To amend the Small Business Act to include surviving children in the definition of small business concern owned and controlled by service-disabled veterans, and for other purposes.
- Bill Number
- H.R. 3195
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-05-05: Referred to the House Committee on Small Business.
- Last Updated
- 2025-11-13T09:05:38Z
AI-Generated Summary
Purpose
This bill, H.R. 3195, aims to expand federal support for small businesses owned by service-disabled veterans by allowing their surviving children to temporarily maintain the business's special status after the veteran's death. This ensures continuity of benefits, such as preferences in government contracts, for these family-run enterprises.
Key Provisions
- Amendment to Definition: Modifies Section 3(q) of the Small Business Act to include a new category for small businesses that lose their service-disabled veteran owner due to death.
- The business qualifies if a surviving child (biological or legally adopted) acquires the deceased veteran's ownership interest.
- The business must have been at least 51% owned by one or more service-disabled veterans before the death and must be listed in the Small Business Administration's (SBA) certification database (under Section 36) immediately before and during the transition period.
- Time-Limited Qualification: The special status lasts from the veteran's death until the earlier of:
- The date the surviving child gives up their ownership interest, or
- Three years after the veteran's death.
- Definition of Surviving Child: Adds a new term defining "surviving child" as a biological or legally adopted child of the service-disabled veteran.
Significant Changes to Existing Law
- Expansion of Ownership Criteria: Previously, small business concerns owned and controlled by service-disabled veterans required ongoing 51% ownership and control by living service-disabled veterans (or spouses in some cases). This bill introduces a temporary exception for surviving children, preventing automatic loss of status upon the veteran's death.
- Database Requirement: Ties eligibility to prior and ongoing inclusion in the SBA's certification database, ensuring verified status without altering core certification rules.
Potential Impacts
- On Government Agencies: The Small Business Administration (SBA) may see increased certifications and monitoring during the three-year window, potentially streamlining contract set-asides (preferences for veteran-owned businesses in federal procurement) to include more family transitions.
- On Citizens: Surviving children of service-disabled veterans can preserve family businesses and access benefits like sole-source contracts or subcontracting goals, supporting economic stability for veteran families. Small business owners gain flexibility to plan for succession without losing advantages.
- On International Relations: No direct impact, as this focuses on domestic small business policy.
Main Stakeholders Affected
- Service-Disabled Veterans and Families: Primary beneficiaries, allowing children to inherit and operate businesses while retaining veteran-owned status temporarily.
- Small Business Owners: Particularly those in veteran-owned firms, who can maintain eligibility for federal contracting opportunities.
- Government Entities: The SBA for administration and certification; federal agencies (e.g., Department of Defense) that award contracts to veteran-owned businesses.
- Broader Small Business Community: Indirectly benefits by promoting equity in procurement programs.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens the Small Business Act's framework for veteran entrepreneurship by addressing succession gaps, potentially reducing disputes over certification loss. It aligns with existing SBA rules on ownership transitions (e.g., for spouses) but requires clear enforcement guidelines to avoid abuse.
- Constitutional Implications: None apparent; the bill supports equal protection under the law for veteran families without infringing on due process or other rights.
- Political Implications: Reinforces bipartisan support for veterans' issues (introduced by representatives from both parties), potentially encouraging similar expansions for other disadvantaged groups in small business programs. It may influence future debates on family business protections in federal policy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Rep. Ellzey, Jake [R-TX-6], Rep. Sewell, Terri A. [D-AL-7], Rep. Rogers, Mike D. [R-AL-3], Rep. Figures, Shomari [D-AL-2]
Recent Actions
- 2025-05-05: Referred to the House Committee on Small Business.
- 2025-05-05: Introduced in House
- 2025-05-05: Introduced in House
Bill Versions
- To amend the Small Business Act to include surviving children in the definition of small business concern owned and controlled by service-disabled veterans, and for other purposes. — issued 2025-05-05 — PDF (3 pages)