A bipartisan bill cosponsored by U.S. Rep. Jackie Walorski (R-IN) would incentivize United States military veterans to become franchise owners.
“This bipartisan legislation will not only lift up our local small business community, it will help service members return to civilian life and give them a better chance to achieve the American Dream they fought to protect,” Rep. Walorski said last week.
The Veteran Entrepreneurs Act of 2019, H.R. 446, sponsored on Jan. 10 by U.S. Rep. Julia Brownley (D-CA), would reduce up-front costs for veterans who want to start a franchise.
Specifically, the bill calls for creating a tax credit to cover 25 percent of initial franchisee fees for eligible veterans or businesses owned by eligible veterans.
“The amount of qualified franchise fee … shall not exceed $400,000,” according to the text of the bill. The term ‘qualified franchise fee’ means any one-time fee required by the franchisor when entering into a franchise agreement with a veteran as the franchisee.
“Our nation’s veterans are leaders and innovators in their own right,” said Rep. Walorski. “Who better to start businesses, create jobs, and grow our economy than those who bravely served our country?”
Rep. Brownley said lawmakers have a duty to ensure that U.S. veterans are able to succeed in the American job market once they’ve transitioned back to civilian life.
“For many former service members, their training and leadership skills mean they would make excellent small business owners, but they sometimes lack the initial capital needed to get started,” she said.
H.R. 446 has been referred for consideration to the U.S. House Ways and Means Committee.