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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2385 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 2385

To provide and enhance education, housing, and entrepreneur assistance 
 for veterans who serve in the Armed Forces after September 11, 2001, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 17, 2007

 Mr. Patrick J. Murphy of Pennsylvania introduced the following bill; 
   which was referred to the Committee on Veterans' Affairs, and in 
addition to the Committees on Armed Services and Small Business, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL

 
To provide and enhance education, housing, and entrepreneur assistance 
 for veterans who serve in the Armed Forces after September 11, 2001, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``21st Century GI Bill of Rights Act 
of 2007''.

SEC. 2. EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE ARMED FORCES WHO 
              SERVE AFTER SEPTEMBER 11, 2001.

    (a) Educational Assistance Authorized.--
            (1) In general.--Part III of title 38, United States Code, 
        is amended by inserting after chapter 32 the following new 
        chapter:

 ``CHAPTER 33--EDUCATIONAL ASSISTANCE FOR SERVICE AFTER SEPTEMBER 11, 
                                  2001

                       ``subchapter i--definitions

``Sec.
``3301. Definitions.
                 ``subchapter ii--educational assistance

``3311. Educational assistance for service in the Armed Forces after 
                            September 11, 2001: entitlement.
``3312. Educational assistance: duration.
``3313. Educational assistance: payment; amount.
``3314. Tutorial assistance.
``3315. Licensure and certification tests.
               ``subchapter iii--administrative provisions

``3321. Time limitation for use of and eligibility for entitlement.
``3322. Bar to duplication of educational assistance benefits.
``3323. Administration.
``3324. Allocation of administration and costs.

                      ``SUBCHAPTER I--DEFINITIONS

``Sec. 3301. Definitions
    ``In this chapter:
            ``(1) The term `active duty' has the meaning given such 
        term in sections 101 and 3002(7) of this title and includes the 
        limitations specified in section 3002(6) of this title.
            ``(2) The terms `program of education', `Secretary of 
        Defense', and `Selected Reserve' have the meaning given such 
        terms in section 3002 of this title.

