Service-Disabled Veterans Small Business Continuation Act

Floor Speech

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Mr. SCHNEIDER. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 499) to amend the Small Business Act to clarify the treatment of certain surviving spouses under the definition of small business concern owned and controlled by service-disabled veterans.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 499

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``Service-Disabled Veterans Small Business Continuation Act''. SEC. 2. TECHNICAL AMENDMENT REGARDING TREATMENT OF CERTAIN SURVIVING SPOUSES UNDER THE DEFINITION OF SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS.

Effective on the date specified in subsection (e) of section 1832 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328; 130 Stat. 2660), section 3(q)(2) of the Small Business Act (15 U.S.C. 632(q)) is amended--

(1) in subparagraph (C)(i)(II), by striking ``rated as 100 percent'' and all that follows through ``service-connected disability''; and

(2) by amending subparagraph (C)(ii)(III) to read as follows:

``(III) the date that--

``(aa) in the case of a surviving spouse of a veteran with a service-connected disability rated as 100 percent disabling or who dies as a result of a service-connected disability, is 10 years after the date of the death of the veteran; or

``(bb) in the case of a surviving spouse of a veteran with a service-connected disability rated as less than 100 percent disabling who does not die as a result of a service-connected disability, is 3 years after the date of the death of the veteran.''.

Mr. Speaker, I rise today in support of H.R. 499, the Service- Disabled Veterans Small Business Continuation Act, which protects small businesses owned by disabled veterans by providing a transitionary period to keep service-disabled veteran-owned small business status in the event of the business owner's death. This bill codifies our intention to bridge the differences between the SBA and VA by establishing uniformity.

We know that running a small business often involves many members of a family. By extending surviving spousal rights to the SDVOSB definition, we are honoring the sacrifice a deceased veteran previously made for our country. We are also providing stability for the business and its employees to ensure that they can remain competitive, rather than being effectively penalized by the death of the service-disabled veteran business owner.

I thank Ranking Member Chabot and Mr. Delgado for working together to ensure that when a disabled veteran business owner passes, the law does not impose insult to injury by penalizing the surviving spouse.

Mr. Speaker, both the Department of Veterans Affairs and the Small Business Administration value the sacrifices of America's veterans and, in particular, we note today, service-disabled veterans who remain committed to their country by starting small firms.

In that vein, the VA and the SBA have contracting preferences for service-disabled veteran-owned small businesses. Despite the success of these programs, neither adequately address what happens when the service-disabled veteran owner dies. The death of a loved one by itself, an already devastating event, is compounded by needing to attend to the duties of running his or her small business and it is often debilitating.

The sudden death of a veteran whose small business relies upon a contracting preference takes a toll on the spouse of the deceased veteran, the business operations, and the business' employees.

H.R. 499 establishes much-needed certainty by rectifying inherently critical oversight. Setting forth the rules by which a surviving spouse can retain the service-disabled veteran-owned small business status honors the dedication of the veteran, the surviving spouse, and their business.

The government has a responsibility to ensure those who give so much to their country have the opportunity for their small business passions to survive and prosper, even upon death.

I urge my colleagues to support the bill, and I yield back the balance of my time.

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Mr. SCHNEIDER. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

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