Bipartisan Legislation Aims to Support Veteran Entrepreneurs with SERV Act

Strategic Insights -

The U.S. House of Representatives has passed the SERV Act, a bipartisan legislation co-sponsored by Representatives Sharice Davids (D-KS-03) and Mark Alford (R-MO-04), with the goal of helping veteran small business owners and entrepreneurs succeed. The bill aims to study the barriers faced by veterans when starting a business and boost the outreach and promotion of existing veteran-focused small business programs. Davids, a veteran's daughter and dedicated advocate for Kansas veterans, originally introduced the legislation in 2019, which passed the House with broad bipartisan support.

Key Takeaways:

  • The SERV Act would help veteran small business owners and entrepreneurs succeed by studying the barriers faced when starting a business and boosting the outreach and promotion of existing veteran-focused small business programs.
  • The bill aims to commission a Government Accountability Office (GAO) report on the ability of veteran and reservist small business owners to access credit, including an analysis on common sources of credit and how deployment and other military responsibilities affect veterans' and reservists' credit.
  • The U.S. Small Business Administration's Interagency Task Force on Veterans Small Business Development is required to develop an action plan for outreach and promotion of programs available to veterans, service-disabled veterans, reservists, and their spouses.
  • The number of veterans starting their own business has decreased drastically over the last few decades, with only 4.5% of the more than 3.6 million veterans who have served since September 11, 2001 launching a company.
  • Reasons for this decline include challenges accessing credit, transitioning to civilian life, and overcoming stigmas around physical disabilities and post-traumatic stress disorder.
  • Davids has been a dedicated advocate for the support of Kansas veterans after their return from active duty, including helping pass the Honoring our PACT Act, which expands eligibility for Department of Veterans Affairs' (VA) health care.
  • Her office also helps military and veteran constituents access VA health care and benefits and acts as a facilitator between federal, state, and local agencies.

Statistics:

  • 4.5% of over 3.6 million veterans who have served since September 11, 2001 have launched a company (Source: Unspecified).
  • 50% of World War II veterans and 40% of Korean War veterans went on to operate a business (Source: Unspecified).
  • Only 3.5 million American veterans will be eligible for Department of Veterans Affairs' (VA) health care due to the Honoring our PACT Act (Source: News Release from Senator Jon Tester).

Sources:

  • Office of Representative Sharice Davids (D-KS-03)
  • News Release from Representative Mark Alford (R-MO-04)
  • Unspecified (data on veteran entrepreneurship and business ownership)