                ``SUBCHAPTER II--EDUCATIONAL ASSISTANCE

``Sec. 3311. Educational assistance for service in the Armed Forces 
              after September 11, 2001: entitlement
    ``(a) Entitlement.--Except as provided in subsection (c), each 
individual described in subsection (b) is entitled to educational 
assistance under this chapter.
    ``(b) Covered Individuals.--An individual described in this 
subsection is any individual as follows:
            ``(1) A member of the Armed Forces who, while serving on 
        active duty in the Armed Forces after September 11, 2001, is 
        deployed overseas.
            ``(2) A member of the Armed Forces or a Reserve of the 
        Armed Forces (including a member of the National Guard and a 
        member of the Reserves) who--
                    ``(A) serves on active duty in the Armed Forces 
                after September 11, 2001, for an aggregate of at least 
                two years; or
                    ``(B) before completing the aggregate of service 
                described in subparagraph (A) while serving on active 
                duty in the Armed Forces after September 11, 2001, is 
                discharged as described in subsection (d) after that 
                date.
    ``(c) Exception for Individuals Who Receive a Commission as an 
Officer Upon Graduation From an Academy.--An individual who receives a 
commission as an officer in the Armed Forces upon graduation from the 
United States Military Academy, the United States Naval Academy, the 
United States Air Force Academy, the United States Merchant Marine 
Academy, or the Coast Guard Academy is not entitled to educational 
assistance under this chapter.
    ``(d) Certain Discharge or Release Providing Exception From Service 
Requirements.--A discharge or release described in this subsection is a 
discharge or release from service in the Armed Forces for--
            ``(1) a service-connected disability;
            ``(2) a medical condition which preexisted such service and 
        which the Secretary determines is not service-connected;
            ``(3) hardship; or
            ``(4) a physical or mental condition that was not 
        characterized as a disability and did not result from the 
        individual's own willful misconduct but did interfere with the 
        individual's performance of duty, as determined by the 
        Secretary of each military department in accordance with 
        regulations prescribed by the Secretary of Defense.
``Sec. 3312. Educational assistance: duration
    ``Subject to section 3695 of this title, an individual entitled to 
educational assistance under section 3311 of this title is entitled to 
36 months, which is the equivalent of four academic years, of 
educational assistance under section 3313 of this title.
``Sec. 3313. Educational assistance: payment; amount
    ``(a) Payment.--The Secretary shall pay to each individual entitled 
to educational assistance under this chapter who is pursuing an 
approved program of education (other than a program covered by 
subsections (e) and (f)) the amounts specified in subsection (c) to 
meet the expenses of such individual's subsistence, tuition, fees, and 
other educational costs for pursuit of such program of education.
    ``(b) Approved Programs of Education.--(1) Except as provided in 
paragraph (1), a program of education is an approved program of 
education for purposes of this chapter if the program of education is 
approved for purposes of chapter 30 of this title.
    ``(2) A program of education to obtain a graduate degree is not an 
approved program of education for the purposes of this chapter.
    ``(c) Amount of Educational Assistance.--(1) The amounts payable 
under this subsection for pursuit of an approved program of education 
are amounts as follows:
            ``(A) An amount equal to the established charges (as 
        determined in accordance with subsection (h)) for the program 
        of education.
            ``(B) Subject to paragraph (2), an amount equal to the room 
        and board of the individual.
    ``(2) The amount payable under paragraph (1)(B) for room and board 
of an individual may not exceed an amount equal to the standard 
dormitory fee, or such equivalent fee as the Secretary shall specify in 
regulations, which similarly circumstanced nonveterans enrolled in the 
program of education involved would be required to pay.
    ``(d) Frequency of Payment.--(1) Payment of the amounts payable 
under subsection (c)(1) for pursuit of a program of education shall be 
made at such time and with such frequency as the Secretary shall 
prescribe for purposes of this chapter. Such payment may include 
payment in a lump-sum amount for the entire quarter, semester, or term, 
as applicable, of the program of education before the commencement of 
such quarter, semester, or term.
    ``(2) The Secretary shall prescribe in regulations methods for 
determining the number of months (including fractions thereof) of 
entitlement of an individual to educational assistance under this 
chapter that are chargeable under this chapter for payments of amounts 
in accordance with this subsection, including payments on a lump-sum 
basis in advance as authorized by paragraph (1).
    ``(3) Payment of amounts described in paragraph (1) for pursuit of 
a program of education may not be made to an individual before the date 
of the enrollment of such individual in the program of education for 
which payment is sought by such individual.
    ``(e) Programs of Education Pursued on Active Duty.--(1) 
Educational assistance is payable under this chapter for pursuit of an 
approved program of education while on active duty.
    ``(2) The amount of educational assistance payable under this 
chapter to an individual pursuing a program of education while on 
