[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
MARKUP OF H.R. 3537, VETERAN ENTREPRENEURSHIP TRAINING ACT OF 2019;
H.R. 3734, SUCCESSFUL ENTREPRENEURSHIP FOR RESERVISTS AND VETERANS ACT;
H.R. 3661, PATRIOTIC EMPLOYER PROTECTION ACT; H.R. 1615, VERIFICATION
ALIGNMENT AND SERVICE-DISABLED BUSINESS ADJUSTMENT ACT; AND H.R. 499,
SERVICE-DISABLED VETERANS SMALL BUSINESS CONTINUATION ACT
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
FIRST SESSION
__________
HEARING HELD
JULY 17, 2019
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 116-035
Available via the GPO Website: www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
38-187 WASHINGTON : 2019
--------------------------------------------------------------------------------------
HOUSE COMMITTEE ON SMALL BUSINESS
NYDIA VELAZQUEZ, New York, Chairwoman
ABBY FINKENAUER, Iowa
JARED GOLDEN, Maine
ANDY KIM, New Jersey
JASON CROW, Colorado
SHARICE DAVIDS, Kansas
JUDY CHU, California
MARC VEASEY, Texas
DWIGHT EVANS, Pennsylvania
BRAD SCHNEIDER, Illinois
ADRIANO ESPAILLAT, New York
ANTONIO DELGADO, New York
CHRISSY HOULAHAN, Pennsylvania
ANGIE CRAIG, Minnesota
STEVE CHABOT, Ohio, Ranking Member
AUMUA AMATA COLEMAN RADEWAGEN, American Samoa, Vice Ranking Member
TRENT KELLY, Mississippi
TROY BALDERSON, Ohio
KEVIN HERN, Oklahoma
JIM HAGEDORN, Minnesota
PETE STAUBER, Minnesota
TIM BURCHETT, Tennessee
ROSS SPANO, Florida
JOHN JOYCE, Pennsylvania
Adam Minehardt, Majority Staff Director
Melissa Jung, Majority Deputy Staff Director and Chief Counsel
Kevin Fitzpatrick, Staff Director
C O N T E N T S
OPENING STATEMENTS
Hon. Nydia Velazquez............................................. 1
Hon. Steve Chabot................................................ 2
APPENDIX
Additional Material for the Record:
H.R. 3537, Veteran Entrepreneurship Training Act of 2019..... 17
H.R. 3734, Successful Entrepreneurship for Reservists and
Veterans Act............................................... 26
H.R. 3661, Patriotic Employer Protection Act................. 31
H.R. 1615, Verification Alignment and Service-Disabled
Business Adjustment Act.................................... 36
H.R. 499, Service-Disabled Veterans Small Business
Continuation Act........................................... 56
MARKUP OF H.R. 3537, VETERAN ENTREPRENEURSHIP TRAINING ACT OF 2019;
H.R. 3734, SUCCESSFUL ENTREPRENEURSHIP FOR RESERVISTS AND VETERANS ACT;
H.R. 3661, PATRIOTIC EMPLOYER PROTECTION ACT; H.R. 1615, VERIFICATION
ALIGNMENT AND SERVICE-DISABLED BUSINESS ADJUSTMENT ACT; AND H.R. 499,
SERVICE-DISABLED VETERANS SMALL BUSINESS CONTINUATION ACT
----------
WEDNESDAY, JULY 17, 2019
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 11:36 a.m., in Room
2360, Rayburn House Office Building, Hon. Nydia M. Velazquez
[chairwoman of the Committee] presiding.
Present: Representatives Velazquez, Finkenauer, Golden,
Kim, Crow, Davids, Chu, Evans, Schneider, Espaillat, Delgado,
Houlahan, Craig, Chabot, Kelly, Balderson, Hern, Hagedorn,
Stauber, Burchett, and Spano.
Chairwoman VELAZQUEZ. Good morning. The Committee will
please come to order.
A quorum being present, this morning's meeting of the
Committee on Small Business will come to order. Without
objection, the Chair is authorized to declare a recess at any
time.
In our second legislative markup of the 116th Congress, we
will, once again, be working on behalf of veteran entrepreneurs
who have already made great sacrifices for our country. Many
have spent time away from their families and put themselves in
harm's way to protect American principles. Unsurprisingly, it
is this very dedication and determination that makes them the
ideal business owner. Due to their leadership, perseverance,
training, and other skills acquired in the military, veterans
are often uniquely qualified to launch and manage their own
businesses. Yet despite this rich tradition, the share of new
veteran entrepreneurs has declined steadily from about 12.5
percent in 1996 to slightly over 4 percent in 2016.
As we heard in our hearings just last week, veterans face
obstacles, like finding affordable access to capital,
identifying and locating entrepreneurial development resources,
and navigating the contracting process. For that reason, I am
committed to reviewing the Small Business Administration's
veteran-focused programs, like the Veteran's Business Outreach
Centers and the Boots to Business program, to ensure they are
effectively serving, aspiring, and existing veteran business
owners.
