I 
114TH CONGRESS 
1ST SESSION H. R. 3248 
To amend the Small Business Act to require the Administrator of the Small 
Business Administration to carry out a pilot program on issuing grants 
to eligible veterans to start or acquire qualifying businesses, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2015 
Mr. FORTENBERRY (for himself and Mr. GARAMENDI) introduced the 
following bill; which was referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to require the Adminis-
trator of the Small Business Administration to carry 
out a pilot program on issuing grants to eligible veterans 
to start or acquire qualifying businesses, 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 2015’’ or the ‘‘VET Act of 
2015’’. 
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SEC. 2. VETERANS SMALL BUSINESS ENTREPRENEURSHIP 
PILOT PROGRAM. 
Section 32 of the Small Business Act (15 U.S.C. 
657b) is amended by adding at the end the following: 
‘‘(g) VETERANS SMALL BUSINESS ENTREPRENEUR-
SHIP PILOT PROGRAM.— 
‘‘(1) PILOT PROGRAM REQUIRED.— 
‘‘(A) IN
GENERAL.—Not later than 90 
days after the date of enactment of this sub-
section, the Administrator, in consultation with 
the Advisory Committee and the Secretary of 
Veterans Affairs, shall begin carrying out a 
pilot program to assess the feasibility and ad-
visability of making grants to eligible veterans 
to start or acquire a qualifying business enter-
prise. 
‘‘(B) PROMOTION
OF
EFFICIENCY.—In 
carrying out the pilot program, the Adminis-
trator shall ensure, to the maximum extent 
practicable, that the pilot program promotes ef-
ficiency, accountability, and competition. 
‘‘(C) LIST OF CATEGORIES OF BUSINESS 
ENTERPRISES.—The Administrator, in con-
sultation with the Advisory Committee, shall by 
rule establish a list of categories of business en-
terprises that the Administrator determines to 
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be qualifying business enterprises for purposes 
of the pilot program, which shall include— 
‘‘(i) a small business concern; 
‘‘(ii) a franchise business enterprise; 
and 
‘‘(iii) any other category of business 
enterprise that the Administrator, in con-
sultation with the Advisory Committee, de-
termines is appropriate and in accordance 
with the purposes of the pilot program. 
‘‘(D) NUMBER
OF
GRANTS.—Under the 
pilot program, the Administrator may make 
grants in accordance with paragraph (4) to not 
more than 250 eligible veterans to start or ac-
quire a qualifying business enterprise. 
‘‘(E) GEOGRAPHIC DIVERSITY.—In making 
grants under the pilot program, the Adminis-
trator shall ensure geographic diversity among 
the veterans who receive the grants. 
‘‘(F) DURATION.—The Administrator shall 
carry out the pilot program during the 3-year 
period beginning on the date on which the Ad-
ministrator begins carrying out the pilot pro-
gram. 
‘‘(2) APPLICATION.— 
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‘‘(A) IN GENERAL.—An eligible veteran de-
siring a grant under the pilot program shall 
submit an application— 
‘‘(i) to the Administrator in the form 
and containing the information as the Ad-
ministrator may require, including the in-
formation described in subparagraph (B); 
and 
‘‘(ii) not later than 1 year before the 
date on which the pilot program terminates 
under paragraph (1)(F). 
‘‘(B) DOCUMENTATION REQUIREMENTS.— 
The Administrator, in considering an applica-
tion from an eligible veteran for a grant under 
the pilot program, may not approve the applica-
tion unless the application includes the fol-
lowing: 
‘‘(i) A description of the use of the 
grant amount, including an identification 
and description of the qualifying business 
enterprise. 
‘‘(ii) A description of the expected re-
turn on investment resulting from the 
grant amounts. 
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‘‘(iii) A certification that the eligible 
veteran applying for the grant— 
‘‘(I) shall complete the education 
and training relevant to the ownership 
and operation of the qualifying busi-
ness enterprise described in para-
graphs (3)(A) and (3)(B); and 
‘‘(II) understands that the eligi-
ble veteran may not receive amounts 
under a grant under the pilot pro-
gram until after the eligible veteran 
has completed the required education 
and training relevant to the ownership 
and operation of the qualifying busi-
ness enterprise described in para-
graphs (3)(A) and (3)(B). 
