DEMONSTRATION PROJECT TO ASSIST SEPARATED MEMBERS AND TERMINATED DEFENSE WORKERS TO BECOME BUSINESS OWNERS.

SEC. 1134. DEMONSTRATION PROJECT TO ASSIST SEPARATED MEMBERS AND TERMINATED DEFENSE WORKERS TO BECOME BUSINESS OWNERS. (a) Business Ownership Demonstration Project.— During fiscal year 1995, the Secretary of Defense may carry out a demonstration project in not more than two eligible communities to assist separated members of the Armed Forces and terminated defense workers described in subsection (c) who reside in such communities to own their own businesses. The Secretary shall carry out the demonstration project in consultation with the Secretary of Commerce. (b) Eligible Communities.—To be eligible for selection by the Secretary of Defense as a site for the demonstration project, a community shall meet at least two of the following conditions: (1) The local economy is heavily dependent on a defense contractor that is in the process of terminating a major defense contract (or having such contract terminated by the Department of Defense) or closing a major facility. (2) The local economy may be adversely affected by changes in the use of a national laboratory previously engaged in the testing of nuclear weapons. (3) The local economy would be adversely affected by the closure of two or more military installations. (c) Persons Eligible for Assistance.— The following persons are eligible to participate in the demonstration project to own their own businesses: (1) Members of the Armed Forces who are discharged or released from active duty. (2) Civilian employees of the Department of Defense who are terminated from such employment as a result of reductions 108 STAT. 2876in defense spending or the closure or realignment of a military installation, as determined by the Secretary of Defense. (3) Employees of defense contractors who are terminated or laid off (or receive a notice of termination or layoff) as a result of the completion or termination of a defense contract or program or reductions in defense spending, as determined by the Secretary of Defense. (d) Activities Under Demonstration Project.— Under the demonstration project, the Secretary of Defense shall— (1) develop a business plan to establish a facility in each community in which the demonstration project is conducted to assist persons described in subsection (c) to own their own businesses; (2) conduct a market study to identify markets for the facility; (3) develop innovative approaches to capital formation for the facility and persons described in subsection (c); (4) conduct a skills assessment study to determine the number and type of employees needed to operate the facility; and (5) analyze the potential to use persons described in subsection (c) as employees of the facility.