default of veteran participation
loans exceeds that of loans made under
this subsection that are not veteran
participation loans;
``(II) the cost to the
Administration of making loans under
this subsection is greater than zero and
such cost is directly attributable to
the cost of making veteran participation
loans; and
``(III) no additional sources of
revenue authority are available to
reduce the cost of making loans under
this subsection to zero.
[[Page 122 STAT. 632]]
``(iii) Effect of waiver.--If the
Administrator waives the reduction of fees under
clause (ii), the Administrator--
``(I) shall not assess or collect
fees in an amount greater than necessary
to ensure that the cost of the program
under this subsection is not greater
than zero; and
``(II) shall reinstate the fee
reductions under clause (i) when the
conditions in clause (ii) no longer
apply.
``(iv) No increase of fees.--The Administrator
shall not increase the fees under paragraph (18)
on loans made under this subsection that are not
veteran participation loans as a direct result of
the pilot program.
``(F) GAO report.--
``(i) In general.--Not later than 1 year after
the date that the pilot program terminates, the
Comptroller General of the United States shall
submit to the Committee on Small Business of the
House of Representatives and the Committee on
Small Business and Entrepreneurship of the Senate
a report on the pilot program.
``(ii) Contents.--The report submitted under
clause (i) shall include--
``(I) the number of veteran
participation loans for which fees were
reduced under the pilot program;
``(II) a description of the impact
of the pilot program on the program
under this subsection;
``(III) an evaluation of the
efficacy and potential fraud and abuse
of the pilot program; and
``(IV) recommendations for improving
the pilot program.''.
Approved February 14, 2008.
LEGISLATIVE HISTORY--H.R. 4253 (S. 1784):
---------------------------------------------------------------------------
CONGRESSIONAL RECORD:
Vol. 153 (2007):
Dec. 5, 6, considered and passed
House.
Dec. 19, considered and passed
Senate, amended, in lieu of
S. 1784.
Vol. 154 (2008):
Jan. 16, House concurred in Senate
amendment with an amendment
pursuant to H. Res. 921.
Jan. 31, Senate concurred in House
amendment.
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