SBA Veterans' Programs Act of 2007

Mr. Speaker, I rise in reluctant opposition to the SBA Entrepreneurial Development Programs Act of 2007. I am a strong supporter of Small Business Development Centers (SBDCs). These centers continue to do a lot of good work to promote job creation and small business development throughout our nation. There are three SBDCs that serve constituents in the 16th District of Illinois and they do phenomenal work in oftentimes a difficult local economic climate with limited resources. But I fear that the various SBDC bills we debate this week may kill the program with kindness.

The bills all taken together proposes to create nine new grant initiatives within the SBDC program. According to the non-partisan Congressional Budget Office (CBO), the bills would add $122 million in additional spending in Fiscal Year 2008 alone and $365 million over the next five fiscal years. When you consider that the Democrat-controlled House Appropriations Financial Services Subcommittee recently provided a generous increase of $11 million for the regular SBDC program to reach $100 million for Fiscal Year 2008, these bills taken together proposes to more than double the size of the SBDC program. In an era of tight budgets, I don't think any program deserves a 122 percent increase.

I am sympathetic to many of these initiatives. I am particularly supportive of making sure that Small Business Administration (SBA) employees do not interfere in hiring decisions of local SBDCs. I also support provisions in Section 207 to require more information, primarily through Internet Web-based technologies, about regulatory compliance to small business owners.

But there are still significant outstanding budgetary issues. Throughout my tenure as the former Chairman of the House Small Business Committee, I tried numerous times to see the National Regulatory Assistance and the Native American Entrepreneurial Assistance SBDC initiatives, among others, become law. Last year, we reached a common- sense consensus that in order to get these new initiatives into law, the high $135 million authorization level for the overall SBDC program should be proportionally reduced. However, that consensus is not in these bills that we are debating this week. I find it odd that the ``pay-go'' fiscal conservative rhetoric of the Democrats is not met by reality. There are no spending offsets in these bills.

Some of these initiatives also are duplicative of existing Federal programs. For example, the Manufacturing Extension Partnership (MEP) program administered by the Department of Commerce through local centers across the nation offers the very same services that are outlined in Section 203 of H.R. 2359. The National Veterans Business Development Corporation (or Vets Corp) offers the same services as those being proposed in H.R. 2366.

I also have concern that some of the provisions in H.R. 2359 go beyond the mission of SBDCs, which historically has been primarily targeted at helping new or struggling small businesses. For example, Section 206 requires that SBDC grant recipients ``shall also attempt to negotiate lower health insurance premiums for small business concerns that seek the assistance of the recipient.'' In my view, it is not the role of SBDCs to get involved in the pricing health insurance premiums. Section 204 of H.R. 2359 establishes a new program to help transition so-called ``mature'' small businesses even though there is no definition of what the authors of this legislation mean by ``transition'' or ``mature'' small business. Again, I don't think it is the role of SBDCs to be involved in initiatives that could result in the closure of small businesses.

I also fear that creating these nine new initiatives all at once will give false hope to SBDCs seeking to receive these grants. These initiatives will not start until a specific amount separate from the regular SBDC appropriation is allocated from the Appropriations Committee. In principle, this is a good policy to help insure that the money to run the regular SBDC program is not raided to fund these new initiatives. However, noting that the Democrat-controlled House Appropriations Financial Services Subcommittee just provided a long- overdue increase for the regular SBDC program, I seriously doubt that any of these specific SBDC initiatives will be funded at a significant level in the near future, further diminishing the expectations behind this legislation.

Finally, these nine new initiatives create many hoops for local SBDCs to jump through in order to qualify for these grants. These bills will create a paperwork and accounting nightmare for SBDCs to keep track of various grants, particularly if they apply and receive multiple awards under different initiatives, for the programs they administer. In retrospect, it is probably best that Congress provides an overall increase in the appropriation for the regular SBDC program and then require that all SBDCs provide some services (even if it is to network with another specialized SBDC or another Federal partner such as a local MEP center or the Vets Corp) in the nine issue areas outlined in H.R. 2359, H.R. 2366, and H.R. 2284 as opposed to the micro-management approach as contained in these bills.

Mr. Speaker, last year, I predicted that if Democrats took over control of Congress, spending on the Small Business Administration (SBA) would dramatically increase. Never in my wildest dreams did I think they would be so brazen. Elections do matter. Thus far this year, the CBO estimates that the Democrat-controlled House Small Business Committee has authorized $5.4 billion in new spending over the next 5 years--$1.379 billion in fiscal year 2008 alone. With these bills on the suspension calendar this week, proposed spending on the SBA will grow once again. All totaled, the CBO estimates that spending on the SBA will increase by nearly $5.8 billion over 4 years and $1.525 billion in fiscal year 2008 alone. To put this massive spending increase in perspective, the House Appropriations Financial Services Subcommittee recommends providing $582 million in total spending on the SBA in fiscal year 2008. I urge my colleagues to stand up for fiscal responsibility and to prevent mission-creep within the SBDC network by voting against these bills.

Mr. Speaker, I yield myself such time as I may consume.