‘‘(iv) Such certifications as the Ad-
ministrator, in consultation with the Advi-
sory Committee, shall by rule require, in-
cluding— 
‘‘(I) for a business enterprise in 
operation on the date of the applica-
tion, evidence that the Administrator, 
in consultation with the Advisory 
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Committee, determines appropriate 
of— 
‘‘(aa) good standing; 
‘‘(bb) profitable operation; 
and 
‘‘(cc) guarantees relating to 
the purchase of the enterprise; 
‘‘(II) for a franchise business en-
terprise, evidence that the Adminis-
trator, in consultation with the Advi-
sory Committee, determines appro-
priate of— 
‘‘(aa) compliance with appli-
cable State and Federal laws on 
franchises; and 
‘‘(bb) training in conforma-
tion with the industry standard; 
and 
‘‘(III) for a startup, or an enter-
prise that is otherwise not in oper-
ation at the time of the application, a 
proposal for the operation of that en-
terprise that leads to profitable oper-
ation within a reasonable time frame. 
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‘‘(v) A certification that the eligible 
veteran applying for the grant understands 
that the eligible veteran may not receive 
amounts under the grant until after the 
business plan of the eligible veteran has 
been approved under the procedures de-
scribed in paragraph (3)(C)(ii). 
‘‘(vi) A certification that the eligible 
veteran— 
‘‘(I) has been truthful about the 
employment status of the eligible vet-
eran; and 
‘‘(II) understands that the eligi-
ble veteran will be prohibited from 
participating in the pilot program if 
the certification described in subclause 
(I) is determined to be untrue. 
‘‘(C) GROUP APPLICATIONS.—The Admin-
istrator may authorize a group of eligible vet-
erans to apply as a group under the pilot pro-
gram. The group shall be treated as a single eli-
gible veteran under the pilot program, except 
that the maximum amount of the grant shall be 
calculated by multiplying the maximum amount 
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under paragraph (4)(A) by the number of mem-
bers of the group. 
‘‘(3) ENTREPRENEURSHIP TRAINING.— 
‘‘(A) IN GENERAL.—Each eligible veteran 
receiving a grant under the pilot program shall 
complete an entrepreneurship readiness pro-
gram approved by the Administrator that is de-
signed to prepare the eligible veteran for, and 
lead to the immediate subsequent ownership 
and management by the eligible veteran of, a 
qualifying business enterprise. 
‘‘(B) APPROVED PROGRAMS.—An approved 
program described in subparagraph (A) may in-
clude a program— 
‘‘(i) available through a small business 
development center; 
‘‘(ii) approved by the Administrator 
for entrepreneurship training; 
‘‘(iii) approved by the Secretary of 
Veterans 
Affairs 
for 
entrepreneurship 
training; 
‘‘(iv) available through the Transition 
Assistance Program of the Department of 
Defense; 
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‘‘(v) available through a women’s 
business center, as described in section 29; 
‘‘(vi) available through a Veterans 
Business Outreach Center, as described in 
subsection (d); 
‘‘(vii) available through the SCORE 
program authorized by section 8(b)(1); or 
‘‘(viii) approved by the Administrator, 
in consultation with the Advisory Com-
mittee, as appropriate because of the ex-
pertise the program offers relating to a 
certain type of business enterprise. 
‘‘(C) BUSINESS PLAN.— 
‘‘(i) CONTENTS.—An eligible veteran 
receiving a grant under the pilot program 
shall prepare a business plan, which shall 
include— 
‘‘(I) a description of how the 
qualifying business enterprise will 
achieve profitable operation within a 
reasonable time frame; 
‘‘(II) an assessment of relevant— 
‘‘(aa) economic indicators; 
‘‘(bb) consumer data; 
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‘‘(cc) production and sales 
data; and 
‘‘(dd) market or industry 
analysis; and 
‘‘(III) other information that the 
Administrator, in consultation with 
the Advisory Committee, determines is 
appropriate. 
