Detailed Summary

Veteran-Owned Small Business Promotion Act of 2009 - Reinstates (under current law, terminated as of the end of FY1986) the veteran-owned small business loan program, under which the Secretary of Veterans Affairs may provide loans to veteran-owned small businesses for: (1) financing plant construction, conversion, or expansion; (2) financing the acquisition of equipment, facilities, machinery, supplies, or materials; or (3) supplying working capital.

Makes eligible for such loans small business owners who are veterans and have a disability rated at 10% (under current law, 30%) or more, and includes all veterans (under current law, limited to Vietnam era veterans and veterans discharged or released due to a disability incurred or aggravated in the line of duty).

Repeals the authority to make direct loans under the program (thereby allowing only loan guaranties).

Increases from $200,000 to $500,000 the maximum loan guaranty amount.

Authorizes the Secretary to subsidize a loan lender in order to reduce by up to 1/2% the interest rate paid by the veteran-owned small business.

Includes under a loan preference members of the National Guard and reserves activated in support of the Global War on Terrorism.

Limits performance bond requirements of veteran-owned small businesses with respect to the construction, alteration, or repair of any Department of Veterans Affairs (VA) public building or public work.

Treats a small business owned and controlled by veterans as a socially and economically disadvantaged small business for purposes of contracts awarded to the latter businesses under provisions of the Small Business Act.

Status of the Legislation

Latest Major Action: 9/24/2009: House committee/subcommittee actions. Status: Subcommittee Hearings Held.

Points in Favor

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Points Against

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