I 

111TH CONGRESS 

1ST SESSION H. R. 294 

To amend title 38, United States Code, to provide for the reauthorization 

of the Department of Veterans Affairs small business loan program, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 8, 2009 

Mr. BUYER (for himself, Mr. BILIRAKIS, Mr. BOOZMAN, Mr. ROONEY, Mr. 

BUCHANAN, and Ms. GINNY BROWN-WAITE of Florida) introduced the 

following bill; which was referred to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to provide for the 

reauthorization of the Department of Veterans Affairs 

small business loan program, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veteran-Owned Small 

5 Business Promotion Act of 2009’’. 

6 SEC. 2. REAUTHORIZATION AND IMPROVEMENT OF DE7 PARTMENT OF VETERANS AFFAIRS SMALL 

8 BUSINESS LOAN PROGRAM. 

9 (a) REAUTHORIZATION.— 


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1 (1) IN GENERAL.—Chapter 37 of title 38, 

2 United States Code, is amended by striking section 

3 3751. 

4 (2) CLERICAL AMENDMENT.—The table of sec5 tions at the beginning of such chapter is amended 

6 by striking the item relating to section 3751. 

7 (3) CONFORMING AMENDMENT.—Section 3749 

8 of such title is amended by striking subsection (e). 

9 (b) EXPANSION OF ELIGIBILITY FOR SMALL BUSI10 NESS LOANS.—Chapter 37 of such title is further amend11 ed— 

12 (1) in section 3741— 

13 (A) by striking paragraph (2); 

14 (B) by striking ‘‘this subchapter—’’ and 

15 all that follows through ‘‘ ‘disabled veteran’ ’’ 

16 and inserting ‘‘this subchapter, the term ‘dis17 abled veteran’ ’’; and 

18 (C) by striking ‘‘30 percent’’ and inserting 

19 ‘‘10 percent’’; and 

20 (2) in section 3742(a)(3)(A), by striking ‘‘of the 

21 Vietnam era or disabled veterans’’. 

22 (c) REPEAL OF AUTHORITY TO MAKE DIRECT

23 LOANS.—Chapter 37 of such title, as amended by sub24 sections (a) and (b), is further amended— 

25 (1) in section 3742— 


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1 (A) in subsection (a)— 

2 (i) in paragraph (2), by striking ‘‘(A) 

3 loan guaranties, or (B) direct loans’’ and 

4 inserting ‘‘loan guarantees’’; and 

5 (ii) in paragraph (3)(A), by striking 

6 ‘‘and that at least 51 percent of a business 

7 concern must be owned by disabled vet8 erans in order for such concern to qualify 

9 for a direct loan’’; 

10 (B) in subsection (b)— 

11 (i) by striking paragraph (1) and re12 designating paragraphs (2) through (4) as 

13 paragraphs (1) through (3), respectively; 

14 and 

15 (ii) in paragraph (2), as so redesig16 nated, by striking ‘‘make or’’; 

17 (C) in subsection (c), by striking ‘‘made 

18 or’’; 

19 (D) in subsection (d)— 

20 (i) by striking paragraph (2); 

21 (ii) by striking ‘‘(1) Except as pro22 vided in paragraph (2) of this subsection, 

23 the’’ and inserting ‘‘The’’; and 

24 (iii) by striking ‘‘make or’’; and 

25 (E) in subsection (e)— 


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1 (i) in paragraph (1)— 

2 (I) in the first sentence, by strik3 ing ‘‘or, if the loan was a direct loan 

4 made by the Secretary, may suspend 

5 such obligation’’; and 

6 (II) in the second sentence, by 

7 striking ‘‘or while such obligation is 

8 suspended’’; 

9 (ii) by striking ‘‘or suspend’’ each 

10 place it appears; 

11 (iii) by striking ‘‘or suspension’’ each 

12 place it appears 

13 (iv) by striking ‘‘or suspends’’ each 

14 place it appears; and 

15 (v) in paragraph (4)(B), by striking 

16 ‘‘or suspended’’; 

17 (2) in section 3743— 

18 (A) by striking ‘‘that is provided a direct 

19 loan under this subchapter, or’’; 

20 (B) by striking the comma between ‘‘sub21 chapter’’ and ‘‘shall’’; 

22 (C) by striking ‘‘direct or’’; and 

23 (D) by striking ‘‘for the amount of such 

24 direct loan or, in the case of a guaranteed 

25 loan,’’; 


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1 (3) in section 3746, by striking ‘‘made or’’ both 

2 places it appears; 

3 (4) in section 3749(b), by striking ‘‘and direct 

4 loan’’; and 

5 (5) in section 3750, by striking ‘‘made or’’. 

6 (d) INCREASE OF MAXIMUM GUARANTY AMOUNT.— 

7 Section 3742(b)(2), as redesignated by subsection 

8 (c)(1)(B)(i), is amended by striking ‘‘$200,000’’ and in9 serting ‘‘$500,000’’. 

