[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2742 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2742

    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 26, 1993

 Mr. Wheat (for himself and Ms. Danner) 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) to a homeowner or business or other 
concern, including agricultural cooperatives, unable to obtain credit 
elsewhere 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)(I) Except as provided by subclause (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.
    ``(II) Notwithstanding clause (i), the recipient of a loan 
described in clause (i) which is outstanding on the date of the 
enactment of this paragraph may elect that the Administrator not make 
any change in the interest rate on the balance of such loan. In any 
such case, the loan shall not be considered to be a loan received 
pursuant to this paragraph for purposes of subparagraph (C).
    ``(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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