House Small Business Committee hears calls to fix TAP, expand capital access for veteran entrepreneurs

WASHINGTON — Lawmakers and veteran business leaders urged Congress on Tuesday to shore up the network of programs that helps service members become entrepreneurs, saying current systems often leave veterans without clear pathways to capital, contracts and mentoring.

Chairman Williams opened the House Small Business Committee hearing on “service to startup, empowering veteran entrepreneurs,” saying about 1,600,000 veteran‑owned small businesses represent roughly 5.3% of U.S. firms and generate nearly $1 trillion in annual receipts. He and members pressed witnesses on where federal programs fall short and what practical fixes might help veterans translate military skills into sustainable businesses.

The hearing featured four witnesses who are veterans or lead veteran‑serving organizations. Kevin Schmeagle, co‑founder and chief executive officer of 0 Mills, said veteran entrepreneurship has declined in recent decades and pointed to limited access to capital and a fragmented support ecosystem. “Our mission at 0 Mills is to create military thriving cultures and communities, not military friendly,” Schmeagle said, arguing for private‑sector led toolkits and increased veteran representation in policymaking.

Misty Sussman Fox, director of entrepreneurship and small business at the Daniello Institute for Veterans and Military Families at Syracuse University, highlighted program outcomes and gaps. Fox said programs like Boots to Business and CEO Circle yield measurable returns but called for more coordinated “warm handoffs” and capital readiness training: “Veteran entrepreneurship isn’t just an outcome. It is an identity,” she said, urging full funding for the SBA’s Office of Veteran Business Development and better data collection to measure program impact.

Christopher Lefever, president and CEO of ISI Professional Services, described the challenge as a system‑design problem and offered six recommendations including a national navigation hub, mandatory entrepreneurship exposure in TAP, and capital modernization aligned with the Veteran Entrepreneurship Empowerment Act. He said a lack of continuity and predictable procurement opportunities stalls veteran businesses’ growth.

Rebecca Aguilera Gardner, CEO of the Veterans in Business Network, focused on contracting and marketplace access. She warned that category management and consolidation of federal contracts can push small veteran firms into perpetual subcontractor roles and reduce opportunities to build past performance. “We need teeth in these regulations,” she said, and expressed support for raising sole‑source thresholds and for HR 2804, the Protecting Small Business Competition Act of 2025.

Members pressed witnesses on several recurring themes: reforming the Department of Defense Transition Assistance Program (TAP) so entrepreneurship training arrives at the right time and is followed by active handoffs to trusted providers; expanding capital readiness and credit repair during transition; improving procurement practices so veteran‑owned small businesses (VOSBs and SDVOSBs) can win prime contracts repeatedly; and ensuring meaningful SBA engagement with the veteran business community.

Representative Tony Cisneros (D‑Calif.) criticized SBA’s absence from the hearing and staff reductions, saying members have received insufficient answers about how SBA contracting programs are serving veterans. Multiple witnesses and members called for more transparency and data collection from SBA and VA to trace impacts of policy changes.

There were no formal votes or committee actions during the hearing. Chairman Williams closed by offering members five legislative days to submit materials and written questions to the witnesses. The committee adjourned with members emphasizing bipartisan interest in practical measures — not more studies — to connect veterans to capital, contracts and mentorship.

The Committee requested additional materials and follow‑up answers; lawmakers indicated some pending bills — including the Serve Act and the Veteran Entrepreneurship Empowerment Act — as possible vehicles for the recommended fixes.