10 (e) AUTHORITY TO ENTER INTO A CONTRACT.—Sec11 tion 3742 of such title, as amended by subsection (c), is 

12 further amended by adding at the end the following new 

13 subsection: 

14 ‘‘(f) The Secretary shall enter into a contract with 

15 an appropriate entity for the purpose of carrying out the 

16 program under this subchapter.’’. 

17 (f) AUTHORITY OF SECRETARY TO SUBSIDIZE IN18 TEREST RATES OF GUARANTEED LOAN.—Section 3745 of 

19 such title is amended by striking subsection (b) and insert20 ing the following new subsection (b): 

21 ‘‘(b) For any loan guaranteed under this subchapter, 

22 the Secretary may pay to the lender such amounts as may 

23 be required to reduce the rate of interest payable by the 

24 veterans’ small business concern by up to one-half of one 


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1 percent, except that the rate of interest payable by such 

2 concern shall not be less than one-half of one percent.’’. 

3 (g) PREFERENCE FOR MEMBERS OF NATIONAL

4 GUARD AND RESERVES ACTIVATED IN SUPPORT OF

5 GLOBAL WAR ON TERRORISM.—Section 3748 of such title 

6 is amended— 

7 (1) by striking ‘‘and, second’’ and inserting 

8 ‘‘second’’; and 

9 (2) by inserting before the period at the end ‘‘, 

10 and, third, to veterans’ small business concern in 

11 which veterans who, as members of a reserve compo12 nent, are activated in support of the Global War on 

13 Terrorism have a significant ownership interest’’. 

14 (h) AUTHORIZATION OF APPROPRIATIONS.—Section 

15 3749(c)(1) of such title is amended by striking ‘‘a total 

16 of $25,000,000’’ and inserting ‘‘$1,000,000,000 for each 

17 fiscal year’’. 

18 SEC. 3. LIMITATION ON REQUIREMENT OF SMALL BUSI19 NESS CONCERNS OWNED AND CONTROLLED 

20 BY VETERANS TO FURNISH CERTAIN BONDS. 

21 (a) LIMITATION.—Subchapter II of chapter 81 of 

22 title 38, United States Code, is amended by adding at the 

23 end the following new section: 


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1 ‘‘§ 8129. Small business concerns owned and con2 trolled by veterans: contractor bonds 

3 ‘‘(a) BONDS REQUIRED.—Notwithstanding sub4 chapter II of chapter 31 of title 40, in entering into a 

5 contract with a small business concern owned and con6 trolled by veterans for the construction, alteration, or re7 pair of any public building or public work of the Depart8 ment the Secretary— 

9 ‘‘(1) may not require the concern to furnish a 

10 performance or payment bond in an amount that ex11 ceeds 50 percent of the amount of the contract; and 

12 ‘‘(2) shall ensure that the concern does not re13 quire any subcontractor that is a small business con14 cern owned and controlled by veterans to furnish a 

15 performance or payment bond in an amount that ex16 ceeds 50 percent of the amount of the subcontract. 

17 ‘‘(b) PAYMENT OF SUBCONTRACTOR BONDS.—In en18 tering into a contract described in subsection (a) with the 

19 Secretary, a prime contractor may furnish a performance 

20 or payment bond on behalf of a subcontractor that is a 

21 small business concern owned and controlled by veterans. 

22 ‘‘(c) DEFINITION.—For purposes of this section, the 

23 term ‘small business concern owned and controlled by vet24 erans’ means a small business concern that is included in 

25 the small business database maintained by the Secretary 

26 under section 8127(f) of this title.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 at the beginning of such chapter is amended by adding 

3 at the end of the items relating to such subchapter the 

4 following new item: 

‘‘8129. Small business concerns owned and controlled by veterans: contractor 

bonds.’’. 

5 SEC. 4. TREATMENT OF SMALL BUSINESS CONCERNS 

6 OWNED AND CONTROLLED BY VETERANS A 

7 SOCIALLY AND ECONOMICALLY DISADVAN8 TAGED. 

9 Section 8128 of such title is amended— 

10 (1) by redesignating subsection (b) as sub11 section (c); and 

12 (2) by inserting after subsection (a) the fol13 lowing new subsection: 

14 ‘‘(b) TREATMENT AS SOCIALLY AND ECONOMICALLY

15 DISADVANTAGED.—The Secretary may evaluate a bid sub16 mitted by a small business concern owned and controlled 

17 by veterans and award a contract to such a concern on 

18 the same basis as the Administrator of the Small Business 

19 Administration may evaluate a bid submitted by a socially 

20 and economically disadvantaged small business concern 

21 and award a contract to such a concern under section 8(a) 

22 of the Small Business Act (15 U.S.C. 637(a)).’’. 

Æ 


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