But that is only one piece of the puzzle. As the largest
purchaser of goods and services in the world, the Federal
Government is in a unique position to support veteran-owned
businesses. Coordinating certifications between the SBA and VA
can allow the Federal Government to reap the benefits of goods
and services provided by veteran-owned businesses. And we know
that service comes in many forms, as a spouse of a
servicemember or as part of our military reserve force. These
individuals deserve our support as well.
Whether it is entrepreneurial development, contracting, or
access to capital, we need to be asking ourselves if these
programs are working effectively. Can we make improvements to
them? Should Congress consider expanding the reach?
We owe it to the veterans and their families, those who
have sacrificed so much in service to our country, to do
everything we can to create new pathways to empower veterans
and military families who want to start or grow their business.
With approximately 2.5 million veteran-owned businesses
generating over $1 trillion in receipts, it is clear for many
men and women leaving the service, entrepreneurship provides a
promising opportunity to continue serving their country,
creating jobs in the local communities, while supporting their
families.
As a result of hearings and outreach, the Committee today
is considering five bills: H.R. 3537, the ``Veteran
Entrepreneurship Training Act of 2019'', introduced by Mr.
Schneider and cosponsored by Mr. Spano; H.R. 3734, the
``Successful Entrepreneurship for Reservists and Veterans
Act'', introduced by Ms. Davids and cosponsored by Ranking
Member Chabot; H.R. 3661, the ``Patriotic Employer Protection
Act'', introduced by Mr. Kim and cosponsored by Mr. Burchett;
H.R. 1615, the ``Verification Alignment and Service-Disabled
Business Adjustment Act'', introduced by Mr. Kelly and
cosponsored by Mr. Crow; H.R. 499, the ``Service-Disabled
Veterans Small Business Continuation Act'', introduced by Mr.
Chabot and cosponsored by Mr. Delgado.
As we have done many times in the past, the bills today are
brought before us in a bipartisan fashion, and I support each
of the bills to be marked up today.
However, before we get to the substance of the bills, I
want to thank the Ranking Member and his staff for
collaborating on this package. I would also like to thank all
of our members, both Republican and Democrat, for their efforts
to improve the landscape for veteran entrepreneurs.
I would now recognize to recognize our Ranking Member, Mr.
Chabot, for his opening remarks.
Mr. CHABOT. Thank you, Madam Chairwoman. And I want to
thank you again for running our Committee in such a bipartisan
fashion.
Earlier this week, our Committee's package of five
bipartisan bills passed the House via a voice vote. And today,
we have yet another strong package of five bills that are fully
bipartisan as well. So, again, thank you for making sure that
we all on this Committee have a seat at the table.
Today's five bills focus on our Nation's heroes, our
veterans, service-disabled veterans, reservists, National Guard
members, and their spouses. Just last week, four veterans
testified before our Committee and reminded us of the
incredible contributions those who have served make to our
country. They have made extraordinary sacrifices, put their
lives on the line, and kept our country safe. Their service to
our Nation doesn't always stop when they separate from the
military. Increasingly, veterans are choosing to open their own
small businesses.
Research has shown that servicemembers are especially
qualified to start and run their own firms. While serving in
the military, they learn to make good decisions in chaotic
environments and are confident, driven, and natural leaders.
There are a myriad of programs and services across the Federal
Government that assist veterans who start businesses after
leaving the military.
The package of bills, which we will discuss in greater
detail as they come up, will go a long way in making these
programs and services more accessible to our Nation's veteran
entrepreneurs.
So, again, thank you, Chairwoman, and each of the members
on both sides of the aisle who have taken leadership roles in
sponsoring or cosponsoring these bills. And I yield back.
Chairwoman VELAZQUEZ. Thank you very much. The gentleman
yields back.
Before we get into the individual bills, are there any
members who seek recognition for the purposes of making an
opening statement?
Okay. Seeing none, we will move to consideration of H.R.
3537, the ``Veteran Entrepreneurship Training Act of 2019'',
introduced by Mr. Schneider and cosponsored by Mr. Spano, which
modernizes and codifies the Boots to Business program.
I would now like to recognize the bill sponsor, the
gentleman from Illinois, Mr. Schneider, for an opening
statement.
Mr. SCHNEIDER. Thank you, Madam Chair.
I want to thank the Committee for its consideration today
of this legislation, the ``Veteran Entrepreneurship Training
Act'', which I introduced with my colleague from Florida, Mr.
Spano.
Transitioning servicemembers deserve our support as they
move from military to civilian life. Last week, we heard from
several veterans, some of whom benefited from the Boots to
Business program and all of whom stated their support for that
program. That is because we know that servicemembers make
excellent entrepreneurs. They have the temperament, the drive,
and the experience to excel at running their own businesses.
But as their testimony highlighted, these individuals often
lack the industry-specific skills from knowledge of financing
options to background and market research to make their
business or their business dreams a reality.
