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house Bill H.R. 3734

Should the Federal Gov’t Study Barriers to Veteran Business Ownership?

Argument in favor

Veterans face unique barriers to establishing and supporting small businesses. It’s important for the federal government to understand these challenges so it can address them properly. While there are numerous programs to support veterans looking to open, or who already own, small businesses, the reason(s) behind the recent decline in new veteran-owned small businesses and the role that access (or lack thereof) to credit plays in veterans’ small business ownership aren’t well understood.

jimK's Opinion
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11/14/2019
I believe that young people, in particular, enlisting for military service and possibly re-upping do not have the opportunities to fully develop credit histories which effects their credit score and access to loans to support new business ventures. They are therefore disadvantaged by virtue of their service and should not be ‘penalized’ because they have served. I think this deserves study and actions taken to remove those disadvantages if they are as bad as I suspect they could be.
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Evelyn's Opinion
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11/13/2019
Anything that can be done to help vets should be done. We have many vets that have returned from Afghanistan and other wars with severe mental and physical issues. They should be assisted as much as possible.
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RjGoodman's Opinion
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11/13/2019
Yes, veterans face unique barriers to establishing and supporting small businesses. It’s important for the federal government to understand these challenges so it can address them properly. While there are numerous programs to support veterans looking to open, or who already own, small businesses, the reason(s) behind the recent decline in new veteran-owned small businesses and the role that access (or lack thereof) to credit plays in veterans’ small business ownership aren’t well understood.
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Argument opposed

While the number of new veteran-owned small businesses is lower in the post-9/11 era than the post-World War II era, this is due to new veterans’ youth and excellent employment prospects for veterans, not necessarily to barriers to veterans’ entrepreneurship. With this in mind, it would be a waste of federal money and resources to study barriers to veterans’ small business ownership in the absence of strong evidence that veterans are actually facing increased barriers to entrepreneurship.

Brian's Opinion
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11/13/2019
How about we stop overly glorifying veterans for their service to the oil empire and investigate barriers to starting a business that affects ANYBODY.
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Terry's Opinion
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11/13/2019
More bureaucracy?? Now we will have a bunch of new silly laws. Does this have to be studied?
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Glowurm's Opinion
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11/14/2019
Go to hell, Don Young. You couldn’t care less about our Vets. You hypocrite! I trust NOTHING YOUR NAME IS ON. I’ve known you for over 45 years. You and Humpy Dumpy need to go and you both need to go AS QUICKLY AS POSSIBLE!
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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 Passed November 13th, 2019
    Roll Call Vote 421 Yea / 3 Nay
      house Committees
      Committee on Small Business
    IntroducedJuly 12th, 2019

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What is House Bill H.R. 3734?

This bill — the Successful Entrepreneurship for Reservists and Veterans (SERV) Act — would require the U.S. Comptroller General to produce a report on the ability of veterans and reservists ability to access credit for small businesses. The report would also detail the Interagency Task Force on Veterans Small Business Development’s activities, appointments, and outreach efforts.

Additionally, this bill would require the U.S. Small Business Association (SBA) to develop a plan for promotion and outreach to support programs that help veterans, service-disabled veterans, reservists, and spouses of veterans or reservists establish small businesses.

Finally, this bill would require the Government Accountability Office (GAO) to produce a report detailing the credit issues facing veterans, veterans’ spouses, military servicemembers, military spouses, and reservists who are entrepreneurs.

Impact

Veterans; veteran entrepreneurs; small businesses owned by veterans, service-disabled veterans, reservists, and spouses of veterans or reservists; U.S. Small Business Administration (SBA); Government Accountability Office (GAO); and the U.S. Comptroller General.

Cost of House Bill H.R. 3734

The CBO estimates that implementing this bill would cost less than $500,000 over the 2019-2024 period.

More Information

In-DepthSponsoring Rep. Sharice Davids (D-KS) introduced this bill to help veteran-owned businesses succeed and study barriers (such as lack of access to capital and credit) to such business’ success

“Growing up with a parent in the army, I saw firsthand the challenges our service members face when transitioning to new jobs after time in the military. There are so many veterans in Kansas with the entrepreneurial skills it takes to run a small business, and we must do a better job at setting them up for success. 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, especially for our Veterans. By studying the problem of access to credit for Veterans and Reservists, the SERV Act will be a crucial first step in identifying solutions that allow these businesses to thrive.” 

This legislation passed the House Committee on Small Business by voice vote with the support of six bipartisan cosponsors (three from each party).


Of NoteThe Interagency Task Force for Small Business Development was established by statute and executed by executive order. It is chaired by the U.S. Small Business Administration and has representatives appointed by SBA's Administrator from a variety of agencies, including: the SBA's Office of Veterans Business Development (OVBD), the Dept. of Defense (DoD), Dept. of Labor (DOL), Treasury Dept. (Treasury), Dept. Veterans Affairs (VA), General Services Administration (GSA), and Office of Management and Budget (OMB). It also has four representatives from the following veterans service and military organizations: American Legion, Vietnam Veterans of America, StreetShares Foundation, and the Military Officers Association of America.

