,,ii #aaith ,,congress #ast ,session ,s4 #caga ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #aj1 #bjbe ,mr4 ,markey 7for himself and ,mrs4 ,shaheen7 introduced the following bill2 which was read twice and referred to the ,committee on ,small ,business and ,entrepreneurship ,a ,,bill ,to waive the guarantee fee for certain business loans made to veterans and spouses of veterans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,veteran ,entrepreneurship ,empowerment ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,according to the ,d',aniello ,institute for ,veterans and ,military ,families ,august #bjbe report entitled ,a ,framework for ,advancing and ,strengthening the ,veteran ,entrepreneur ,ecosystem-- 7,a7 veterans are more likely to own businesses than non-veterans2 7,b7 veteran-owned businesses are less likely to close or fail than non-veteran owned businesses2 and 7,c7 the top barrier to entrepreneurship listed by veteran and military spouse entrepreneurs is a lack of access to capital or financing4 7#b7 ,according to the ,federal ,reserve's #bjbe ,small ,business ,credit ,survey-- 7,a7 only #dh percent of majority veteran owned firms reported having sufficient financing for their businesses1 compared to #eg percent of non-veteran owned firms2 and 7,b7 #be percent of majority veteran owned firms1 and #bi percent of partially veteran owned firms1 were denied financing compared to #bj percent of non-veteran owned firms4 7#c7 ,according to the ,government ,accountability ,office's #bjbe report entitled ,financial ,literacy and ,small ,business ,lending1 ,resources ,available to ,military-,affiliated ,people-- 7,a7 frequent moves1 transition from active duty1 and difficulties establishing credit and forming business relationships present barriers to accessing capital for veteran entrepreneurs2 and 7,b7 veteran entrepreneurs often lack personal startup funds or sufficient business income necessary for accessing capital4 #c4 ,fee waiver 7a7 ,small ,business ,act ,section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 is amended-- 7#a7 in paragraph 7#ah7-- 7,a7 in subparagraph 7,a71 in the matter preceding clause 7i71 by striking ,with respect and inserting ,except as provided in subparagraph 7,c71 with respect2 and 7,b7 by adding at the end the following3 7,c7 ,exception 7i7 ,in general ,notwithstanding subparagraph 7,a71 the ,administration may not collect a guarantee fee under subparagraph 7,a7 with respect to a loan guaranteed under this subsection if-- 7,i7 the loan is not made under paragraph 7#cf7 or 7#cg72 7,,ii7 the loan is made to a small business concern owned by a veteran or spouse of a veteran2 and 7,,iii7 the deferred participation share of the total loan amount is not more than #a1jjj1jjj4 7ii7 ,definition ,in this subparagraph1 the term veteran or spouse of a veteran means-- 7,i7 a veteran2 7,,ii7 an individual who is eligible to participate in the ,transition ,assistance ,program established under section #aadd of title #aj1 ,united ,states ,code2 7,,iii7 a member of a reserve component of the ,armed ,forces named in section #ajaja of title #aj1 ,united ,states ,code2 7,,iv7 the spouse of an individual described in subclause 7,i71 7,,ii71 or 7,,iii72 or 7,v7 the surviving spouse 7as defined in section #aja of title #ch1 ,united ,states ,code7 of an individual described in subclause 7,i71 7,,ii71 or 7,,iii7 who died while serving on active duty or as a result of a disability that is service-connected 7as defined in such section74 2 and 7#b7 in paragraph 7#ca7-- 7,a7 by striking subparagraph 7,g72 and 7,b7 by redesignating subparagraph 7,h7 as subparagraph 7,g74 7b7 ,small ,business ,investment ,act of #aieh 7#a7 ,in general ,section #ejc of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fig7 is amended-- 7,a7 in subsection 7b77#g7-- 7i7 by redesignating subparagraphs 7,a7 and 7,b7 as clauses 7i7 and 7ii71 respectively2 7ii7 by striking with respect and inserting 7,a7 ,except as provided in subparagraph 7,b71 with respect2 7iii7 in clause 7i77,,ii71 as so redesignated1 by striking clause 7i7 and inserting subclause 7,i72 and 7iv7 by adding at the end the following3 7,b7 ,notwithstanding subparagraph 7,a71 the ,administration may not assess or collect any ongoing guarantee fee under subparagraph 7,a7 with respect to a loan guaranteed under this title if the loan is made-- 7i7 by the ,administration2 7ii7 to a small business concern owned by a veteran or spouse of a veteran2 and 7iii7 for not more than #a1jjj1jjj4 2 7,b7 in subsection 7d77#c7-- 7i7 by striking ,the ,administration shall and inserting 7,a7 ,except as provided in subparagraph 7,b71 the ,administration shall2 and 7ii7 by adding at the end the following3 7,b7 ,notwithstanding subparagraph 7,a71 the ,administration may not assess or collect any ongoing guarantee fee under subparagraph 7,a7 with respect to a loan guaranteed under this title if the loan is made-- 7i7 by the ,administration2 7ii7 to a small business concern owned by a veteran or spouse of a veteran2 and 7iii7 for not more than #a1jjj1jjj4 2 and 7,c7 in subsection 7i7-- 7i7 by striking ,two-,year ,waiver of ,fees--,the and inserting the following3 8,waiver of ,fees4-- 7#a7 ,two-,year ,waiver of ,fees ,the 2 and 7ii7 by adding at the end the following3 7#b7 ,waiver of ,fees for ,veterans ,for a loan of not more than #a1jjj1jjj made by the ,administration to a small business concern that is owned by a veteran or spouse of a veteran1 such small business concern shall be exempt from any up front guarantee fee1 as detailed in section #abj4iga7;d77#a7 of title #ac1 ,code of ,federal ,regulations1 or any successor regulation4 4 7#b7 ,conforming amendments ,the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #ffa