69–010 

Calendar No. 225 

114TH CONGRESS REPORT " ! SENATE 2d Session 114–410 

THE VETERANS SMALL BUSINESS OWNERSHIP 

INVESTMENT ACT 

DECEMBER 20, 2016.—Ordered to be printed 

Filed, under authority of the order of the Senate of December 10 (legislative day, 

December 9), 2016 

Mr. VITTER, from the Committee on Small Business and 

Entrepreneurship, submitted the following 

R E P O R T 

[To accompany S. 1866] 

The Committee on Small Business and Entrepreneurship, to 

which was referred the bill (S. 1866) to establish the veterans’ business outreach center program, to improve the programs for veterans of the Small Business Administration, and for other purposes, having considered the same, reports favorably thereon with 

an amendment and recommends that the bill, as amended do pass. 

i. introduction 

The Veterans Small Business Ownership Improvements Act (S. 

1866) was introduced by Senators David Vitter, Hirono, and 

Jeanne Shaheen on July 27, 2015. 

During the markup of the bill, Senators Ayotte and Shaheen filed 

an amendment to the bill that authorizes the SBA to establish a 

peer-driven educational pilot program to help veterans develop the 

requisite skills to become successful small business owners. The 

five-year program will assist participating service members, veterans, and their spouses/dependents through in-depth training, 

providing the tools and entrepreneurial knowledge necessary to 

identify a business opportunity, draft a business plan, connect with 

local small business resources, and launch a small business 

through an organized peer environment. The Inspector General will 

conduct annual reviews of contracts awarded through this program 


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to uphold the program’s integrity and goals. The amendment was 

approved by voice vote. 

Senator Shaheen also filed an amendment to the bill that would 

remove a provision preventing the SBA from spending more than 

a certain percentage of funds on overseas travel in order to deliver 

the program. The amendment would ensure that service members 

stationed overseas have equal access to the SBA’s Boots to Business program as those stationed domestically. Ms. Shaheen did not 

offer her amendment during the markup. 

The bill, as amended, was also approved by voice vote. 

ii. history (purpose & need for legislation) 

In the past two years alone, over 360,000 service members have 

separated from the armed forces, and there will be over 1 million 

service members transitioning out of the military over the next five 

years. While military men and women gain valuable experience 

throughout their service, 69% of veterans say that their biggest 

challenge after leaving the military is finding a job. Over 1 million 

veterans are currently unemployed, with unemployment rates for 

veterans at 9% and in some markets as high as 21%. 

Veteran entrepreneurs and small business owners are significant, vital contributors to the local and national economies. There 

are over 2.4 million businesses with majority ownership by veterans. They contribute over $1.2 trillion to our economy each year 

and employ over 5.7 million workers. However, while our service 

members demonstrate advanced maturity and extensive professional and leadership skills from their military service, many 

transitioning service members do not have the technical knowledge 

to start and sustain a business. 

While many veterans are applying the same can-do approach 

they used in the military to start and grow their own small businesses, they need better connections to the resources that can help 

their businesses succeed. By making the federal government a better ally of veterans, they can transition from military service to 

local job-creators. 

Since the passage of the Veterans Entrepreneurship and Small 

Business Development Act of 1999 (P.L. 106–50), the SBA’s Office 

of Veterans Business Development (OVBD) has been working to 

provide technical assistance and support to those veterans who 

have served our country and returned to start or grow a small business. The Committee has supported efforts to ensure successful 

transitions into civilian life and, more specifically, civilian employment. By encouraging all levels of veteran entrepreneurship and 

advocating for additional resources, the Committee has worked diligently to provide America’s veterans with the information and tools 

they need to become successful small business owners. The Committee continues to recognize the tremendous success and potential 

of the OVBD in providing critical information and services to veteran small business owners across the country. 

