The Veterans Entrepreneurship Act would waive the upfront guarantee fee required for a Small Business Administration express loan for veterans or their spouses. Normally this fee is required from the borrower and scales increasingly with the size of the loan. The bill would remove any obligation for a veteran or their spouse to pay this fee. The bill was referred to the House Committee on Small Business, which released this press release upon the introduction of the bill in late May. The committee chairman, Rep. Steve Chabot (R-OH1), is the sponsor of the bill. It was passed in the House by an almost unanimous vote of 410-1. The bill has moved on to the Senate.
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Jul 29, 2015.
(This measure has not been amended since it was passed by the Senate on July 23, 2015. The summary of that version is repeated here.)
Veterans Entrepreneurship Act of 2015
(Sec. 2) Amends the Small Business Act to prohibit the Small Business Administration (SBA) from collecting a guarantee fee in connection with a loan made under the SBA Express Program to a veteran or the spouse of a veteran on or after October 1, 2015, except during any upcoming fiscal year for which the President's budget, submitted to Congress, includes a cost for the Program that is above zero.
(Sec. 3) Requires the SBA to assess for Congress the level of outreach to and consultation with female veterans regarding access to capital by women's business centers and Veterans Business Outreach Centers.
(Sec. 4) Amends the Consolidated and Further Continuing Appropriations Act, 2015 to increase the limit from $18.75 billion to $23.5 billion for FY2015 commitments for general business loans for a combination of amortizing term loans and the aggregated maximum line of credit provided by revolving loans.
Amends the Small Business Act to prohibit the SBA, starting October 1, 2015, from guaranteeing a loan if:
the lender determines that the borrower is unable to obtain credit elsewhere solely because the lender's liquidity depends upon the guaranteed portion of the loan being sold on the secondary market, or the sole purpose for requesting the guarantee is to allow the lender to exceed its legal lending limit.