active duty is the lesser of--
            ``(A) the established charges (as determined in accordance 
        with subsection (h)) for the program of education; or
            ``(B) the amount of the charges of the educational 
        institution as elected by the individual in the manner 
        specified in section 3014(b) of this title.
    ``(3) Payment of the amount payable under paragraph (2) for pursuit 
of a program of education shall be made in a lump-sum amount for the 
entire quarter, semester, or term, as applicable, of the program of 
education before the commencement of such quarter, semester, or term.
    ``(4) For each month (as determined pursuant to the methods 
prescribed under subsection (d)(2)) for which amounts are paid an 
individual under this subsection, the entitlement of the individual to 
educational assistance under this chapter shall be charged at the rate 
of one month for each such month.
    ``(f) Programs of Education Pursued on Less Than Half-Time Basis.--
(1) Educational assistance is payable under this chapter for pursuit of 
an approved program of education on less than half-time basis.
    ``(2) The amount of educational assistance payable under this 
chapter to an individual pursuing a program of education on less than 
half-time basis is the established charges (as determined in accordance 
with subsection (h)) for the program of education.
    ``(3) Payment of the amount payable under this chapter to an 
individual for pursuit of a program of education on less than half-time 
basis shall be made in a lump-sum, and shall be made not later than the 
last day of the month immediately following the month in which 
certification is received from the educational institution involved 
that the individual has enrolled in and is pursuing a program of 
education at the institution.
    ``(4) For each month (as determined pursuant to the methods 
prescribed under subsection (d)(2)) for which amounts are paid an 
individual under this subsection, the entitlement of the individual to 
educational assistance under this chapter shall be charged at a 
percentage of a month equal to--
            ``(A) the number of course hours borne by the individual in 
        pursuit of the program of education involved, divided by
            ``(B) the number of course hours for full-time pursuit of 
        such program of education.
    ``(g) Specialized Training and Certification and Licensing Programs 
for Veterans With Service-Connected Disabilities.--(1) Educational 
assistance is payable under this chapter for an approved program of 
education that--
            ``(A) consists of specialized training for veterans with 
        service-connected disabilities;
            ``(B) is a certification program for veterans with service-
        connected disabilities; or
            ``(C) is a licensing program for veterans with service-
        connected disabilities.
    ``(2) The amount of educational assistance payable under this 
chapter to an individual pursuing a program of education pursuant to 
paragraph (1) is the established charges (as determined in accordance 
with subsection (h)) for the program of education.
    ``(h) Established Charges.--(1) Subject to the provisions of this 
subsection, in subsections (c), (e), (f), and (g) the term `established 
charges', in the case of a program of education, means the actual 
charges (as determined pursuant to regulations prescribed by the 
Secretary in consultation with the Secretary of Education) for tuition, 
fees (including required supplies, books, and equipment), and other 
educational costs which similarly circumstanced nonveterans enrolled in 
the program of education would be required to pay.
    ``(2) The maximum amount of charges payable for tuition under this 
subsection as part of the established charges for a program of 
education pursued by an individual under subsections (c), (e), (f), and 
(g) may not exceed the national average amount of tuition regularly 
charged for full-time pursuit of programs of education at public and 
private institutions of higher education that typically require 36 
months, which is the equivalent of four academic years, to complete.
    ``(3) Established charges shall be determined for purposes of this 
subsection on the following basis:
            ``(A) In the case of an individual enrolled in a program of 
        education offered on a term, quarter, or semester basis, the 
        tuition and fees charged the individual for the term, quarter, 
        or semester.
            ``(B) In the case of an individual enrolled in a program of 
        education not offered on a term, quarter, or semester basis, 
        the tuition and fees charged the individual for the entire 
        program of education.
``Sec. 3314. Tutorial assistance
    ``(a) In General.--Subject to subsection (b), an individual 
entitled to educational assistance under this chapter shall also be 
entitled to benefits provided an eligible veteran under section 3492 of 
this title.
    ``(b) Conditions.--The provision of benefits under subsection (a) 
shall be subject to the conditions applicable to an eligible veteran 
under section 3492 of this title.
    ``(c) No Charge Against Entitlement.--Any benefits provided an 
individual under subsection (a) are in addition to any other 
educational assistance benefits provided the individual under this 
chapter.
``Sec. 3315. Licensure and certification tests
    ``(a) In General.--An individual entitled to educational assistance 
under this chapter shall also be entitled to payment for licensing or 
certification tests described in section 3452(b) of this title.
    ``(b) No Charge Against Entitlement.--Any amount paid an individual 
under subsection (a) is in addition to any other educational assistance 
benefits provided the individual under this chapter.

