New bill to protect Service Disabled Veteran-owned Small Businesses (SDVOSB)

McNerny bill would provide transition period for SDVOSB status

Washington, DC – Congressman Jerry McNerney (CA-09) has introduced H.R. 1313, the Service Disabled Veteran Owned Small Business (SDVOSB) Relief Act. 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.

“My bill is a commonsense fix that will make sure we honor the service of our disabled veterans and protect their hard work and investment,” said Rep. McNerney. “I will urge my colleagues to pass this bill and allow these veterans to leave a legacy to their families and co-owners when they pass away.“

The House Committee on Veterans’ Affairs Subcommittee on Economic Opportunity will hold a legislative hearing on Rep. McNerney’s bill on March 24th.

The Service Disabled Veteran Owned Small Business Relief Act is endorsed by the Paralyzed Veterans of America (PVA) and AMVETS:

“Service disabled veteran owned businesses play a critical role in federal contracting,” said Carl Blake, Government Relations Director of the Paralyzed Veterans of America. “PVA gladly supports this legislation that will ensure that the SDVOSB is not immediately penalized by the passing of the veteran business owner who honorably served this Nation.”

“AMVETS supports The Service Disabled Veteran Owned Small Business Relief Act, which would ensure some much needed equity to the surviving spouse of veterans rated at less than 100% disability, ” said Diane M. Zumatto, AMVETS  National Legislative Director.



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