Veteran Entrepreneurship Training Act of 2021
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- Crpt 117Hrpt139
Summary
House of Representatives Report 117–139 of the 117th Congress, 1st Session, submitted October 12, 2021 by Ms. Velázquez from the Committee on Small Business to accompany H.R. 3469, the Veteran Entrepreneurship Training Act of 2021. The Committee reports the bill favorably without amendment and recommends that it pass. The report states that the bill amends the Small Business Act to authorize the Boots to Business program, a two-day in-person entrepreneurship course offered by the SBA within the Transition Assistance Program, for five years. It describes the program's background, hearings held on February 27, 2019, July 10, 2019 and May 19, 2021, the July 29, 2021 markup and voice vote, and a section-by-section analysis that includes a report due within 180 days after enactment. It closes with required statements and changes in existing law to section 32 of the Small Business Act.
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117TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
1st Session 117–139
VETERAN ENTREPRENEURSHIP TRAINING ACT OF 2021
OCTOBER 12, 2021.—Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Ms. VELÁZQUEZ, from the Committee on Small Business,
submitted the following
R E P O R T
[To accompany H.R. 3469]
The Committee on Small Business, to whom was referred the bill
(H.R. 3469) to amend the Small Business Act to codify the Boots
to Business Program, and for other purposes, having considered the
same, reports favorably thereon without amendment and rec-
ommends that the bill do pass.
CONTENTS
Page
I. Purpose and Bill Summary ........................................................................ 1
II. Background and Need for Legislation ....................................................... 2
III. Hearings ....................................................................................................... 2
IV. Committee Consideration ........................................................................... 3
V. Committee Votes ......................................................................................... 3
VI. Section-by-Section Analysis for H.R. 3469 ................................................ 3
VII. Congressional Budget Cost Estimate ........................................................ 4
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 4
IX. Committee Oversight Findings and Recommendations ........................... 4
X. Statement of General Performance Goals and Objectives ....................... 4
XI. Duplication of Federal Programs ............................................................... 5
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 5
XIII. Federal Mandates Statement ..................................................................... 5
XIV. Federal Advisory Committee Statement ................................................... 5
XV. Applicability to Legislative Branch ........................................................... 5
XVI. Constitutional Authority Statement .......................................................... 5
XVII. Changes in Existing Law Made by the Bill, as Reported ........................ 5
I. PURPOSE AND BILL SUMMARY
The purpose of H.R. 3469, the ‘‘Veteran Entrepreneurship Train-
ing Act of 2021’’, is to amend the Small Business Act to authorize
the Boots to Business program for five years.
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29–006
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2
II. BACKGROUND AND NEED FOR LEGISLATION
The Boots to Business program is a two day, in person entrepre-
neurship program offered by the Small Business Administration
(SBA) as part of the Department of Defense’s Transition Assistance
Program (TAP). Initially launched in 2012, the Boots to Business
program offers transitioning service members and military spouses’
information about self-employment and business ownership. The
Veterans Business Outreach Centers (VBOCs) deliver these serv-
ices to approximately 180 military installations.
The Boots to Business curriculum focuses on the key steps for
evaluating business concepts and developing business plans. In ad-
dition, participants are connected with SBA resources, including ac-
cess to capital, counseling and training, and contracting opportuni-
ties. In FY 2020, more than 21,799 veterans, service-members, and
military spouses stationed at military installations nationwide par-
ticipated in the two-day course.
The Boots to Business program is specifically designed to instill
the knowledge necessary to take a business from concept to execu-
tion and facilitate the road to entrepreneurship for our nation’s vet-
erans. Research has shown that servicemembers are especially
qualified to start and run their own businesses. While serving in
the military, they learn how to make good decisions in chaotic envi-
ronments and are natural leaders, confident, and driven.
Every year, more than 200,000 servicemembers make the transi-
tion from military to civilian life.1 Transition assistance is critical
to ensure that those who serve in the military have opportunities
for meaningful employment. The National Defense Authorization
Act of Fiscal Year 2019 required servicemembers participating in
TAP to enroll in one of three capstone classes, which include: Ac-
cessing Higher Education, Career and Technical Training, and En-
trepreneurship (Boots to Business). It is expected that this new re-
quirement will significantly increase the number of
servicemembers who participate in the Boots to Business program.
H.R. 3469 was introduced by Reps. Bradley Schneider (D–IL) and
Roger Williams (R–TX). Cosponsors include: Reps. Mikie Sherrill
(D–NJ) and Chrissy Houlahan (D–PA).