              ``SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

``Sec. 3321. Time limitation for use of and eligibility for entitlement
    ``(a) In General.--Except as otherwise provided in subsection (b), 
the period during which an individual entitled to educational 
assistance under this chapter may use such individual's entitlement 
expires at the end of the 10-year period beginning on the date of such 
individual's last discharge or release from active duty.
    ``(b) Exceptions.--(1) Subsections (b), (c), and (d) of section 
3031 of this title shall apply with respect to the running of the 10-
year period described in subsection (a) of this section in the same 
manner as such subsections apply under section 3031 of this title with 
respect to the running of the 10-year period described in section 
3031(a) of this title.
    ``(2) Section 3031(f) of this title shall apply with respect to the 
termination of an individual's entitlement to educational assistance 
under this chapter in the same manner as such section applies to the 
termination of an individual's entitlement to educational assistance 
under chapter 30 of this title, except that, in the administration of 
such section for purposes of this chapter, the reference to section 
3013 of this title shall be deemed to be a reference to 3312 of this 
title.
``Sec. 3322. Bar to duplication of educational assistance benefits
    ``(a) In General.--An individual entitled to educational assistance 
under this chapter who is also eligible for educational assistance 
under chapter 30, 31, 32, or 35 of this title, chapter 107, 1606, or 
1607 of title 10, or the provisions of the Hostage Relief Act of 1980 
(Public Law 96-449; 5 U.S.C. 5561 note) may not receive assistance 
under two or more such programs concurrently, but shall elect (in such 
form and manner as the Secretary may prescribe) under which chapter or 
provisions to receive educational assistance.
    ``(b) Inapplicability of Service Treated Under Educational Loan 
Repayment Programs.--A period of service counted for purposes of 
repayment of an education loan under chapter 109 of title 10 may not be 
counted as a period of service for entitlement to educational 
assistance under this chapter.
    ``(c) Service in Selected Reserve.--An individual who serves in the 
Selected Reserve may receive credit for such service under only one of 
this chapter, chapter 30 of this title, and chapters 1606 and 1607 of 
title 10, and shall elect (in such form and manner as the Secretary may 
prescribe) under which chapter such service is to be credited.
    ``(d) Additional Coordination Matters.--In the case of an 
individual entitled to educational assistance under chapter 30, 31, 32, 
or 35 of this title, chapter 107, 1606, or 1607 of title 10, or the 
provisions of the Hostage Relief Act of 1980, or making contributions 
toward entitlement to educational assistance under chapter 30 of this 
title, as of the date of the enactment of the 21st Century GI Bill of 
Rights Act of 2007, coordination of entitlement to educational 
assistance under this chapter, on the one hand, and such chapters or 
provisions, on the other, shall be governed by the provisions of 
section 2(c) of the 21st Century GI Bill of Rights Act of 2007.
``Sec. 3323. Administration
    ``(a) In General.--(1) Except as otherwise provided in this 
chapter, the provisions specified in section 3034(a)(1) of this title 
shall apply to the provision of educational assistance under this 
chapter.
    ``(2) In applying the provisions referred to in paragraph (1) to an 
individual entitled to educational assistance under this chapter for 
purposes of this section, the reference in such provisions to the term 
`eligible veteran' shall be deemed to refer to an individual entitled 
to educational assistance under this chapter.
    ``(3) In applying section 3474 of this title to an individual 
entitled to educational assistance under this chapter for purposes of 
this section, the reference in such section 3474 to the term 
`educational assistance allowance' shall be deemed to refer to 
educational assistance payable under section 3313 of this title.
    ``(4) In applying section 3482(g) of this title to an individual 
entitled to educational assistance under this chapter for purposes of 
this section--
            ``(A) the first reference to the term `educational 
        assistance allowance' in such section 3482(g) shall be deemed 
        to refer to educational assistance payable under section 3313 
        of this title; and
            ``(B) the first sentence of paragraph (1) of such section 
        3482(g) shall be applied as if such sentence ended with 
        `equipment'.
    ``(b) Information on Benefits.--(1) The Secretary of Veterans 
Affairs shall provide the information described in paragraph (2) to 
each member of the Armed Forces at such times as the Secretary of 
Veterans Affairs and the Secretary of Defense shall jointly prescribe 
in regulations.
    ``(2) The information described in this paragraph is information on 
benefits, limitations, procedures, eligibility requirements (including 
time-in-service requirements), and other important aspects of 
educational assistance under this chapter, including application forms 
for such assistance under section 5102 of this title.
    ``(3) The Secretary of Veterans Affairs shall furnish the 
information and forms described in paragraph (2), and other educational 
materials on educational assistance under this chapter, to educational 
institutions, training establishments, military education personnel, 
and such other persons and entities as the Secretary considers 
appropriate.
    ``(c) Regulations.--(1) The Secretary shall prescribe regulations 
for the administration of this chapter.
    ``(2) Any regulations prescribed by the Secretary of Defense for 
purposes of this chapter shall apply uniformly across the Armed Forces.
``Sec. 3324. Allocation of administration and costs
    ``(a) Administration.--Except as otherwise provided in this 
chapter, the Secretary shall administer the provision of educational 
assistance under this chapter.
    ``(b) Costs.--Payments for entitlement to educational assistance 
earned under this chapter shall be made from funds appropriated to, or 
otherwise made available to, the Department of Veterans Affairs for the 
payment of readjustment benefits.''.
            (2) Clerical amendments.--The tables of chapters at the 
        beginning of title 38, United States Code, and at the beginning 
        of part III of such title, are each amended by inserting after 
        the item relating to chapter 32 the following new item:

