Vets, reservists may see small-business aid - Navy News | News from Afghanistan & Iraq - Navy Times

Vets, reservists may see small-business aid

Congress is inching closer to passing legislation that would help veterans and reservists who own small businesses.

While a few differences still must be worked out, the House and Senate have agreed on an overall plan that would provide loans to mobilized National Guard and reserve members to help them keep making their payrolls while on active duty. It also would expand help for veterans who want to start small businesses.

Among its features, the bill would create a $50,000 no-collateral small-business loan for reservists and veterans; create an interagency federal task force on small-business issues for veterans that would coordinate with veterans service organizations; and add four new veterans business outreach centers to the existing five.

The compromise bill, HR 4253, passed the Senate in mid-December and the House on Wednesday with some modest changes that will require the Senate to take up the bill again.

Rep. Jason Altmire, D-Pa., chief sponsor of the House version, said starting and running a small business “can be challenging for anyone,” but is even harder when a person is pulled away by military duties.

The Small Business Administration already has special programs for military members and veterans, including deferrals of loan payments and loan application deadlines for mobilized Guard and reserve members. Altmire said the programs are helpful, but “I believe more can still be done.”

The chief sponsor of the Senate version of the bill is Sen. John Kerry, D-Mass., who has been concerned about newly separated service members finding employment.

There are two parts to the bill, called the Military Reservist and Veterans Small Business Reauthorization and Opportunity Act: It would expand Small Business Administration help for veterans wanting to start a business, and help small businesses hurt by the mobilization of an owner.

To help existing small businesses, the bill would further relax rules for reservists to receive economic injury disaster loans by giving them more time to apply, allowing pre-approval of loans, raising the maximum loan and expanding programs to help in the application. It also reduces fees for some loans.

To help with new businesses, the bill would create a new veterans’ loan program with reduced fees and orders more participation by the Small Business Administration in military transition assistance programs. Also, adding two more veterans’ business outreach centers each year for the next two years would make counseling, training and other aid more available for veterans trying to start a small business.