III. HEARINGS
In the 116th Congress, the Committee held two hearings explor-
ing the Boots to Business program. On February 27, 2019, the
Committee held a hearing titled ‘‘Supporting America’s Startups:
Review of the Small Business Administration’s Entrepreneurial De-
velopment Programs.’’ 2 The hearing considered each of the SBA’s
entrepreneurial development programs, including the Boots to
Business program and how it impacts entrepreneurship. On July
10, 2019, the Committee held a hearing titled, ‘‘Continuing to
Serve: From Military to Entrepreneur.’’ 3 The hearing examined the
1 U.S. Department of Veterans Affairs, Transition and Economic Development, Your VA Tran-
sition Assistance Program (TAP), https://www.benefits.va.gov/transition/
tap.asp#:∼:text=About%20200%2C000%20service%20members%20transition%20to%20civilian%
20life%20each%20year.
2 Supporting America’s Startups: Review of the Small Business Administration’s Entrepre-
neurial Development Programs, Hearing Before the H. Comm. On Small Bus., 116th Cong.
(2019).
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3 Continuing to Serve: From Military to Entrepreneur, Hearing Before the H. Comm. On
Small Bus., 116th Cong. (2019).
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3
role of veteran entrepreneurs in growing the economy and efforts
to foster veteran entrepreneurship. At both hearings, witnesses tes-
tified in support of codifying the Boots to Business program.
In the 117th Congress, on May 19, 2021, the Committee held a
hearing entitled, ‘‘The Small Business Administration’s Entrepre-
neurial Ecosystem: An Update and Next Steps with SBA’s Resource
Partners.’’ 4 The hearing included testimony from a veteran small
business owner, Mr. Patrick Montgomery, who testified about the
importance of government assistance to support small businesses.
In addition, Mr. Montgomery testified that government assistance
for small businesses is not easy to find or access and that more
should be done to make government assistance more readily avail-
able for entrepreneurs and small business owners.
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on July 29, 2021 and ordered H.R. 3469 re-
ported to the House of Representatives. During the markup, no
amendments were offered.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
voted by voice vote to favorably report H.R. 3469 to the House of
Representatives at 10:38 AM.
VI. SECTION-BY-SECTION ANALYSIS FOR H.R. 3469
Section 1. Short title
This Act may be cited as the ‘‘Veteran Entrepreneurship Train-
ing Act of 2021’’.
Section 2. Boots to Business Program
Amends section 32 of the Small Business Act (15 U.S.C. § 657b)
by inserting a new subsection (h):
• Updates the definitions of Members of the Armed Forces, in-
cluding National Guard and Reserves; individuals participating in
the Transition Assistance Program; individuals discharged or re-
leased from service under non-dishonorable conditions; and spouse
or dependent of any of the above.
• Authorizes the Boots to Business program for five years.
• Sets the goals of the program, which include in-depth training
for servicemembers interested in owning a business; and develop-
ment of tools to identify opportunities, draft business plans, iden-
tify sources of capital, connect with local resources for small busi-
ness, and launch a small business.
• Delineates the program components, which include a two-day,
in-person entrepreneurship program. It also gives SBA the author-
ity to collaborate with public and private entities to develop the
curricula; and it ensures VBOCs regularly participate in the pro-
4 The Small Business Administration’s Entrepreneurial Ecosystem: An Update and Next Steps
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with SBA’s Resource Partners, Hearing Before the H. Comm. On Small Bus., 117th Cong.
(2021).
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4
gram, and to the reasonable maximum extent, allows the participa-
tion of other resource partners as well. The new subsection also fa-
cilitates the sharing of course and outreach materials with the Sec-
retary of Defense for inclusion in DOD websites, manuals, and
other materials related to TAP and the Secretary of Veterans Af-
fairs (VA) for distribution and display at local VA facilities.
• Requires a report to be submitted to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives within 180 days
after enactment of the legislation and annually thereafter. The re-
port will evaluate the performance and effectiveness of the Boots
to Business program.
VII. CONGRESSIONAL BUDGET COST ESTIMATE
Pursuant to 3(c)(2) of rule XIII of the Rules of the House of Rep-
resentatives, the Committee adopts as its as its own the cost esti-
mate prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of 1974.