``33. Educational assistance for service after September 11,    3301''.
                            2001.
    (b) Conforming Amendments.--
            (1) Amendments relating to duplication of benefits.--
                    (A) Section 3033 of title 38, United States Code, 
                is amended--
                            (i) in subsection (a)(1), by inserting 
                        ``33,'' after ``32,''; and
                            (ii) in subsection (c), by striking ``both 
                        the program established by this chapter and the 
                        program established by chapter 106 of title 
                        10'' and inserting ``two or more of the 
                        programs established by this chapter, chapter 
                        33 of this title, and chapters 1606 and 1607 of 
                        title 10''.
                    (B) Paragraph (4) of section 3695(a) of such title 
                is amended to read as follows:
            ``(4) Chapters 30, 32, 33, 34, 35, and 36 of this title.''.
                    (C) Section 16163(e) of title 10, United States 
                Code, is amended by inserting ``33,'' after ``32,''.
            (2) Additional conforming amendments.--
                    (A) Title 38, United States Code, is further 
                amended by inserting ``33,'' after ``32,'' each place 
                it appears in the following provisions:
                            (i) In subsections (b) and (e)(1) of 
                        section 3485.
                            (ii) In section 3688(b).
                            (iii) In subsections (a)(1), (c)(1), 
                        (c)(1)(G), (d), and (e)(2) of section 3689.
                            (iv) In section 3690(b)(3)(A).
                            (v) In subsections (a) and (b) of section 
                        3692.
                            (vi) In section 3697(a).
                    (B) Section 3697A(b)(1) of such title is amended by 
                striking ``or 32'' and inserting ``32, or 33''.
    (c) Applicability to Individuals Under Montgomery GI Bill 
Program.--
            (1) Individuals eligible to elect participation in 
        educational assistance for service after september 11, 2001.--
        An individual may elect to receive education assistance under 
        chapter 33 of title 38, United States Code (as added by 
        subsection (a)), if such individual--
                    (A) as of the date of the enactment of this Act--
                            (i) is entitled to basic educational 
                        assistance under chapter 30 of title 38, United 
                        States Code, and has used, but retains unused, 
                        entitlement under that chapter;
                            (ii) is entitled to educational assistance 
                        under chapter 107, 1606, or 1607 of title 10, 
                        United States Code, and has used, but retains 
                        unused, entitlement under the applicable 
                        chapter;
                            (iii) is entitled to basic educational 
                        assistance under chapter 30 of title 38, United 
                        States Code, but has not used any such 
                        entitlement under that chapter;
                            (iv) is entitled to educational assistance 
                        under chapter 107, 1606, or 1607 of title 10, 
                        United States Code, but has not used any such 
                        entitlement under such chapter;
                            (v) is a member of the Armed Forces who is 
                        eligible for receipt of basic educational 
                        assistance under chapter 30 of title 38, United 
                        States Code, and is making contributions toward 
                        such assistance under section 3011(b) or 
                        3012(c) of such title; or
                            (vi) is a member of the Armed Forces who is 
                        not entitled to basic educational assistance 
                        under chapter 30 of title 38, United States 
                        Code, by reason of an election under section 
                        3011(c)(1) or 3012(d)(1) of such title; and
                    (B) as of the date of the individual's election 
                under this paragraph--
                            (i) otherwise meets the requirements for 
