PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Small Business.
Congressional Research Service
No official summary is available in the imported record yet.
People & committees
Rep. Cline, Ben [R-VA-6] · R–VA
Legislative record
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Referred to the House Committee on Small Business.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
No related bills are listed in this snapshot. This does not establish whether the proposal has appeared in earlier Congresses.
Source last updated: Sep 2, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Introduced in House · 2026-08-03 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
This bill would create a temporary program offering grants to eligible veterans and certain service members to start or buy businesses. Participants would need military service and veterans’ education-benefit eligibility, and would have to complete business training and obtain approval of a business plan before receiving grant payments. The program would also provide monthly assistance tied to military housing allowance rates. Its purpose would be to test whether this approach is workable and advisable.
shall begin carrying out a pilot program to assess the feasibility and advisability of making grants to eligible veterans to start or acquire a qualifying business enterprise.
(D) Eligible veteran The term eligible veteran means an individual who— (i) is— (I) a veteran; or (II) a member of the Armed Forces who— (aa) is currently retiring or separating from the Armed Forces and has a service approved retirement or separation packet; or (bb) has last been honorably discharged from active duty service in the Armed Forces; (ii) has completed not less than— (I) 36 months of active duty service in the Armed Forces (other than active duty service for training); or (II) 24 months of active duty service in the Armed Forces (other than active duty service for training) before being discharged or separated for a service-connected disability, as that term is defined in section 101 of title 38, United States Code; and (iii) is entitled to educational assistance under chapter 30 or 33 of title 38, United States Code.
(ii) only after the eligible veteran presents documentation proving that the eligible veteran has completed the required entrepreneurship training described in paragraphs (3)(A) and (3)(B); and (iii) only after the business plan of the eligible veteran has been approved under the procedures described in paragraph (3)(C)(ii).
the monthly amount of the basic allowance for housing payable under section 403 of title 37, United States Code, for a member with dependents in pay grade E–5
Section 1 would name the bill the Veterans Entrepreneurship Act of 2026. Section 2 would add the pilot program to section 32 of the Small Business Act.
This Act may be cited as the Veterans Entrepreneurship Act of 2026.
Section 32 of the Small Business Act (15 U.S.C. 657b) is amended by adding at the end the following: (h) Veterans small business entrepreneurship pilot program
The Administrator would have to start the pilot within 90 days after enactment, consulting the Advisory Committee on Veterans Business Affairs and the Secretary of Veterans Affairs. The pilot would run for three years from its start date.
Not later than 90 days after the date of enactment of this subsection, the Administrator, in consultation with the Advisory Committee and the Secretary of Veterans Affairs, shall begin carrying out a pilot program
(F) Duration The Administrator shall carry out the pilot program during the 3-year period beginning on the date on which the Administrator begins carrying out the pilot program.
The term Advisory Committee means the Advisory Committee on Veterans Business Affairs established under section 203 of the Veterans Entrepreneurship and Small Business Development Act of 1999
The Administrator could award grants to no more than 250 eligible veterans, with groups counted under the separate group rule. Awards would have to be geographically diverse. The program would have to promote efficiency, accountability and competition as far as practicable.
(D) Number of grants Under the pilot program, the Administrator may make grants in accordance with paragraph (4) to not more than 250 eligible veterans to start or acquire a qualifying business enterprise.
The group shall be treated as a single eligible veteran under the pilot program
(E) Geographic diversity In making grants under the pilot program, the Administrator shall ensure geographic diversity among the veterans who receive the grants.
the Administrator shall ensure, to the maximum extent practicable, that the pilot program promotes efficiency, accountability, and competition.
Rules would establish which business categories qualify. The list would have to include small businesses and franchises, and could include other categories the Administrator, in consultation with the Advisory Committee, determines are appropriate to the program.
The Administrator, in consultation with the Advisory Committee, shall by rule establish a list of categories of business enterprises that the Administrator determines to be qualifying business enterprises for purposes of the pilot program, which shall include— (i) a small business concern; (ii) a franchise business enterprise; and (iii) any other category of business enterprise that the Administrator, in consultation with the Advisory Committee, determines is appropriate and in accordance with the purposes of the pilot program.