In continuing with the Committee’s commitment to supporting 

America’s veteran entrepreneurs, on May 20, 2010 Senators Landrieu and Snowe introduced the Strengthening Entrepreneurship 

for America’s Veterans Act of 2010 (S. 3394). The legislation established a Veterans Business Center program within the OVBD, to 

provide entrepreneurial training and counseling to veterans, servVerDate Sep 11 2014 06:41 Jan 03, 2017 Jkt 069010 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\SR410.XXX SR410

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ice-disabled veterans, reservists, their spouses and surviving 

spouses. It also authorized funding so that the OVBD may carry 

out the program. In addition, S. 3394 authorized the OVBD to create an online mechanism through which the SBA may provide information to assist veteran business centers in providing resources 

to clients. Additionally, the legislation required two reports to be 

completed, one regarding veterans’ access to credit and another on 

the effectiveness of the veterans’ business center program. The legislation included provisions similar to those contained in the Entrepreneurial Development Act of 2009 (S. 1229) introduced by Chair 

Landrieu and Ranking Member Snowe earlier in the 111th Congress. 

In the 113th Congress, Senator Pryor introduced the Veteran Entrepreneurship and Training Opportunities Act of 2014. The bill 

was intended to address the need for modern, targeted entrepreneurial development programs that meet veterans at the beginning 

of the transition process and provide the support necessary for 

them to create jobs and grow the U.S. economy. The legislation authorizes and improves several programs run by the Small Business 

Administration’s Office of Veteran Business Development to help 

transitioning service members adjust to the civilian world and gain 

the skills necessary to start and expand their small businesses. 

iii. hearings & roundtables 

In the 113th Congress: 

On November 8, 2013, the Committee held a field hearing in Little Rock, Arkansas, entitled ‘‘From Warriors to Entrepreneurs: 

Business Opportunities for Veterans.’’ The purpose of the hearing 

was to discuss efforts to provide entrepreneurship training and 

business counseling for our nation’s veterans and returning service 

members, and the reauthorization of existing veterans entrepreneurial development programs within the Small Business Administration. The Committee received testimony from Ms. Jeanne A. 

Hulit, Acting Administrator, U.S. Small Business Administration; 

Ms. Janet M. Roderick, ASBTDC State Director, UALR College of 

Business; Mr. David Wallace, Wallace Staffing and Labor; Mr. 

Damian Coleman, Marquette GIS, Inc.; Ms. Anita Montgomery; Ms. 

Linda R. Nelson, CPA, Arkansas Small Business Administration 

Director; Mr. Jeff Frisby, Enlisted Association of the Arkansas National Guard; Mr. Kevin Kidd, Taco Kidd; Ms. Itzel Meador, Arkansas Capital Corporation Group; Ms. Esther Fitch. 

On November 13, 2013, the Committee held a roundtable entitled 

‘‘Serving our Service Members: A Review of Programs for Veteran 

Entrepreneurs.’’ The purpose of the hearing was to discuss efforts 

at the local, state, and national level to provide entrepreneurship 

training and business counseling for our nation’s veterans and returning service members. The Committee received testimony from 

Mr. C.E. Rowe, President and CEO, America’s SBDC; Lt. Col. 

Jason C. Anderson, Founder and CEO, Active-Duty Entrepreneur, 

LLC; Ms. Robin D. Kistler, Director, LSU Executive Education, 

Louisiana State University; Mr. Aaron Dirks, Chairman, PosiGen; 

Mr. Chris Ferguson, President, Shoulder 2 Shoulder Inc.; Mr. Louis 

J. Celli, Jr., Director, National Legislative Division, The American 

Legion; Mr. Rhett Jeppson, Associate Administrator, Office of Veterans Business Development, U.S. Small Business Administration; 


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Mr. Robert Rehder, Director, Veterans Business Outreach Center 

(VBOC), Fayetteville State University; Mr. Joe Wynn, President, 

Vets Group, Inc.; Dr. Mike Haynie, Ph.D., Executive Director and 

Founder, Institute for Veterans and Military Families, Syracuse 

University. 

On June 4, 2014 the Committee held a hearing entitled ‘‘From 

Military Service to Small Business Owner: Supporting America’s 

Veterans Entrepreneurs.’’ The purpose of the hearing was to discuss what the current Administration—in concert with the new 

SBA Administrator—is doing to help boost veterans’ entrepreneurship and small business ownership. Additionally, the purpose was 

to discuss pending legislation aimed at helping veterans’ small 

business ownership and entrepreneurial development programs 

within the SBA. The Committee received testimony from Ms. 

Julianna Duso, Program Director, Veterans Business Outreach 

Center, U.S. Small Business Administration; Mr. Rhett Jeppson, 

Associate Administrator, Office of Veterans Business Development, 

U.S. Small Business Administration; Mr. Gary Multanen, CEO, 

Best Bath Systems, Inc.; Ms. Trena Payton, President, ABN Technologies; Mr. Dan Proulx, Jr. Member Manager, Monument Construction, LLC. 