The Committee has requested but not received from the Director
of the Congressional Budget Office a cost estimate for the Commit-
tee’s provisions.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX
EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a) of the Congressional Budget
Act of 1974, the Committee provides the following opinion and esti-
mate with respect to new budget authority, entitlement authority,
and tax expenditures. While the Committee has not received an es-
timate of new budget authority contained in the cost estimate pre-
pared by the Director of the Congressional Budget Office pursuant
to Sec. 402 of the Congressional Budget Act of 1974, the Committee
does not believe that there will be any additional costs attributable
to this legislation. H.R. 3469 does not direct new spending, but in-
stead reallocates funding independently authorized and appro-
priated.
IX. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in the H.R.
3469 are incorporated into the descriptive portions of this report.
X. STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(4) of rule XIII of
the Rules of the House of Representatives, the performance goals
and objectives of H.R. 3469 is to provide small business and entre-
preneurship counseling and training to America’s veterans and
their families by reauthorizing the Small Business Administration’s
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Boots to Business program for five years.
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5
XI. DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 3469 is known to be dupli-
cative of another Federal program, including any program that was
included in a report to Congress pursuant to section 21 of Public
Law 111–139 or the most recent Catalog of Federal Domestic As-
sistance.
XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND
LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee finds that the bill does not con-
tain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
the Rules of the House of Representatives.
XIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal man-
dates prepared by the Director of the Congressional Budget Office
pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. CONSTITUTIONAL AUTHORITY STATEMENT
Pursuant to clause 7 of rule XII of the Rules of the House of Rep-
resentatives, the Committee finds the authority for this legislation
in Art. I, § 8, cl. 1 of the Constitution of the United States.
XVII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, as shown as follows: existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italic,
and existing law in which no change is proposed is shown in
roman:
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (new matter is printed in italics
and existing law in which no change is proposed is shown in
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roman):
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6
SMALL BUSINESS ACT
* * * * * * *
SEC. 32. VETERANS PROGRAMS.
(a) OFFICE OF VETERANS BUSINESS DEVELOPMENT.—There is es-
tablished in the Administration an Office of Veterans Business De-
velopment, which shall be administered by the Associate Adminis-
trator for Veterans Business Development (in this section referred
to as the ‘‘Associate Administrator’’) appointed under section
4(b)(1).
(b) ASSOCIATE ADMINISTRATOR FOR VETERANS BUSINESS DEVEL-
OPMENT.—The Associate Administrator—
(1) shall be an appointee in the Senior Executive Service;
(2) shall be responsible for the formulation, execution, and
promotion of policies and programs of the Administration that
provide assistance to small business concerns owned and con-
trolled by veterans and small business concerns owned and
controlled by service-disabled veterans. The Associate Adminis-
trator shall act as an ombudsman for full consideration of vet-
erans in all programs of the Administration; and
(3) shall report to and be responsible directly to the Adminis-
trator.
(c) INTERAGENCY TASK FORCE.—
(1) ESTABLISHMENT.—Not later than 90 days after the date
of enactment of this subsection, the President shall establish
an interagency task force to coordinate the efforts of Federal
agencies necessary to improve capital and business develop-
ment opportunities for, and ensure achievement of the pre-es-
tablished Federal contracting goals for, small business con-
cerns owned and controlled by service-disabled veterans and
small business concerns owned and controlled by veterans (in
this section referred to as the ‘‘task force’’).
(2) MEMBERSHIP.—The members of the task force shall in-
clude—
(A) the Administrator, who shall serve as chairperson of
the task force; and
(B) a senior level representative from—
(i) the Department of Veterans Affairs;
(ii) the Department of Defense;
(iii) the Administration (in addition to the Adminis-
trator);
(iv) the Department of Labor;
(v) the Department of the Treasury;
(vi) the General Services Administration;
(vii) the Office of Management and Budget; and
(viii) 4 representatives from a veterans service orga-
nization or military organization or association, se-
lected by the President.
(3) DUTIES.—The task force shall—
(A) consult regularly with veterans service organizations
and military organizations in performing the duties of the
task force; and
(B) coordinate administrative and regulatory activities
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and develop proposals relating to—
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(i) improving capital access and capacity of small
business concerns owned and controlled by service-dis-
abled veterans and small business concerns owned and
controlled by veterans through loans, surety bonding,
and franchising;
(ii) ensuring achievement of the pre-established Fed-
eral contracting goals for small business concerns
owned and controlled by service-disabled veterans and
small business concerns owned and controlled by vet-
erans through expanded mentor-protégé assistance
and matching such small business concerns with con-
tracting opportunities;
(iii) increasing the integrity of certifications of sta-
tus as a small business concern owned and controlled
by service-disabled veterans or a small business con-
cern owned and controlled by veterans;
(iv) reducing paperwork and administrative burdens
on veterans in accessing business development and en-
trepreneurship opportunities;
(v) increasing and improving training and coun-
seling services provided to small business concerns
owned and controlled by veterans; and
(vi) making other improvements relating to the sup-
port for veterans business development by the Federal
Government.
