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Veteran Entrepreneurs Act of 2021
12/30/2022, 8:03 AM
Summary of Bill HR 5920
The main provisions of the bill include establishing a grant program within the Small Business Administration (SBA) to provide funding to veteran-owned small businesses. This grant program would help veterans cover the costs associated with starting and growing their businesses, such as equipment purchases, marketing expenses, and hiring employees.
Additionally, the bill seeks to increase access to resources and support for veteran entrepreneurs by requiring the SBA to develop and implement a comprehensive outreach and education program specifically tailored to veterans. This program would provide information on available resources, training opportunities, and mentorship programs to help veterans navigate the process of starting and running a successful business. Furthermore, the bill aims to streamline the certification process for veteran-owned small businesses seeking to participate in federal contracting opportunities. By simplifying the certification process, the bill seeks to make it easier for veteran entrepreneurs to compete for and win government contracts, ultimately helping them grow their businesses and create jobs. Overall, the Veteran Entrepreneurs Act of 2021 is designed to provide veterans with the support and resources they need to succeed as entrepreneurs, while also recognizing and honoring their service to our country.
Congressional Summary of HR 5920
Veteran Entrepreneurs Act of 2021
This bill allows a business-related tax credit of 25% of up to $400,000 of the franchise fees paid or incurred by an eligible veteran for the purchase of a franchise. The bill reduces the amount of such credit if the veteran does not own 100% of the stock or capital or profits interest of the franchisee.
An eligible veteran is a person who served in the active military, naval, or air service; was discharged or released under conditions other than dishonorable; and who pays or incurs a franchise fee in connection with a franchise agreement with a franchisor.
The veteran may elect to transfer the credit to an eligible franchisor in exchange for a discount in the franchise fee commensurate with the value of the credit.
The Small Business Administration and the Department of Veterans Affairs must provide information about the tax credit allowed by this bill to veterans service organizations and veteran advocacy groups.
