,,ii #aadth ,,congress #ast ,session ,s4 #ahgj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bg1 #bjae ,mr4 ,moran 7for himself and ,mr4 ,tester7 introduced the following bill2 which was read twice and referred to the ,committee on ,small ,business and ,entrepreneurship ,a ,,bill ,to amend the ,small ,business ,act to require the ,administrator of the ,small ,business ,administration to carry out a pilot program on issuing grants to eligible veterans to start or acquire qualifying businesses1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,veterans ,entrepreneurial ,transition ,act of #bjae or the ,,vet ,act of #bjae4 #b4 ,veterans small business entrepreneurship pilot program ,section #cb of the ,small ,business ,act 7#ae ,u4,s4,c4 #feg;b7 is amended by adding at the end the following3 7g7 ,veterans small business entrepreneurship pilot program 7#a7 ,pilot program required 7,a7 ,in general ,not later than #ij days after the date of enactment of this subsection1 the ,administrator1 in consultation with the ,advisory ,committee and the ,secretary of ,veterans ,affairs1 shall begin carrying out a pilot program to assess the feasibility and advisability of making grants to eligible veterans to start or acquire a qualifying business enterprise4 7,b7 ,promotion of efficiency ,in carrying out the pilot program1 the ,administrator shall ensure1 to the maximum extent practicable1 that the pilot program promotes efficiency1 accountability1 and competition4 7,c7 ,list of categories of business enterprises ,the ,administrator1 in consultation with the ,advisory ,committee1 shall by rule establish a list of categories of business enterprises that the ,administrator determines to be qualifying business enterprises for purposes of the pilot program1 which shall include-- 7i7 a small business concern2 7ii7 a franchise business enterprise2 and 7iii7 any other category of business enterprise that the ,administrator1 in consultation with the ,advisory ,committee1 determines is appropriate and in accordance with the purposes of the pilot program4 7,d7 ,number of grants ,under the pilot program1 the ,administrator may make grants in accordance with paragraph 7#d7 to not more than #bej eligible veterans to start or acquire a qualifying business enterprise4 7,e7 ,geographic diversity ,in making grants under the pilot program1 the ,administrator shall ensure geographic diversity among the veterans who receive the grants4 7,f7 ,duration ,the ,administrator shall carry out the pilot program during the #c-year period beginning on the date on which the ,administrator begins carrying out the pilot program4 7#b7 ,application 7,a7 ,in general ,an eligible veteran desiring a grant under the pilot program shall submit an application-- 7i7 to the ,administrator in the form and containing the information as the ,administrator may require1 including the information described in subparagraph 7,b72 and 7ii7 not later than #a year before the date on which the pilot program terminates under paragraph 7#a77;,f74 7,b7 ,documentation requirements ,the ,administrator1 in considering an application from an eligible veteran for a grant under the pilot program1 may not approve the application unless the application includes the following3 7i7 ,a description of the use of the grant amount1 including an identification and description of the qualifying business enterprise4 7ii7 ,a description of the expected return on investment resulting from the grant amounts4 7iii7 ,a certification that the eligible veteran applying for the grant-- 7,i7 shall complete the education and training relevant to the ownership and operation of the qualifying business enterprise described in paragraphs 7#c77;,a7 and 7#c77;,b72 and 7,,ii7 understands that the eligible veteran may not receive amounts under a grant under the pilot program until after the eligible veteran has completed the required education and training relevant to the ownership and operation of the qualifying business enterprise described in paragraphs 7#c77;,a7 and 7#c77;,b74 7iv7 ,such certifications as the ,administrator1 in consultation with the ,advisory ,committee1 shall by rule require1 including-- 7,i7 for a business enterprise in operation on the date of the application1 evidence that the ,administrator1 in consultation with the ,advisory ,committee1 determines appropriate of-- 7aa7 good standing2 7bb7 profitable operation2 and 7cc7 guarantees relating to the purchase of the enterprise2 7,,ii7 for a franchise business enterprise1 evidence that the ,administrator1 in consultation with the ,advisory ,committee1 determines appropriate of-- 7aa7 compliance with applicable ,state and ,federal laws on franchises2 and 7bb7 training in conformation with the industry standard2 and 7,,iii7 for a startup1 or an enterprise that is otherwise not in operation at the time of the application1 a proposal for the operation of that enterprise