In the 114th Congress: 

On June 25, 2015, the Committee held a hearing entitled ‘‘Opening Doors to Economic Opportunity for Our Veterans and Their 

Families through Entrepreneurship.’’ The purpose of the hearing 

was to examine entrepreneurship programs available to veterans, 

especially those with disabilities, as they transition to civilian life. 

The Committee heard testimony from two separate panels. The 

first panel comprised representatives for veteran programs; representing the Office of Veterans Business Development, the Institute for Veterans and Military Families, the Small Business Technology & Development Center, and the Veterans Business Outreach Center at Community Business Partnership. The Second 

panel comprised several veteran entrepreneurs. Witnesses testified 

on how to avoid duplicating existing programs, coordinating efforts 

with existing programs, ensuring efficiency through metrics and accountability, and whether the new program should extend to overseas operations. 

iv. description of bill 

This bill authorizes the Boots to Business Program, the Women 

Veterans Business Training Program, the Business Training Program for Service Disabled Veterans, and the Veterans’ Business 

Outreach Center Program under the Small Business Administration’s (SBA) Office of Veterans Business Development. The bill authorizes appropriations of $10,500,000 for each of fiscal years 2016 

through 2020. It requires annual reports on performance metrics, 

other information, and improvement suggestions for the programs, 

IG review of B2B awards, and examinations for VBOCs. Requires 

GAO reports on access to capital and VBOC performance. Directs 

the SBA to establish guidelines for improving the matching and 

network of military service members and veterans for both counselors/mentors and clients throughout these programs. Requires 

that all VBOCs be affiliated with an SBDC through cooperative 

agreements, and outlines the VBOC application process and appliVerDate Sep 11 2014 06:41 Jan 03, 2017 Jkt 069010 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\SR410.XXX SR410

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cation requirements in addition to requirements for the Administrator/Associate Administrator for managing the application, selection, and grant disbursement processes. Limits the amount of funds 

available for international travel reimbursements to administer the 

programs. Improves service/resource coordination amongst programs and agencies. Creates a one-stop online resource for all of 

the SBA’s business development and entrepreneurial programs. 

The Ayotte/Shaheen amendment creates a peer-driven educational pilot program through SBA to help veterans develop the 

requisite skills to become successful small business owners. The 

five-year program will assist participating service members, veterans, and their spouses/dependents through in-depth training, 

providing the tools and entrepreneurial knowledge necessary to 

identify a business opportunity, draft a business plan, connect with 

local small business resources, and launch a small business 

through an organized peer environment. The Inspector General will 

conduct annual reviews of contracts awarded through this program 

to uphold the program’s integrity and goals. 

The Shaheen amendment, while not offered, would ensure that 

service members stationed overseas have equal access to the SBA’s 

Boots to Business program as those stationed domestically. As 

written, the underlying provision would deny nearly 2,000 Service 

members stationed overseas with quality instruction on the challenges of entrepreneurship. The amendment, which struck the underlying provision including that limitation, sought to reconcile the 

bill with the long-standing Department of Defense’s policy of brickand-mortar instruction as well as providing equal opportunities to 

transitioning military personnel regardless of their duty station. 

v. committee vote 

In compliance with rule XXVI(7)(b) of the Standing Rules of the 

Senate, the following vote was recorded on July 29, 2015. 

A motion to adopt the Veterans Small Business Ownership Improvements Act, a bill to reauthorize Veteran Owned Small Business programs including the Boots to Business program, the Veteran Business Outreach Centers, and to make certain improvements as amended by the Ayotte/Shaheen amendment, was approved unanimously by voice vote with the following Senators 

present: Vitter, Gardner, Peters, Heitkamp, Shaheen, Eniz, Booker, 

Cantwell, Hirono, Fischer, Ernst, and Scott. 

vi. cost estimate 

In compliance with rule XXVI(11)(a)(1) of the Standing Rules of 

the Senate, the Committee estimates the cost of the legislation will 

be equal to the amounts discussed in the following letter from the 

Congressional Budget Office: 

SEPTEMBER 14, 2015. 