                        entitlement to educational assistance under 
                        chapter 33 of title 38, United States Code (as 
                        so added); or
                            (ii) is making progress toward meeting such 
                        requirements.
            (2) Election on treatment of transferred entitlement.--
                    (A) Election.--If, on the date an individual 
                described in subparagraph (A)(i) or (A)(iii) of 
                paragraph (1) makes an election under that paragraph, a 
                transfer of the entitlement of the individual to basic 
                educational assistance under section 3020 of title 38, 
                United States Code, is in effect and a number of months 
                of the entitlement so transferred remain unutilized, 
                the individual may elect to revoke all or a portion of 
                the entitlement so transferred that remains unutilized.
                    (B) Availability of revoked entitlement.--Any 
                entitlement revoked by an individual under this 
                paragraph shall no longer be available to the dependent 
                to whom transferred, but shall be available to the 
                individual instead for educational assistance under 
                chapter 33 of title 38, United States Code (as so 
                added), as provided in paragraph (3)(B).
                    (C) Availability of unrevoked entitlement.--Any 
                entitlement described in subparagraph (A) that is not 
                revoked by an individual in accordance with that 
                subparagraph shall remain available to the eligible 
                dependent or dependents concerned in accordance with 
                the current transfer of such entitlement under section 
                3020 of title 38, United States Code.
            (3) Educational assistance for service after september 11, 
        2001.--
                    (A) In general.--Subject to subparagraph (B), an 
                individual making an election under paragraph (1) shall 
                be entitled to educational assistance under chapter 33 
                of title 38, United States Code (as so added), in 
                accordance with the provisions of such chapter, instead 
                of basic educational assistance under chapter 30 of 
                title 38, United States Code, or educational assistance 
                under chapter 107, 1606, or 1607 of title 10, United 
                States Code, as applicable.
                    (B) Limitation on entitlement for certain 
                individuals.--In the case of an individual making an 
                election under paragraph (1) who is described by 
                subparagraph (A)(i) of that paragraph, the number of 
                months of entitlement of such individual to educational 
                assistance under chapter 33 of title 38, United States 
                Code (as so added), shall be the number of months equal 
                to the number of months of unused entitlement of such 
                individual under chapter 30 of title 38, United States 
                Code, as of the date of the election, including any 
                number of months entitlement revoked by the individual 
                under paragraph (2)(A).
            (4) Treatment of contributions toward basic educational 
        assistance; cessation of contributions.--Effective as of the 
        first month beginning on or after the date of an election under 
        paragraph (1) of an individual described by subparagraph (A)(v) 
        of that paragraph, the obligation of such individual to make 
        contributions under section 3011(b) or 3012(c) of title 38, 
        United States Code, as applicable, shall cease, and the 
        requirements of such section shall be deemed to be no longer 
        applicable to such person.
            (5) Termination of entitlement under montgomery gi bill.--
        Effective on the last day of the month in which an individual 
        makes an election under paragraph (1), the entitlement, if any, 
        of the individual to basic educational assistance under chapter 
        30 of title 38, United States Code, or educational assistance 
        under chapter 107, 1606, or 1607 of title 10, United States 
        Code, as applicable, shall terminate.
            (6) Irrevocability of elections.--An election under 
        paragraph (1) or (2)(A) is irrevocable.

