Heroes Business Opportunity Act of 2025
- Sponsor
- Sen. Shaheen, Jeanne [D-NH]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Nov 6, 2025
Bottom line
This bill aims to reduce the cost of obtaining Small Business Administration-backed loans for eligible veteran and military spouse entrepreneurs by eliminating the associated guarantee fee.
What it actually does
This bill amends the Small Business Act to waive the guarantee fee for certain Small Business Administration (SBA) loans. Specifically, it prohibits the SBA from collecting a guarantee fee on loans made to small business concerns owned by veterans or their spouses, provided the loan is not a microloan (under paragraph 36 or 37 of Section 7(a)) and the SBA's guaranteed portion does not exceed $1,000,000.
Proponents argue
Supporters argue that this bill removes a direct financial barrier for veterans and military families seeking to start or expand businesses, thereby fostering entrepreneurship, job creation, and economic opportunity for those who have served the nation.
Opponents contend
Critics might contend that while the intent to support veterans is laudable, waiving these fees could reduce the Small Business Administration's revenue, potentially impacting its ability to fund other programs or increasing the financial risk to taxpayers if loan defaults occur.
The bill is very short and clearly written, making it highly accessible for readers to evaluate its provisions quickly.
Section 2, amending Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
Waiver of Guarantee Fee for Veteran and Spouse-Owned Small Business Loans
This provision modifies existing law to prevent the Small Business Administration (SBA) from collecting a guarantee fee on certain business loans. Specifically, this fee waiver applies to loans not made under the SBA's microloan programs (paragraphs 36 or 37 of Section 7(a)) if the loan is made to a small business owned by a veteran or a veteran's spouse, and the SBA's guaranteed portion of the loan does not exceed $1,000,000. It also defines 'veteran or spouse of a veteran' broadly to include active duty spouses, reservists, and surviving spouses of service-connected deaths.
Supporters argue
Supporters argue that eliminating this fee directly lowers the barrier to entry and cost of capital for veteran entrepreneurs, fostering job creation and economic growth within a deserving community. It acknowledges the unique challenges veterans face in transitioning to civilian life and entrepreneurship.
Critics contend
Critics might contend that while the intent is laudable, waiving fees could reduce the funds available to the SBA for other programs or increase the overall risk profile of its loan portfolio, potentially requiring taxpayer funds to cover future losses. They might also argue for broader, more universally applicable small business support.
Tradeoffs
The bill balances the desire to support veteran entrepreneurship with the potential fiscal implications of reduced fee revenue for the SBA and potentially increased taxpayer exposure to loan defaults.
This subclause provides a detailed definition of 'veteran or spouse of a veteran,' which includes not only veterans but also individuals eligible for the Transition Assistance Program (TAP), members of a reserve component of the Armed Forces, spouses of any of these individuals, and surviving spouses of those who died on active duty or from service-connected disabilities.
Section 2(1)(B), subparagraph (C)(ii)
Why it matters:This is standard legislative practice for defining terms relevant to a specific provision, ensuring precision and avoiding ambiguity. It is not intentionally evasive.
Case for: Proponents would argue that a broad definition ensures that the benefits of the fee waiver extend to a wider range of military-affiliated individuals, including those actively transitioning, reservists, and military families, maximizing the bill's impact on the military community.
Case against: Critics might argue that expanding the definition beyond 'veteran' could dilute the focus of the benefit or increase the fiscal impact beyond what is initially perceived, though this specific definition is generally well-accepted in veteran-focused legislation.
Estimated impact: This broad definition significantly expands the pool of eligible small business owners who can benefit from the fee waiver, increasing the overall reach and potential cost of the program.