Hon. DAVID VITTER, Chairman, Committee on Small Business and Entrepreneurship, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 1866, the Veterans Small 

Business Ownership Improvements Act of 2015. 


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If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincrely, 

KEITH HALL. 

Enclosure. 

Summary: S. 1866 would authorize several programs to provide 

entrepreneurship training through the Small Business Administration (SBA) to veterans. S. 1866 also would require the SBA and the 

Government Accountability Office (GAO) to provide reports to the 

Congress on the performance and effectiveness of the programs authorized under the bill. 

CBO estimates that implementing S. 1866 would cost $52 million 

over the 2016–2020 period, assuming appropriation of the authorized and necessary amounts. Pay-as-you-go procedures do not apply 

to this legislation because enacting it would not affect direct spending or revenues. 

S. 1866 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary effect of S. 1866 is shown in the following table. The costs 

of this legislation fall within budget function 370 (commerce and 

housing credit). 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2016– 

2020 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Veterans Entrepreneurial Development Programs: 

Authorization Level .............................................................. 11 11 11 11 11 53 

Estimated Outlays ............................................................... 6 9 11 11 11 47 

Other Programs, Reports, and Online Efforts: 

Estimated Authorization Level ............................................. 2 1 1 1 1 6 

Estimated Outlays ............................................................... 1 1 1 1 1 5 

Total: 

Estimated Authorization Level .................................... 12 11 11 11 11 57 

Estimated Outlays ...................................................... 7 10 11 11 11 52 

Note: Components may not sum to totals because of rounding. 

Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted late in calendar year 2015, that the necessary 

amounts will be appropriated each year, and that spending will follow historical patterns for similar activities. 

S. 1866 would authorize $10.5 million annually for fiscal years 

2016 through 2020 for several SBA programs that provide advice 

and assistance to veterans who desire to or have established small 

businesses. The bill also would authorize a pilot program for nonprofits to develop peer support groups to help eligible active members of the military as well as veterans explore issues related to 

self-employment and small business ownership. Finally, the bill 

would direct the SBA to make information about all of the agency’s 

programs to support veterans’ entrepreneurial efforts available online. CBO estimates that implementing S. 1866 would cost $52 million over the 2016–2020 period, assuming the appropriation of the 

authorized and necessary amounts. Veterans Entrepreneurial Development Programs S.1866 would authorize $10.5 million for each 

of fiscal years 2016 through 2020 for the following programs to proVerDate Sep 11 2014 06:41 Jan 03, 2017 Jkt 069010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR410.XXX SR410

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vide entrepreneurship training to members of the armed forces, 

veterans, and their spouses: 

• The Boots to Business Program, 

• the Women Veterans Business Training Program, 

• the Business Training Program for Service Disabled Veterans, and 

• the Veterans’ Business Outreach Center program. 

Based on information from the SBA, CBO estimates that implementing those provisions would cost $47 million over the 2016– 

2020 period, assuming appropriation of the authorized amounts. 

SBA spent about $10 million in fiscal year 2014 for entrepreneurial 

development programs aimed at veterans including Boots to Business and the Veterans Business Opportunity Center programs. 

Other programs, reports and online efforts 

Other provisions of S. 1866 would: 

• Authorize the Veterans Business Owners Initiative Pilot 

Program to provide funding to nonprofit entities that would establish support groups for veterans interested in establishing 

a small business to help them understand the complexities of 

self-employment; 

• Broaden the amount of information the SBA must submit 

to the Congress annually about its efforts to support entrepreneurs who are veterans; 

• Require GAO to prepare reports on veterans’ ability to access credit and on the Veterans Business Outreach Center program; and 

• Require the SBA to develop a single online source for all 

resources the agency makes available to veterans. 

Based on information from the SBA, CBO estimates that implementing those provisions would cost $5 million over the 2016–2020 

period, assuming appropriation of the necessary amounts. Of that 

amount, about $1 million would be spent in one-time costs for the 

SBA to upgrade its data collection and online resources, $1 million 

would be spent to meet additional reporting requirements, and the 

balance would be spent to implement the new pilot program. 

Pay-As-You-Go considerations: None. 

Intergovernmental and private-sector impact: S. 1866 contains no 

intergovernmental or private-sector mandates as defined in UMRA. 

