Us Congress House Bill HB3195

Us Congress 2025-2026 Regular Session

• Introduced: 5/5/25
• Refer: 5/5/25

Caption

To amend the Small Business Act to include surviving children in the definition of small business concern owned and controlled by service-disabled veterans, and for other purposes.

Impact

This bill may significantly impact the landscape of support for small business owners who are service-disabled veterans. By permitting the surviving children to acquire ownership stakes in their parent's businesses, HB3195 not only honors the sacrifices of veterans but also strengthens family-owned business structures. As a result, this measure could enhance economic stability within families that serve in the military, allowing for a smoother transition and operation of these businesses despite the loss of the veteran owner. The law would particularly be relevant for businesses that are at risk of losing their veteran status upon the owner's death due to ownership percentages falling below legal thresholds.

Summary

House Bill 3195 seeks to amend the Small Business Act to include the surviving children of service-disabled veterans within the definition of small business concerns owned and controlled by such veterans. The proposed amendment would allow these surviving children to inherit and retain ownership rights in small businesses previously held by their deceased parents, providing a pathway for continuity of business operations. By explicitly defining 'surviving child' to include biological or legally adopted children, the bill aims to ensure that families of service-disabled veterans receive support in maintaining their business legacies.

Contention

While the bill presents an opportunity to assist families of service-disabled veterans, there may be points of contention surrounding its implementation. Critics might raise concerns about potential loopholes that could be exploited, such as the possibility of non-veterans using these provisions to maintain ownership stakes in small businesses. Additionally, the guidelines around the acquisition period for ownership and the clarity on 'specific criteria' for businesses that qualify under the service-disabled veteran definition could also come under scrutiny. These issues prompt discussions about the balance between support for veteran families and maintaining integrity within the small business framework.