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.
- Sponsor
- Rep. Moore, Barry [R-AL-1]
- Committees
- Small Business Committee (primary)
- Last action
- May 5, 2025
Bottom line
This bill provides a temporary extension of service-disabled veteran-owned small business status to businesses inherited by a deceased veteran's child, aiming to support business continuity and honor the veteran's legacy.
What it actually does
This bill amends the Small Business Act to allow a small business concern, which was previously certified as a service-disabled veteran-owned small business (SDVOSB), to retain that status for a limited period after the death of the service-disabled veteran owner. This temporary extension applies if a surviving child of the deceased veteran acquires the ownership interest, lasting for up to three years or until the child relinquishes ownership.
Proponents argue
Supporters argue this bill provides crucial stability for small businesses after the unexpected death of a service-disabled veteran owner, preventing the immediate loss of valuable federal contracting preferences. They contend it honors the veteran's service by protecting their legacy and ensuring their family can maintain the business, allowing time for transition or sale without undue hardship.
Opponents contend
Critics might argue that extending SDVOSB status to non-veteran owners, even temporarily, dilutes the program's original intent to specifically empower businesses directly owned and controlled by service-disabled veterans. They might contend that such extensions could open the door to broader interpretations that deviate from the core purpose of supporting veterans themselves.
The bill is very short and easy to read, making it highly accessible for anyone wishing to understand its provisions.
Section 1, paragraph (1) and (2)
Temporary Extension of SDVOSB Status for Surviving Children
This provision modifies the Small Business Act to allow a small business concern, which was previously certified as a service-disabled veteran-owned small business (SDVOSB), to maintain that status for a limited period after the death of the service-disabled veteran owner. This applies if a biological or legally adopted child of the deceased veteran acquires the ownership interest. The extension lasts for a maximum of three years from the date of the veteran's death, or until the child sells their interest, whichever comes first.
Supporters argue
Supporters argue this provision provides a critical safety net for families of service-disabled veterans, ensuring that the business built by the veteran can continue to operate and support the family during a difficult period of loss and transition. It prevents the immediate loss of federal contracting opportunities that are vital for many SDVOSBs.
Critics contend
Critics might argue that while well-intentioned, this provision temporarily extends a benefit intended for service-disabled veterans to individuals who are not service-disabled veterans, potentially diluting the program's focus. They might suggest that the program should strictly adhere to direct veteran ownership to maximize impact for the intended beneficiaries.
Tradeoffs
The provision balances the desire to support the families and legacies of deceased service-disabled veterans with the program's core mission of empowering businesses directly owned and controlled by living service-disabled veterans. It introduces a temporary exception to the ownership requirements.