‘‘(ii) APPROVAL PROCEDURE.— 
‘‘(I) APPROVAL BY ADVISOR.—If 
an advisor approves the business plan 
prepared by the eligible veteran, the 
Associate Administrator for Veterans 
Business Development of the Adminis-
tration— 
‘‘(aa) shall review the busi-
ness plan; and 
‘‘(bb) may reverse the ap-
proval of the business plan and 
require that the eligible veteran 
continue to consult with the advi-
sor to develop and resubmit the 
business plan. 
‘‘(II) DISAPPROVAL
BY
ADVI-
SOR.—If an advisor does not approve 
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the business plan prepared by an eli-
gible veteran, the Associate Adminis-
trator for Veterans Business Develop-
ment of the Administration, upon ap-
peal by the eligible veteran, may re-
verse the decision of the advisor and 
approve the business plan. 
‘‘(4) GRANT TERMS AND CONDITIONS.— 
‘‘(A) MAXIMUM GRANT AMOUNT AND ADDI-
TIONAL ASSISTANCE.— 
‘‘(i) IN GENERAL.—Subject to para-
graph (2)(C), the maximum amount that 
an eligible veteran may receive under the 
pilot program shall not exceed an amount 
equal to the sum of— 
‘‘(I) the maximum grant amount 
specified in clause (ii); 
‘‘(II) the amount equal to the 
product obtained by multiplying— 
‘‘(aa) the amount of addi-
tional assistance to which the eli-
gible veteran is entitled under 
clause (iii)(II); by 
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‘‘(bb) the number of months 
that the eligible veteran partici-
pates in the pilot program; and 
‘‘(III) the amount of training as-
sistance received by the eligible vet-
eran in clause (iv). 
‘‘(ii) MAXIMUM GRANT AMOUNT.—The 
maximum grant amount specified in this 
clause is the following: 
‘‘(I) In the case of an eligible vet-
eran entitled to educational assistance 
under chapter 33 of title 38, United 
States Code, the amount equal to the 
product obtained by multiplying— 
‘‘(aa) the number of months 
of 
educational 
assistance 
to 
which the eligible veteran is enti-
tled on the date that the eligible 
veteran submits an application; 
by 
‘‘(bb) the pro rata monthly 
rate of the amount that the eligi-
ble veteran is entitled to under 
paragraph (1)(A)(ii)(II) of sec-
tion 3313(c) of that title, subject 
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to paragraphs (2) through (7) of 
that section. 
‘‘(II) In the case of an eligible 
veteran entitled to educational assist-
ance under chapter 30 of title 38, 
United States Code, the amount equal 
to the product obtained by multi-
plying— 
‘‘(aa) the number of months 
of 
educational 
assistance 
to 
which the eligible veteran is enti-
tled on the date that the eligible 
veteran submits an application; 
by 
‘‘(bb) the rate in effect 
under section 3015(a)(1) of that 
title. 
‘‘(iii) ADDITIONAL ASSISTANCE.— 
‘‘(I) PERIOD OF ELIGIBILITY.— 
An eligible veteran shall receive the 
amount described in subclause (II) for 
each month that the eligible veteran 
participates in the pilot program. 
‘‘(II) AMOUNT.—The amount of 
the additional assistance specified in 
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this subclause is an amount, paid to 
the eligible veteran on a monthly 
basis, equal to the product obtained 
by multiplying— 
‘‘(aa) the monthly amount of 
the basic allowance for housing 
payable under section 403 of title 
37, United States Code, for a 
member with dependents in pay 
grade E–5 residing in the mili-
tary housing area that encom-
passes all or the majority portion 
of the ZIP code area in which is 
located the residence of the eligi-
ble veteran (similar to the cal-
culation 
made 
under 
section 
3313(c)(1)(B)(i)(I) of title 38, 
United States Code); by— 
‘‘(bb)(AA) in the case of an 
eligible veteran who, as of the 
date on which the eligible veteran 
applies for a grant under this 
subsection, has no employment 
other than the qualifying busi-
ness enterprise for which the eli-
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gible veteran seeks a grant under 
this subsection, 1; or 
‘‘(BB) in the case of an eli-
gible veteran who is not described 
in subitem (AA), 0.5. 
