Service-Disabled Veterans Small Business Continuation Act

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5044) to amend title 38, United States Code, to clarify the treatment of certain surviving spouses under the contracting goals and preferences of the Department of Veterans Affairs.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on H.R. 5044.

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

Mr. Speaker, I rise today in support of H.R. 5044, Service-Disabled Veterans Small Business Continuation Act.

Current law authorizes a special set-aside program at the Department of Veterans Affairs for veteran-owned small businesses and Service Disabled Veteran Owned Small Businesses called Vets First Program. This program has been highly successful in providing VOSBs and SDVOSBs more opportunities, so much so that VA spent almost 20 percent of all contracting dollars with these firms in 2017.

While we should all laud the success of the program, there has been concern that current law did not appropriately address concerns of what happens to awards and contracts of VOSB and SDVOSB when the veteran owner dies.

The sudden death of a veteran could bring significant upheaval for a small business as they lose their VA contracts, which can impact not only the veteran's family, but employees as well.

H.R. 5044 would clarify and authorize the spouses of veterans who died with less than a 100-percent disability rating to maintain VOSB and SDVOSB status for up to 3 years following the veteran's death.

I believe this change to current law is an appropriate way to continue the success of the Vets First Program without hurting other veteran firms.

Mr. Speaker, I thank my colleague, Chairman Chabot, for introducing this bill, I urge my colleagues to support H.R. 5044, and I reserve the balance of my time.

Mr. Speaker, I yield 3 minutes to the gentleman from Ohio (Mr. Chabot). This is his piece of legislation. I appreciate him being here on the floor today.

Mr. Speaker, I encourage all Members to support H.R. 5044, and I yield back the balance of my time.

Mr. Speaker, I rise in strong support of H.R. 5044, the Service-Disabled Veterans Small Business Continuation Act.

H.R. 5044 amends title 38, of the United States Code to clarify the treatment of certain surviving spouses under the contracting goals and preferences of the Department of Veterans Affairs.

Nearly 1 in 10 small businesses are owned by veterans and among these veteran-owned businesses, they collectively have generated over $1 trillion in sales.

When the owner of a Service-Disabled Veteran-Owned Small Business passes away, his or her spouse is permitted to inherit the business and retain priority status to obtain VA contracts in the federal procurement marketplace.

In obtaining goods and services, the VA provides a special preference to firms owned and controlled by veterans with service-connected disabilities.

Surviving spouses of veterans with service-connected disabilities rated at 100 percent are eligible to retain this preferential contracting status for up to 10 years after the veteran's death.

Passing H.R. 5044 would authorize similar treatment for surviving spouses of veterans whose service-connected disabilities are rated less than 100 percent and it would enable these spouses to retain priority status for obtaining contracts for up to three years.

Mr. Speaker, H.R. 5044 protects widows and widowers from any major disruptions to their businesses during one of the most difficult times in their lives, the passing of a loved one who bravely served our country.

Mr. Speaker, our veterans bravely put their lives on the line to defend our freedoms and to keep our nation safe. For those who end up making the ultimate sacrifice for our nation, it is crucial that we honor their sacrifice any way we can by honoring the widows and widowers.

I urge my colleagues to join me in supporting H.R. 5540 to show their gratitude for the sacrifices made by our service men and women, and to maintain the livelihood of their spouses.

Mr. Speaker, I thank Chairman Roe and Ranking Member Walz for their leadership.

Mr. Speaker, I urge my colleagues to support H.R. 5044, the Service- Disabled Veterans Small Business Continuation Act.

This bill ensures that the surviving spouses of Service Disabled Veteran Owned Small Businesses are able to retain the Service Disabled Veteran Owned status of their small business for 3 years, as was mentioned, after the passing of the veteran spouse.

This policy is already codified in title 38 of the United States Code. However, there is a lack of parity between title 38 and the Small Business Act.

I have heard from several small businesses about this issue, including one in my district, that this discrepancy creates legal uncertainty and confusion in the application of this important policy. What we are trying to do is clear it up.

To guarantee clarity and certainty for the administration of these Service Disabled Veteran Owned Small Businesses, the Small Business Act must conform with the policy prescribed in title 38.

H.R. 5044 dispels any legal uncertainty, ensuring that these important policy changes to the law are sustained. Most importantly, this bill provides peace of mind for surviving spouses of veteran business owners. And one of the main things a veteran is always looking out for is making sure that his or her spouse is taken care of after they are gone. So this will not only give the surviving spouse peace of mind, but the veteran himself or herself peace of mind ahead of time.

Again, I thank the chairman and the ranking member and members of the House Veterans Affairs' Committee for their leadership in clearing this up and, again, giving peace of mind to veterans and their spouses all over America. I would urge my colleagues to support H.R. 5044.

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

Mr. Speaker, I stand in strong support of H.R. 5044. The gentleman has brought a really important point forward.

Currently, if a veteran's death results in their small business becoming less than 51 percent owned by a service-disabled veteran, the surviving spouse can acquire the veteran's ownership interest if the veteran had a 100-percent disability rating. This allows the surviving spouse to keep their loved one's small business status.

However, the surviving spouse of a deceased veteran who had less than a 100-percent disability is not allowed to do the same.

This is a clear-cut case, I think, of spirit and intent of the law. I don't think anyone intended for a 60-percent service-disabled veteran who maybe lost a limb in combat, and then who dies, for their spouse to lose their eligibility. It is a really important point to bring up.

This bill will now permit a surviving spouse to maintain a Service Disabled Veteran Owned Small Business status

for a period of 3 years after the veteran's death, or until the spouse remarries.

This simply allows a Gold Star spouse a bit more time after a loved one's death to settle any business affairs of the deceased spouse it had.

It is the right thing to do to ease the burden that comes with the loss of a spouse in expression of our gratitude for their family's service.

Mr. Speaker, I appreciate the gentleman from Ohio's willingness to point this out, I strongly support this, and I reserve the balance of my time.

Mr. Speaker, this is a good piece of legislation. I am grateful for the gentleman bringing it up. I encourage its passage, and I yield back the balance of my time.