that leads to profitable operation within a reasonable timeframe4 7v7 ,a certification that the eligible veteran applying for the grant understands that the eligible veteran may not receive amounts under the grant until after the business plan of the eligible veteran has been approved under the procedures described in paragraph 7#c77;,c77ii74 7vi7 ,a certification that the eligible veteran-- 7,i7 has been truthful about the employment status of the eligible veteran2 and 7,,ii7 understands that the eligible veteran will be prohibited from participating in the pilot program if the certification described in subclause 7,i7 is determined to be untrue4 7,c7 ,group applications ,the ,administrator may authorize a group of eligible veterans to apply as a group under the pilot program4 ,the group shall be treated as a single eligible veteran under the pilot program1 except that the maximum amount of the grant shall be calculated by multiplying the maximum amount under paragraph 7#d77;,a7 by the number of members of the group4 7#c7 ,entrepreneurship training 7,a7 ,in general ,each eligible veteran receiving a grant under the pilot program shall complete an entrepreneurship readiness program approved by the ,administrator that is designed to prepare the eligible veteran for1 and lead to the immediate subsequent ownership and management by the eligible veteran of1 a qualifying business enterprise4 7,b7 ,approved programs ,an approved program described in subparagraph 7,a7 may include a program-- 7i7 available through a small business development center2 7ii7 approved by the ,administrator for entrepreneurship training2 7iii7 approved by the ,secretary of ,veterans ,affairs for entrepreneurship training2 7iv7 available through the ,transition ,assistance ,program of the ,department of ,defense2 7v7 available through a women's business center1 as described in section #bi2 7vi7 available through a ,veterans ,business ,outreach ,center1 as described in subsection 7d72 7vii7 available through the ,,score program authorized by section #h7;b77#a72 or 7viii7 approved by the ,administrator1 in consultation with the ,advisory ,committee1 as appropriate because of the expertise the program offers relating to a certain type of business enterprise4 7,c7 ,business plan 7i7 ,contents ,an eligible veteran receiving a grant under the pilot program shall prepare a business plan1 which shall include-- 7,i7 a description of how the qualifying business enterprise will achieve profitable operation within a reasonable timeframe2 7,,ii7 an assessment of relevant-- 7aa7 economic indicators2 7bb7 consumer data2 7cc7 production and sales data2 and 7dd7 market or industry analysis2 and 7,,iii7 other information that the ,administrator1 in consultation with the ,advisory ,committee1 determines is appropriate4 7ii7 ,approval procedure 7,i7 ,approval by advisor ,if an advisor approves the business plan prepared by the eligible veteran1 the ,associate ,administrator for ,veterans ,business ,development of the ,administration-- 7aa7 shall review the business plan2 and 7bb7 may reverse the approval of the business plan and require that the eligible veteran continue to consult with the advisor to develop and resubmit the business plan4 7,,ii7 ,disapproval by advisor ,if an advisor does not approve the business plan prepared by an eligible veteran1 the ,associate ,administrator for ,veterans ,business ,development of the ,administration1 upon appeal by the eligible veteran1 may reverse the decision of the advisor and approve the business plan4 7#d7 ,grant terms and conditions 7,a7 ,maximum grant amount and additional assistance 7i7 ,in general ,subject to paragraph 7#b77;,c71 the maximum amount that an eligible veteran may receive under the pilot program shall not exceed an amount equal to the sum of-- 7,i7 the maximum grant amount specified in clause 7ii72 7,,ii7 the amount equal to the product obtained by multiplying-- 7aa7 the amount of additional assistance to which the eligible veteran is entitled under clause 7iii77,,ii72 by 7bb7 the number of months that the eligible veteran participates in the pilot program2 and 7,,iii7 the amount of training assistance received by the eligible veteran in clause 7iv74 7ii7 ,maximum grant amount ,the maximum grant amount specified in this clause is the following3 7,i7 ,in the case of an eligible veteran entitled to educational assistance under chapter #cc of title #ch1 ,united ,states ,code1 the amount equal to the product obtained by multiplying-- 7aa7 the number of months of educational assistance to which the eligible veteran is entitled on the date that the eligible veteran submits an application2 by 7bb7 the pro rata monthly rate of the amount that the eligible veteran is entitled to under paragraph 7#a77;,a77ii77,,ii7 of section #ccac7;c7 of that title1 subject to paragraphs 7#b7 through 7#g7 of that section4 7,,ii7 ,in the case of an