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. 
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 ‘‘Veteran-Owned Small 
Business Promotion Act of 2009’’. 
SEC. 2. REAUTHORIZATION AND IMPROVEMENT OF DE-
PARTMENT OF VETERANS AFFAIRS SMALL 
BUSINESS LOAN PROGRAM. 
(a) REAUTHORIZATION.— 
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(1) IN
GENERAL.—Chapter 37 of title 38, 
United States Code, is amended by striking section 
3751. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by striking the item relating to section 3751. 
(3) CONFORMING AMENDMENT.—Section 3749 
of such title is amended by striking subsection (e). 
(b) EXPANSION OF ELIGIBILITY FOR SMALL BUSI-
NESS LOANS.—Chapter 37 of such title is further amend-
ed— 
(1) in section 3741— 
(A) by striking paragraph (2); 
(B) by striking ‘‘this subchapter—’’ and 
all that follows through ‘‘ ‘disabled veteran’ ’’ 
and inserting ‘‘this subchapter, the term ‘dis-
abled veteran’ ’’; and 
(C) by striking ‘‘30 percent’’ and inserting 
‘‘10 percent’’; and 
(2) in section 3742(a)(3)(A), by striking ‘‘of the 
Vietnam era or disabled veterans’’. 
(c) REPEAL
OF AUTHORITY TO MAKE DIRECT 
LOANS.—Chapter 37 of such title, as amended by sub-
sections (a) and (b), is further amended— 
(1) in section 3742— 
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(A) in subsection (a)— 
(i) in paragraph (2), by striking ‘‘(A) 
loan guaranties, or (B) direct loans’’ and 
inserting ‘‘loan guarantees’’; and 
(ii) in paragraph (3)(A), by striking 
‘‘and that at least 51 percent of a business 
concern must be owned by disabled vet-
erans in order for such concern to qualify 
for a direct loan’’; 
(B) in subsection (b)— 
(i) by striking paragraph (1) and re-
designating paragraphs (2) through (4) as 
paragraphs (1) through (3), respectively; 
and 
(ii) in paragraph (2), as so redesig-
nated, by striking ‘‘make or’’; 
(C) in subsection (c), by striking ‘‘made 
or’’; 
(D) in subsection (d)— 
(i) by striking paragraph (2); 
(ii) by striking ‘‘(1) Except as pro-
vided in paragraph (2) of this subsection, 
the’’ and inserting ‘‘The’’; and 
(iii) by striking ‘‘make or’’; and 
(E) in subsection (e)— 
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(i) in paragraph (1)— 
(I) in the first sentence, by strik-
ing ‘‘or, if the loan was a direct loan 
made by the Secretary, may suspend 
such obligation’’; and 
(II) in the second sentence, by 
striking ‘‘or while such obligation is 
suspended’’; 
(ii) by striking ‘‘or suspend’’ each 
place it appears; 
(iii) by striking ‘‘or suspension’’ each 
place it appears 
(iv) by striking ‘‘or suspends’’ each 
place it appears; and 
(v) in paragraph (4)(B), by striking 
‘‘or suspended’’; 
(2) in section 3743— 
(A) by striking ‘‘that is provided a direct 
loan under this subchapter, or’’; 
(B) by striking the comma between ‘‘sub-
chapter’’ and ‘‘shall’’; 
(C) by striking ‘‘direct or’’; and 
(D) by striking ‘‘for the amount of such 
direct loan or, in the case of a guaranteed 
loan,’’; 
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(3) in section 3746, by striking ‘‘made or’’ both 
places it appears; 
(4) in section 3749(b), by striking ‘‘and direct 
loan’’; and 
(5) in section 3750, by striking ‘‘made or’’. 
(d) INCREASE OF MAXIMUM GUARANTY AMOUNT.— 
Section 3742(b)(2), as redesignated by subsection 
(c)(1)(B)(i), is amended by striking ‘‘$200,000’’ and in-
serting ‘‘$500,000’’. 
(e) AUTHORITY TO ENTER INTO A CONTRACT.—Sec-
tion 3742 of such title, as amended by subsection (c), is 
further amended by adding at the end the following new 
subsection: 
‘‘(f) The Secretary shall enter into a contract with 
an appropriate entity for the purpose of carrying out the 
program under this subchapter.’’. 
