Federal Action to Support Veteran and Military Spouse Entrepreneurship

Across Capitol Hill this fall and early winter, lawmakers and advocates came together to spotlight a vital but often overlooked segment of the U.S. economy: veteran and military spouse entrepreneurs. With legislation introduced in the Senate and a hearing held in the House, the federal government appears poised to address longstanding financial and structural barriers that often stand between military-connected individuals and small business success.

Below, we break down the proposals, the hearing testimony, and the broader context — and highlight how these efforts could reshape the entrepreneurial landscape for veterans and military spouses alike.

🏛️ Senator Shaheen’s Legislative Push: Reducing Financial Barriers

In mid-November 2025, Senator Jeanne Shaheen (D-NH) and Senator Edward Markey (D-MA) introduced two complementary bills aimed at reducing upfront financial barriers for veteran entrepreneurs — including military spouses.

📌 1. Veteran Entrepreneurship Empowerment Act

This bill focuses on making Small Business Administration (SBA) lending more accessible to veterans and their spouses by:

Reducing down payment requirements for SBA loans.
Eliminating fees on SBA loans under $1 million to lower the cost of credit.
Directing the SBA to collect and publish data on utilization of loan and entrepreneurial development programs by veterans, reservists, and military spouses.
Waiving the guarantee fee (also called the upfront fee) for qualifying veterans and spouses to increase access to credit.

That last provision is particularly significant: S.3171 explicitly waives guarantee fees on SBA loans made to veteran- or spouse-owned small businesses up to $1 million, a step designed to make borrowing more affordable.

📌 2. Heroes Business Opportunity Act

This companion bill would ensure veterans have the tools they need to access credit by waiving SBA’s 7(a) loan guaranty (upfront) fees for loans up to $1 million specifically for veteran-owned small businesses.

🎯 Who Benefits?

Importantly, both bills aim to benefit veterans, military reservists, and their spouses — meaning the policy changes are intended to apply not just to service members but to military spouse entrepreneurs as well, recognizing their unique challenges and contributions.

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🗣️ House Committee Hearing: “From Service to Startup”

On December 10th, 2025, the House Committee on Small Business held a hearing titled “From Service to Startup: Empowering Veteran Entrepreneurs.”

The hearing explored the real-world barriers veterans face when transitioning to civilian life and attempting to launch or grow small businesses. Though framed primarily around veteran entrepreneurship, the themes raised are highly relevant to military spouses and military-connected entrepreneurs more broadly.

👥 Witnesses Included

The panel included:

Kevin M. Schmiegel, Co-Founder & CEO, ZeroMils
Misty Stutsman Fox, Director of Entrepreneurship & Small Business, D’Aniello Institute for Veterans and Military Families
Christopher Lefebvre, President & CEO, ISI Professional Services
Rebecca Aguilera-Gardiner, CEO of the Veterans In Business (VIB) Network — which represents thousands of veteran business owners and advocates for policies that expand access and opportunity.

📍 Key Themes and Testimony

1. Capital Access Challenges
Committee leadership and witnesses highlighted how veterans frequently lack the credit history and capital resources that civilian peers accrue over time — challenges that often hamper small business startup success.

2. Entrepreneurship Readiness
Misty Fox, representing the D’Aniello Institute, emphasized the importance of preparing entrepreneurs before they reach the financing stage, focusing on education and readiness — a point often echoed in SBA and nonprofit training programs.

3. Peer Support and Networks
Several witnesses underscored the value of networks, mentorship, and peer support — especially given frequent military relocations and the need to rebuild connections after service.

4. Advocacy and Nonprofit Support
Rebecca Aguilera-Gardiner, CEO of the VIB Network, provided testimony (and a written statement) on behalf of tens of thousands of veteran-owned small businesses, highlighting nonprofit role in education, mentorship, and connecting entrepreneurs to opportunities.

– Her testimony reflects how grassroots nonprofit efforts complement federal policy by offering hands-on support, removing barriers to entry, and equipping entrepreneurs with credentials and connections.

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🤝 How Both Efforts Align

While the Senate bills are policy solutions aimed at reducing financial barriers, the House hearing functions as a fact-finding and advocacy platform — bringing voices from the field into the policy discussion.

Here’s how they connect:

Capital Access: Both the hearing and the legislation center on veteran entrepreneurs’ difficulty accessing credit — the Senate bills seek concrete steps to lower costs, while witnesses described these gaps in testimony.
Training & Readiness: Hearing testimony emphasized readiness and foundational business education — an important complement to financial reforms in the Senate bills.
Data & Transparency: Senator Shaheen’s requirement that the SBA track outcomes for veteran entrepreneurs supports calls from witnesses for data-driven oversight and effectiveness.
Inclusion of Spouses: The Senate bills explicitly include spouses of veterans in eligibility language, reaffirming that military spouse entrepreneurs are part of this broader policy effort.

✨ Why It Matters

Veteran and military spouse entrepreneurs are not just small business owners — they represent resilience, leadership, and economic impact:

Veterans own over 1.6 million businesses that contribute hundreds of billions in economic activity.
Military spouses often face frequent relocations and workforce disruption, making entrepreneurship an essential pathway to professional and economic stability (this legislative inclusion signals acknowledgment of that reality).
Through nonprofit partners like the VIB Network, entrepreneurs gain meaningful support outside government programs, filling gaps and helping translate policy into practice.

📌 In Summary

The convergence of legislative proposals in the Senate and on-the-ground testimony in the House suggests a growing consensus on a few critical points:

1. Access to capital remains a major barrier for veteran and military spouse entrepreneurs.
2. Policy can and should reduce those barriers, especially through targeted SBA reforms.
3. Education, readiness, and community support are essential to complement financial solutions. 4. A broad spectrum of stakeholders — from federal lawmakers to nonprofit advocates — are working together to empower the next generation of military-connected entrepreneurs.

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