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Multiple Agencies Provide Assistance to Service-disabled Veterans or Entrepreneurs, but Specific Needs Are Difficult to Identify and Coordination Is Weak

GAO-09-11R Published: Oct 15, 2008. Publicly Released: Oct 15, 2008.
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Highlights

As of July 2008, the Department of Defense (DOD) reported that almost 33,000 servicemembers had been wounded in action as part of Operation Enduring Freedom or Operation Iraqi Freedom. Some of these servicemembers could have injuries that keep them from easily entering or returning to the workplace upon their exit from the military. For some service-disabled veterans, starting a business may be one option for entering or returning to the workforce. In the Veterans Entrepreneurship and Small Business Development Act of 1999 (P.L. 106-50), Congress stated that too little had been done to help veterans, particularly service-disabled veterans, in starting small businesses. This law established the framework for the Small Business Administration (SBA), the Department of Veterans Affairs (VA), the Department of Labor (DOL), DOD, and others to coordinate in providing entrepreneurial assistance to veterans and servicedisabled veterans. To improve coordination and enhance small business assistance to veterans, the law required that these agencies enter into memorandums of understanding (MOU) as specified in the 1999 Act (but not all of the agencies were required to participate in each of the MOUs); established the National Veterans Business Development Corporation (now known as The Veterans Corporation) to assist veterans, including service-disabled veterans, in forming and expanding small businesses; and established a government wide federal procurement goal for the participation of small businesses owned and controlled by service-disabled veterans. The Military Reservist and Veteran Small Business Reauthorization and Opportunity Act of 2008 (P.L. 110-186) amended P.L. 106-50 and contained provisions directing these agencies and their resource partners to improve coordination when providing entrepreneurial assistance. For example, it (1) established the authority for an interagency task force, chaired by the SBA Administrator, to coordinate these efforts; (2) increased the number of Veterans Business Outreach Centers (VBOC) by at least two centers in fiscal years 2008 and in 2009, subject to funding from Congress; (3) directed the SBA Administrator to sponsor an independent study on gaps in the availability of VBOCs across the country; and (4) directed SBA to create written materials on self-employment and veterans' entrepreneurship and provide them to DOL for use in its Transition Assistance Program, which helps servicemembers exiting the military. Furthermore, P.L. 110-186 required that GAO describe the (1) types of assistance that may be needed by service-disabled veterans who want to become entrepreneurs and (2) resources that are available to assist such service-disabled veterans.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Small Business Administration The SBA Administrator should expedite the agency's efforts to convene the interagency task force required under P.L. 110-186 to coordinate assistance to service-disabled veteran and veteran-owned small businesses. In addition to addressing this mandated responsibility, the interagency task force should: (1) encourage SBA, VA, DOL, and other resource partners to strengthen the coordination of entrepreneurial assistance to veterans and service-disabled veterans, and determine whether more formal agency agreements (such as MOUs of the type required in P.L. 106-50) are needed and (2) encourage VA, SBA, and others to work together, as called for in P.L. 106-50, to establish a clearinghouse of information (including contact information) on the federal and local resources available to service-disabled veterans who are interested in becoming entrepreneurs.
Closed – Implemented
SBA RESPONSE: Following the President's issuance of Executive Order 13540, April 2010, the SBA initiated steps to establish the Interagency Task Force on Veterans Small Business Development [Task Force]. Accordingly, an organizational meeting was held September 2010 and the first public meeting of the Task Force was held in October 2010. In addition, the Task Force conducted public meetings in December 2010, February 2011 and April 2011 with additional public meetings planned for June and August 2011. A report to the President is planned for October 2011. The Task Force was established pursuant to Executive Order 13540 and focuses on coordinating the efforts of Federal agencies to improve capital, business development opportunities and pre-established Federal contracting goals for small business concerns owned and controlled by veterans (VOB's) and service-disabled veterans (SDVOSB'S). Moreover, the Task Force is focusing on coordinating administrative and regulatory activities and developing proposals relating to "six focus areas" (1)Access to capital (loans, surety bonding and franchising); (2) Ensure achievement of pre-established contracting goals, including mentor/protege and matching with contracting opportunities; (3)Increase the integrity of certifications of status as a small business; (4)Reducing paperwork and administrative burdens in accessing business development and entrepreneurship opportunities; (5) Increasing and improving training and counseling services; and (6)Making other improvements to support veteran's business development by the Federal government. The Task Force is chaired by the SBA Deputy Administrator and is comprised of representatives from the SBA, VA, DOD, Treasury, OMB, DOL and the GSA. In addition, the Task Force has four members representing military/veteran organizations or associations. These members are dispersed among six subcommittees which coincide with the six focus areas identified above and are developing recommendations for improvement in each focus area. The Subcommittee on Training and Counseling and the Subcommittee on Reducing Administrative Burdens are working on recommendations and actions to strengthen the coordination of entrepreneurial assistance to veterans and service-disabled veterans. In addition to the basic response in No. 2 above, the Subcommittee on Improving Federal Support and the Subcommittee on Reducing Administrative Burdens are working on recommendations and actions to establish a clearinghouse of entrepreneurial information to identify all resources and resource partners available to veterans and service-disabled veterans.

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Topics

Aid for the disabledDisabilitiesEmployment assistance programsEmployment of the disabledFederal aid programsInteragency relationsLending institutionsMilitary personnelPeople with disabilitiesRehabilitation counselingReporting requirementsSelf-employedSmall businessSmall business assistanceStrategic planningVeteransVeterans benefitsVeterans educationVeterans employment programsVocational rehabilitation