I 
112TH CONGRESS 
1ST SESSION H. R. 3167 
To direct the Secretary of Veterans Affairs to establish a program under 
which certain veterans entitled to educational assistance under the laws 
administered by the Secretary can use such entitlement to start or 
purchase a qualifying business enterprise, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 12, 2011 
Mr. FORTENBERRY introduced the following bill; which was referred to the 
Committee on Veterans’ Affairs, and in addition to the Committees on 
Small Business and Agriculture, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To direct the Secretary of Veterans Affairs to establish a 
program under which certain veterans entitled to edu-
cational assistance under the laws administered by the 
Secretary can use such entitlement to start or purchase 
a qualifying business enterprise, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans Entrepre-
neurial Transition Act of 2011’’ or the ‘‘VET Act of 
2011’’. 
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SEC. 2. ESTABLISHMENT OF SMALL BUSINESS PROGRAM. 
The Secretary of Veterans Affairs shall establish a 
program under which the Secretary shall allow eligible vet-
erans to participate in the program described under sec-
tion 3. 
SEC. 3. VETERANS SMALL BUSINESS ENTREPRENEURSHIP 
PROGRAM. 
(a) ESTABLISHMENT.—The Secretary of Veterans 
Affairs shall, in consultation with the Administrator of the 
Small Business Administration, establish a program (here-
inafter in this Act referred to as ‘‘the Program’’) under 
which the Secretary may approve an eligible veteran to 
use Program benefits to start or acquire a qualifying busi-
ness enterprise. 
(b) AMOUNT AND PAYMENT OF BENEFITS.— 
(1) IN
GENERAL.—Under the Program, the 
Secretary shall provide for an eligible veteran to use 
the veteran’s entitlement to educational assistance 
under chapter 30 or 33 of title 38, United States 
Code, in accordance with this Act. 
(2) AMOUNT.— 
(A) IN GENERAL.—The maximum amount 
of benefits made available to a veteran under 
the Program shall not exceed the maximum 
value of— 
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(i) in the case of a veteran entitled to 
educational assistance under chapter 33 of 
title 38, United States Code, the amount 
equal to 36 months of educational assist-
ance at the rate in effect under section 
3313(c)(ii)(II) of such title; and 
(ii) in the case of a veteran entitled to 
educational assistance under chapter 30 of 
such title, the amount equal to 36 months 
of educational assistance at the rate in ef-
fect under section 3015(a)(1) of such title. 
(B) CHARGE
TO
ENTITLEMENT.—A vet-
eran who receives a payment under the Pro-
gram shall be charged for 36 months of the vet-
eran’s entitlement to educational assistance 
under chapter 30 or 33 of title 38, United 
States Code. 
(3) PAYMENT.—Payments to eligible veterans 
under the Program shall be made as follows: 
(A) In the case of a veteran who is using 
the funds to start a new business enterprise, 
payment shall be made in not less than two 
lump-sum amounts, the first of which shall not 
exceed $2,500, to be used for the development 
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of the business plan, and the balance to be paid 
upon the approval of the business plan. 
(B) In the case of a veteran who is using 
the funds to purchase an existing business en-
terprise or franchise business enterprise, pay-
ment shall be made in one lump-sum amount. 
(C) In the case of a veteran who is using 
the funds to purchase capital equipment, dura-
ble expense items, or professional services that 
the Secretary determines are essential to oper-
ating a qualifying business, payment shall be 
made in one or more lump-sum amounts. 
(c) ELIGIBILITY.—An individual shall be an eligible 
veteran for purposes of the Program if that individual— 
(1) is a veteran; 
(2) has completed at least— 
(A) 36 months of full-time active duty 
service in the Armed Forces; or 
(B) 24 months of full-time active duty 
service in the Armed Forces before being dis-
charged or separated for a service-connected 
disability, as that term is defined in section 101 
of title 38, United States Code; 
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(3) is entitled to 36 months of educational as-
sistance under chapter 30 or 33 of title 38, United 
States Code; 
(4) has last been discharged or separated from 
active duty service in the Armed Forces not more 
than 15 years before submitting an application to 
participate in the Program; and 
(5) submits to the Secretary an application, in 
such form and containing such information as the 
Secretary may require, including the information de-
scribed in subsection (f). 
(d) USE OF PROGRAM BENEFITS.—An eligible vet-
eran participating in the Program may use the Program 
benefits— 
(1) in accordance with such limitations as the 
Secretary, in consultation with the Administrator, 
may by rule establish; and 
(2) for such purposes related to starting or ac-
quiring a qualifying business enterprise as the Sec-
retary, in consultation with the Administrator, deter-
mines appropriate, including— 
(A) purchasing goods or services necessary 
for the operation, expansion, or startup of a 
qualifying business enterprise; 
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(i) a business plan for the operation 
of that enterprise, prepared with the as-
sistance of any agency that the Secretary 
determines appropriate, that leads to prof-
itable operation within a reasonable time 
frame, and that includes such other infor-
mation as the Secretary, in consultation 
with the Administrator, determines appro-
priate; or 
(ii) a business plan approved by a per-
son designated by the Secretary, in con-
sultation with the Administrator, from 
among— 
(I) any department or agency of 
the Federal government; 
(II) an institution or higher 
learning; or 
(III) a non profit enterprise. 