For this program, a franchise would involve a right to operate or sell under the franchisor’s trademark, the franchisor’s ability or authority to exert significant control or provide significant assistance, and a required payment or payment commitment. A startup would include a business not yet created or one no more than five years old.
(i) the franchisee will obtain the right to— (I) operate a business that is identified or associated with the trademark of the franchisor; or (II) offer, sell, or distribute goods, services, or commodities that are identified or associated with the trademark of the franchisor; (ii) the franchisor may— (I) exert, or has authority to exert, a significant degree of control over the method of operation of the franchisee; or (II) provide significant assistance in the method of operation of the franchisee; and (iii) as a condition of obtaining or commencing operation of the franchise business enterprise, the franchisee makes a required payment or commits to make a required payment to the franchisor or the affiliate of the franchisor.
(J) Startup The term startup means a business enterprise that— (i) is not yet in existence; or (ii) has been in existence for not more than 5 years.
Eligibility would cover veterans and specified members of the Armed Forces: those currently retiring or separating who have a service-approved retirement or separation packet, or those whose last discharge from active duty was honorable. All applicants would also need at least 36 months of active duty, or at least 24 months before discharge or separation for a service-connected disability, excluding active duty for training. They would need entitlement to education assistance under chapter 30 or 33 of title 38.
(D) Eligible veteran The term eligible veteran means an individual who— (i) is— (I) a veteran; or (II) a member of the Armed Forces who— (aa) is currently retiring or separating from the Armed Forces and has a service approved retirement or separation packet; or (bb) has last been honorably discharged from active duty service in the Armed Forces; (ii) has completed not less than— (I) 36 months of active duty service in the Armed Forces (other than active duty service for training); or (II) 24 months of active duty service in the Armed Forces (other than active duty service for training) before being discharged or separated for a service-connected disability, as that term is defined in section 101 of title 38, United States Code; and (iii) is entitled to educational assistance under chapter 30 or 33 of title 38, United States Code.
Applications would be due at least one year before the pilot ends. They would have to identify the business, explain the proposed use of the grant and describe its expected financial return. Applicants would have to certify that they will complete required training and understand that payments depend on completing training and obtaining business-plan approval.
(ii) not later than 1 year before the date on which the pilot program terminates under paragraph (1)(F).
(i) A description of the use of the grant amount, including an identification and description of the qualifying business enterprise. (ii) A description of the expected return on investment resulting from the grant amounts.
(iii) A certification that the eligible veteran applying for the grant— (I) shall complete the education and training relevant to the ownership and operation of the qualifying business enterprise described in paragraphs (3)(A) and (3)(B); and (II) understands that the eligible veteran may not receive amounts under a grant under the pilot program until after the eligible veteran has completed the required education and training relevant to the ownership and operation of the qualifying business enterprise described in paragraphs (3)(A) and (3)(B).
(v) A certification that the eligible veteran applying for the grant understands that the eligible veteran may not receive amounts under the grant until after the business plan of the eligible veteran has been approved under the procedures described in paragraph (3)(C)(ii).
Required application evidence would vary by business. Operating businesses would need evidence of good standing, profitability and purchase guarantees. Franchises would need evidence of compliance with franchise laws and industry-standard training. Startups and other businesses not operating would need a proposal showing a path to profitability within a reasonable time.
(iv) Such certifications as the Administrator, in consultation with the Advisory Committee, shall by rule require, including— (I) for a business enterprise in operation on the date of the application, evidence that the Administrator, in consultation with the Advisory Committee, determines appropriate of— (aa) good standing; (bb) profitable operation; and (cc) guarantees relating to the purchase of the enterprise; (II) for a franchise business enterprise, evidence that the Administrator, in consultation with the Advisory Committee, determines appropriate of— (aa) compliance with applicable State and Federal laws on franchises; and (bb) training in conformation with the industry standard; and (III) for a startup, or an enterprise that is otherwise not in operation at the time of the application, a proposal for the operation of that enterprise that leads to profitable operation within a reasonable time frame.
