The U.S. House of Representatives passed a bill that seeks to help small business owners who are veterans grow their businesses.
The Successful Entrepreneurship for Reservists and Veterans (SERV) Act (H.R. 828) seeks to aid veterans business owners by identifying the challenges they face and improving access to existing programs that can help grow their businesses.
The bipartisan bill was introduced by Reps. Sharice Davids’ (D-KS), Mark Alford (R-MO), and Herb Conaway (D-NJ).
“Veterans have the skills and dedication to build successful small businesses, but they need better support when transitioning from service to entrepreneurship,” Davids said. “As the daughter of a veteran, I’ve seen firsthand the commitment and resilience they bring to everything they do. I’m proud to work across party lines to ensure veterans can access the resources they deserve and overcome the challenges that stand in their way.”
Specifically, the SERV Act commissions a Government Accountability Office (GAO) report on the ability of veteran and reservist small business owners to access credit. This includes a new analysis on common sources of credit and how deployment and other military responsibilities affect veterans’ and reservists’ credit.
Further, it requires the U.S. Small Business Administration’s Interagency Task Force on Veterans Small Business Development to develop an outreach plan to promote the many programs available to veterans looking to transition into the business world.
In addition, it requires the task force to report annually to Congress on its appointments and outline its outreach plan.
“I’m proud our bipartisan SERV Act passed the House with overwhelming support,” Alford said. “This commonsense legislation will help veteran small business owners and entrepreneurs succeed. By studying the barriers our heroes face when starting a business, we can identify and eliminate roadblocks to accessing affordable credit and capital. I thank Reps. Davids and Conaway for their partnership on this endeavor and urge the Senate to quickly take up this bill.”
The number of veterans starting their own business has decreased drastically over the last few decades. Currently, only 4.5 percent of the more than 3.6 million veterans who have served since September 11, 2001 have launched a company. In contrast, the number of World War II and Korean War veterans who went on to operate a business was 50 and 40 percent, respectively.
The decline is due to challenges accessing credit, transitioning to civilian life, and overcoming stigmas around physical disabilities and post-traumatic stress disorder.
“For many of our nation’s veterans, transitioning back to civilian life can be daunting—especially for those seeking to start their own small business,” Conaway said. “The SERV Act is a bill that will provide robust support for veteran small business development and help veterans achieve their entrepreneurial goals. Thank you, Rep. Davids, for your leadership on this bill.”
The bill now moves to the Senate, where the Senate Small Business and Entrepreneurship Committee will consider it.