[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2686 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2686

    To amend the Small Business Act to reduce the interest rates on 
disaster loans provided by the Small Business Administration for losses 
  resulting from flooding in Midwest communities participating in the 
                   national flood insurance program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 21, 1993

Mr. Wheat (for himself, Ms. Danner, Mr. Emerson, Mr. Skelton, Mr. Clay, 
Mr. Volkmer, and Mr. Gephardt) introduced the following bill; which was 
              referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
    To amend the Small Business Act to reduce the interest rates on 
disaster loans provided by the Small Business Administration for losses 
  resulting from flooding in Midwest communities participating in the 
                   national flood insurance program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. REDUCTION OF INTEREST RATES ON SBA DISASTER LOANS.

    (a) Interest Rate.--Section 7(c) of the Small Business Act (16 
U.S.C. 636(c)) is amended by adding at the end the following new 
paragraph:
    ``(8)(A)(i) The interest rate on the Federal share of any loan made 
under subsection (b)(1) or (b)(2) for losses resulting from flooding in 
the Midwest during the period beginning on June 1, 1993, and ending on 
May 31, 1994, shall be 1 percent per year.
    ``(ii) With respect to any loan described in clause (i) which is 
outstanding on the date of the enactment of this paragraph, the 
Administrator shall make such change in the interest rate on the 
balance of such loan as is required under clause (i) effective as of 
such date of enactment.
    ``(B) Subparagraph (A) shall apply only to loans with respect to 
losses on property located in communities participating in the national 
flood insurance program.
    ``(C) No person receiving a loan pursuant to this paragraph may 
receive any disaster assistance under this Act or any other Federal law 
for losses resulting from any subsequent flooding disaster, unless such 
person (if eligible) has obtained flood insurance under the national 
flood insurance program for the property involved.''.
    (b) Conforming Amendment.--Section 7(c)(5) of such Act is amended 
by inserting ``except as provided by paragraph (8),'' after ``October 
1, 1982,''.

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