Today, Mr. Speaker, I rise in support of the request to suspend the rules and pass H.R. 2366, the SBA Veterans Programs Act of 2007. I would like to thank Chairwoman Velazquez for working in a cooperative, bipartisan manner to bring this bill, authored by Mr. Buchanan, a freshman member of the committee, to the House floor.

No one can debate the sacrifice that America's veterans have made and continue to make in defense of our country. While the repayment of that debt may never occur, we can certainly provide them with the needed assistance to prosper in civilian life. H.R. 2366 is a modest contribution to repaying the debt and helping them make a smooth transition into civilian life.

The bill recognizes that veterans learn a variety of critical skills. Recruitment advertisements for the armed services highlight the various technical skills that they can obtain through the military. These skills clearly are valued in civilian companies. In addition, the military inculcates its members with other important skills such as leadership, decision-

making, teamwork, and the drive to win. All of these are critical to success as a small business owner.

The military does not teach its members how to take these skills and transfer them to starting a business. They require additional training to understand the key components of operating their own business without first having to serve a sort of ``apprenticeship'' working with others.

In 1999 Congress recognized that more services should be directed to help the 25 million veterans start and grow their small businesses. Those efforts succeeded because a number of small businesses owned by veterans have grown to 14 percent of all small businesses.

Despite this success more must be done to assist our veterans in the startup and operation of their businesses. Outreach must improve to ensure that veterans wishing to start their own businesses will have the training and advice needed to transfer their skills to entrepreneurship.

The technical advice and assistance are not limited to veterans leaving the service. Reservists who operate their own small businesses have their own unique set of operational problems associated with their call-up to duty. They may not know how long their call-up will last, and they may need assistance in ensuring that they have in place a plan to operate their businesses while they are on Active Duty.

H.R. 2366 represents an effort to expand the focus of the SBA entrepreneurial assistance programs to our veterans. Of most significant importance is the need to create more Veteran Business Outreach Centers. These centers operate as cooperative agreements between the Small Business Administration and the non-profit entities. These centers provide entrepreneurial development services, such as business training, counseling, mentoring and referrals. They also conduct entrepreneurial business development workshops focusing on self-development and self-employment. Counseling services may range from development of business plans to identifying government procurement opportunities.

There are only four Veteran Business Outreach Centers. To serve our military men and women, more are obviously needed, and title III requires the establishment of two more centers in each of the next two fiscal years.

Another important element of the bill is the recognition of the changing nature of the military with a greater involvement of women. Title I of the bill requires the administrator to establish within the Office of Veterans Business Development a program to provide assistance to women veterans. Given the rapid expansion and success of women-owned businesses, it makes sense to ensure that the needs of women veterans are met when they seek to start and operate small businesses.

Our fighting men and women are the best in the world. Let us help them become the best entrepreneurs in the world by enacting H.R. 2366.

With that, Mr. Speaker, I reserve the balance of my time.

I would like to yield to the gentleman from Florida (Mr. Buchanan) as much time as he may consume.

Mr. Speaker, I rise in support of H.R. 2366, the SBA Veterans' Programs Act of 2007. This legislation will assist our soldiers when they return home with opportunities and information about starting a small business.

More than a million and a half men and women have answered the call to serve their country since 2001. They interrupted their careers, put their families economic security at risk, and face big personal challenges upon returning home.

I recently visited Iraq and Afghanistan. That trip gave me an even greater appreciation for the significant sacrifices our soldiers must make and must cope with for the rest of their lives. If our soldiers faced mortal danger every day abroad, let us help them have economic security when they return home.

It isn't just the veteran who makes the sacrifice, their families do as well: their parents, their spouses, their children, girlfriends and boyfriends and siblings. They give up so much in defense of our country.

It is our job, as Members of Congress, to make sure that our Nation lives up to its commitment to our veterans. It is a simple pact we have made with our troops--and one we are obligated to fulfill: after they have sacrificed to serve our country on the battlefield, we must do all we can to serve them here at home. The cost of any war must include caring for the warrior.

This legislation helps our veterans get started with business opportunities in their communities. It does so by providing grants, information services, and personal assistance to help veterans evaluate business opportunities; increasing the number of veteran business outreach centers around the country, and encouraging further assistance to women veterans.

Countless soldiers are returning from their tours of duty with new confidence and skills developed during their time in the military. This SBA program will help to ensure that those new abilities are put to good use when they return to civilian life.

This bill because it is the right thing to do for those who have given so much but also because it will directly impact Vermont and every state around the country. Ninety-seven percent of all Vermont firms are small businesses. My office has been involved in helping the Vermont Small Business Development Centers (SBDC) run business readiness classes for veterans. The Vermont SBDC is the primary small business assistance resource sought out by small business clients, lenders, government agencies and other economic development partners. The Vermont SBDC is the keystone in a statewide business assistance infrastructure tying together all appropriate resources and serving as a ``one-stop'' gateway and clearinghouse to serve small businesses' '' needs. Drawing on collaborative relationships among service providers, Vermont SBDC leverages economic development resources of all kinds for advancement of small businesses, growing the local economy.