‘‘(iv) TRAINING
ASSISTANCE.—Upon 
application by an eligible veteran receiving 
a grant under the pilot program, the Ad-
ministrator may pay for the cost, if appli-
cable, of an approved program described in 
paragraph (3)(B)(viii). 
‘‘(B) DISBURSEMENT.—The amount of a 
grant made under the pilot program shall be 
disbursed to an eligible veteran— 
‘‘(i) in installments, in accordance 
with the procedures described in subpara-
graph (C); 
‘‘(ii) only after the eligible veteran 
presents documentation proving that the 
eligible veteran has completed the required 
entrepreneurship training described in 
paragraphs (3)(A) and (3)(B); and 
‘‘(iii) only after the business plan of 
the eligible veteran has been approved 
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under the procedures described in para-
graph (3)(C)(ii). 
‘‘(C) 
INSTALLMENT
PAYMENTS.—The 
amount described in subparagraph (A)(ii) shall 
be paid to the eligible veteran in installments on 
a pro rata basis with each installment being 
paid to the eligible veteran— 
‘‘(i) not earlier than 3 months after 
the date of the payment of the most recent 
installment to the eligible veteran; 
‘‘(ii) not later than 12 months after 
the date of the payment of the most recent 
installment to the eligible veteran; and 
‘‘(iii) only after the eligible veteran 
has met milestones established in the busi-
ness plan of the eligible veteran. 
‘‘(5) USE
OF
GRANT
AMOUNTS.—An eligible 
veteran who receives a grant under the pilot pro-
gram may use the amount of the grant— 
‘‘(A) in accordance with the limitations 
that the Administrator, in consultation with the 
Advisory Committee, may by rule establish; and 
‘‘(B) for purposes related to starting or ac-
quiring a qualifying business enterprise that the 
Administrator, in consultation with the Advi-
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sory Committee, determines are appropriate, in-
cluding— 
‘‘(i) purchasing goods or services nec-
essary for the creation or operation of a 
qualifying business enterprise; 
‘‘(ii) funding a project that is directed 
toward any economic development objective 
described under section 501(d) of the 
Small Business Investment Act of 1958 
(15 U.S.C. 695(d)); and 
‘‘(iii) acquiring a qualifying business 
enterprise. 
‘‘(6) REPORT.— 
‘‘(A) IN GENERAL.—Not later than 2 years 
after the date on which the pilot program is 
commenced, the Administrator shall submit to 
the Committee on Small Business and Entre-
preneurship and the Committee on Veterans’ 
Affairs of the Senate and the Committee on 
Small Business and the Committee on Vet-
erans’ Affairs of the House of Representatives 
a report analyzing the feasibility and effective-
ness of the pilot program. 
‘‘(B) CONTENTS.—The report submitted 
under subparagraph (A) shall include— 
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‘‘(i) an assessment of the pilot pro-
gram; 
‘‘(ii) a survey containing— 
‘‘(I) the number of grantees 
under the pilot program; and 
‘‘(II) the number of the grantees 
under the pilot program that partici-
pated in each of the training pro-
grams described in subparagraphs (A) 
and (B) of paragraph (3); 
‘‘(iii) 
recommendations 
regarding 
whether any aspect of the pilot program 
should be made a permanent authority, 
and, if so, the means to ensure— 
‘‘(I) geographic and demographic 
diversity among the eligible veterans 
who receive the grants under the per-
manent authority; and 
‘‘(II) diversity in the types of 
qualifying business enterprises for 
which eligible veterans may receive 
grants under the pilot program; 
‘‘(iv) an assessment regarding wheth-
er the grants distributed under the pilot 
program should continue to be made in in-
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stallments or with a 1-time, lump sum pay-
ment; 
‘‘(v) an assessment of the additional 
assistance made available under the pilot 
program, including the accountability sur-
rounding the availability of additional as-
sistance; 
‘‘(vi) an analysis of the procedures for 
approving a business plan and a rec-
ommendation regarding ways, if necessary, 
to improve the procedures; and 
‘‘(vii) a recommendation regarding 
ways, if necessary, to improve the account-
ability of advisors. 
