Rounds, Hirono Introduce Legislation to Boost Exports from Veteran Small Businesses

WASHINGTON – U.S. Sens. Mike Rounds (R-S.D.) and Mazie K. Hirono (D-Hawaii), members of the Senate Veterans’ Affairs and Small Business & Entrepreneurship Committees, introduced the Veteran Small Business Export Promotion Act to make permanent the U.S. Small Business Administration’s (SBA) current policy of waiving up-front fees for veterans applying for its Export Express, Export Working Capital and International Trade loans of $150,000 or less. The policy, which began in 2013 and has been renewed annually since, is currently set to expire on September 30, 2017.

“The Veteran Small Business Export Promotion Act is a win for South Dakota veterans looking to start a small business when their service is up,” said Rounds. “Our bill would simultaneously help them transition to civilian life and promote entrepreneurship among our vets. Our men and women in uniform risk everything to protect our freedoms; this legislation is but one way we can thank them for their service.”

“The over 11,000 strong veteran-owned business community in Hawaii plays an important role in our local economy and creating jobs,” said Hirono. “Veterans, including those transitioning to civilian life, often face a number of barriers to accessing the capital needed to start and grow a business which is why I am proud to introduce this bill to provide long-term fee relief on SBA loans while promoting Hawaii exports around the world.”

The Veteran Small Business Export Promotion Act is also supported by the American Legion, National Small Business Association, Small Business Exporters Association, Independent Community Bankers Association, and the National Association of Federally-Insured Credit Unions.

Many banks do not offer working capital advances on export orders, export receivables, or letters of credit. As a result, small businesses, including veteran-owned businesses, often face barriers to accessing the necessary capital to support their export sales making SBA-guaranteed Export Express, Export Working Capital and International Trade loans key to encouraging lending and helping veteran entrepreneurs succeed in extremely competitive markets overseas.

To help maintain the program at zero net cost to the U.S. government, the SBA assesses guarantee fees of up to 3 percent for loans up to $150,000, which have been waived annually since 2013. Since then, SBA’s Export Express, Export Working Capital and International Trade loans have helped support over 35,000 jobs nationally.