I 
112TH CONGRESS 
2D SESSION 
H. R. 5835 
To amend the Small Business Act and the Small Business Investment Act 
of 1958 to provide for additional loan programs for veteran-owned small 
businesses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 18, 2012 
Mr. BOSWELL introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To amend the Small Business Act and the Small Business 
Investment Act of 1958 to provide for additional loan 
programs for veteran-owned small 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 Access to 
Capital Act of 2012’’. 
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SEC. 2. LOAN PROGRAM FOR VETERANS FOR CERTAIN 
PROJECTS. 
Section 502 of the Small Business Investment Act 
of 1958 (15 U.S.C. 696) is amended— 
(1) in the matter preceding paragraph (1) by 
striking ‘‘The Administration’’ and inserting ‘‘(a) IN 
GENERAL.—The Administration’’; and 
(2) by adding at the end the following: 
‘‘(b) LOAN PROGRAM FOR VETERANS.— 
‘‘(1) LOAN
PROGRAM.—From amounts made 
available under subsection (a), the Administrator of 
the Small Business Administration may make loans 
each fiscal year, totalling not more than 20 percent 
of such amounts, directly to small business concerns 
owned and controlled by veterans (as such term is 
defined in section 3(q)(3) of the Small Business Act 
(15 U.S.C. 632(q)(3)). 
‘‘(2) TERMS AND CONDITIONS.—The Adminis-
trator may make loans under this subsection only in 
accordance with the following: 
‘‘(A) USE OF FUNDS.—The proceeds of the 
loan shall be used only for a project with a 
sound business purpose approved by the Admin-
istration. 
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‘‘(B) MAXIMUM AMOUNT.—Loans made by 
the Administration under this subsection shall 
be limited to— 
‘‘(i) $5,000,000, if the loan proceeds 
will not be directed toward a goal or 
project described in clause (ii), (iii), (iv), or 
(v); 
‘‘(ii) $5,000,000, if the loan proceeds 
will be directed toward 1 or more of the 
public policy goals described under section 
501(d)(3); 
‘‘(iii) $5,500,000 for each project of a 
small manufacturer; 
‘‘(iv) $5,500,000 for each project that 
reduces the borrower’s energy consumption 
by at least 10 percent; and 
‘‘(v) $5,500,000 for each project that 
generates renewable energy or renewable 
fuels, such as biodiesel or ethanol produc-
tion. 
‘‘(C) FUNDING BY THE SMALL BUSINESS 
CONCERN.—The small business concern (or its 
owners, stockholders, or affiliates) shall pro-
vide— 
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‘‘(i) at least 15 percent of the total 
cost of the project financed, if the small 
business concern has been in operation for 
a period of 2 years or less; 
‘‘(ii) at least 15 percent of the total 
cost of the project financed if the project 
involves the construction of a limited or 
single purpose building or structure; 
‘‘(iii) at least 20 percent of the total 
cost of the project financed if the project 
involves both of the conditions set forth in 
clauses (i) and (ii); or 
‘‘(iv) at least 10 percent of the total 
cost of the project financed, in all other 
circumstances, at the discretion of the Ad-
ministrator. 
‘‘(D) 
COLLATERALIZATION.—Collateral 
provided by the small business concern shall be 
so provided in accordance with the requirements 
of subsection (a)(3)(E). 
‘‘(E) ADDITIONAL
REQUIREMENTS.—The 
small business concern shall comply with the re-
quirements of paragraphs (4), (5), (6), and (7) 
of subsection (a), except that— 
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‘‘(i) for purposes of subparagraph 
(C)(i)(I) of such paragraph (7), the term 
‘borrower’ means a small business concern 
that submits an application to the Admin-
istrator under this subsection; and 
‘‘(ii) clauses (iii) through (vi) of such 
paragraph (7)(C) shall not apply in the 
case of that small business concern. 
‘‘(3) DEFINITION.—As used in this subsection, 
the term ‘small manufacturer’ means a small busi-
ness concern— 
‘‘(A) the primary business of which is clas-
sified in sector 31, 32, or 33 of the North 
American Industrial Classification System; and 
‘‘(B) all of the production facilities of 
which are located in the United States.’’. 
SEC. 3. LOAN PROGRAM FOR VETERANS. 
Section 7(a) of the Small Business Act is amended 
by adding at the end the following: 
‘‘(36) LOAN
PROGRAM
FOR
VETERANS.—Not 
more than 20 percent of loans made under this sub-
section in a fiscal year may be loans under this 
paragraph. The Administrator may make loans each 
fiscal year to small business concerns owned and 
controlled by veterans (as such term is defined in 
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section 3(q)(3)) in the same manner as loans other-
wise made under this subsection, except that such 
loans may only be made directly by the Adminis-
trator to the small business concern.’’. 
SEC. 4. VETERAN CREDIT SCORE RELIEF. 
(a) SMALL BUSINESS ACT.—The Small Business Act 
(15 U.S.C. 631 et seq.) is amended by redesignating sec-
tion 45 as section 46 and inserting after section 44 the 
following: 
‘‘SEC. 45. VETERAN CREDIT SCORE RELIEF. 
‘‘For purposes of loans or loan guarantees under this 
Act to small business concerns owned and controlled by 
veterans or to small business concerns owned and con-
trolled by service-disabled veterans, if a veteran has com-
plied with such conditions as the Administrator may by 
rule require, the Administrator shall reduce any applicable 
requirement relating to a veteran’s credit score. No de-
crease in credit score attributable to a violation of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 501 et 
seq.) shall apply.’’. 
(b) SMALL BUSINESS INVESTMENT ACT OF 1958.— 
Title I of the Small Business Investment Act of 1958 (15 
U.S.C. 661 et seq.) is amended by inserting after section 
103 the following: 
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