‘‘(7) NO EFFECT ON TIME LIMITATION FOR USE 
OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE.— 
Nothing in this subsection shall be construed to 
modify any time limitation or period during which 
an individual is entitled to educational assistance 
under chapter 30 or 33 of title 38, United States 
Code. 
‘‘(8) DEFINITIONS.—In this subsection: 
‘‘(A) ADVISOR.—The term ‘advisor’ means 
a person— 
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‘‘(i) affiliated with an entrepreneur-
ship or training and curricula program de-
scribed in paragraphs (3)(A) and (3)(B); 
‘‘(ii) who may assist an eligible vet-
eran with the preparation and approval of 
a business plan; and 
‘‘(iii) who is approved to serve as an 
advisor by the Administrator, in consulta-
tion with the Advisory Committee. 
‘‘(B) ADVISORY
COMMITTEE.—The term 
‘Advisory Committee’ means the Advisory Com-
mittee on Veterans Business Affairs established 
under section 203 of the Veterans Entrepre-
neurship and Small Business Development Act 
of 1999 (15 U.S.C. 657b note). 
‘‘(C) BUSINESS PLAN.—The term ‘business 
plan’ means a plan prepared by an eligible vet-
eran for the operation of a qualifying business 
enterprise that shall be— 
‘‘(i) prepared— 
‘‘(I) while the eligible veteran 
participates in an approved training 
program 
described 
in 
paragraphs 
(3)(A) and (3)(B); and 
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‘‘(II) with the assistance of an 
advisor; and 
‘‘(ii) consistent with the guidelines 
and recommendations provided by the 
Business Plan Tool of the Administration. 
‘‘(D) ELIGIBLE VETERAN.—The term ‘eli-
gible veteran’ means an individual who— 
‘‘(i) is— 
‘‘(I) a veteran; or 
‘‘(II) a member of the Armed 
Forces who— 
‘‘(aa) is currently retiring or 
separating 
from 
the 
Armed 
Forces and has a service ap-
proved retirement or separation 
packet; or 
‘‘(bb) has last been honor-
ably discharged from active duty 
service in the Armed Forces; 
‘‘(ii) has completed not less than— 
‘‘(I) 36 months of active duty 
service in the Armed Forces (other 
than active duty service for training); 
or 
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‘‘(II) 24 months of active duty 
service in the Armed Forces (other 
than active duty service for training) 
before being discharged or separated 
for a service-connected disability, as 
that term is defined in section 101 of 
title 38, United States Code; and 
‘‘(iii) is entitled to educational assist-
ance under chapter 30 or 33 of title 38, 
United States Code. 
‘‘(E) 
FRANCHISE
BUSINESS
ENTER-
PRISE.—The term ‘franchise business enter-
prise’ means any continuing commercial rela-
tionship or arrangement, regardless of the title 
given the relationship or arrangement, under 
which the terms of the offer or contract specify, 
or the franchise seller promises or represents, 
orally or in writing, that— 
‘‘(i) the franchisee will obtain the 
right to— 
‘‘(I) operate a business that is 
identified or associated with the trade-
mark of the franchisor; or 
‘‘(II) offer, sell, or distribute 
goods, services, or commodities that 
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‘‘(H) PILOT
PROGRAM.—The term ‘pilot 
program’ means the pilot program established 
under paragraph (1)(A). 
‘‘(I) 
QUALIFYING
BUSINESS
ENTER-
PRISE.—The term ‘qualifying business enter-
prise’ means a business included in the list of 
categories of business enterprises established 
under paragraph (1)(C). 
‘‘(J) STARTUP.—The term ‘startup’ means 
a business enterprise that— 
‘‘(i) is not yet in existence; or 
‘‘(ii) has been in existence for not 
more than 5 years. 
‘‘(K) 
SUBFRANCHISOR.—The 
term 
‘subfranchisor’ means a person who functions 
as a franchisor by engaging in both pre-sale ac-
tivities and post-sale performance.’’. 
Æ 
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