SEC. 4. USE OF BENEFITS IN QUALIFYING FOR SMALL BUSI-
NESS LOANS AND FARM LOAN. 
(a) SMALL BUSINESS LOANS.—In determining the 
creditworthiness of a veteran for a loan guaranteed by the 
Administrator under the Small Business Act, all benefits 
made available to the veteran under the program estab-
lished under section 3 shall be taken into account. 
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(b) FARM LOANS.—In determining the creditworthi-
ness of a veteran for a loan made or guaranteed pursuant 
to the Consolidated Farm and Rural Development Act, the 
Secretary of Agriculture shall take into account all bene-
fits made available to the veteran under the program es-
tablished under section 3. 
SEC. 5. SURVIVORS’ BENEFITS. 
(a) IN GENERAL.—In the event that a veteran who 
has received more than $2,500 in benefits under this Act 
dies before receiving the balance of any benefits payable 
to the veteran under this Act, the Secretary may pay any 
benefits approved to be paid to the veteran to a survivor 
of the veteran who is designated by the veteran for such 
purpose. 
(b) LIMITATION ON SURVIVOR ELIGIBILITY.—To be 
eligible to be a survivor of a veteran for purposes of this 
section, an individual must be at least 18 years of age 
at the time of death of the veteran and must have inher-
ited the business from the veteran at the time of the vet-
eran’s death. 
(c) PERIOD OF SURVIVOR ELIGIBILITY.—The period 
during which a survivor of a veteran is eligible to receive 
benefits under this section is the greater of— 
(1) the five-year period beginning on the date 
of the veteran’s death; or 
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(2) the period beginning on the date of the vet-
eran’s death and ending upon the termination of the 
longest term of any business loan obtained by the 
veteran before the veteran’s death for the business 
enterprise for which the veteran received benefits 
under this Act. 
(d) LIMITATION ON USE OF FUNDS TO SECURE 
LOANS.—A survivor of a veteran who receives benefits 
under this section may not use the benefits to secure any 
new loan. 
(e) DUPLICATION OF BENEFITS.—If the survivor of 
a veteran who receives benefits under this section is also 
eligible to receive benefits under section 3, the survivor 
may not use benefits payable under section 3 for a busi-
ness enterprise other than the business enterprise for 
which the veteran receives benefits under this section. The 
survivor may use benefit payable to the survivor under sec-
tion 3 to affect the transfer into the survivor’s name of 
100 percent of the assets, liabilities, and operations of the 
business enterprise for which the veteran receives benefits 
under this section. 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) The term ‘‘Secretary’’ means the Secretary 
of Veterans Affairs. 
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(2) The term ‘‘Administrator’’ means the Ad-
ministrator of the Small Business Administration. 
(3) The term ‘‘veteran’’ has the meaning given 
that term in section 101 of title 38, United States 
Code. 
(4) The term ‘‘institution of higher learning’’ 
has the meaning given such term in 3452(f) of title 
38, United States Code. 
(5) The term ‘‘Program benefits’’ means pay-
ments described in section 3. 
(6) The term ‘‘franchise business enterprise’’ 
means any continuing commercial relationship or ar-
rangement, whatever it may be called, in which the 
terms of the offer or contract specify, or the fran-
chise seller promises or represents, orally or in writ-
ing, that— 
(A) the franchisee will obtain the right to 
operate a business that is identified or associ-
ated with the franchisor’s trademark, or to 
offer, sell, or distribute goods, services, or com-
modities that are identified or associated with 
the franchisor’s trademark; 
(B) the franchisor will exert or has author-
ity to exert a significant degree of control over 
the franchisee’s method of operation, or provide 
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significant assistance in the franchisee’s method 
of operation; and 
(C) as a condition of obtaining or com-
mencing operation of the franchise business en-
terprise, the franchisee makes a required pay-
ment or commits to make a required payment 
to the franchisor or its affiliate. 
(7) The term ‘‘franchisee’’ means any person 
who is granted a franchise business enterprise. 
(8) The term ‘‘franchisor’’ means any person 
who grants a franchise business enterprise and par-
ticipates in the franchise relationship. Unless other-
wise stated, such term includes subfranchisors. 
(9) The term ‘‘subfranchisor’’ means a person 
who functions as a franchisor by engaging in both 
pre-sale activities and post-sale performance. 
SEC. 7. EFFECTIVE DATE. 
This Act shall take effect on the date that is one year 
after the date of the enactment of this Act. 
Æ 
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