The Boots to Business program has helped more than 50,000
servicemembers and veterans bridge this gap by providing a 2-
day in-person course on business ownership, followed by more
in-depth instruction through an 8-week online course. This
program has helped to empower servicemembers to put their dream
of running their own business into a reality, and yet the
program lacks statutory authorization.
Our legislation would codify the program into law for the
next 5 years to ensure future servicemembers are able to seize
the opportunity to learn how to launch their own small
businesses. I am pleased that a version of this legislation was
included as an amendment of the National Defense Authorization
Act.
However, there is no guarantee the amendment will survive
the conference committee. Passing a standalone bill as we are
working towards today remains important to ensure that the
Boots to Business program is protected and continues to serve
our veterans. I urge my colleagues to join in support of the
Boots to Business program by voting in favor of this bipartisan
bill.
Again, thank you to the Committee staff who helped draft
the legislation. And thank you to my colleague Mr. Spano for
joining me in supporting this important program.
I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized for
their statement?
The gentleman, Mr. Spano, cosponsor of the bill, is
recognized for 5 minutes.
Mr. SPANO. Thank you, Chair.
And a heartfelt thank you to you, Chair, and also the
Ranking Member for consideration of this package of bills which
I think is very, very important. Thank you to Representative
Schneider for allowing me to be a sponsor with you on the bill.
In Florida, the 15th Congressional District that I
represent, which is situated just east of Tampa, we have the
largest number of veterans in any congressional district in the
State of Florida. So these issues and these bills are
particularly important to me. So thank you again for the
consideration, and thank you for working together to present
them today.
The bill authorizes the Boots to Business, as
Representative Schneider just mentioned, program for 5
additional years and ensures that our veterans and their
families receive the essential education that they need on how
to start and successfully run their own small businesses.
Specifically, the program aims to provide in-depth training on
business ownership, how to draft a business plan, identify
sources of capital to start their business, and then how to
connect with local SBA resources.
In the same way that we give our troops the support that
they need and the tools that they need for active service, we
must also prepare our veterans for civilian life. And this
program does just that. It has received glowing support from
the SBA, and many of the veterans that have previously appeared
before the Committee, as Representative Schneider just
mentioned a moment ago. And so I urge my colleagues on the
Committee to support this very, very important bill and give
our veterans the training and support that they so richly
deserve.
Thank you so much. I yield back, Chair.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 3537?
Go first. Yeah.
Mr. CHABOT. Thank you.
Chairwoman VELAZQUEZ. The gentleman is recognized for 5
minutes.
Mr. CHABOT. Thank you, Madam Chairwoman.
The Boots to Business program is a 2-day in-person
entrepreneurship program initiated and offered by the SBA as
part of the Department of Defense's Transition Assistance
Program. Originally launched back in 2012, the Boots to
Business program offers transitioning servicemembers and
spouses information about self-employment and business
ownership.
The Veterans Business Outreach Centers deliver these
services at over 180 military installations nationwide. Just
last week, as was mentioned, at our legislative hearing, we
heard firsthand from veteran-owned small business owners how
important it is for separating servicemembers to be made aware
early of the training opportunities available to them. The
Boots to Business program does just that. The program is
designed to impart the essential information to take a business
from concept to execution and facilitate the road to
entrepreneurship for our Nation's veterans.
I commend the gentleman from Illinois, Mr. Schneider, and
the gentleman from Florida, Mr. Spano, for their leadership on
this bill and for working hard to increase business
opportunities for our Nation's heroes. I urge my colleagues to
support the bill, and I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
And I yield to myself just to congratulate both gentlemen,
Mr. Schneider and Mr. Spano, for their hard work on this issue.
It is important that we provide certainty to this program, and
that is exactly what this bill does by codifying the program
for 5 years. So I urge my colleagues to support this
commonsense legislation.
If there is no further discussion, the Committee will move
to consideration of H.R. 3537.
The clerk will report the title of the bill.
The CLERK. H.R. 3537, the ``Veteran Entrepreneurship
Training Act''----
Chairwoman VELAZQUEZ. Without objection, H.R. 3537 is
considered as read and open for amendment at any point.
Are there any members who wish to offer an amendment?
Seeing none, the question is now on H.R. 3537.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it. H.R. 3537 is
agreed to.
The question now occurs on reporting H.R. 3537 to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and H.R.
3537 is reported to the House.
Without objection, the Committee staff is authorized to
correct punctuation, make other necessary technical corrections
and conforming changes. Without objection, members shall also
be entitled to 2 days to file additional supplemental,
dissenting, and minority views.
Our second bill today is H.R. 3734, the ``Successful
Entrepreneurship for Reservists and Veterans Act'', introduced
by Ms. Davids and cosponsored by Ranking Member Chabot. This
bill provides for greater transparency and analysis reporting
so that this Committee can better understand the financing
needs of veterans and gather regular snapshots of programmatic
outreach and education to veterans.