Applicants would have to certify that they reported their employment status truthfully and understand that an untrue certification would bar them from participating.
(vi) A certification that the eligible veteran— (I) has been truthful about the employment status of the eligible veteran; and (II) understands that the eligible veteran will be prohibited from participating in the pilot program if the certification described in subclause (I) is determined to be untrue.
The Administrator could allow eligible veterans to apply together. A group would count as one eligible veteran, but its maximum grant would equal the paragraph (4)(A) maximum multiplied by its number of members.
(C) Group applications The Administrator may authorize a group of eligible veterans to apply as a group under the pilot program. The group shall be treated as a single eligible veteran under the pilot program, except that the maximum amount of the grant shall be calculated by multiplying the maximum amount under paragraph (4)(A) by the number of members of the group.
Recipients would have to complete an approved business-readiness program designed to lead directly to owning and managing a qualifying business. Approved options could include small business development centers, women’s business centers, Veterans Business Outreach Centers, the Defense Department’s Transition Assistance Program, SCORE, and other approved entrepreneurship training.
Each eligible veteran receiving a grant under the pilot program shall complete an entrepreneurship readiness program approved by the Administrator that is designed to prepare the eligible veteran for, and lead to the immediate subsequent ownership and management by the eligible veteran of, a qualifying business enterprise.
(B) Approved programs An approved program described in subparagraph (A) may include a program— (i) available through a small business development center; (ii) approved by the Administrator for entrepreneurship training; (iii) approved by the Secretary of Veterans Affairs for entrepreneurship training; (iv) available through the Transition Assistance Program of the Department of Defense; (v) available through a women’s business center, as described in section 29; (vi) available through a Veterans Business Outreach Center, as described in subsection (d); (vii) available through the SCORE program authorized by section 8(b)(1); or (viii) approved by the Administrator, in consultation with the Advisory Committee, as appropriate because of the expertise the program offers relating to a certain type of business enterprise.
Participants would prepare business plans during training with an approved advisor’s help, following the Administration’s Business Plan Tool guidance. Plans would explain a path to profitability and assess economic indicators, consumer information, production and sales data, and the relevant market or industry.
(C) Business plan The term business plan means a plan prepared by an eligible veteran for the operation of a qualifying business enterprise that shall be— (i) prepared— (I) while the eligible veteran participates in an approved training program described in paragraphs (3)(A) and (3)(B); and (II) with the assistance of an advisor; and (ii) consistent with the guidelines and recommendations provided by the Business Plan Tool of the Administration.
(I) a description of how the qualifying business enterprise will achieve profitable operation within a reasonable time frame; (II) an assessment of relevant— (aa) economic indicators; (bb) consumer data; (cc) production and sales data; and (dd) market or industry analysis; and (III) other information that the Administrator, in consultation with the Advisory Committee, determines is appropriate.
(A) Advisor The term advisor means a person— (i) affiliated with an entrepreneurship or training and curricula program described in paragraphs (3)(A) and (3)(B); (ii) who may assist an eligible veteran with the preparation and approval of a business plan; and (iii) who is approved to serve as an advisor by the Administrator, in consultation with the Advisory Committee.
The Associate Administrator for Veterans Business Development would review plans approved by advisors and could reverse approval and require further work and resubmission. If an advisor rejected a plan, the veteran could appeal to that official, who could approve it.
(I) Approval by advisor If an advisor approves the business plan prepared by the eligible veteran, the Associate Administrator for Veterans Business Development of the Administration— (aa) shall review the business plan; and (bb) may reverse the approval of the business plan and require that the eligible veteran continue to consult with the advisor to develop and resubmit the business plan. (II) Disapproval by advisor If an advisor does not approve the business plan prepared by an eligible veteran, the Associate Administrator for Veterans Business Development of the Administration, upon appeal by the eligible veteran, may reverse the decision of the advisor and approve the business plan.
Subject to the group rule, the overall payment ceiling would combine three amounts: the education-benefit-based grant maximum, monthly additional assistance multiplied by months of participation, and any training assistance received.