The Interagency Task Force for Small Business Development  is responsible for coordinating federal efforts to improve capital access, business development, and contracting goals for veteran- and service-disabled veteran-owned businesses. It’s required to meet regularly and file annual reports on a range of topics — however, it hasn’t met that obligation. Its last annual report was filed in FY2015.

Findings indicate a decline in veteran business ownership, but the cause(s) of this decline is unknown. Some studies suggest that lack of credit plays some role: veterans are more likely to be denied credit, and often rely on personal savings and credit cards to launch, finance, or grow their small businesses. Even with this decline, there are still over 2.5 million veteran-owned small businesses in the U.S., comprising about 10% of all small businesses.

Syracuse University researchers contend that the lower total number of businesses started by post-9/11 veterans is simply a function of the fact that veterans haven’t been discharged long enough to become entrepreneurs. Misty Stutsman, director of entrepreneurship and small business at Syracuse University's Institute for Veterans and Military Families, says, "Generally, people that start their own business tend to be a little older. When you're looking at a post-9/11 veteran, they're actually very similar to previous generation of veterans."

Moreover, thanks to increasing awareness of the problems facing veterans, there are more programs to help veterans with job placement. Today, the veteran unemployment rate is at a record-low 3%, which means there are simply fewer veterans looking to start their own businesses because they’re already employed.

In 2018, 2.52 million businesses that were majority-owned by veterans (comprising 9.1% of all U.S. businesses) generated $1.14 trillion in revenues. Of those 2.52 million businesses, 2.08 million were self-employed veteran businesses without employees, and the remaining 442,485 were veteran-owned businesses with employees. In total, veteran-owned businesses employed just over five million employees, paying $195 billion in payroll to those employees.

In 2018, Bank of America launched a program, the Veteran Entrepreneur Lending Program (VELP), to help connect veteran-owned businesses with affordable capital. As of early November 2019 (within a year of the program’s introduction), over $14 million had been deployed to more than 170 veteran small business owners.


Media:

Summary by Lorelei Yang

(Photo Credit: iStockphoto.com / videodet)

AKA

Successful Entrepreneurship for Reservists and Veterans Act

Official Title

To require the Comptroller General of the United States to report on access to credit for small business concerns owned and controlled by covered individuals, to require the Administrator of the Small Business Administration to report on the veterans interagency task force, and for other purposes.

    I believe that young people, in particular, enlisting for military service and possibly re-upping do not have the opportunities to fully develop credit histories which effects their credit score and access to loans to support new business ventures. They are therefore disadvantaged by virtue of their service and should not be ‘penalized’ because they have served. I think this deserves study and actions taken to remove those disadvantages if they are as bad as I suspect they could be.
    Like (35)
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    How about we stop overly glorifying veterans for their service to the oil empire and investigate barriers to starting a business that affects ANYBODY.
    Like (13)
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    Anything that can be done to help vets should be done. We have many vets that have returned from Afghanistan and other wars with severe mental and physical issues. They should be assisted as much as possible.
    Like (13)
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    This is silly.
    Like (10)
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    Yes, veterans face unique barriers to establishing and supporting small businesses. It’s important for the federal government to understand these challenges so it can address them properly. While there are numerous programs to support veterans looking to open, or who already own, small businesses, the reason(s) behind the recent decline in new veteran-owned small businesses and the role that access (or lack thereof) to credit plays in veterans’ small business ownership aren’t well understood.
    Like (9)
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    Any assistance the veterans need, they should have access.
    Like (9)
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    More bureaucracy?? Now we will have a bunch of new silly laws. Does this have to be studied?
    Like (5)
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    Go to hell, Don Young. You couldn’t care less about our Vets. You hypocrite! I trust NOTHING YOUR NAME IS ON. I’ve known you for over 45 years. You and Humpy Dumpy need to go and you both need to go AS QUICKLY AS POSSIBLE!
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    It’s good that it passed. But I am not sure how much needs to be studied. Just enact a law that veterans can get small business loans without much red tape.
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    The better Question is who are the 3 Treasonous Republicans Voting against giving better opportunities to our Patriotic American Heroes, Our Veterans. And Who are the Ignorant Morons that elected to office?
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    The Federal Government is not objective enough to conduct a fair relevant study of any kind.
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    We should honor our veterans and this who serve .
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    Yes, those who are willing to give up some of their life for the country deserve proper consideration in being able to open a business.
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    The credit agencies and Federal Reserve were created by the banks. They were created to protect the profits of the banks. The only way you can get credit is having a history with the banks using one of their instruments like a loan, mortgage or credit card. Here the sick part of this. You could pay all your other bills like cell, electric, etc and have no credit cards and your credit score would still be bad because you have no credit cards or mortgage.
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    We need to support our Vets. Without a study all we have is unsubstantiated opinions.
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    We love our veterans!
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    Absolutely!
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    Our Vets need our support each and every way!
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    If a person wants to work 18 hours a day instead of 8, they will do it. I am a veteran and I do not want my own business. I don’t see why you have to investigate something that doesn’t exit. There are many factors available for anyone not only veterans to start their own business. I don’t understand this Congress wanting to hold your hand the whole way. Allow folks to do it themselves. Just pass legislation to enable all to get a business loan in stead of studying it. It is up to the individual not you. I see who proposed this a Democrat who feels everyone needs help and can’t do it themselves.
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    Yep
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