H.R. 3195: 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.

This bill proposes to amend the Small Business Act to broaden the definition of "small business concern owned and controlled by service-disabled veterans" to include the surviving children of such veterans. Specifically, it would allow these surviving children to inherit the business ownership of the service-disabled veteran upon their death, under certain conditions.

Key Provisions of the Bill

• The amendment specifies that if a service-disabled veteran, who owns at least 51% of a small business, passes away, their surviving child can take over the ownership interest in that business.
• This transfer of ownership is valid as long as the small business is listed in a certain government database before the veteran's death and for a period of time afterward.
• The surviving child must inherit the ownership interest immediately following the veteran's death to maintain the business's qualification as a service-disabled veteran-owned business.
• The bill defines "surviving child" as either a biological child or a legally adopted child of the service-disabled veteran.

Time Limits for Ownership Transfer

The bill states that the ownership transfer can occur during a specific time frame that starts from the date of the veteran’s death and lasts until one of the following takes place:

• The surviving child relinquishes their ownership interest in the business.
• Three years have passed since the date of the veteran's death.

Impact on Small Businesses

This amendment aims to support families of service-disabled veterans by ensuring that the businesses they built can continue to operate under the ownership of their children, thereby maintaining the legacy of the veteran and providing continuity for the business.

Relevant Companies