(d) PARTICIPATION IN TAP WORKSHOPS.—
(1) IN GENERAL.—The Associate Administrator shall increase
veteran outreach by ensuring that Veteran Business Outreach
Centers regularly participate, on a nationwide basis, in the
workshops of the Transition Assistance Program of the Depart-
ment of Labor.
(2) PRESENTATIONS.—In carrying out paragraph (1), a Vet-
eran Business Outreach Center may provide grants to entities
located in Transition Assistance Program locations to make
presentations on the opportunities available from the Adminis-
tration for recently separating or separated veterans. Each
presentation under this paragraph shall include, at a min-
imum, a description of the entrepreneurial and business train-
ing resources available from the Administration.
(3) WRITTEN MATERIALS.—The Associate Administrator
shall—
(A) create written materials that provide comprehensive
information on self-employment and veterans entrepre-
neurship, including information on resources available
from the Administration on such topics; and
(B) make the materials created under subparagraph (A)
available to the Secretary of Labor for inclusion in the
Transition Assistance Program manual.
(4) REPORTS.—The Associate Administrator shall submit to
Congress progress reports on the implementation of this sub-
section.
(e) WOMEN VETERANS BUSINESS TRAINING.—The Associate Ad-
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ministrator shall—
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(1) compile information on existing resources available to
women veterans for business training, including resources
for—
(A) vocational and technical education;
(B) general business skills, such as marketing and ac-
counting; and
(C) business assistance programs targeted to women vet-
erans; and
(2) disseminate the information compiled under paragraph
(1) through Veteran Business Outreach Centers and women’s
business centers.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to
be appropriated to carry out this section—
(1) $1,500,000 for fiscal year 2005; and
(2) $2,000,000 for fiscal year 2006.
(g) ACCESS TO SURPLUS PROPERTY FOR VETERAN-OWNED SMALL
BUSINESSES.—
(1) DEFINITIONS.—In this subsection—
(A) the term ‘‘foreign excess property’’ has the meaning
given the term in section 102 of title 40, United States
Code; and
(B) the term ‘‘state agency’’ has the meaning given the
term, including the roles and responsibilities assigned, in
section 549 of title 40, United States Code.
(2) REQUIREMENT.—The Administrator, in coordination with
the Administrator of General Services, shall provide access to
and manage the distribution of surplus property, and foreign
excess property returned to a State for handling as surplus
property, owned by the United States under chapter 7 of title
40, United States Code, to small business concerns owned and
controlled by veterans (as verified by the Secretary of Veterans
Affairs under section 8127 of title 38, United States Code) pur-
suant to a memorandum of agreement between the Adminis-
trator, the Administrator of General Services, and the head of
the applicable state agency for surplus properties and in ac-
cordance with section 549 of title 40, United States Code.
(h) BOOTS TO BUSINESS PROGRAM.—
(1) COVERED INDIVIDUAL DEFINED.—In this subsection, the
term ‘‘covered individual’’ means—
(A) a member of the Armed Forces, including the Na-
tional Guard or Reserves;
(B) an individual who is participating in the Transition
Assistance Program established under section 1144 of title
10, United States Code;
(C) an individual who—
(i) served on active duty in any branch of the Armed
Forces, including the National Guard or Reserves; and
(ii) was discharged or released from such service
under conditions other than dishonorable; and
(D) a spouse or dependent of an individual described in
subparagraph (A), (B), or (C).
(2) ESTABLISHMENT.—Beginning on the first October 1 after
the enactment of this subsection and for the subsequent 4 fiscal
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years, the Administrator shall carry out a program to be known
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9
as the ‘‘Boots to Business Program’’ to provide entrepreneurship
training to covered individuals.
(3) GOALS.—The goals of the Boots to Business Program are
to—
(A) provide assistance and in-depth training to covered
individuals interested in business ownership; and
(B) provide covered individuals with the tools, skills, and
knowledge necessary to identify a business opportunity,
draft a business plan, identify sources of capital, connect
with local resources for small business concerns, and start
up a small business concern.