eligible veteran entitled to educational assistance under chapter #cj of title #ch1 ,united ,states ,code1 the amount equal to the product obtained by multiplying-- 7aa7 the number of months of educational assistance to which the eligible veteran is entitled on the date that the eligible veteran submits an application2 by 7bb7 the rate in effect under section #cjae7;a77#a7 of that title4 7iii7 ,additional assistance 7,i7 ,period of eligibility ,an eligible veteran shall receive the amount described in subclause 7,,ii7 for each month that the eligible veteran participates in the pilot program4 7,,ii7 ,amount ,the amount of the additional assistance specified in this subclause is an amount1 paid to the eligible veteran on a monthly basis1 equal to the product obtained by multiplying-- 7aa7 the monthly amount of the basic allowance for housing payable under section #djc of title #cg1 ,united ,states ,code1 for a member with dependents in pay grade ,e-#e residing in the military housing area that encompasses all or the majority portion of the ,,zip code area in which is located the residence of the eligible veteran 7similar to the calculation made under section #ccac7;c77#a77;,b77i77,i7 of title #ch1 ,united ,states ,code72 by-- 7bb7 7,,aa7 in the case of an eligible veteran who1 as of the date on which the eligible veteran applies for a grant under this subsection1 has no employment other than the qualifying business enterprise for which the eligible veteran seeks a grant under this subsection1 #a2 or 7,,bb7 in the case of an eligible veteran who is not described in subitem 7,,aa71 #j4e4 7iv7 ,training assistance ,upon application by an eligible veteran receiving a grant under the pilot program1 the ,administrator may pay for the cost1 if applicable1 of an approved program described in paragraph 7#c77;,b77viii74 7,b7 ,disbursement ,the amount of a grant made under the pilot program shall be disbursed to an eligible veteran-- 7i7 in installments1 in accordance with the procedures described in subparagraph 7,c72 7ii7 only after the eligible veteran presents documentation proving that the eligible veteran has completed the required entrepreneurship training described in paragraphs 7#c77;,a7 and 7#c77;,b72 and 7iii7 only after the business plan of the eligible veteran has been approved under the procedures described in paragraph 7#c77;,c77ii74 7,c7 ,installment payments ,the amount described in subparagraph 7,a77ii7 shall be paid to the eligible veteran in installments on a pro rata basis with each installment being paid to the eligible veteran-- 7i7 not earlier than #c months after the date of the payment of the most recent installment to the eligible veteran2 7ii7 not later than #ab months after the date of the payment of the most recent installment to the eligible veteran2 and 7iii7 only after the eligible veteran has met milestones established in the business plan of the eligible veteran4 7#e7 ,use of grant amounts ,an eligible veteran who receives a grant under the pilot program may use the amount of the grant-- 7,a7 in accordance with the limitations that the ,administrator1 in consultation with the ,advisory ,committee1 may by rule establish2 and 7,b7 for purposes related to starting or acquiring a qualifying business enterprise that the ,administrator1 in consultation with the ,advisory ,committee1 determines are appropriate1 including-- 7i7 purchasing goods or services necessary for the creation or operation of a qualifying business enterprise2 7ii7 funding a project that is directed toward any economic development objective described under section #eja7;d7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie7;d772 and 7iii7 acquiring a qualifying business enterprise4 7#f7 ,report 7,a7 ,in general ,not later than #b years after the date on which the pilot program is commenced1 the ,administrator shall submit to the ,committee on ,small ,business and ,entrepreneurship and the ,committee on ,veterans' ,affairs of the ,senate and the ,committee on ,small ,business and the ,committee on ,veterans' ,affairs of the ,house of ,representatives a report analyzing the feasibility and effectiveness of the pilot program4 7,b7 ,contents ,the report submitted under subparagraph 7,a7 shall include-- 7i7 an assessment of the pilot program2 7ii7 a survey containing-- 7,i7 the number of grantees under the pilot program2 and 7,,ii7 the number of the grantees under the pilot program that participated in each of the training programs described in subparagraphs 7,a7 and 7,b7 of paragraph 7#c72 7iii7 recommendations regarding whether any aspect of the pilot program should be made a permanent authority1 and1 if so1 the means to ensure-- 7,i7 geographic and demographic diversity among the eligible veterans who receive the grants under the permanent authority2 and 7,,ii7 diversity in the types of qualifying business enterprises for which eligible veterans may