Roughly 6 percent of deployed soldiers have small businesses depending on them. Veterans face a number of unique challenges, from increasing lengths and number of deployments overseas, to translating their military experience into business ventures. Yet, there is a lack of substantive programs to help these businesses survive through deployment, and to assist veterans returning home. This program is designed to meet current, real-time needs of people on active duty in business who now need to leave for protracted periods, or for those who have just come back and really ``need'' to do something new with their lives.

I urge all of my colleagues to support H.R. 2366.

Mr. Speaker, I rise in support of H.R. 2366, the SBA Veterans' Programs Act of 2007. This legislation will assist our soldiers when then return home with opportunities and information about starting a small business.

More than a million and a half (1,502,125) men and women have answered the call to serve their country since 2001. They interrupted their careers, put their families economic security at risk, and face big personal challenges upon returning home.

I recently visited Iraq and Afghanistan. That trip gave me an even greater appreciation for the significant sacrifices our soldiers must make and must cope with for the rest of their lives. If our soldiers faced mortal danger every day abroad, let us help them have economic security when they return home.

It isn't just the veteran who makes the sacrifice, their families do as well: their parents, their spouses, their children, girlfriends and boyfriends and siblings. They give up so much in defense of our country.

It is our job, as Members of Congress, to make sure that our Nation lives up to its commitment to our veterans. It is a simple pact we have made with our troops--and one we are obligated to fulfill: after they have sacrificed to serve our country on the battlefield, we must do all we can to serve them here at home. The cost of any war must include caring for the warrior.

This legislation helps our veterans get started with business opportunities in their communities. It does so by providing grants, information services, and personal assistance to help veterans evaluate business opportunities; increasing the number of veteran business outreach centers around the country, and encouraging further assistance to women veterans.

Countless soldiers are returning from their tours of duty with new confidence and skills developed during their time in the military. This SBA program will help to ensure that those new abilities are put to good use when they return to civilian life.

This bill is the right thing to do for those who have given so much and it will directly impact Vermont and every State around the country. 97 percent of all Vermont firms are small businesses. My office has been involved in helping the Vermont Small Business Development Centers (SBDC) run business readiness classes for veterans. The Vermont SBDC is the primary small business assistance resource sought out by small business clients, lenders, government agencies and other economic development partners. The Vermont SBDC is the keystone in a statewide business assistance infrastructure tying together all appropriate resources and serving as a ``one-stop'' gateway and clearing house to serve small businesses' needs. Drawing on collaborative relationships among service providers, Vermont SBDC leverages economic development resources of all kinds for advancement of small businesses, growing the local economy.

Roughly 6 percent of deployed soldiers have small businesses depending on them. Veterans face a number of unique challenges, from increasing lengths and number of deployments overseas, to translating their military experience into business ventures. Yet, there is a lack of substantive programs to help these businesses survive through deployment, and to assist veterans returning home. This program is designed to meet current, real-time needs of people on active duty in business who now need to leave for protracted periods, or for those who have just come back and really ``need'' to do something new with their lives.

I urge all of my colleagues to support H.R. 2366.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2366) to reauthorize the veterans entreprenurial development programs of the Small Business Administration, and for other purposes.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days to revise and extend their remarks and include extraneous material on the bill under consideration.

Mr. Speaker, I yield myself such time as I may consume.

There is no question our Nation's veterans have made great sacrifices for this country. Many traveled long distances, spent lengthy amounts of time away from their families, and have been in harm's way to ensure our safety.

To date, more than 135,000 troops have come home from Iraq and Afghanistan. These men and women are increasingly turning toward small business ownership. Congressman Buchanan's legislation, the Small Business Administration Veterans Programs Act of 2007, ensures that service men and women will not only have the opportunity to pursue entrepreneurship but to succeed at starting their own firms.

While many have the American dream of owning a business, veterans face unique challenges when working to start or maintain their firms. For this sector of the population to be successful in their small business endeavors, there needs to be assistance available in local communities. They cannot be expected to return home knowing all of the necessary and available tools to start a business. Outreach efforts to these aspiring entrepreneurs need to be increased and information must be accessible. The Small Business Administration Veterans Programs Act of 2007 makes these resources available.

Service men and women contributing to economic growth is not a new trend. After World War II, the GI bill provided the opportunity of a college education to this Nation's veterans. By 1956 there were 7.8 million World War II veterans that had participated in an education or training program. The impact that that single piece of legislation had on this Nation's economy was great.

Much like ensuring the right to a college education, as the GI bill did, H.R. 2366 expands business ownership. It provides specific assistance for aspiring business owners. Starting a business after leaving military service provides an opportunity for returning veterans to not only begin a new career but to secure their livelihood. Enabling this to be a viable option for some of the most dedicated individuals in our country spurs economic development in local economies, demonstrates our commitment to their aspirations of entrepreneurship, and represents true patriotism.

I strongly urge support of this legislation.

Mr. Speaker, I reserve the balance of my time.

Mr. Chairman, I yield 1 minute to the gentleman from Georgia (Mr. Johnson), a member of the Small Business Committee.

Mr. Speaker, I ask unanimous consent to withdraw the motion.