News From the
Committee on Small Business
Subcommittee on Investigations & Oversight

Jason Altmire, Chairman

For Immediate Release
May 2, 2007

CONTACT: Christina Stacey (Altmire); (724) 378-0928 | Kate Gilman/ Austin Bonner,  (202) 225-4038

Veteran Entrepreneurs Need Better Support

As Record Numbers Return from Iraq, Veterans Corporation and SBA Must Do More

WASHINGTON – Since 2001, over 1.5 million troops have been deployed to Iraq and Afghanistan, and each year roughly 300,000 service men and women return from overseas.  As time goes on, these numbers are only projected to grow.   The House Small Business Subcommittee on Investigations and Oversight today evaluated the effectiveness of the National Veterans Business Development Corporation (Veterans Corporation) and the Small Business Administration (SBA) that are both tasked with assisting recent veterans in becoming successful entrepreneurs.

“The men and women who have served our country so well should have the door opened to all the economic opportunities that we can provide them with when they return home,” said Subcommittee Chairman Jason Altmire. “It is critical that they have access to the tools, support and initiatives they need in order to become successful business owners.”

Veterans face a number of unique challenges, from increasing lengths and number of deployments overseas, to translating their military experience into business ventures. To meet these needs, the Veterans Corporation was established in 1999 to provide comprehensive training and business development assistance for potential entrepreneurs.  This program was implemented to help supplement the existing initiatives at SBA, such as the Veterans Business Outreach Centers, which provide service members with information about the agency’s programs and technical assistance.  Returning service members rely heavily on these types of initiatives in order to meet their unique needs, and help them transition into business ownership.  

“The catalyst for the creation of the Veterans Corporation was the need to provide  assistance to our nation’s veterans as they return to the states and work to start or expand businesses,” said Chairman Altmire. “Veterans are a powerful force in the economy, and it is vital that initiatives such as these are able to help this growing sector continue their development.”

Leading veterans’ organizations told the subcommittee that more must be done to promote the economic stability of veterans through entrepreneurship and raised concerns about the effectiveness of current programs.  During the hearing, panelists indicated that the Veterans’ Corporation is not doing enough to meet the needs of returning service men and women. Rather than providing the assistance themselves, the organization’s resources are primarily used to coordinate public and private services already available. Concerns were also raised about the lack of outreach done by the Veterans Corporation and its failure to deliver services tailored to the specific needs of returning veterans. While service members depend on these programs to help them work through barriers, and get their businesses up and running upon their return, today’s testimony made it clear that veterans are not receiving the assistance they need to meet their unique needs. 

“There is no doubt that the mission of the Veterans Corporation is a good one – our nation’s veterans deserve the best service that this country has to offer when it comes to providing opportunities and entrepreneurial assistance,” said Chairman Altmire. “That is why it is so important that we do all we can to support public private partnerships aimed at assisting this sector, initiate a dialogue to help these entities come up with creative solutions on how to address the existing challenges, and help them get on a sound financial track.  This country owes its service to these brave men and women – just as entrepreneurs serve as the foundation of our economy, our veterans serve as the foundation of this nation.”  

The committee will continue to work to ensure that these services are delivered through existing agencies’ infrastructure and, if needed, resources are provided to meet increasing demand. In addition to providing oversight into entrepreneurial development programs for veterans, the committee has also worked to expand access to capital for returning service members. The Small Business Lending Improvements Act, passed last week, creates a program to help veterans to start their own ventures by making capital more affordable and easier to access.  

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