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house Bill H.R. 3661

Should a Small Business Administration Loan Program for Employers With Military Reservist Employees on Active Duty be Expanded?

Argument in favor

Employers of military reservists, or military reservists with their own small businesses, deserve assurances that a reservist’s deployment won’t affect their business. Expanding eligibility for the Small Business Administration’s (SBA) disaster loan program will help small businesses feel comfortable hiring reservists in the knowledge that they won’t be financially impacted by reservists being called up for service.

RjGoodman's Opinion
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11/13/2019
We need to do everything we can to facilitate our reservists. Employers of military reservists, or military reservists with their own small businesses, deserve assurances that a reservist’s deployment won’t affect their business. Expanding eligibility for the Small Business Administration’s (SBA) disaster loan program will help small businesses feel comfortable hiring reservists in the knowledge that they won’t be financially impacted by reservists being called up for service.
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Henry's Opinion
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11/12/2019
We should honor our veterans and this who serve .
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Argument opposed

Given that less than 2% of the SBA’s current disaster loans are made out to small businesses whose employees have been called up for active duty, it’s clear that this program doesn’t apply to most reservists’ employment situations. There’s no reason to waste Congress’s time debating and expanding a program that isn’t used by a substantial number of reservists.

Doug's Opinion
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11/14/2019
The limited need indicated by the 2% of reservists and the unwillingness for Congress to declare a war since the 1940’s, yet still send troops to fight on “active duty” lead some not to support this bill.
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Ticktock's Opinion
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11/13/2019
The key word is “loan”, it’ll have to be repaid and I would assume with interest. This would make the “loan” and the reservist it would be associated with a liability. It might make more sense to relieve the reservist of liability’s like payment of loans when activated for period greater than 30 days or reimbursement for tuition if they must drop classes and no reduction in their GPA. When activated a reservist can go back to their employers for a job by law but for practical purposes no employer can stay in limbo for the length of a deployment if it exceeds 30 days. Instead of addressing the grievance of the employer who will replace that employee as soon as business requires let’s ensure the reservist remains whole and is at least as financially as secure as before the deployment.
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Small Business and Entrepreneurship
  • The house has not voted
      house Committees
      Committee on Small Business
    IntroducedJuly 10th, 2019

What is House Bill H.R. 3661?

This bill — the Patriotic Employer Protection Act of 2019 — would restructure the Military Reservist Economic Injury Disaster Loan (MREIDL) program and the Repayment Deferral for Active Duty Reservists program so that they better reflect the current deployment trends of Reservists. To achieve this, it would expand the definition of “active military service,” which is used to determine the eligibility of individuals and businesses for direct disaster loans from the Small Business Administration (SBA). It would change the definition to mean any period of service lasting at least 30 consecutive days (including full-time training), attendance at military schools, and National Guard Duty.

Impact

Military reservists; employers of military reservists; SBA; Military Reservist Economic Injury Disaster Loan (MREIDL) program; and Repayment Deferral for Active Duty Reservists program.

Cost of House Bill H.R. 3661

The CBO estimates that this bill wouldn’t lead to a significant net increase in spending over the 2020-2029 period.

More Information

In-Depth: Sponsoring Rep. Andy Kim (D-NJ) introduced this bill to strengthen programs intended to protect small business owners whose employees are military Reservists deployed on active duty

“I’ve seen small business owners who have done the right thing by hiring military Reservists for key positions but worry about the uncertainty posed if they’re transferred to active duty and deployed overseas. This bipartisan bill would strengthen key programs and give these patriotic small business owners the peace of mind they need to put more of our Reservists to work without worrying if a single deployment will severely impact their business.”

Original cosponsor Rep. Tim Burchett (R-TN) adds

“Men and women in East Tennessee and across the United States serve in the National Guard and Reserve in defense of our nation, and we should support and protect them when we can. This bipartisan bill provides economic security to Guard members and Reservists who are small business owners or small business employees. Small businesses drive our economy and service members guard our freedom, and the least we can do is protect these patriotic employers and employees when they’re called into service.”

The American Legion endorses this bill. The Assistant Director of its Veterans Employment and Education Division, Davy Leghorn, says this bill would ensure that the MREIDEL program and Repayment Deferral for Active Duty Reservists program are utilized to their full effect: 

“These important programs are underutilized because their eligibility restrictions do not fully reflect current deployment practices. National Guard members and military reservists are an integral part of our armed forces and national defense and this nation should do everything we can to support their service.” 


This legislation passed the House Committee on Small Business by voice vote with the support of nine bipartisan cosponsors, including six Democrats and three Republicans.


Of Note: The Small Business Administration (SBA) provides direct loans to people and small businesses through its disaster loan program. This program includes coverage for businesses that suffer substantial economic injury because essential employees are ordered to active duty during a military conflict. Historically, less than 2% of disaster loans made each year go to small businesses suffering economic injury due to employees being called into military service.


Media:

Summary by Lorelei Yang

(Photo Credit: iStockphoto.com / videodet)

AKA

Patriotic Employer Protection Act of 2019

Official Title

To support entrepreneurs serving in the National Guard and Reserve, and for other purposes.

    How about stopping all the wars?
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    We need to do everything we can to facilitate our reservists. Employers of military reservists, or military reservists with their own small businesses, deserve assurances that a reservist’s deployment won’t affect their business. Expanding eligibility for the Small Business Administration’s (SBA) disaster loan program will help small businesses feel comfortable hiring reservists in the knowledge that they won’t be financially impacted by reservists being called up for service.
    Like (4)
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    The key word is “loan”, it’ll have to be repaid and I would assume with interest. This would make the “loan” and the reservist it would be associated with a liability. It might make more sense to relieve the reservist of liability’s like payment of loans when activated for period greater than 30 days or reimbursement for tuition if they must drop classes and no reduction in their GPA. When activated a reservist can go back to their employers for a job by law but for practical purposes no employer can stay in limbo for the length of a deployment if it exceeds 30 days. Instead of addressing the grievance of the employer who will replace that employee as soon as business requires let’s ensure the reservist remains whole and is at least as financially as secure as before the deployment.
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    We should honor our veterans and this who serve .
    Like (1)
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The president has never upheld that oath. How do you want to be remembered?
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    The limited need indicated by the 2% of reservists and the unwillingness for Congress to declare a war since the 1940’s, yet still send troops to fight on “active duty” lead some not to support this bill.
    Like (1)
    Follow
    Share
    Given that less than 2% of the SBA’s current disaster loans are made out to small businesses whose employees have been called up for active duty, it’s clear that this program doesn’t apply to most reservists’ employment situations. There’s no reason to waste Congress’s time debating and expanding a program that isn’t used by a substantial number of reservists.
    Like
    Follow
    Share