SEC. 3. IMPROVEMENTS IN HOUSING BENEFITS FOR VETERANS.

    (a) Increase in Maximum Guaranty Amount of Home Loan Guaranty 
Program.--Section 3703(a)(1)(C) of title 38, United States Code, is 
amended--
            (1) by striking ``In this paragraph'' and inserting ``(i) 
        In this paragraph''; and
            (2) by adding at the end the following new clause:
    ``(ii) The Secretary shall increase the dollar amount described in 
clause (i) with respect to residences of a particular size located in 
any area for which the median price for such size residence exceeds the 
dollar amount, to 25 percent of the median price for such a residence 
in such area.''.
    (b) Repeal of Loan Funding Fees Requirement for Housing Loans.--
            (1) In general.--Section 3729 of such title is repealed.
            (2) Conforming amendments.--(A) Section 2041(b)(2) of such 
        title is amended--
                    (i) in subparagraph (A), by adding ``and'' at the 
                end;
                    (ii) in subparagraph (B), by striking ``; and'' and 
                inserting a period; and
                    (iii) by striking subparagraph (C).
            (B)(i) Section 3703 of such title is amended--
                    (I) by striking subsection (e); and
                    (II) by redesignating subsection (f) as subsection 
                (e).
            (ii) Section 3732(a)(1) of such title is amended by 
        striking ``Except as provided in section 3703(e) of this title, 
        if'' and inserting ``If''.
            (C) Section 3722(c) of such title is amended by striking 
        ``section 3729 of this title or any other provision of law or'' 
        and inserting ``any provision of law or any''.
            (D) Section 3734(b)(2) of such title is amended--
                    (i) by striking subparagraph (A); and
                    (ii) by redesignating subparagraphs (B), (C), (D), 
                and (E) as subparagraphs (A), (B), (C), and (D), 
                respectively.
            (3) Clerical amendment.--The table of sections at the 
        beginning of chapter 37 of such title is amended by striking 
        the item relating to section 3729.
    (c) Authorization of Appropriations for Veterans Housing Benefit 
Program Fund.--There are authorized to be appropriated for the Veterans 
Housing Benefit Program Fund under section 3722 of title 38, United 
States Code, such sums as may be necessary to carry out the amendments 
made by this section.

SEC. 4. SMALL BUSINESS PROGRAMS FOR VETERANS.

    (a) Definitions.--In this section:
            (1) Intermediary.--The term ``intermediary'' has the 
        meaning given that term in section 7(m)(11) of the Small 
        Business Act (15 U.S.C. 636(m)(11)).
            (2) Microloan program.--The term ``Microloan Program'' 
        means the Microloan Program under section 7(m) of the Small 
        Business Act (15 U.S.C. 636(m)), as amended by this Act.
            (3) Vet center.--The term ``vet center'' means a center for 
        the provision of readjustment counseling and related mental 
        health services under section 1712A of title 38, United States 
        Code.
            (4) Veteran.--The term ``veteran'' has the meaning given 
        that term in section 101 of title 38, United States Code.
    (b) Microloan Program.--Section 7(m) of the Small Business Act (15 
U.S.C. 636(m)) is amended by adding at the end the following:
            ``(14) Loans to veterans.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law--
                            ``(i) any loan made to a veteran by an 
                        intermediary under this subsection shall have a 
                        rate of interest equal to not more than 2.5 
                        percent; and
                            ``(ii) an intermediary--
                                    ``(I) may make a loan to a veteran 
                                under this subsection in an amount of 
                                not more than $100,000; and
                                    ``(II) shall not require collateral 
                                for any loan to a veteran under this 
                                subsection.
                    ``(B) Identification.--The Administrator, acting 
                through the Associate Administrator for Veterans 
                Business Development, shall--
                            ``(i) identify intermediaries willing to--
                                    ``(I) make loans to veterans on the 
                                terms described in subparagraph (A); 
                                and
                                    ``(II) assist veterans in obtaining 
                                such loans; and
                            ``(ii) establish a database of 
                        intermediaries identified under clause (i).''.
    (c) Outreach.--The Secretary of Veterans Affairs--
            (1) acting through vet centers, shall--
                    (A) provide technical assistance, outreach, and 
                counseling to veterans regarding the Microloan Program; 
                and
                    (B) serve as a liaison between veterans and the 
                Administrator of the Small Business Administration and 
                intermediaries for purposes of the Microloan Program; 
                and
            (2) evaluate the efforts of the Department of Veterans 
        Affairs under paragraph (1).
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Veterans Affairs and the Administrator 
of the Small Business Administration such sums as may be necessary to 
carry out the provisions of, and the amendments made by, this section.
                                 <all>
```