I would now like to recognize the gentlelady from Kansas,
Ms. Davids, the sponsor of the bill, for an opening statement
of H.R. 3734.
Ms. DAVIDS. Thank you, Chairwoman.
Access to capital is one of the most important first steps
entrepreneurs take when starting a business. And it is also one
of the biggest difficulties. It remains a challenge throughout
the life of a small business, even successful ones.
This is especially true for our veterans. Growing up with a
parent in the military, I know firsthand how frequent moving
can be hard on veterans' personal networks and their ability to
accumulate credit. Veterans often have a more difficult time
accessing capital and credit as it can be difficult to collect
credit during service. That is why I introduced the Successful
Entrepreneurship for Reservists and Veterans Act, or the SERV
Act, along with Ranking Member Chabot.
The SERV Act requires a report from the Comptroller General
of the United States on the ability of veteran and reservist
small business owners to access credit. The report will include
new information and analysis on the source of credit that
veterans use to start and maintain their businesses, as well as
how deployment and other military responsibilities affect
veterans' and reservists' credit.
Studying the problem of access to credit for veterans and
reservists is a crucial first step in finding solutions. The
Small Business Administration has many different programs aimed
at helping veterans transition their military skills from
service to business, like the Veterans Business Outreach
Centers, Boots to Business, which we have heard about, the
Service-Disabled Entrepreneurship Development Training program,
and the Women Veteran Entrepreneurship Training program.
As we heard in our hearing last week on veteran
entrepreneurship, these programs provide vital resources to
veterans. But they can only be helpful if veterans use them.
That is why the SERV Act requires the Interagency Task Force
for Small Business Development to develop a plan for outreach
and promotion of these incredible programs.
The Task Force is responsible for coordinating Federal
efforts to improve capital access, business development, and
contracting opportunities for veteran and service-disabled
small businesses. But the last time it submitted a report to
Congress was in 2015. The SERV Act requires the Task Force to
report annually to Congress on its appointments and to outline
its plan for outreach on the many programs available to
veterans, service-disabled veterans, reservists, and their
spouses.
I would like to close by thanking Chairwoman Velazquez and
Ranking Member Chabot for holding last week's important hearing
on veteran entrepreneurs and for holding this bipartisan markup
today. And thank you to Mr. Chabot, Ranking Member Chabot, for
cosponsoring this important legislation.
Chairwoman VELAZQUEZ. The gentlelady yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 3734?
Mr. CHABOT. Madam Chair?
Chairwoman VELAZQUEZ. The gentleman, Ranking Member, Mr.
Chabot, is recognized.
Mr. CHABOT. Thank you, Madam Chairwoman.
And I want to thank the gentlelady from Kansas, Ms. Davids,
for working with us on this measure as well.
Although the country continues to record above average
economic marks, the Nation's smallest firms still face
challenges when it comes to financing their businesses. This is
even more pronounced for the category of small businesses we
are discussing today, our Nation's veteran-owned small
businesses. We heard testimony, again, to that fact just last
week.
Unfortunately, there is a scarcity of data regarding credit
availability for veterans, service-disabled veterans, and
reserve-owned small businesses. Given the importance of this
segment of the small business population, improved data streams
are needed to thoughtfully improve the SBA's offerings to these
firms.
H.R. 3734, the SERV Act, requires the administrator of the
SBA to produce an annual report outlining a plan for outreach
and promotion of the SBA programs and services for veterans.
The bill also requires the GAO to conduct a study about the
availability of credit to veteran, service-disabled veteran,
and reservists owned small businesses.
It is a very good bill. It is a good government bill that
will help future Congresses tailor their access to capital
programs to better serve veteran-owned small businesses.
So I want to again thank the gentlelady from Kansas, Ms.
Davids, for working with me on this very important bill, and I
yield back my time.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized for a
statement?
If not, I will recognize myself.
It is important the message that we are sending today to
our disabled veterans and reservists, that we are not checking
a box. We are creating and codifying programs that we
understand are important. But those programs will not do any
good if we don't have metrics, if we don't have a report so
that we could enact changes to it to make it meaningful for
those that are intended to help. So annual reporting allows
Congress to have this ability over the task force responsible
for serving our veterans at SBA and the ability to provide
proper oversight. Gathering a regular snapshot of the program
enables Congress to make modifications where they are needed in
a timely fashion.
So let me take this opportunity to thank Ms. Davids and
Ranking Member Chabot for their collaboration, and I urge my
colleagues to support the bill.
If there is no further discussion, the Committee will move
on to consideration of H.R. 3734.
The clerk will report the title of the bill.
The CLERK. H.R. 3734, the Successful Entrepreneurship----
Chairwoman VELAZQUEZ. Without objection, H.R. 3734 is
considered as read and open for amendment at any time.
Does anyone wish to offer an amendment?
Seeing none, the question is now on H.R. 3734.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and H.R.
3734 is agreed to.
