Rep. McNerney’s Bill to Aid Small Businesses Owned by Disabled Veterans Signed into Law


Washington, D.C. – Friday, Congressman Jerry McNerney’s bill to protect Service Disabled Veteran Owned Small Businesses (SDVOSB) was signed into law by the President as part of a veterans omnibus package that was passed by Congress.


McNerney’s bill, H.R. 1313, the Service Disabled Veteran Owned Small Business Relief Act, will protect small businesses owned by disabled veterans in the event that the business owner passes away, by providing a longer transition period during which the business would keep its SDVOSB status and any Department of Veterans Affairs contracts associated with that status.


“I have worked hard to ensure that our veteran small business owners have an opportunity to grow and succeed in the local economy. They have distinctive skills and a commitment to community that make them uniquely qualified to become part of one of the best economic drivers we have in our country – small businesses,” said Congressman McNerney.


In the United States there are an estimated 500,000 Service-Disabled Veteran-Owned Small Businesses. Currently, if a veteran who was rated 100 percent disabled and who owned a service-disabled veteran-owned small business passes away, the surviving spouse has 10 years to transition the business away from service-disabled veteran-owned small business status. However, if the veteran business owner was rated less than 100 percent disabled or dies of a non-service connected injury, the surviving spouse only has one year to transition the business for contracts with the VA.


The SDVOSB Act will allow a service-disabled veteran-owned small business, whose principal owner passes away and was rated less than 100 percent disabled at the time of death, with a sensible three-year transition period from SDVOSB status with the VA.


H.R. 1313 was included in the passage of H.R. 6416, the Jeff Miller and Richard Blumenthal Veterans Health Care and Benefits Improvement Act of 2016.


The SDVOSB Act is supported by the Paralyzed Veterans of America, AMVETS, VFW, IAVA, and the American Legion.


“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.