Chairwoman Herseth Sandlin, Ranking Member Boozman, and subcommittee members, thank you for allowing me to testify today on the Veterans Entrepreneurial Transition Business Benefit Act of 2009, H.R. 114.  I want to begin by commending this subcommittee on its work to provide economic opportunities to our nation’s finest after their service. 

Encouraging entrepreneurship among our veterans is a high legislative priority of mine. While the GI Bill and especially the Post 9/11 GI Bill provide outstanding educational opportunities to veterans, not all veterans undertake a path of higher education after their military service.  According to the Department of Veterans Affairs, of those eligible for the Post 9/11 GI Bill, 41% have not used any of their benefits.  Of those eligible for the Montgomery GI Bill, about 30% have not used any of their benefits.  Even larger numbers of veterans have used some benefits, but have not completed a degree. 

Many of my own constituents have informed me that they would like to see greater entrepreneurial opportunities available to them as a way of augmenting traditional educational opportunities.  In addition, as you know from recent hearings, unemployment figures for our nations newest veterans are troubling, with 21.6% of 18 to 24 year old male veterans from the Post 9/11 era unemployed in 2009. 

Many of our veterans possess the drive and skills to become successful entrepreneurs, but simply lack adequate capital to get started.  They’ve learned important, marketable skills during their time in service and often want to use their acquired expertise as a springboard to small business ownership.

To address these issues, I introduced H.R. 114, the Veterans Entrepreneurial Transition Business Benefit Act of 2009.  This legislation would permit veterans eligible for assistance under the Montgomery G.I. Bill to elect to use their benefits to establish and operate a business that they will own as a primary source of income. 

Allowing veterans to use their educational benefits as capital to start a business, combined with the exceptional counseling and training programs for veterans in small business that already exist with the Department of Veterans Affairs and the Small Business Administration, would propel many veterans toward economic independence.

My bill is deliberately brief in order to allow the Secretary operational flexibility in implementing and managing the program. 

I believe this bill is another step toward increasing the diversity of opportunities for veterans to use their earned benefits while strengthening the small business economy, creating jobs, and encouraging innovation. 

Thank you again for the opportunity to testify, and I look forward to working with you.