The question now occurs on reporting H.R. 3734 to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it. H.R. 3734 is
reported to the House.
Without objection, the Committee staff is authorized to
correct punctuation, make other necessary technical corrections
and conforming changes. Without objection, members shall also
be entitled to 2 days to file additional supplemental,
dissenting, and minority views.
The next bill for consideration is H.R. 3661, the
``Patriotic Employer Protection Act'', introduced by Mr. Kim
and cosponsored by Mr. Burchett. This commonsense legislation
recognizes the service of our reservists by broadening their
ability to access loans.
I would like to recognize the gentleman from New Jersey for
an opening statement.
Mr. KIM. Thank you, Chairwoman and Ranking Member, for your
leadership on these issues and for considering my bill, the
``Patriotic Employer Protection Act.''
I also want to thank my coauthor, Congressman Burchett from
Tennessee, for his voice and advocacy on this important
bipartisan bill.
My bill will restructure, reform, and revitalize two
critical programs to help our military reservists and empower
patriotic small business owners who employ them.
The Military Reservists Economic Injury Disaster program
and the Repayment Deferral for Active Duty Reservist program
are built to help small businesses weather the shock when an
employee or owner who is a reservist is called up as part of
the National Guard or reservist duties.
The Military Reservist Economic Injury Disaster program
does this through a direct loan program that provides emergency
working capital for small businesses to meet their obligations
while an employee or owner is serving our country. The
Repayment Deferral for Active Duty Reservist program authorizes
the Small Business Administration to work with private lenders
to defer interest or loan payments--or repayments for small
businesses facing similar circumstances.
Both of these programs are well intentioned, but they are
outdated and underutilized. My bill seeks to change that. The
``Patriotic Employer Protection Act'' would restructure these
programs so that they reflect the current realities for
reservists today. Specifically, my bill would remove
restrictions that limit use of programs to Active Duty during a
period of military conflict. Instead, reservists who are
ordered to perform active service for a period of more than 30
consecutive days would be eligible for these programs.
In simple English, the way we deploy our Reserves has
changed, and the programs that support those reservists and the
small businesses that put food on their table have to change
with it.
For our reservists, these issues aren't theoretical; they
are personal. And there are personal stories that we have seen
year over year of small businesses' employees who have been
negatively impacted by this system.
A Washington Post report from nearly 15 years ago told the
story of Stanley Adams, a small business owner and reservist
who had to shut down one of his otherwise thriving businesses
when he was deployed to Iraq in 2003. During his deployment,
his company's revenue dropped from $1.5 million to a quarter of
a million. And when asked of the impact on his small business,
Adams said everything came to a halt, and all this money still
had to be paid.
Mr. Adams was able to use a Small Business Administration
program to help him keep his other businesses afloat. But let's
be clear, he had choose between his duty in the Reserves and
keeping his businesses thriving. That is a choice that no
servicemember or small business owner should ever have to make.
I am lucky to represent New Jersey's 3rd District. It is
made of Burlington and Ocean Counties and home of Joint Base
McGuire-Dix-Lakehurst. And we have thousands of reservists that
live in our communities. Every day, they go to work in small
businesses that rely on them to grow and thrive. We owe it to
our men and women in uniform to support them when they are out
of uniform. We owe it to the small business owners that employ
them to give them our support when they support our
servicemembers.
My fellow Committee members, I encourage you to support
this bill and our patriotic small business owners. I encourage
the support of this bill, and I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 3661?
Mr. Burchett is recognized for 5 minutes.
Mr. BURCHETT. Thank you, Chairlady Velazquez and Ranking
Member Chabot, for proceeding to this markup that focuses on
legislation aimed at assisting veteran entrepreneurs and those
that are still serving our country proudly.
Many of the skills honed during military service--
leadership, decision making, ability to adapt to different
situations seamlessly--are the skills required to launch and
grow a successful business. The men and women in uniform are
our next great business leaders. This stands true for the
dedicated servicemembers from east Tennessee, the area I
represent. And I know this is true across the country as well.
That is why I want to thank Representative Kim for working in a
bipartisan manner with me on H.R. 3661, the ``Patriotic
Employer Protection Act.''
When a small business experiences a loss because of one of
their significant employees is called up for Active Duty
service, a small business could receive an SBA Military
Reservist Economic Injury Disaster Loan. The ``Patriotic
Employer Protection Act,'' among other things, adds those on
full-time National Guard duty to the list of the essential
employees called up for duty. This change will better align
SBA's disaster loan program to reflect the current use of our
military.
Small businesses drive our economy, and servicemembers
guard our freedom. And this legislation will help protect
patriotic employers and employees when they are called into
service. And I lend my full support to this bill, and I yield
back.
Chairwoman VELAZQUEZ. The gentleman yields back.
And now I recognize Ranking Member Chabot for 5 minutes.
Mr. CHABOT. Thank you, Madam Chair.
