Military spouses head to the Hill, push for removal of barriers to small businesses to boost retention

A group of over 50 military spouse-owned small businesses headed to Capitol Hill on Thursday to advocate for a recognition act, aimed at removing barriers for businesses like theirs and improving national security through increased retention rates for service members.

The Military Spouse Small Business Recognition Act was influenced by the high unemployment rate for military spouses and the rate of spouses that are self-employed small business owners or are interested in entrepreneurship, according to a Thursday media round table.

“Spousal employment and financial stability are among the top factors for service member retention, and when military spouses can’t build businesses, that retention suffers and our war fighters suffer, and our national security posture suffers,” Eliza Levy, ELPR’s founder and CEO, said to reporters.

If passed, the act would waive Small Business Association loan fees up to $1 million; reduce equity injection requirements; designate military spouse-owned businesses as an 8(a) Disadvantages Category; and require the SBA to track military spouse participation in loan programs.

Patricia M. Barron, former deputy assistant secretary of defense for Military Community and Family Policy, said to reporters that the biggest link between military spouse employment and military readiness is retention.

She highlighted how aspects of military life, such as frequent moving or career gaps, make it difficult to retain employment as a spouse.

Barron noted that after constant moves and unemployment, spouses and their military counterparts begin to think about leaving the force, especially if it makes more sense financially.

“If we want to keep this volunteer force, that retention piece is incredibly important,” said Barron. “And the Department of War and the Congress, they have made military spouse employment a mission readiness issue.”

“It is no longer just a quality of life issue, and that’s why it’s so important,” Barron continued.

Military spouses have an unemployment rate of around 22% according to a 2024 Department of Labor fact sheet — approximately five times higher than the national average, which sits at roughly 4.3% as of March.

In addition, 48% of military spouses are either self-employed or are interested in being, but a lack of access to capital is a barrier that this act hopes to remedy.

The act has not yet been introduced to Congress as the coalition is still gathering support from members. Stephanie Brown, CEO of the Military Spouse Chamber of Commerce that is leading the charge for the act, said they are hoping to announce the two co-sponsors of the bill by late Thursday.

If deemed the best way to propel this bill forward, the coalition intends to attach it to the fiscal year 2027 National Defense Authorization Act.