House Introduces Bill Allowing SDVOSBs to Retain Status After Owner’s Death

October 31, 2013

House Introduces Bill Allowing SDVOSBs to Retain Status After Owner’s Death

On September 12, 2013, Rep. Jerry McNerney (D-CA) and five co-sponsors introduced the “Service-Disabled Veteran–Owned Small Business Relief Act” (H.R. 3098). If passed, this bill would extend the timeframe for which service-disabled veteran–owned small businesses (SDVOSBs) could retain their status after the death of the owner. Under the current law, an SDVOSB formerly owned by a veteran who was rated 100-percent disabled can retain its status for 10 years after the veteran’s passing, but only with respect to contracts with the Department of Veterans Affairs (VA). An SDVOSB owned by a veteran with a rating of less than 100 percent can retain its status for one year, but again the grace period only applies to VA contracts. Similarly, SDVOSBs owned by a veteran who died of a non-service-connected injury have a one-year grace period for VA contracts only. According to the bill’s sponsors, the transition period (or lack thereof) puts many SDVOSBs at a disadvantage. The current bill extends the one-year grace periods to three years and makes the grace period applicable to all agencies—not just the VA. This bill has been referred to the House Committee on Veterans’ Affairs.   






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