In the interest of time, let me just say thank you very
much to the gentleman from New Jersey, Mr. Kim, and the
gentleman from Tennessee, Mr. Burchett, for working together on
behalf of the men and women of our Armed Forces. We definitely
appreciate it very much, and I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
I would like to make a statement in support of this
legislation.
Over the past decade, our reserve forces have experienced a
shift from a strategic reserve to an operational reserve. This
bill addresses that shift by expanding the pool of eligible
reservists through a restructuring of the programs so they are
not limited to periods of conflicts.
I commend Congressman Kim, Burchett, and Schneider for
improving access to affordable capital for small businesses,
especially those owned by or who employ reservists. I urge my
colleagues to support the measure.
If there is no further discussion, the Committee will move
on consideration of H.R. 3661.
The clerk will report the title of the bill.
The CLERK. H.R. 3661, the ``Patriotic Employer Protection
Act.''
Chairwoman VELAZQUEZ. Without objection, H.R. 3616 is
considered as read, and as customary for Committee practice,
open for amendment at any point.
Does anyone wish to offer an amendment?
Seeing none, the question is now on H.R. 3661.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and H.R.
3661 is agreed to.
The question now occurs on reporting H.R. 3661 to the
House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it. H.R. 3661 is
reported to the House.
Without objection, the Committee staff is authorized to
correct punctuation and make all the necessary technical
corrections and conforming changes. Without objection, members
shall also be entitled to 2 days to file additional
supplemental, dissenting, and minority views.
The next bill is H.R. 1615, the ``Verification Alignment
and Service-Disabled Business Adjustment Act,'' a bill to
simplify and consolidate the certification process for service-
disabled veteran-owned small businesses within the SBA. This
bipartisan legislation was authored by Mr. Kelly and
cosponsored by Mr. Crow.
I would like to now recognize the gentleman from
Mississippi, Mr. Kelly, the sponsor of H.R. 1615, for an
opening statement.
Mr. KELLY. Thank you, Madam Chair and Ranking Member
Chabot. I would like to thank the Committee for considering my
bill, H.R. 1615, the VA-SBA Act.
As we have heard in previous hearings, the VA proactively
verifies service-disabled veteran-owned small businesses, while
the SBA allows business owners to self-certify. This process
creates inconsistent outcomes such as a business qualifying as
a service-disabled veteran business for VA contracts but not
other Federal agency contracts, or vice versa.
While the SBA certified business awards are subject to
scrutiny, the lack of a front end verification leaves the door
open for fraud and abuse. We have already made significant
strides in the right directions. The National Defense
Authorization Act for fiscal year 2017 instructed the SBA and
VA to unify the definitions for service-disabled veteran-owned
small businesses and began moving regulatory responsibility
from the VA to the SBA.
President Trump's reform plan for the Federal Government
released last year cited the need for a one-stop shop for small
business Federal procurement programs. The SBA has already made
headway through the launch of their website, certify.sba.gov,
and we are committed to working with them to see it through.
The VA-SBA marks the next significant step towards
unification of the two programs under one umbrella at the SBA
and reduces red tape and confusion from veteran small business
owners.
Thanks again for considering my bill. And I thank Mr. Crow
for joining us on this.
And at the appropriate time, I will have an amendment at
the desk, Madam Chair.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized for a
statement on H.R. 1615?
Mr. Crow, the gentleman from Colorado, is recognized for 5
minutes.
Mr. CROW. Thank you, Madam Chairwoman. Thank you for the
opportunity to speak in support of the ``Veteran Alignment and
Service-Disabled Business Adjustment Act,'' or the VA-SBA Act.
I want to thank my friend and fellow paratrooper, the
gentleman from Mississippi, Mr. Kelly, for his leadership on
this issue.
Veterans are uniquely qualified and have a valuable
perspective as they start and manage small businesses. In my
home State of Colorado, there are over 52,000 veteran-owned
small businesses that continue to give back to our community
and economy even after serving our country.
Currently, the Department of Veterans Affairs and the Small
Business Administration support service-disabled veterans
through two different separate programs. As we have already
heard from today, they receive support that they go through a
rigorous application process which is duplicative, confusing,
and redundant.
So I am proud to be an original cosponsor of the VA-SBA Act
which will harmonize both programs under the SBA, cutting back
on unnecessary red tape while, at the same time, protecting
against fraud and abuse. It also ensures that data on service-
disabled veteran-owned small businesses and veteran-owned small
businesses lives at the SBA, which is uniquely equipped to
serve veterans who want to start small businesses.
This bill provides the support and resources our veterans
deserve as they continue to go above and beyond to hire other
veterans, including those who have been injured in the line of
duty, and contribute to their communities upon returning from
their service. There is a sacred promise in America that if you
step up to serve, we will be there when you take off the
uniform, and this bill does exactly that for veterans that own
small businesses.
I yield back the balance of my time.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized?
Mr. Chabot is recognized for 5 minutes.
Mr. CHABOT. Thank you, Madam Chair.