receive grants under the pilot program2 7iv7 an assessment regarding whether the grants distributed under the pilot program should continue to be made in installments or with a one-time1 lump sum payment2 7v7 an assessment of the additional assistance made available under the pilot program1 including the accountability surrounding the availability of additional assistance2 7vi7 an analysis of the procedures for approving a business plan and a recommendation regarding ways1 if necessary1 to improve the procedures2 and 7vii7 a recommendation regarding ways1 if necessary1 to improve the accountability of advisors4 7#g7 ,no effect on time limitation for use of entitlement to educational assistance ,nothing in this subsection shall be construed to modify any time limitation or period during which an individual is entitled to educational assistance under chapter #cj or #cc of title #ch1 ,united ,states ,code4 7#h7 ,definitions ,in this subsection3 7,a7 ,advisor ,the term advisor means a person-- 7i7 affiliated with an entrepreneurship or training and curricula program described in paragraphs 7#c77;,a7 and 7#c77;,b72 7ii7 who may assist an eligible veteran with the preparation and approval of a business plan2 and 7iii7 who is approved to serve as an advisor by the ,administrator1 in consultation with the ,advisory ,committee4 7,b7 ,advisory committee ,the term ,advisory ,committee means the ,advisory ,committee on ,veterans ,business ,affairs established under section #bjc of the ,veterans ,entrepreneurship and ,small ,business ,development ,act of #aiii 7#ae ,u4,s4,c4 #feg;b note74 7,c7 ,business plan ,the term business plan means a plan prepared by an eligible veteran for the operation of a qualifying business enterprise that shall be-- 7i7 prepared-- 7,i7 while the eligible veteran participates in an approved training program described in paragraphs 7#c77;,a7 and 7#c77;,b72 and 7,,ii7 with the assistance of an advisor2 and 7ii7 consistent with the guidelines and recommendations provided by the ,business ,plan ,tool of the ,administration4 7,d7 ,eligible veteran ,the term eligible veteran means an individual who-- 7i7 is-- 7,i7 a veteran2 or 7,,ii7 a member of the ,armed ,forces who-- 7aa7 is currently retiring or separating from the ,armed ,forces and has a service approved retirement or separation packet2 or 7bb7 has last been honorably discharged from active duty service in the ,armed ,forces2 7ii7 has completed not less than-- 7,i7 #cf months of active duty service in the ,armed ,forces 7other than active duty service for training72 or 7,,ii7 #bd months of active duty service in the ,armed ,forces 7other than active duty service for training7 before being discharged or separated for a service-connected disability1 as that term is defined in section #aja of title #ch1 ,united ,states ,code2 and 7iii7 is entitled to educational assistance under chapter #cj or #cc of title #ch1 ,united ,states ,code4 7,e7 ,franchise business enterprise ,the term franchise business enterprise means any continuing commercial relationship or arrangement1 regardless of the title given the relationship or arrangement1 under which the terms of the offer or contract specify1 or the franchise seller promises or represents1 orally or in writing1 that-- 7i7 the franchisee will obtain the right to-- 7,i7 operate a business that is identified or associated with the trademark of the franchisor2 or 7,,ii7 offer1 sell1 or distribute goods1 services1 or commodities that are identified or associated with the trademark of the franchisor2 7ii7 the franchisor may-- 7,i7 exert1 or has authority to exert1 a significant degree of control over the method of operation of the franchisee2 or 7,,ii7 provide significant assistance in the method of operation of the franchisee2 and 7iii7 as a condition of obtaining or commencing operation of the franchise business enterprise1 the franchisee makes a required payment or commits to make a required payment to the franchisor or the affiliate of the franchisor4 7,f7 ,franchisee ,the term franchisee means any person who is granted a franchise business enterprise4 7,g7 ,franchisor ,the term franchisor-- 7i7 means any person who grants a franchise business enterprise and participates in the franchise relationship2 and 7ii7 includes subfranchisors4 7,h7 ,pilot program ,the term pilot program means the pilot program established under paragraph 7#a77;,a74 7,i7 ,qualifying business enterprise ,the term qualifying business enterprise means a business included in the list of categories of business enterprises established under paragraph 7#a77;,c74 7,j7 ,startup ,the term startup means a business enterprise that-- 7i7 is not yet in existence2 or 7ii7 has been in existence for not more than #e years4 7,k7 ,subfranchisor ,the term subfranchisor means a person who functions as a franchisor by engaging in both pre-sale activities and post-sale performance4 4