(i) In general Subject to paragraph (2)(C), the maximum amount that an eligible veteran may receive under the pilot program shall not exceed an amount equal to the sum of— (I) the maximum grant amount specified in clause (ii); (II) the amount equal to the product obtained by multiplying— (aa) the amount of additional assistance to which the eligible veteran is entitled under clause (iii)(II); by (bb) the number of months that the eligible veteran participates in the pilot program; and (III) the amount of training assistance received by the eligible veteran in clause (iv).
For a veteran entitled to chapter 33 education assistance, the grant maximum would multiply the months of education entitlement at application by a proportionate monthly rate drawn from section 3313(c)(1)(A)(ii)(II), subject to that section’s paragraphs (2) through (7). The bill does not state a fixed dollar amount.
(I) In the case of an eligible veteran entitled to educational assistance under chapter 33 of title 38, United States Code, the amount equal to the product obtained by multiplying— (aa) the number of months of educational assistance to which the eligible veteran is entitled on the date that the eligible veteran submits an application; by (bb) the pro rata monthly rate of the amount that the eligible veteran is entitled to under paragraph (1)(A)(ii)(II) of section 3313(c) of that title, subject to paragraphs (2) through (7) of that section.
For a veteran entitled to chapter 30 education assistance, the grant maximum would multiply the months of education entitlement at application by the rate in section 3015(a)(1). That rate is referenced rather than reproduced.
(II) In the case of an eligible veteran entitled to educational assistance under chapter 30 of title 38, United States Code, the amount equal to the product obtained by multiplying— (aa) the number of months of educational assistance to which the eligible veteran is entitled on the date that the eligible veteran submits an application; by (bb) the rate in effect under section 3015(a)(1) of that title.
Participants would receive additional assistance for each month of participation. It would equal the local military housing allowance for pay grade E–5 with dependents if, when applying, the veteran had no employment outside the proposed business; otherwise, it would be half that amount. The location would be based on the veteran’s residence.
(I) Period of eligibility An eligible veteran shall receive the amount described in subclause (II) for each month that the eligible veteran participates in the pilot program.
(aa) the monthly amount of the basic allowance for housing payable under section 403 of title 37, United States Code, for a member with dependents in pay grade E–5 residing in the military housing area that encompasses all or the majority portion of the ZIP Code area in which is located the residence of the eligible veteran (similar to the calculation made under section 3313(c)(1)(B)(i)(I) of title 38, United States Code); by (bb) (AA) in the case of an eligible veteran who, as of the date on which the eligible veteran applies for a grant under this subsection, has no employment other than the qualifying business enterprise for which the eligible veteran seeks a grant under this subsection, 1; or (BB) in the case of an eligible veteran who is not described in subitem (AA), 0.5.
On a recipient’s application, the Administrator could pay the cost of training approved specifically for its expertise in a particular type of business. This payment would be discretionary.
(iv) Training assistance Upon application by an eligible veteran receiving a grant under the pilot program, the Administrator may pay for the cost, if applicable, of an approved program described in paragraph (3)(B)(viii).
(viii) approved by the Administrator, in consultation with the Advisory Committee, as appropriate because of the expertise the program offers relating to a certain type of business enterprise.
Grant payments would require proof of completed training and an approved business plan. The education-benefit-based grant would be paid in proportional installments, with later installments three to twelve months after the previous payment and conditioned on meeting business-plan milestones.
(B) Disbursement The amount of a grant made under the pilot program shall be disbursed to an eligible veteran— (i) in installments, in accordance with the procedures described in subparagraph (C); (ii) only after the eligible veteran presents documentation proving that the eligible veteran has completed the required entrepreneurship training described in paragraphs (3)(A) and (3)(B); and (iii) only after the business plan of the eligible veteran has been approved under the procedures described in paragraph (3)(C)(ii).
(C) Installment payments The amount described in subparagraph (A)(ii) shall be paid to the eligible veteran in installments on a pro rata basis with each installment being paid to the eligible veteran— (i) not earlier than 3 months after the date of the payment of the most recent installment to the eligible veteran; (ii) not later than 12 months after the date of the payment of the most recent installment to the eligible veteran; and (iii) only after the eligible veteran has met milestones established in the business plan of the eligible veteran.
