Home > 106th Congressional Bills > S. 918 (is) To authorize the Small Business Administration to provide financial and business development assistance to military reservists' small businesses, and for other purposes. [Introduced in Senate] ...S. 918 (is) To authorize the Small Business Administration to provide financial and business development assistance to military reservists' small businesses, and for other purposes. [Introduced in Senate] ...
106th CONGRESS
1st Session
S. 918
_______________________________________________________________________
AN ACT
To authorize the Small Business Administration to provide financial and
business development assistance to military reservists' small
businesses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Military Reservists Small Business
Relief Act of 1999''.
SEC. 2. REPAYMENT DEFERRAL FOR ACTIVE DUTY RESERVISTS.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by
adding at the end the following:
``(n) Repayment Deferred for Active Duty Reservists.--
``(1) Definitions.--In this subsection:
``(A) Eligible reservist.--The term `eligible
reservist' means a member of a reserve component of the
Armed Forces ordered to active duty during a period of
military conflict.
``(B) Essential employee.--The term `essential
employee' means an individual who is employed by a
small business concern and whose managerial or
technical expertise is critical to the successful day-
to-day operations of that small business concern.
``(C) Period of military conflict.--The term
`period of military conflict' means--
``(i) a period of war declared by Congress;
``(ii) a period of national emergency
declared by Congress or by the President; or
``(iii) a period of a contingency
operation, as defined in section 101(a) of
title 10, United States Code.
``(D) Qualified borrower.--The term `qualified
borrower' means--
``(i) an individual who is an eligible
reservist and who received a direct loan under
subsection (a) or (b) before being ordered to
active duty; or
``(ii) a small business concern that
received a direct loan under subsection (a) or
(b) before an eligible reservist, who is an
essential employee, was ordered to active duty.
``(2) Deferral of direct loans.--
``(A) In general.--The Administration shall, upon
written request, defer repayment of principal and
interest due on a direct loan made under subsection (a)
or (b), if such loan was incurred by a qualified
borrower.
``(B) Period of deferral.--The period of deferral
for repayment under this paragraph shall begin on the
date on which the eligible reservist is ordered to
active duty and shall terminate on the date that is 180
days after the date such eligible reservist is
discharged or released from active duty.
``(C) Interest rate reduction during deferral.--
Notwithstanding any other provision of law, during the
period of deferral described in subparagraph (B), the
Administration may, in its discretion, reduce the
interest rate on any loan qualifying for a deferral
under this paragraph.
``(3) Deferral of loan guarantees and other financings.--
The Administration shall--
``(A) encourage intermediaries participating in the
program under subsection (m) to defer repayment of a
loan made with proceeds made available under that
subsection, if such loan was incurred by a small
business concern that is eligible to apply for
assistance under subsection (b)(3); and
``(B) not later than 30 days after the date of
enactment of this subsection, establish guidelines to--
``(i) encourage lenders and other
intermediaries to defer repayment of, or
provide other relief relating to, loan
guarantees under subsection (a) and financings
under section 504 of the Small Business
Investment Act of 1958 that were incurred by
small business concerns that are eligible to
apply for assistance under subsection (b)(3),
and loan guarantees provided under subsection
(m) if the intermediary provides relief to a
small business concern under this paragraph;
and
``(ii) implement a program to provide for
the deferral of repayment or other relief to
any intermediary providing relief to a small
business borrower under this paragraph.''.
SEC. 3. DISASTER LOAN ASSISTANCE FOR MILITARY RESERVISTS' SMALL
BUSINESSES.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting after the undesignated paragraph that begins with
``Provided, That no loan'', the following:
``(3)(A) In this paragraph--
``(i) the term `essential employee' means an
individual who is employed by a small business concern
and whose managerial or technical expertise is critical
to the successful day-to-day operations of that small
business concern;
``(ii) the term `period of military conflict' has
the meaning given the term in subsection (n)(1); and
``(iii) the term `substantial economic injury'
means an economic harm to a business concern that
results in the inability of the business concern--
``(I) to meet its obligations as they
mature;
``(II) to pay its ordinary and necessary
operating expenses; or
``(III) to market, produce, or provide a
product or service ordinarily marketed,
produced, or provided by the business concern.
``(B) The Administration may make such disaster loans
(either directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis) to assist a small business concern that has
suffered or that is likely to suffer substantial economic
injury as the result of an essential employee of such small
business concern being ordered to active military duty during a
period of military conflict.
``(C) A small business concern described in subparagraph
(B) shall be eligible to apply for assistance under this
paragraph during the period beginning on the date on which the
essential employee is ordered to active duty and ending on the
date that is 90 days after the date on which such essential
employee is discharged or released from active duty.
``(D) Any loan or guarantee extended pursuant to this
paragraph shall be made at the same interest rate as economic
injury loans under paragraph (2).
``(E) No loan may be made under this paragraph, either
directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis, if the total amount outstanding and
committed to the borrower under this subsection would exceed
$1,500,000, unless such applicant constitutes a major source of
employment in its surrounding area, as determined by the
Administration, in which case the Administration, in its
discretion, may waive the $1,500,000 limitation.
``(F) For purposes of assistance under this paragraph, no
declaration of a disaster area shall be required.''.
SEC. 4. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE FOR MILITARY
RESERVISTS' SMALL BUSINESSES.
(a) In General.--Section 8 of the Small Business Act (15 U.S.C.
637) is amended by adding at the end the following:
``(l) Management Assistance for Small Businesses Affected by
Military Operations.--The Administration shall utilize, as appropriate,
its entrepreneurial development and management assistance programs,
including programs involving State or private sector partners, to
provide business counseling and training to any small business concern
adversely affected by the deployment of units of the Armed Forces of
the United States in support of a period of military conflict (as
defined in section 7(n)(1)).''.
(b) Enhanced Publicity During Operation Allied Force.--For the
duration of Operation Allied Force and for 120 days thereafter, the
Administration shall enhance its publicity of the availability of
assistance provided pursuant to the amendments made by this Act,
including information regarding the appropriate local office at which
affected small businesses may seek such assistance.
SEC. 5. GUIDELINES.
Not later than 30 days after the date of enactment of this Act, the
Administrator of the Small Business Administration shall issue such
guidelines as the Administrator determines to be necessary to carry out
this Act and the amendments made by this Act.
SEC. 6. EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), the
amendments made by this Act shall take effect on the date of the
enactment of this Act.
(b) Disaster Loans.--The amendments made by section 3 shall apply
to economic injury suffered or likely to be suffered as the result of a
period of military conflict occurring or ending on or after March 24,
1999.
Passed the Senate July 27, 1999.
Attest:
Secretary.
106th CONGRESS
1st Session
S. 918
_______________________________________________________________________
AN ACT
To authorize the Small Business Administration to provide financial and
business development assistance to military reservists' small
businesses, and for other purposes.
Pages: 1 Other Popular 106th Congressional Bills Documents:
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