(f) AUTHORITY OF SECRETARY TO SUBSIDIZE IN-
TEREST RATES OF GUARANTEED LOAN.—Section 3745 of 
such title is amended by striking subsection (b) and insert-
ing the following new subsection (b): 
‘‘(b) For any loan guaranteed under this subchapter, 
the Secretary may pay to the lender such amounts as may 
be required to reduce the rate of interest payable by the 
veterans’ small business concern by up to one-half of one 
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percent, except that the rate of interest payable by such 
concern shall not be less than one-half of one percent.’’. 
(g) PREFERENCE
FOR MEMBERS
OF NATIONAL 
GUARD
AND RESERVES ACTIVATED
IN SUPPORT
OF 
GLOBAL WAR ON TERRORISM.—Section 3748 of such title 
is amended— 
(1) by striking ‘‘and, second’’ and inserting 
‘‘second’’; and 
(2) by inserting before the period at the end ‘‘, 
and, third, to veterans’ small business concern in 
which veterans who, as members of a reserve compo-
nent, are activated in support of the Global War on 
Terrorism have a significant ownership interest’’. 
(h) AUTHORIZATION OF APPROPRIATIONS.—Section 
3749(c)(1) of such title is amended by striking ‘‘a total 
of $25,000,000’’ and inserting ‘‘$1,000,000,000 for each 
fiscal year’’. 
SEC. 3. LIMITATION ON REQUIREMENT OF SMALL BUSI-
NESS CONCERNS OWNED AND CONTROLLED 
BY VETERANS TO FURNISH CERTAIN BONDS. 
(a) LIMITATION.—Subchapter II of chapter 81 of 
title 38, United States Code, is amended by adding at the 
end the following new section: 
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‘‘§ 8129. Small business concerns owned and con-
trolled by veterans: contractor bonds 
‘‘(a) BONDS
REQUIRED.—Notwithstanding sub-
chapter II of chapter 31 of title 40, in entering into a 
contract with a small business concern owned and con-
trolled by veterans for the construction, alteration, or re-
pair of any public building or public work of the Depart-
ment the Secretary— 
‘‘(1) may not require the concern to furnish a 
performance or payment bond in an amount that ex-
ceeds 50 percent of the amount of the contract; and 
‘‘(2) shall ensure that the concern does not re-
quire any subcontractor that is a small business con-
cern owned and controlled by veterans to furnish a 
performance or payment bond in an amount that ex-
ceeds 50 percent of the amount of the subcontract. 
‘‘(b) PAYMENT OF SUBCONTRACTOR BONDS.—In en-
tering into a contract described in subsection (a) with the 
Secretary, a prime contractor may furnish a performance 
or payment bond on behalf of a subcontractor that is a 
small business concern owned and controlled by veterans. 
‘‘(c) DEFINITION.—For purposes of this section, the 
term ‘small business concern owned and controlled by vet-
erans’ means a small business concern that is included in 
the small business database maintained by the Secretary 
under section 8127(f) of this title.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end of the items relating to such subchapter the 
following new item: 
‘‘8129. Small business concerns owned and controlled by veterans: contractor 
bonds.’’. 
SEC. 4. TREATMENT OF SMALL BUSINESS CONCERNS 
OWNED AND CONTROLLED BY VETERANS A 
SOCIALLY AND ECONOMICALLY DISADVAN-
TAGED. 
Section 8128 of such title is amended— 
(1) by redesignating subsection (b) as sub-
section (c); and 
(2) by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b) TREATMENT AS SOCIALLY AND ECONOMICALLY 
DISADVANTAGED.—The Secretary may evaluate a bid sub-
mitted by a small business concern owned and controlled 
by veterans and award a contract to such a concern on 
the same basis as the Administrator of the Small Business 
Administration may evaluate a bid submitted by a socially 
and economically disadvantaged small business concern 
and award a contract to such a concern under section 8(a) 
of the Small Business Act (15 U.S.C. 637(a)).’’. 
Æ 
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