Bill Overview
Title: Post-9/11 Veteran Business Acceleration Act
Description: This bill requires the Department of Veterans Affairs to collaborate with the Small Business Administration to implement a pilot program to provide financial assistance (in lieu of educational assistance) to eligible individuals under the Post-9/11 Educational Assistance Program for the purpose of (1) establishing and operating a new qualified business enterprise, or (2) operating an existing qualified business enterprise. Eligible individuals are those who (1) are entitled to 36 months of educational assistance under the Post-9/11 Educational Assistance Program, (2) are not in bankruptcy proceedings at the time of application, and (3) meet credit score requirements.
Sponsors: Rep. Donalds, Byron [R-FL-19]
Target Audience
Population: Post-9/11 veterans eligible for business financial assistance instead of educational assistance
Estimated Size: 50000
- The bill targets veterans eligible for the Post-9/11 Educational Assistance Program, also known as the Post-9/11 GI Bill.
- Approximately 2.7 million individuals have utilized the Post-9/11 GI Bill since its inception, which would form the upper bound of potentially impacted individuals globally.
- The program's eligibility criteria limit candidates to those entitled to 36 months of educational assistance, further narrowing the target population.
- Eligibility requirements include being free of bankruptcy proceedings and meeting credit score criteria, reducing the number of eligible individuals.
Reasoning
- The policy primarily targets a specific subset of veterans. These are individuals who have completed service post-9/11 and are eligible for educational benefits. By offering business startup funding, the policy could significantly impact those who are entrepreneurial or have viable business plans.
- Given a budget of $200,000,000 in the initial year and $2,000,000,000 over 10 years and the capped estimate of 50,000 eligible veterans, resource allocation will likely be competitive. Each selected individual could receive substantial funding to support their business ventures.
- The policy may not impact all eligible veterans equally. Some veterans may choose to pursue further education instead of business, those uninterested in entrepreneurship will not be affected, while others might not meet the financial stability criteria.
- Those who do meet all criteria and have the aspiration to start or grow a business could experience a medium to high positive impact on their wellbeing as financial assistance removes a common barrier to entrepreneurship.
Simulated Interviews
Entrepreneur (Austin, TX)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I think this policy could be a game changer for people like me who are looking to expand their businesses.
- Access to capital is often a significant barrier, and eliminating that could allow for more immediate growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 6 |
Student (San Diego, CA)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 3/20
Statement of Opinion:
- While I like the idea, I plan to use my GI Bill to finish my studies first.
- It's great for those ready to start a business immediately but not for my current situation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Tech consultant (Raleigh, NC)
Age: 35 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Starting a business has always been a dream; this could provide the nudge and resources I need.
- I would need to ensure I meet the credit requirements, but that seems achievable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Retail Manager (Phoenix, AZ)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This seems like a great opportunity to finally start my own business.
- I'm a little concerned about the competition for these funds, but I’m definitely going to apply.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Software Developer (Seattle, WA)
Age: 27 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 4/20
Statement of Opinion:
- My business is already doing well, but extra funds could accelerate our growth.
- I might not benefit as much as others more reliant on educational benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Freelance Writer (New York, NY)
Age: 37 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- I appreciate the focus on post-9/11 veterans. Any additional aid is welcome.
- I'm concerned about the credit score requirement, but this policy could be a definite boost if I qualify.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Plumber (Denver, CO)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 3/20
Statement of Opinion:
- I’m interested in this policy because it could help me expand my business.
- The ability to hire more staff and get new equipment would make a huge difference.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Artist (Los Angeles, CA)
Age: 50 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- This funding could be critical in transitioning from freelance work to running an art gallery.
- I am hopeful but cautious, given the limits on the number of recipients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Chef (Chicago, IL)
Age: 32 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- The policy aligns well with my goals of becoming a restaurateur.
- It would remove significant financial pressure and allow me to focus on developing the business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Logistics Coordinator (Miami, FL)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- My career path currently doesn't include entrepreneurship, so I might not make use of this assistance.
- It's a great opportunity for the right person, just not for me right now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $200000000 (Low: $180000000, High: $220000000)
Year 2: $200000000 (Low: $180000000, High: $220000000)
Year 3: $200000000 (Low: $180000000, High: $220000000)
Year 5: $200000000 (Low: $180000000, High: $220000000)
Year 10: $200000000 (Low: $180000000, High: $220000000)
Year 100: $200000000 (Low: $180000000, High: $220000000)
Key Considerations
- Market conditions and entrepreneurship success rates can highly influence the outcomes of this program.
- Effect on educational institutions' enrollment and funding from reduced GI Bill utilization deserves evaluation.
- Tracking and reporting mechanisms must be developed to gauge the success of the program.