Technical corrections only. The changes between v2 and v3 reflect the bill's procedural status update from being engrossed in the House to being referred to a Senate committee. No substantive policy changes were made to the bill's text.
SERV Act
- Sponsor
- Rep. Davids, Sharice [D-KS-3]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Feb 25, 2025
Bottom line
The SERV Act establishes new reporting requirements for the SBA on veteran entrepreneurship initiatives and mandates a GAO study on credit access for small businesses owned by veterans, Reservists, and their spouses, without authorizing new appropriations.
What it actually does
This bill mandates the Small Business Administration (SBA) Administrator to submit an annual report detailing the activities of the veterans interagency task force and outlining outreach plans for veteran entrepreneurship programs. It also requires the Comptroller General of the United States (GAO) to conduct a comprehensive study within one year on the ability of small business concerns owned by veterans, Reservists, and their spouses to access credit, analyzing various aspects like credit sources, default rates, and obstacles. The bill explicitly states that no additional funds are authorized for its implementation.
Section 2
SBA Reporting on Veterans Interagency Task Force Activities and Outreach
This section amends the Small Business Act to require the Administrator of the Small Business Administration (SBA) to submit an annual report to Congress. This report must accompany the SBA's budget justification documents and detail the appointments and activities of the veterans interagency task force. Crucially, it must also identify and outline a plan for outreach and promotion of various SBA programs and services specifically designed for veterans, such as Veteran Business Outreach Centers, Boots to Business, and the Women Veteran Entrepreneurship Training Program.
Section 3(a)
GAO Study on Access to Credit for Veteran-Owned Small Businesses
This section mandates that the Comptroller General of the United States (GAO) submit a comprehensive report within one year of the Act's enactment. This report will analyze the ability of small business concerns owned and controlled by "covered individuals" (veterans, service-disabled veterans, Reservists, and their spouses) to access credit. The study must cover various aspects, including the sources of credit used, default rates compared to general small businesses, available federal lending programs, any gaps in credit availability, obstacles faced by covered individuals, the impact of military deployment on credit history, and their awareness of federal credit programs. The report is to be submitted to relevant committees in both the Senate and House of Representatives.
This subsection defines key terms used throughout the Act, specifically 'covered individual' to include veterans, service-disabled veterans, Reservists, and their spouses (including spouses of active duty members). It also clarifies that 'Reservist' refers to a member of a reserve component of the Armed Forces and that other terms like 'service-disabled veteran,' 'small business concern,' and 'veteran' adopt their meanings from Section 3 of the Small Business Act (15 U.S.C. 632).
Section 3(b)
Why it matters:This is standard legislative practice to ensure clarity and consistency by centralizing definitions and referencing existing statutory definitions where applicable. It is not intended to be evasive.
Case for: Clearly defining terms ensures consistent application of the law and prevents ambiguity regarding who is considered a 'covered individual' for the purposes of the GAO report and who benefits from the SBA's outreach efforts. Referencing existing definitions streamlines the legislative text.
Case against: There is no substantive 'case against' clear definitions; however, if the definitions were overly broad or narrow, they could be criticized for including or excluding certain groups. In this case, the definitions appear appropriate for the bill's stated purpose.
Estimated impact: Ensures the precise scope of the GAO report and the target demographic for SBA outreach are clearly understood and consistently applied.
This section explicitly states that no additional amounts are authorized to be appropriated to carry out this Act or its amendments. This means that the activities mandated by the bill, such as the SBA's annual report and the GAO's study, must be conducted using existing funds or through reallocations within the current budgets of the respective agencies.
Section 4
Why it matters:This is standard practice for 'pay-as-you-go' rules (CUTGO - 'Cut As You Go') in Congress, which aim to ensure that new spending or mandates do not increase the national debt or require new taxpayer funds. It is a fiscal control mechanism, not an attempt to hide policy.
Case for: Supporters would argue this provision demonstrates fiscal responsibility by ensuring the new mandates do not increase federal spending. It encourages agencies to prioritize and manage their existing resources efficiently to fulfill new requirements.
Case against: Critics might contend that requiring new tasks without providing additional funding could strain agency resources, potentially diverting funds from other important programs or leading to less thorough execution of the mandated reports and studies.
Estimated impact: Prevents any direct increase in federal spending specifically authorized by this Act, requiring the SBA and GAO to absorb costs within their existing appropriations.