Disadvantages to Disabled Veteran-Owned Small Businesses

U.S. Senator Elizabeth Dole, testified in the U.S. Senate Committee on Small Business and Entrepreneurship related to the essential issue of providing small businesses owned by disabled veterans with more fair opportunities to do business with the government. The following is her statement, for which she is requesting the support of our membership:

Washington, D.C. “For many folks, starting and growing a business is the means to achieving the American dream. There are many programs in place at the Small Business Administration to assist along the way – such as the Special Contracting Program, which affords small businesses owned by socially and economically disadvantaged individuals, women, and service disabled veterans the opportunity to compete for government contracts.

While all of the groups served by the Special Contracting Program are well represented in my home state of North Carolina, I would like to focus today on our service disabled veterans. Too many of our service members are coming home from service overseas with a disability, and small business ownership is a viable option for many of them, especially when entering the general workforce is not. Federal contracting opportunities for these individuals’ businesses should be enhanced.

As Ranking Member Snowe noted, it is simply unacceptable that in fiscal year 2005 only 0.6 percent of all federal contracts were awarded to service disabled veterans. In fact, they were awarded just 0.49 percent of Department of Defense contracts. When these individuals return to civilian life and take on the responsibilities and challenges of running their own business, they certainly deserve every opportunity to succeed. The federal goal that at least three percent of contracts be awarded to service disabled veteran-owned small businesses must at least be met and should be exceeded.

In North Carolina, SBA’s assistance to small businesses owned by service disabled veterans is especially important, as our state has a very large military and veteran presence. In fact, more than 125,000 men and women are stationed at our numerous military installations. According to the SBA, there are approximately 1,000 service disabled veteran-owned businesses in North Carolina. This number will very likely continue to increase, given our state’s growing military and veteran population and the rigors of the ongoing war against terror. I would expect the same could be said for many other states.

I look forward to working with my colleagues and the various agencies represented by the panel to ensure that service disabled veterans and other special contractors be given fair opportunities to do business with the government.

Refundable Credit for Small Business Health Costs

Many Members of Congress understand that there needs to be progress made in a legitimate fashion on health care reform.

The U.S. Senate Finance Committee has many items gaining traction, and the first being S.99 (Small Business Health Care Tax Credit Act), which would provide the following:

• Refundable tax credit to small businesses with less than 50 employees

• Assists with cost of health insurance premiums for employees making more than $5,000, but less than $50,000 per year

• Employer is required to pay at least 50% of the health care insurance premium

• Credit for businesses with less than 10 employees will be capped at 50% of the cost of the premium, decreasing for larger businesses