I just want to, again, in the order--because of time
constraints, I want to thank Mr. Kelly of Mississippi, Mr. Crow
of Colorado, the two for working together. I think they
explained the purposes of this legislation and why I would urge
members to support it and thank them for their efforts. And I
yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized on
this?
Let me recognize myself.
The problem with the two certification processes is simple;
it creates confusion for business owners and contracting
officers alike. This bill harmonizes the two conflicting
contracting programs by eliminating the VA certification and
transferring it to the SBA. It also institutes a certification
process under the SBA program to prevent concerns of fraud and
abuse.
I want to thank all the members of this Committee that have
sponsored this bill, because it is certainly a step in the
right direction to eliminate duplication and confusion between
the two agencies. This bipartisan legislation will make it
easier for the veteran-owned businesses to do business with the
government. Therefore, I urge my colleagues to support the
measure.
If there is no further discussion, the Committee now moves
to consideration of H.R. 1615.
The clerk will report the title of the bill.
The CLERK. H.R. 1615, the Verification Alignment----
Chairwoman VELAZQUEZ. Without objection, H.R. 1615 is
considered as read and open for amendment at any point.
Does anyone wish to offer an amendment?
Mr. KELLY. Madam Chairwoman, I have an amendment at the
desk.
Chairwoman VELAZQUEZ. The clerk will report the amendment.
The CLERK. Amendment to H.R. 1615, offered by Mr. Kelly of
Mississippi.
Chairwoman VELAZQUEZ. Without objection, the amendment is
considered as read.
The gentleman is recognized for 5 minutes.
Mr. KELLY. Thank you, Madam Chair and Ranking Member
Chabot.
I would like to offer this amendment in the nature of a
substitute which makes some small yet critical enhancements to
understanding this important legislation. These changes in the
underlying bill text came from conversations with the Small
Business Administration, the agency that will be overseeing
this new service-disabled veteran-owned small business
certification program. And I think it reasonable to incorporate
their suggestions into the underlying bill text.
First, the amendment underscores the intention for the
Small Business Administration to inherit the Department of
Veterans Affairs current records of certified service-disabled
veteran-owned firms and continue to maintain a list of
certified firms. The amendment makes clear it is up to the
discretion of the SBA to utilize the technology solution it
determines best suited to capturing this information, and there
is no requirement that the agency take on the hardware and
software infrastructure at the VA unless the agency deems it is
a necessary part of the transition.
Secondly, the amendment strikes Section 4 of H.R. 1615
regarding sole source thresholds. The inclusion of this section
was dependent on the passage of a separate bill, which is still
working its way through the legislative process. There will be
ample opportunity to reconsider this provision at a later date
but not at this juncture.
Third, the amendment strikes reference to self-certified
veteran-owned business in Section 8 of H.R. 1615 in order to
reduce any unnecessary misconception that the SBA permits self-
certification of veteran-owned small business in its prime
contracting program. This revised section better aligns with
current SBA policies and addresses the steps self-certified
service-disabled veteran-owned small businesses must take in
order to maintain their SDVOSB status.
To sum up, this amendment in the nature of a substitute
provides important clarity to ensure that the public and
implementing agencies interpret this language in the way
Congress intended.
I urge support of my colleagues, and I yield back the
balance of my time.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized for a
statement on the amendment?
Mr. CHABOT. Madam Chair?
Chairwoman VELAZQUEZ. Mr. Chabot, you are recognized for 5
minutes.
Mr. CHABOT. Thank you, Madam Chair. I will be brief.
I would like to thank Mr. Kelly for offering this amendment
and for coordinating with the SBA to improve this legislation.
This amendment makes several revisions to the legislation
to ensure the intent of these provisions is clear to the public
and to the implementing agency. Clarity in the law is
important, and this amendment provides exactly that.
So I would urge my colleagues to support the amendment, and
I yield back.
Chairwoman VELAZQUEZ. Are there any other members who wish
to be recognized on this amendment?
If not, let me just say this is a straightforward amendment
that provides clarity, and I urge my colleagues to support it.
The question is now on amendment 1.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and the
amendment is agreed to.
Are there any other members who wish to be recognized for
the purposes of offering an amendment?
Seeing none, the question is now on H.R. 1615, as amended.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and H.R.
1615, as amended, is agreed to.
The question now occurs on reporting H.R. 1615, as amended,
to the House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it. H.R. 1615,
as amended, is reported to the House.
Without objection, the Committee staff is authorized to
correct punctuation and make all the necessary technical
corrections and conforming changes. Without objection, members
shall also be entitled to 2 days to file additional
supplemental, dissenting, and minority views.
The next bill is H.R. 499, the ``Service-Disabled Veterans
Small Business Continuation Act,'' introduced by Ranking Member
Chabot and sponsored by Mr. Delgado, which protects small
businesses owned by disabled veterans by providing a
transitionary period to keep SDVOSB status in the event of the
business owner's death.
