Post-9/11 Veteran Business Acceleration Act
Bill: H.R.8660 | Sponsor: Rep. Donalds, Byron (R-FL)
Policy area: Armed Forces and National Security

Summary:
Post-9/11 Veteran Business Acceleration Act
This bill requires the Department of Veterans Affairs to collaborate with the Small Business Administration to implement a pilot program to provide financial assistance (in lieu of educational assistance) to eligible individuals under the Post-9/11 Educational Assistance Program for the purpose of (1) establishing and operating a new qualified business enterprise, or (2) operating an existing qualified business enterprise. Eligible individuals are those who (1) are entitled to 36 months of educational assistance under the Post-9/11 Educational Assistance Program, (2) are not in bankruptcy proceedings at the time of application, and (3) meet credit score requirements.

To amend title 38, United States Code, to establish a pilot program 
    under which eligible individuals may elect to receive financial 
   assistance in lieu of educational assistance under the Post-9/11 
  Educational Assistance Program to establish and operate a qualified 
              business enterprise, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Post-9/11 Veteran Business 
Acceleration Act''.

SEC. 2. PILOT PROGRAM TO ALLOW ELIGIBLE INDIVIDUALS TO ELECT TO RECEIVE 
              FINANCIAL ASSISTANCE IN LIEU OF POST-9/11 EDUCATIONAL 
              ASSISTANCE TO ESTABLISH AND OPERATE A QUALIFIED BUSINESS 
              ENTERPRISE.

    (a) Establishment of Pilot Program.--Subchapter III of chapter 33 
of title 38, United States Code, is amended by adding at the end the 
following new section:
``Sec. 3328. Pilot program to allow election to receive financial 
              assistance to establish and operate a small business
    ``(a) Establishment.--(1) Not later than January 1, 2023, the 
Secretary, in collaboration with the Administrator of the Small 
Business Administration, shall establish a pilot program under which an 
eligible individual may elect to receive financial assistance, in lieu 
of educational assistance under this chapter, for a three-year period--
            ``(A) to establish and operate a new qualified business 
        enterprise; or
            ``(B) to operate an existing qualified business enterprise.
    ``(2) For purposes of paragraph (1), an eligible individual is an 
individual who--
            ``(A) is entitled to 36 months of educational assistance 
        under this chapter;
            ``(B) is not in bankruptcy proceedings at the time of 
        application; and
            ``(C) has a credit score equal to or greater than the 
        minimum credit score required by the Administrator to receive a 
        loan under section 7(a) of the Small Business Act (15 U.S.C. 
        636(a)).
    ``(b) Application Process.--The Secretary shall establish an 
application process to select individuals to participate in the pilot 
program.
    ``(c) Allowable Expenses.--An individual may use financial 
assistance under the pilot program for the following expenses in 
connection with the establishment or operation of a qualified business 
enterprise:
            ``(1) Payment of a mortgage or lease with respect to 
        property used regularly and exclusively to operate the 
        qualified business enterprise.
            ``(2) Utilities, phone, and computer expenses.
            ``(3) Equipment, furniture, and machinery.
            ``(4) Vehicles and travel expenses.
            ``(5) Property maintenance costs.
            ``(6) Insurance.
            ``(7) Wages, salaries, payroll taxes, and benefits.
            ``(8) Supplies and other office expenses.
            ``(9) Professional fees, including legal and accounting 
        services.
            ``(10) Advertising and marketing costs.
            ``(11) Such other expenses as the Secretary determines 
        appropriate.
    ``(d) Amount and Payment of Financial Assistance.--(1) The 
Secretary shall make available to an individual under the pilot program 
financial assistance in the following amounts:
            ``(A) In the first year of the pilot program, an amount 
        equal to the sum of--
                    ``(i) $20,000; and
                    ``(ii) the monthly amount of the basic allowance 
                for housing payable under section 403 of title 37 for a 
                member with dependents in pay grade E-5 residing in the 
                military housing area that encompasses all or the 
                majority portion of the ZIP Code area in which is 
                located the primary residence of the individual, 
                multiplied by 12.
            ``(B) In the second year of the pilot program, $20,000.
            ``(C) In the third year of the pilot program, $20,000.
    ``(2) The Secretary shall make payments under this section as 
follows:
            ``(A) In the first year of the pilot program, and as 
        requested by an individual under the program--
                    ``(i) for--
                            ``(I) the first month, in a lump sum equal 
                        to 60 percent of the total amount under 
                        subsection (d)(1)(A); and
                            ``(II) each subsequent month, in an amount 
                        equal to 40 percent of the total amount under 
                        such subsection divided by 11; or
                    ``(ii) on a monthly basis.
            ``(B) In the second and third year of the pilot program, on 
        a monthly basis.
    ``(e) Expenditure Reporting and Tracking System.--The Secretary, in 
collaboration with the Administrator, shall establish and operate a 
secure electronic reporting system through which--
            ``(1) an individual participating in the pilot program may 
        report--
                    ``(A) expenditures of a qualified business 
                enterprise established or operated under the pilot 
                program; and
                    ``(B) such other information as the Secretary may 
                require; and
            ``(2) the Secretary may track expenditures and other 
        information reported under paragraph (1).
    ``(f) Review of Expenditures; Improper Use of Funds.--The Secretary 
shall--
            ``(1) at least once every two months, review the system 
        established under subsection (e) to determine whether an 
        individual participating in the pilot program is using 
        financial assistance under the pilot program for allowable 
        expenses described in subsection (c); and
            ``(2) require an individual who uses financial assistance 
        for a nonallowable expense to remit to the Secretary an amount 
        equal to the amount used for the nonallowable expense.
    ``(g) Combination of Benefits.--The Secretary may allow multiple 
individuals to use financial assistance under the pilot program to 
establish or operate a single qualified business enterprise.
    ``(h) Training.--The Secretary, in collaboration with the 
Administrator, shall provide training to individuals participating in 
the pilot program with respect to the establishment and operation of a 
business, including how to avoid becoming a victim of predatory 
lending.
    ``(i) Withdrawal From Pilot Program.--(1) An individual, upon 
notice to the Secretary, may withdraw from participation in the pilot 
program at any time prior to the completion of the three-year period of 
the program.
    ``(2) In the event that an individual withdraws from the pilot 
program under paragraph (1), the Secretary shall--
            ``(A) determine the remaining educational assistance to 
        which the individual is entitled under this chapter; and
            ``(B) allow the individual to use such remaining 
        educational assistance in accordance with this chapter.
    ``(j) Duration.--The Secretary shall carry out the pilot program 
for a period of seven years.
    ``(k) Qualified Business Enterprise Defined.--In this section, the 
term `qualified business enterprise' means a business enterprise 
engaged in lawful activities under--
            ``(1) Federal law; or
            ``(2) the law of the State in which the business enterprise 
        is located.''.
    (b) Conforming Amendment.--Section 3301 of such title is amended by 
adding at the end the following new paragraph:
            ``(5) The term `educational assistance under this chapter' 
        does not include financial assistance under section 3328.''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 33 of such title is amended by inserting after the item 
relating to section 3327 the following new item:

``3328. Pilot program to allow election to receive financial assistance 
                            to establish and operate a small 
                            business.''.
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