Bill would provide transition period for SDVOSB status
H.R. 1313, the Service Disabled Veteran Owned Small Business (SDVOSB) Relief Act passed the House of Representatives on Monday, May 18th. The bill would protect small businesses owned by disabled veterans in the event that the business owner passes away, by providing a transition period during which the business would keep its SDVOSB status and any federal contracts associated with that status.
The transition period would last 10 years after the veteran-owner’s death, if the veteran were either 100% disabled or died from a service-connected disability. The transition period would last 3 years in all other cases.
A Service Disabled Veteran Owned Small Business (SDVOSB) must be at least 51 percent owned by a veteran who is rated as 100 percent disabled according to the Veterans Administration. Under current law, when the veteran and small business owner passes away, the surviving family members and business owners are not guaranteed any time to transition away from SDVOSB status, putting the businesses in jeopardy of losing any federal contracts they might have. Last year, there were an estimated 500,000 SDVOSBs in the U.S.
The legislation must now be considered by the U.S. Senate.
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