Heroes Business Opportunity Act of 2025
Summary
The Heroes Business Opportunity Act of 2025 aims to waive guarantee fees for certain business loans made to veterans and their spouses. This applies to loans not made under specific paragraphs (36) or (37) of Section 7(a) of the Small Business Act. The deferred participation share of the total loan amount must not exceed $1,000,000.
Expected Effects
The Act will reduce the financial burden on veterans and their spouses seeking to start or expand small businesses. This could lead to increased entrepreneurship among veterans. It amends Section 7(a) of the Small Business Act to implement these changes.
Potential Benefits
- Reduced financial barriers for veteran-owned small businesses.
- Increased access to capital for veterans and their spouses.
- Potential for job creation within veteran-owned businesses.
- Stimulation of economic activity in communities with veteran-owned businesses.
- Recognition and support for the contributions of veterans.
Potential Disadvantages
- Potential increased risk for the Small Business Administration due to waived fees.
- Possible administrative burden in verifying veteran status and loan eligibility.
- Limited scope, as it only applies to certain types of loans and amounts.
- Potential for unintended consequences if the program is not carefully monitored.
- The cost of waiving these fees may need to be offset elsewhere.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to support veterans through legislation under its spending power (Article I, Section 8). The Act does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).