I will now recognize the gentleman from Ohio and the
Ranking Member of the Committee, the author of the bill, for an
opening statement.
Mr. CHABOT. Thank you, Madam Chairwoman.
I, like all members of this Committee, hear from many
constituents on a wide range of small business issues. One of
the things that is particularly important to me and those folks
in my district is to ensure that veterans and their families
receive fair treatment from the Federal Government which they
have served so bravely. Many of these veterans come home and
decide to become entrepreneurs, whether to sustain a living for
their families or to contribute to their communities in a
meaningful way.
Unfortunately, currently there is a conflict in the law
regarding the treatment of surviving spouses of service-
disabled veteran small business owners between the VA and the
SBA. Congress has already codified in title 38 a commonsense
provision allowing the surviving spouse of a service-disabled
veteran small business owner with a less than 100 percent
disability rating to retain the company's SDVOSB status for a
certain amount of time.
Unfortunately, the Small Business Act currently has no such
provision. This lack of parity creates legal uncertainty and
confusion in the application of this important protection for
spouses of veteran business owners, the veteran owners
themselves, and all those who rely on these businesses after
the veteran owner passes away. This is why this bill, H.R. 499,
is so important.
The bill aligns title 15 with title 38, ensuring continuity
across the government for this important policy. This bill will
provide our Nation's heroes and their families with peace of
mind.
I also want to thank the gentleman from New York, Mr.
Delgado, for working together on this legislation and urge my
colleagues to support this bill.
And I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back. And I
appreciate his work on this issue.
Are there any other members who wish to be recognized for a
statement on H.R. 499?
Mr. DELGADO. Yes.
Chairwoman VELAZQUEZ. The gentleman from New York, Mr.
Delgado, is recognized for 5 minutes.
Mr. DELGADO. Thank you, Madam Chairwoman.
I would like to thank you, along with Ranking Member
Chabot, for your work on legislation that we are working on
today, legislation that will improve the ability of veterans
and their families who start or continue running a business.
I am especially glad to see that the bill I first
introduced as a Member of Congress, the very first bill, the
``Service-Disabled Veterans Small Business Continuation Act,''
is being taken up by the Committee. And I am honored that I was
able to introduce this bill along with Ranking Member Chabot
and Representatives Bergman and Correa.
With veterans and their families sacrificing so much for
our rights and freedoms, it is our solemn obligation as a
Nation to ensure that their health and well-being is protected.
Currently, the spouses of service-disabled veterans can receive
preference for contracts with the Department of Veterans
Affairs. But this preference is rescinded if the veteran passes
away, unless he or she was 100 percent disabled.
The Service-Disabled Veterans Small Business Continuation
Act would allow the spouses of deceased service-disabled
veterans to retain their status as a service-disabled veteran-
owned small business for 3 years, regardless of the degree to
which a veteran was disabled. This will give surviving spouses
the opportunity to remain competitive in the Federal
contracting market.
After 3 years of service the veterans and their families
give to us, we need to provide them with both stability and
opportunities for growth.
Thank you again to Ranking Member Chabot for his leadership
on this issue. I am proud to see this legislation is being
marked up, and urge my colleagues to support it.
I yield back.
Chairwoman VELAZQUEZ. The gentleman yields back.
Are there any other members who wish to be recognized?
I will now recognize myself briefly.
This bill codifies our intention to bridge the differences
between the SBA and VA by establishing uniformity. We know that
running a small business often involves many members of a
family. By extending survival spousal rights to the SDVOSB
definition, we are honoring the sacrifice they made for our
country. We are also providing stability for that business to
ensure that they can remain competitive rather than immediately
penalized by the death of the service-disabled veteran business
owner.
I want to thank Ranking Member Chabot and Mr. Delgado for
working together to ensure that, when a disabled veteran
business owner passes, the law does not impose insult to injury
by penalizing the surviving spouse. I urge my colleagues to
support the bill.
If there is no further discussion, the Committee will move
on to consideration of H.R. 499.
The clerk will report the title of the bill.
The CLERK. H.R. 499, the Service-Disabled----
Chairwoman VELAZQUEZ. Without objection, H.R. 499 is
considered as read and open for amendment at any point.
Does anyone wish to offer an amendment?
Seeing none, the question is now on H.R. 499.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it, and H.R. 499
is agreed to.
The question now occurs on reporting H.R. 499 to the House.
All those in favor, say aye.
All those opposed, say no.
In the opinion of the Chair, the ayes have it. H.R. 499 is
reported to the House.
Without objection, the Committee staff is authorized to
correct punctuation, make other necessary technical corrections
and conforming changes. Without objection, members shall also
be entitled to 2 days to file additional supplemental,
dissenting, and minority views.
So with that, we finished our markup.
I want to take this opportunity to thank all the members
for their participation today.
And if there is no further business to come before the
Committee, we are adjourned.
[Whereupon, at 12:21 p.m., the Committee was adjourned.]
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