et seq47 is amended-- 7,a7 in section #ajc 7#ae ,u4,s4,c4 #ffb7-- 7i7 in paragraph 7#ai71 by striking and at the end2 7ii7 in paragraph 7#bj71 by striking the period at the end and inserting 2 and2 and 7iii7 by adding at the end the following3 7#ba7 the term veteran or spouse of a veteran means-- 7,a7 a veteran2 7,b7 an individual who is eligible to participate in the ,transition ,assistance ,program established under section #aadd of title #aj1 ,united ,states ,code2 7,c7 a member of a reserve component of the ,armed ,forces named in section #ajaja of title #aj1 ,united ,states ,code2 7,d7 the spouse of an individual described in subparagraph 7,a71 7,b71 or 7,c72 or 7,e7 the surviving spouse 7as defined in section #aja of title #ch1 ,united ,states ,code7 of an individual described in subparagraph 7,a71 7,b71 or 7,c7 who died while serving on active duty or as a result of a disability that is service-connected 7as defined in such section74 2 and 7,b7 in section #ejc7;b7 7#ae ,u4,s4,c4 #fig7;b771 as amended by paragraph 7#a7-- 7i7 in the matter preceding paragraph 7#a71 by striking unless-- and inserting unless the following criteria are met32 7ii7 by striking the semicolon each place it appears and inserting a period2 7iii7 in paragraph 7#a71 by striking such debenture and inserting ,such debenture2 7iv7 in paragraph 7#b71 by striking necessary and inserting ,necessary2 7v7 in paragraph 7#c71 by striking the interest rate and inserting ,the interest rate2 7vi7 in paragraph 7#d71 by striking the aggregate and inserting ,the aggregate2 7vii7 in paragraph 7#e71 by striking the amount and inserting ,the amount2 and 7viii7 in paragraph 7#f7-- 7,i7 by striking the ,administration and inserting ,the ,administration2 and 7,,ii7 by striking and at the end4 #d4 ,equity injection 7a7 ,small ,business ,act ,section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 is amended by adding at the end the following3 7#ch7 ,equity injection requirements 7,a7 ,equity injection defined ,in this paragraph1 the term equity injection means an investment by a borrower in the applicable small business concern1 in the form and amount determined appropriate by the ,administrator4 7,b7 ,equity injection requirements for veterans 7i7 ,in general ,for a startup or change of ownership loan with a deferred participation share of the total amount that is not more than #a1jjj1jjj to a veteran or spouse of a veteran1 the minimum equity injection percentage required under ,standard ,operating ,procedure #ej #aj1 version #h1 effective on ,june #a1 #bjbe1 or any successor guidance1 shall be reduced by not less than #e percentage points4 7ii7 ,required percentage ,if the guidance described in clause 7i7 does not list an exact percentage1 the ,administrator shall include a requirement to reduce the percentage1 as calculated under the method used in the guidance1 for veterans or spouses of veterans in accordance with clause 7i74 7,c7 ,equity injection requirements generally ,the ,administrator shall encourage lenders to lower equity injection requirements for loans to veterans or spouses of veterans with a deferred participation share of the total amount that is not more than #a1jjj1jjj4 4 7b7 ,small ,business ,investment ,act of #aieh ,section #ejb7c77;,c7 of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fif7c77;,c77 is amended-- 7,a7 by redesignating clauses 7i7 through 7iv7 as subclauses 7,i7 through 7,,iv71 respectively1 and adjusting the margins accordingly2 7,b7 by inserting before subclause 7,i71 as so redesignated1 the following3 7i7 for a small business concern that is not owned by a veteran or spouse of a veteran-- 2 7,c7 in subclause 7,,iii71 as so redesignated1 by striking clauses 7i7 and 7ii7 and inserting subclauses 7,i7 and 7,,ii72 and 7,d7 by adding at the end the following3 7ii7 for a loan to a small business concern owned by a veteran or spouse of a veteran-- 7,i7 at least #e percent of the total cost of the project financed1 if the small business concern has been in operation for a period of #b years or less2 or 7,,ii7 at least #e percent of the total cost of the project financed1 in all other circumstances1 at the discretion of the development company4 4 #e4 ,reports 7a7 ,definitions ,in this section3 7#a7 ,budget justification materials ,the term budget justification materials has the meaning given that term in section #c7;b77#b7 of the ,federal ,funding ,accountability and ,transparency ,act of #bjjf 7#ca ,u4,s4,c4 #faja note72 7#b7 ,covered person ,the term covered person means any individual described in section #g7;a77#ah77;,c77ii7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77#ah77;,c77ii774 7b7 ,lending reports ,the ,administrator of the ,small ,business ,administration shall collect and publish on the website of the ,administration data on the participation of covered persons in the loan programs under section #g7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 and title ,v of the ,small ,business ,investment ,act of #aieh 7#ae ,u4,s4,c4 #fie et seq474 7c7 ,entrepreneurial development ,the ,administrator of the ,small ,business ,administration shall collect and include in budget justification materials submitted by the ,administrator data on the participation of covered persons in-- 7#a7 the ,service ,corps of ,retired ,executives established under section #h7;b77#a77;,b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcf7;a77 7#ae ,u4,s4,c4 #fcg7;b77#a77;,b772 7#b7 small business development centers1 as defined in section #c of such ,act 7#ae ,u4,s4,c4 #fcb72 7#c7 women's business centers described in section #bi of such ,act 7#ae ,u4,s4,c4 #fef72 and 7#d7 ,veteran ,business ,outreach ,centers described in section #cb of such ,act 7#ae ,u4,s4,c4 #feg;b74