The U.S. Senate is examining efforts to see that more veterans have a chance to become entrepreneurs — to open up businesses and create jobs. This means giving veterans the training, tools, and resources they need to start small businesses and ensure that they will be able to make ends meet.
The Senate Committee on Small Business and Entrepreneurship heard testimony this week from veterans about the challenges they face in starting their own small businesses and how the U.S. Small Business Administration (SBA) can help ease the transition from soldier to entrepreneur. The hearing, “From Military Service to Small Business Owner: Supporting America’s Veteran Entrepreneurs,†examined the effectiveness of SBA programs, and proposed legislation aimed at expanding and improving SBA programs.
There are about 2.8 million veterans from the wars in Iraq and Afghanistan. With continued withdrawal of U.S. forces from Afghanistan, the population of recently returning veterans will increase. Nationwide, 2.4 million veteran-owned businesses have generated more than $1 trillion in sales and support six million jobs. In Washington state alone, 48,000 veteran-owned small businesses have annual sales or receipts of more than $20 billion and support nearly 100,000 jobs.
During the hearing, SBA officials announced plans to begin running public service announcements about veterans’ entrepreneurship programs on the worldwide Armed Forces Network, which reaches U.S. military bases. Two of those public service announcements can be viewed here and here.
As more soldiers return home from active duty, providing the right tools to veteran entrepreneurs is key to helping them grow the economy and support their families. About 21.4 million veterans live in the United States. Veteran entrepreneurs returning from the battlefield face the same obstacles all small business owners face when starting and growing a business, plus additional challenges of transitioning back to civilian life. Cantwell stressed the need for both private sector and federal efforts to help veteran entrepreneurs.
Members of the Small Business Committee heard testimony from three veteran small business owners, including Trena Payton, the president of ABN Technologies in Lacey, Washington. After concluding her service in the military, Payton founded ABN in 2003 and has expanded her business to 12 employees.
ABN is a certified veteran, woman, and minority-owned company that provides IT support and project management. Payton started her business after receiving Small Business Administration counseling and using an SBA Express Loan and the 8(a) business development program. Last year, Payton was awarded the “On the Rise Government Contractor of the Year†award at the Summit for Success by American Express.
“When I started my business, I made good and bad decisions — like most startup businesses,†Payton told the committee on Wednesday. “However, most of the bad decisions I made were due in part to get piecemeal information that entrepreneurs get coupled with that soldier’s enthusiasm to
get things done. As my story reflects, federal programs for veterans have been critical to my company’s success. Small business programs, especially contracting programs, have leveled the playing field allowing veterans entrepreneurs to thrive.â€The committee also heard testimony on legislation aimed at improving SBA programs for veterans:
- The Veterans Entrepreneurship Act (S. 2143), which was introduced by Senator Jeanne Shaheen (D-NH), would permanently remove fees for SBA Express Loans under $350,000 for veterans. Of all SBA loans that go to veterans, 73% are $350,000 and below. Permanently removing these fees would make it cheaper to borrow and help get more small business loans get into the hands of veterans.
- The bipartisan VET Opportunities Act (S. 2396), introduced by Senator Mark Pryor (D-AR), Senator Mike Johanns (R-NE), Senator Mary Landrieu (D-LA), and Senator Lisa Murkowski (R-AK), would expand several entrepreneurial development initiatives targeted to veterans as they transition from military service to entrepreneurs. The legislation would authorize the Boots to Business, Women Veterans Igniting the Spirit of Entrepreneurship (V-WISE), and Entrepreneurship Bootcamp for Veterans with Disabilities (EBV) initiatives into law for five years, as well as double the number of Veterans Business Outreach Centers (VBOC) across the country.
SBA-administered programs have helped more than 800,000 veteran entrepreneurs since 2007. These programs include:
- SBA Patriot Express 7(a) Loans: low-interest loans targeted specifically to veteran small business owners.
- Boots to Business: public-private partnership to teach transitioning service members how to start a business.
- Women Veterans Igniting the Spirit of Entrepreneurship: comprehensive entrepreneurial training program designed for women veterans.
- Entrepreneurship Bootcamp for Veterans with Disabilities: specific training and business counseling for service-disabled veterans.
- Service-Disabled Veteran-Owned Small Business Procurement: sets aside federal contracts for competition only among service-disabled veteran-owned small businesses.
- Veterans Business Outreach Centers: counseling, training, and mentoring programs for veteran small business owners.