State, local, and tribal governments may benefit from programs to 

provide assistance to veteran owners of small businesses. Any costs 

to those entities would be incurred voluntarily as a condition of receiving federal assistance. 

Estimate prepared by: Federal costs: Susan Willie; Impact on 

state, local, and tribal governments: Melissa Merrell; Impact on the 

private sector: Logan Smith. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis 

vii. evaluation of regulatoy impact 

In compliance with rule XXVI(11)(b) of the Standing Rules of the 

Senate, it is the opinion of the Committee that no significant additional regulatory impact will be incurred in carrying out the provisions of this legislation. There will be no additional impact on the 


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personal privacy of companies or individuals who utilize the services provided. 

viii. section-by-section analysis 

Section 1. Short title 

This Act may be cited as the ‘‘Veterans Small Business Ownership Improvements Act of 2015.’’ 

Section 2. Veterans’ Business Outreach Center Program; Office of 

Veterans Business Development 

This section authorizes the Boots to Business Program and the 

Veterans’ Business Outreach Center Program under the Small 

Business Administration’s (SBA) Office of Veterans Business Development. This section requires annual reports to Congress on the 

performance and effectiveness of the programs and also restricts 

use of funds under this section for program services provided outside the U.S. It authorizes appropriations of $5,500,000 for each of 

fiscal years 2016 through 2020 in order to carry out this section. 

Boots to Business Program 

The Boots to Business Program is a pilot initiative for an entrepreneurial education and training program by the SBA that currently operates as a no-cost training track within the Department 

of Defense’s Transition Assistance (TAP) Program. The program 

serves service members, veterans, and their spouses/dependents 

through a three-step curriculum that includes an introduction to 

entrepreneurship, a two-day classroom course, and an eight-week 

instructor-led online course guiding participants through the key 

steps for evaluating business concepts and providing the 

foundational knowledge required to develop a business plan. In addition, participants are introduced to SBA resources available to 

help access start-up capital and additional technical assistance. 

This section authorizes the Boots to Business Program under the 

SBA, includes program components such as online and classroom 

courses to meet goals, and requires the program to be implemented 

through various SBA resource partners, including Veterans’ Business Outreach Centers (VBOC), Small Business Development Centers (SBDC), Women’s Business Centers (WBC), and the Service 

Core of Retired Executives (SCORE), and other entities. In addition 

to the resource partners, the Boots to Business material will be included in the DOD TAP program manual, on the TAP website, and 

through other DOD published materials. The Inspector General 

will conduct annual reviews of contracts awarded through this program to uphold the program’s integrity and goals. 

Veterans’ Business Outreach Centers 

Veteran Business Outreach Centers (VBOC) provide veterans, 

Reservists, and spouses/dependents with business development 

training and counseling that include technical assistance and financial, management and marketing advice. 

This section authorizes the VBOC program to be implemented 

through educational institutions, veterans’ nonprofit communitybased organizations, and Federal, State, and local departments and 

agencies for 5-year, renewable projects. 


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This section outlines the application process and application requirements in addition to requirements for the Administrator/Associate Administrator for managing the application, selection, and 

grant disbursement processes. This section requires VBOC grants to be between $100,000 and $300,000 for each fiscal year and outlines non-federal matching requirements and allowances. 

This section requires that all VBOCs be affiliated with an SBDC 

through cooperative agreements and ensures that the new agreements between the VBOC and SBDC does not conflict with the 

agreements between the SBDC and the SBA. 

This section requires the Associate Administrator to conduct annual examinations of the VBOC program and centers to include 

performance metrics and other appropriate information. 

This section also encourages and requires improved coordination 

amongst VBOC centers and amongst veterans’ business development officers including online. 

Section 3. Improvements to business development and entrepreneurial programs 

This section instructs the Administrator to establish guidelines 

for improving the matching and network of military service members and veterans for both counselors/mentors and clients throughout the business development and entrepreneurial programs under 

the SBA. This is to enhance the service and network targeted at 

service members and veterans. 

This section also creates a one-stop online resource for all of the 

SBA’s business development and entrepreneurial programs. The 

website will contain program descriptions; targeted audiences; 

local, state, and national contact information; associated program 

costs; and curriculum outlines available for each of SBA’s business 

development programs. This is to allow for a consolidated, one-stop 

resource for entrepreneurs and business owners who are seeking 

assistance in starting or developing small businesses. 

Æ 


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