Grants could fund approved purposes related to starting or buying a qualifying business, subject to limits set by rule. Examples include necessary goods or services, buying the business itself, and projects serving economic-development objectives referenced in the Small Business Investment Act of 1958.
(5) Use of grant amounts An eligible veteran who receives a grant under the pilot program may use the amount of the grant— (A) in accordance with the limitations that the Administrator, in consultation with the Advisory Committee, may by rule establish; and (B) for purposes related to starting or acquiring a qualifying business enterprise that the Administrator, in consultation with the Advisory Committee, determines are appropriate, including— (i) purchasing goods or services necessary for the creation or operation of a qualifying business enterprise; (ii) funding a project that is directed toward any economic development objective described under section 501(d) of the Small Business Investment Act of 1958 (15 U.S.C. 695(d)); and (iii) acquiring a qualifying business enterprise.
Within two years after the pilot starts, the Administrator would report on its feasibility and effectiveness to the Senate and House committees responsible for small business and veterans’ affairs. The report would include an assessment, recipient counts and participation counts for the training programs.
Not later than 2 years after the date on which the pilot program is commenced, the Administrator shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Veterans’ Affairs of the Senate and the Committee on Small Business and the Committee on Veterans’ Affairs of the House of Representatives a report analyzing the feasibility and effectiveness of the pilot program.
(i) an assessment of the pilot program; (ii) a survey containing— (I) the number of grantees under the pilot program; and (II) the number of the grantees under the pilot program that participated in each of the training programs described in subparagraphs (A) and (B) of paragraph (3);
The report would recommend whether any part of the pilot should become permanent and, if so, how to ensure geographic, demographic and business-type diversity. It would also assess installments versus a single payment, monthly-assistance accountability, business-plan approval procedures and advisor accountability. A recommendation would not itself make the pilot permanent.
(iii) recommendations regarding whether any aspect of the pilot program should be made a permanent authority, and, if so, the means to ensure— (I) geographic and demographic diversity among the eligible veterans who receive the grants under the permanent authority; and (II) diversity in the types of qualifying business enterprises for which eligible veterans may receive grants under the pilot program; (iv) an assessment regarding whether the grants distributed under the pilot program should continue to be made in installments or with a 1-time, lump sum payment; (v) an assessment of the additional assistance made available under the pilot program, including the accountability surrounding the availability of additional assistance; (vi) an analysis of the procedures for approving a business plan and a recommendation regarding ways, if necessary, to improve the procedures; and (vii) a recommendation regarding ways, if necessary, to improve the accountability of advisors.
The Administrator shall carry out the pilot program during the 3-year period beginning on the date on which the Administrator begins carrying out the pilot program.
The proposal would preserve existing time limits and eligibility periods for using chapter 30 or chapter 33 education assistance.
(7) No effect on time limitation for use of entitlement to educational assistance Nothing in this subsection shall be construed to modify any time limitation or period during which an individual is entitled to educational assistance under chapter 30 or 33 of title 38, United States Code.
The supplied actions snapshot, updated September 2, 2026, records introduction in the House and referral to the House Committee on Small Business on August 3, 2026. It does not establish the bill’s status after that snapshot.
Source snapshot updated 2026-09-02T08:06:37Z. 2026-08-03: Referred to the House Committee on Small Business. 2026-08-03: Introduced in House
A closer look
Reviewed version: Introduced in House · 2026-08-03. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for a particular recipient or place was identified in the complete supplied introduced text. This conclusion is limited to that version; formal earmark status cannot be fully assessed without accompanying disclosure and legislative materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
None identified in the reviewed text
No materially narrow carve-out or special preference beyond the program’s intended beneficiaries and generally applicable participation rules was identified in the complete supplied introduced text. This conclusion does not establish absence in other versions or accompanying materials.
Full text preserved for this analysis. Legislative record snapshot: Sep 2, 2026. How PlainBill uses AI