HR 3195119th CongressIn Committee

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.

Introduced: May 5, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

This bill amends the Small Business Act to allow a surviving child of a service-disabled veteran who inherits the veteran’s ownership in a small business to keep that business classified as a small business concern owned and controlled by service-disabled veterans for up to three years after the veteran’s death (or until the child relinquishes ownership, if earlier). The intent is to smooth the transition when a veteran-owner dies and a child inherits the business, helping maintain eligibility for programs and contracting opportunities reserved for service-disabled veterans. The definition of “surviving child” is also added, covering biological or legally adopted children.

Key Points

1Adds a new provision (D) to the existing SDV ownership definition to cover a surviving child who acquires the veteran’s ownership interest after death.
2The eligible time period runs from the date of death to the earlier of: (a) the surviving child relinquishing ownership, or (b) three years after the veteran’s death.
3The business must have been, and continue to be, included in the SBA’s SDV database (the database described in section 36) during this transitional period.
4The surviving child is defined as either a biological or legally adopted child of the service-disabled veteran.
5The change is limited to situations where the death causes the business to fall below 51% owned by service-disabled veterans, but a surviving child’s acquisition triggers continued SDV status for the window.

Impact Areas

Primary: Surviving children of service-disabled veterans who inherit ownership, and small businesses that would otherwise lose SDV ownership status after the veteran’s death. This affects eligibility for SDV-specific contracting benefits and SBA programs during the transition.Secondary: Federal procurement and contract opportunities tied to SDV-owned businesses, and the administration of the SBA’s SDV database (section 36).Additional impacts: May encourage smoother succession planning within family-owned SDV businesses and reduce disruption to contracts and access to SDV programs during ownership transfers; could necessitate SBA policy updates and compliance checks to recognize surviving-child ownership within the transitional window. No specific funding or fiscal implications are stated in the text.

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