(4) PROGRAM COMPONENTS.—
(A) IN GENERAL.—The Boots to Business Program may
include—
(i) a presentation providing exposure to the consider-
ations involved in self-employment and ownership of a
small business concern;
(ii) an online, self-study course focused on the basic
skills of entrepreneurship, the language of business,
and the considerations involved in self-employment
and ownership of a small business concern;
(iii) an in-person classroom instruction component
providing an introduction to the foundations of self em-
ployment and ownership of a small business concern;
and
(iv) in-depth training delivered through online in-
struction, including an online course that leads to the
creation of a business plan.
(B) COLLABORATION.—The Administrator may—
(i) collaborate with public and private entities to de-
velop course curricula for the Boots to Business Pro-
gram; and
(ii) modify program components in coordination with
entities participating in a Warriors in Transition pro-
gram, as defined in section 738(e) of the National De-
fense Authorization Act for Fiscal Year 2013 (10 U.S.C.
1071 note).
(C) USE OF RESOURCE PARTNERS.—
(i) IN GENERAL.—The Administrator shall—
(I) ensure that Veteran Business Outreach Cen-
ters regularly participate, on a nationwide basis,
in the Boots to Business Program; and
(II) to the maximum extent practicable, use a va-
riety of other resource partners and entities in ad-
ministering the Boots to Business Program.
(ii) GRANT AUTHORITY.—In carrying out clause (i),
the Administrator may make grants to Veteran Busi-
ness Outreach Centers, other resource partners, or
other entities to carry out components of the Boots to
Business Program.
(D) AVAILABILITY TO DEPARTMENT OF DEFENSE.—The Ad-
ministrator shall make available to the Secretary of De-
fense information regarding the Boots to Business Program,
including all course materials and outreach materials re-
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lated to the Boots to Business Program, for inclusion on the
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10
website of the Department of Defense relating to the Transi-
tion Assistance Program, in the Transition Assistance Pro-
gram manual, and in other relevant materials available for
distribution from the Secretary of Defense.
(E) AVAILABILITY TO VETERANS AFFAIRS.—In consultation
with the Secretary of Veterans Affairs, the Administrator
shall make available for distribution and display at local
facilities of the Department of Veterans Affairs outreach
materials regarding the Boots to Business Program which
shall, at a minimum—
(i) describe the Boots to Business Program and the
services provided; and
(ii) include eligibility requirements for participating
in the Boots to Business Program.
(5) REPORT.—Not later than 180 days after the date of the en-
actment of this subsection and every year thereafter, the Admin-
istrator shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report on the per-
formance and effectiveness of the Boots to Business Program,
which may be included as part of another report submitted to
such Committees by the Administrator, and which shall in-
clude—
(A) information regarding grants awarded under para-
graph (4)(C);
(B) the total cost of the Boots to Business Program;
(C) the number of program participants using each com-
ponent of the Boots to Business Program;
(D) the completion rates for each component of the Boots
to Business Program;
(E) to the extent possible—
(i) the demographics of program participants, to in-
clude gender, age, race, relationship to military, mili-
tary occupational specialty, and years of service of pro-
gram participants;
(ii) the number of small business concerns formed or
expanded with assistance under the Boots to Business
Program;
(iii) the gross receipts of small business concerns re-
ceiving assistance under the Boots to Business Pro-
gram;
(iv) the number of jobs created with assistance under
the Boots to Business Program;
(v) the number of referrals to other resources and
programs of the Administration;
(vi) the number of program participants receiving fi-
nancial assistance under loan programs of the Admin-
istration;
(vii) the type and dollar amount of financial assist-
ance received by program participants under any loan
program of the Administration; and
(viii) results of participant satisfaction surveys, in-
cluding a summary of any comments received from
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program participants;
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11
(F) an evaluation of the effectiveness of the Boots to Busi-
ness Program in each region of the Administration during
the most recent fiscal year;
(G) an assessment of additional performance outcome
measures for the Boots to Business Program, as identified
by the Administrator;
(H) any recommendations of the Administrator for im-
provement of the Boots to Business Program, which may in-
clude expansion of the types of individuals who are covered
individuals;
(I) an explanation of how the Boots to Business Program
has been integrated with other transition programs and re-
lated resources of the Administration and other Federal
agencies; and
(J) any additional information the Administrator deter-
mines necessary.
* * * * * * *
Æ
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