Empowering Veterans to Succeed as Small Business Owners

By Congressman Jason Altmire (PA-4)

Running a small business can be daunting for anyone. However, studies show veterans who are small business owners often face unique challenges. In recent years, the number of small business loans going to veterans has declined. Veterans Business Outreach Centers have been chronically underfunded. And many reservists have successfully started businesses only to see their enterprises fail when they have to go on another tour of duty.

After hearing Pennsylvanian veterans’ frustrations firsthand, I authored the Military Reservist and Veteran Small Business Reauthorization Act (H.R. 4253) to help America’s heroes succeed as entrepreneurs. This bill passed through Congress with wide bipartisan support and was signed into law on February 14, 2008, a significant victory in efforts to ensure veterans have the tools they need to succeed.

This legislation bolsters business resources for veterans in a number of different ways. Realizing the crucial role Small Business Development Centers (SBDC) play in promoting entrepreneurship, this law establishes $250,000 grants for SBDCs to help develop marketing, education and services targeted to veterans. It also provides $4.4 million to expand the number and capabilities of Veterans Business Outreach Centers.

In addition, the law enacts a much-needed fix to the Small Business Administration’s loan program for reservists. Previously, reservists who were deployed could not secure loans to keep their small businesses afloat until they had already taken a financial hit. Now, there is a pre-consideration process through which reservists can apply for loans before leaving home.

Along with extending the loan application period and increasing the maximum loan amount to $2 million, this common sense reform will help to ensure reservists do not have to jeopardize their financial security while they serve their country.