Congressman Jerry McNerney

Representing the 9th District of California
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Rep. McNerney’s Bill to Help Small Businesses Owned By Disabled Veterans Passes the House

May 19, 2015
Press Release

Washington, DC – Yesterday, Congressman Jerry McNerney’s bill to protect Service Disabled Veteran Owned Small Businesses (SDVOSB) unanimously passed the House of Representatives.  McNerney’s bill, H.R. 1313, the Service Disabled Veteran Owned Small Business Relief Act, would 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.

In the United States, there are an estimated 500,000 SDVOSB’s. A SDVOSB is a business that is at least 51 percent directly owned and controlled by one or more service-disabled veterans. 

Under current law, when the veteran and small business owner passes away, the surviving family members and business owners are not given sufficient time to transition away from SDVOSB status, putting the businesses in jeopardy of losing any federal contracts they might have. The transition period outlined in Congressman McNerney’s bill would last 10 years after the veteran-owner’s death, so long as the veteran was either 100 percent disabled or died from a service-connected disability. The transition period would last 3 years in all other cases.

“I’m pleased that my colleagues in the House supported this commonsense fix that honors the service of our disabled veterans and protects their hard work and investment so that their families and co-owners can continue their legacy. It is only right that we provide our heroes and their families, and the business’s employees with flexibility and certainty to ensure their businesses continue to thrive.” said Rep. McNerney.

The Paralyzed Veterans of America (PVA) and AMVETS have endorsed Congressman McNerney’s bill:

"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.