Veteran Entrepreneurship Empowerment Act
- Sponsor
- Sen. Markey, Edward J. [D-MA]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Nov 10, 2025
Bottom line
This bill seeks to enhance veteran entrepreneurship by reducing financial barriers and increasing transparency regarding their engagement with federal small business support.
What it actually does
This bill waives certain guarantee fees and reduces minimum equity injection requirements for small business loans (up to $1,000,000) made by the Small Business Administration to businesses owned by veterans or their spouses. It also mandates the collection and publication of data on veteran participation in SBA loan and entrepreneurial development programs.
Proponents argue
Supporters argue that veterans are more likely to own businesses and that veteran-owned businesses are more resilient, yet veterans face significant barriers to accessing capital due to factors like frequent moves and difficulties establishing credit. Waiving fees and lowering equity requirements directly addresses these barriers, making it easier for veterans and military spouses to start and grow businesses, thereby boosting economic growth and supporting those who served.
Opponents contend
Critics might argue that while supporting veterans is a worthy goal, waiving fees and reducing equity requirements could increase the risk exposure for the federal government or potentially lead to a higher default rate on these loans, ultimately costing taxpayers more. Some might also contend that a blanket fee waiver might not be the most targeted or efficient way to address the diverse financial needs of veteran entrepreneurs.
The bill is concise and its core provisions are understandable within a reasonable timeframe, allowing for informed evaluation.
Section 3(a)(1) and Section 3(b)(1)
Waiver of SBA Loan Guarantee Fees
This provision amends the Small Business Act and the Small Business Investment Act of 1958 to prevent the Small Business Administration (SBA) from collecting certain guarantee fees on business loans up to $1,000,000 made to small businesses owned by veterans or their spouses. This includes both upfront and ongoing guarantee fees for various SBA loan programs.
Supporters argue
Supporters argue that these fees represent an unnecessary barrier to capital for veteran entrepreneurs, who already face unique challenges. Waiving them directly reduces the cost of borrowing, making it more feasible for veterans to start and expand businesses.
Critics contend
Critics might contend that guarantee fees help offset the risk to taxpayers and contribute to the sustainability of SBA loan programs. Waiving them could increase the financial burden on the federal government or require alternative funding sources.
Tradeoffs
The provision balances the goal of supporting veteran entrepreneurship by lowering costs against the potential for reduced revenue for the SBA and increased federal risk exposure.
Section 4(a) and Section 4(b)
Reduced Equity Injection for Veteran-Owned Businesses
This section mandates a reduction of at least 5 percentage points in the minimum equity injection required for certain SBA loans (up to $1,000,000) for veteran or spouse-owned small businesses. It also sets a specific 5% equity injection requirement for veteran-owned businesses seeking loans under the Small Business Investment Act of 1958, particularly for startups or businesses in operation for two years or less.
Section 5
Enhanced Data Collection on Veteran Participation
This section mandates the Small Business Administration (SBA) to collect and publish data on the participation of veterans and their spouses in its various loan programs. Additionally, it requires the SBA to include data on veteran participation in key entrepreneurial development programs, such as SCORE, Small Business Development Centers, Women's Business Centers, and Veteran Business Outreach Centers, within its budget justification materials.
The bill defines "veteran or spouse of a veteran" very broadly to include not only honorably discharged veterans but also individuals eligible for the Transition Assistance Program (TAP), members of reserve components, and the spouses and surviving spouses of all these categories.
Section 3(a)(1)(C)(ii) and Section 3(b)(2)(A)(iii)
Why it matters:This is standard legislative practice to define terms within the specific sections where they are used or in a general definitions section of the amended act. It is not necessarily evasive.
Case for: Proponents argue that this broad definition ensures that a wide range of military-affiliated individuals who face similar challenges in accessing capital are covered by the benefits of the bill, including those still transitioning or serving in the reserves.
Case against: Critics might argue that such a broad definition dilutes the focus on traditionally defined "veterans" and could extend benefits to individuals who may not face the same level of unique barriers as those who have completed active duty service.
Estimated impact: Significantly expands the pool of eligible beneficiaries for fee waivers and reduced equity requirements, potentially increasing the fiscal impact and the number of businesses supported.
The bill references specific administrative guidance (Standard Operating Procedure 50 10, version 8, effective June 1, 2025) for equity injection requirements and a specific Code of Federal Regulations section (13 CFR 120.971(d)(1)) for upfront guarantee fees.
Section 4(a)(38)(B)(i) and Section 3(b)(1)(C)(2)
Why it matters:This is standard legislative drafting practice to amend existing law by referencing the specific regulations or procedures it affects, rather than reproducing them in full.
Case for: Proponents argue that this precise referencing ensures that the bill's changes are accurately applied within the existing administrative framework of the SBA.
Case against: Critics might argue that referencing external documents makes the bill less transparent and harder for the average reader to fully comprehend the extent of the changes without additional research.
Estimated impact: The specific impact of the 5 percentage point reduction or upfront fee waiver depends on the exact current requirements in the referenced documents, which are not detailed in the bill.