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house Bill H.R. 2499

Should SBA Loan Fees Be Eliminated for Veterans?

Argument in favor

Prohibiting the SBA from charging a loan guarantee fee for veteran entrepreneurs will help more veterans and their families start businesses, hire employees, and boost the economy.

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07/12/2015
This provided an excellent incentive for service members to create a start-up, be employed in a start-up, and for their families to do the same. Keep in mind that many service members, once they return from active duty, return home with no help from the government they served, and often end up either at a subsistence waged job, or are unemployed. Hardly a patriotic way to honor those who would die for our freedom.
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Brian's Opinion
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07/14/2015
I think they deserve it. They put their lives on the line for us. They are usually forgotten by our government after they are discharged that this is the least as we can do for them
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saitias's Opinion
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07/14/2015
They're veterans! Let's cut them slack where we can afford it as a nation
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Argument opposed

Its unfair to non-veteran business owners to give entrepreneurs who have served in the military a SBA Express loan without a guarantee fee.

V's Opinion
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07/14/2015
This is an unnecessary benefit. Veterans can take the same risks as anyone to own a business. If the guarantee fee does not amount to any cost to the taxpayers, it should be waived for everyone. If it is a cost, every business owner should be prepared to pay. People who cannot stomach the risk should not take it.
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Steven's Opinion
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07/14/2015
This creates an unleveled playing field for entrepreneurs. Veterans need help, but an unfair advantage isn't going to help the small business economy.
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Philip's Opinion
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07/14/2015
Vets need a lot of help. How does cutting off business loans help them?
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What is House Bill H.R. 2499?

In an effort to support veterans and their families, this bill would exempt vets and their spouses from guarantee fees when they take out a loan from the Small Business Administration's (SBA) Express Program — permanently

The SBA Express loan program provides loans of up to $350,000 to business owners, and the maximum SBA guarantee (which would be waived for veteran applicants) can be as high as 50 percent of the loan’s value.

Under current law, the SBA waives the guarantee fee on certain loans to veterans, military reservists, and their spouses that operate small businesses as a pilot program. This bill would would make that pilot program permanent.


The Administrator of the SBA would also have to send three reports to Congress
 on:

  • The feasibility of offering financial planning and counseling to owners of small businesses who are reservists in the military prior to deployment.

  • The level of outreach to and consultation with female veterans by women’s business centers and veterans business outreach centers.

  • The Military Reservists Economic Injury Disaster Loan Program, which would include a discussion of SBA outreach efforts to increase participation, the number of loans made, and an analysis of the effectiveness of the Program and recommendations for its improvement.

Impact

Veterans and their spouses looking for a SBA loan to starting their business or for planning and counseling services before deployment, the SBA, the Administrator of the SBA, and Congress.

Cost of House Bill H.R. 2499

$0.00
A CBO cost estimate found that implementing this bill and making the fee waivers permanent would not have an impact on discretionary costs or direct federal spending.

More Information

In-Depth: According to a 2007 estimate, there are more than 2.4 million U.S. businesses owned by veterans — making up about 9 percent of all American companies — which had $1.2 trillion in sales and employed nearly 5.8 million people.

Of Note: The most recent data from the Bureau of Labor Statistics shows that while the unemployment rate for all veterans age 18 years and older was 4.9 percent in March 2015, the unemployment rate for veterans who served in the military after September 2001 was worse — 6.5 percent.

In addition to services provided to veterans by the SBA, the Department of Veterans Affairs has its own Veteran Entrepreneur Portal, offering tools and resources to veterans who start their own business.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user paulswansen)

AKA

Veterans Entrepreneurship Act of 2015

Official Title

To amend the Small Business Act to increase access to capital for veteran entrepreneurs, to help create jobs, and for other purposes.

bill Progress


  • EnactedJuly 28th, 2015
    The President signed this bill into law
  • The senate Passed July 23rd, 2015
    Passed by Voice Vote
  • The house Passed July 13th, 2015
    Roll Call Vote 410 Yea / 1 Nay
      house Committees
      Committee on Small Business
    IntroducedMay 21st, 2015

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    This provided an excellent incentive for service members to create a start-up, be employed in a start-up, and for their families to do the same. Keep in mind that many service members, once they return from active duty, return home with no help from the government they served, and often end up either at a subsistence waged job, or are unemployed. Hardly a patriotic way to honor those who would die for our freedom.
    Like (4)
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    They're veterans! Let's cut them slack where we can afford it as a nation
    Like (2)
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    This is an unnecessary benefit. Veterans can take the same risks as anyone to own a business. If the guarantee fee does not amount to any cost to the taxpayers, it should be waived for everyone. If it is a cost, every business owner should be prepared to pay. People who cannot stomach the risk should not take it.
    Like (2)
    Follow
    Share
    I think they deserve it. They put their lives on the line for us. They are usually forgotten by our government after they are discharged that this is the least as we can do for them
    Like (2)
    Follow
    Share
    This creates an unleveled playing field for entrepreneurs. Veterans need help, but an unfair advantage isn't going to help the small business economy.
    Like (1)
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    Share
    Vets need a lot of help. How does cutting off business loans help them?
    Like (1)
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    Stop Spoiling This Class Of Citizens With Communist Socialist Benefits.
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    I respect the Men And Women in Uniform, but when there job is over IE:Four years whatever you should have to pay your way! Just like the state workers of any state, and if we continue to take care of these people after four years of service we will be just like Greece in a short matter of time! What job can you have anywhere in the world and when you leave they continue to pay your healthcare?
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    Veterans do a great deal for this nation and DESERVE better treatment.
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    I have nothing against vets, but why should they get preferential treatments? Make them
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    Veterans fought under oath to defend the constitution and secure a free state. Why give the government a tyrannical control of ANY AREA of the free market system. Veterans fought for America's Freedom FROM Tyranny, NOT to defend or condone Tyranny.
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    REDUCED!!!
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    Why would anyone think of taking away any benefits to Veterrans.
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    Eliminate the fees for everyone if you want to get rid of them. Don't play favorites.
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    No. If the risk ratio requires a fee to insure the loan, then Vets must pay it like everyone else. We the tax payer must not be on the hook should a Vet run business fail...
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    We have so dishonored our veterans of the endless Bush-initiated wars, it seems like the least we can do. Especially if we aren't willing to step up for healthcare, suicide prevention or housing! Stop dithering and DO IT!!
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    Eliminate SBA
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    Really depend upon their income
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    Grow the economy.
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    It's not unfair. Those who served, even never seeing combat nor having been deployed, gave up anywhere from 3-20 or more years of their lives, to protect & serve the people of this country. IMO, they do not receive enough benefits for their service.
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