[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3073 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3073

To provide assistance to small business concerns adversely impacted by 
    the terrorist attacks perpetrated against the United States on 
              September 11, 2001, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 10, 2001

   Mr. Manzullo (for himself, Mr. Moran of Virginia, Mr. Nadler, Mr. 
   Ferguson, Mr. Meeks of New York, Mr. Weiner, Mr. Grucci, and Mr. 
Johnson of Illinois) introduced the following bill; which was referred 
                   to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
To provide assistance to small business concerns adversely impacted by 
    the terrorist attacks perpetrated against the United States on 
              September 11, 2001, 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 ``American Small Business Emergency 
Relief and Recovery Act of 2001''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) the Nation's 25,000,000 small businesses employ more 
        than 58 percent of the private workforce, and create 75 percent 
        of all new jobs;
            (2) as a result of the terrorist attacks on September 11, 
        2001, many small businesses nationwide were adversely 
        affected--
                    (A) directly because--
                            (i) they are located in or near the World 
                        Trade Center or the Pentagon, or in a disaster 
                        area declared by the President or the 
                        Administrator;
                            (ii) they were closed or their business was 
                        suspended for National security purposes at the 
                        mandate of the Federal Government; or
                            (iii) they are located in an airport that 
                        has been closed; and
                    (B) indirectly because--
                            (i) they supplied or provided services to 
                        businesses that were located in or near the 
                        World Trade Center or the Pentagon;
                            (ii) they are a supplier, service provider, 
                        or complementary industry to any affected 
                        industry, in particular, the financial, 
                        hospitality, and travel industries; or
                            (iii) they are integral to or dependent 
                        upon the business of a closed or suspended 
                        business or business sector; and
            (3) small business owners adversely impacted by the 
        terrorist attacks are finding it difficult or impossible--
                    (A) to make loan payments on existing debts;
                    (B) to pay their employees;
                    (C) to pay their vendors;
                    (D) to purchase materials, supplies, or inventory;
                    (E) to pay their rent, mortgage, or other operating 
                expenses; and
                    (F) to secure financing for their businesses.
    (b) Purpose.--The purpose of this Act is to strengthen the loan and 
investment programs of the Small Business Administration, in order to 
help small businesses to meet their existing obligations, finance their 
businesses, and maintain and create jobs, and thereby provide stability 
to the National economy.

SEC. 3. DISASTER LOANS AFTER TERRORIST ATTACKS.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after paragraph (3) the 
following:
            ``(4) Disaster loans after terrorist attacks of september 
        11, 2001.--
                    ``(A) Loan authority.--In addition to any other 
                loan authorized by this section, the Administration may 
                make such loans (either directly or in cooperation with 
                banks or other lending institutions through agreements 
                to participate on an immediate or deferred basis) to a 
                small business concern that has been directly affected 
                and suffered, or that is likely to suffer, substantial 
                economic injury as the direct result of the terrorist 
                attacks perpetrated against the United States on 
                September 11, 2001, including due to the closure or 
                suspension of its business for National security 
                purposes at the mandate of the Federal Government.
                    ``(B) Deferment of loan payments.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, payments of principal 
                        and interest on a loan made under this 
                        paragraph or paragraph (1) as a result of the 
                        terrorist attacks perpetrated against the 
                        United States on September 11, 2001, shall be 
                        deferred, and no interest shall accrue with 
                        respect to such loan, during the 2-year period 
                        following the date of issuance of such loan.
                            ``(ii) Resumption of payments.--At the end 
                        of the 2-year period described in clause (i), 
                        the payment of periodic installments of 
                        principal and interest shall be required with 
                        respect to such loan, in the same manner and 
                        subject to the same terms and conditions as 
                        would otherwise be applicable to any other loan 
                        made under this subsection.
                    ``(C) Refinancing existing loans.--
                            ``(i) In general.--Any loan made under this 
                        subsection that was outstanding as to principal 
                        or interest on September 11, 2001, may be 
                        refinanced by a small business concern that is 
                        also eligible to receive a loan under this 
                        paragraph, and the refinanced amount shall be 
                        considered to be part of the new loan for 
                        purposes of this clause.
                            ``(ii) No effect on eligibility.--A 
                        refinancing under this subparagraph by a small 
                        business concern shall be in addition to any 
                        other loan eligibility for that small business 
                        concern under this Act.
                    ``(D) Terms.--A loan under this paragraph shall be 
                made at the same interest rate as economic injury loans 
                under paragraph (2).
                    ``(E) No disaster declaration required.--For 
                purposes of assistance under this paragraph, no 
                declaration of a disaster area is required for those 
                small business concerns directly affected by the 
                terrorist attacks perpetrated against the United States 
                on September 11, 2001.
                    ``(F) Size standard adjustments.--
                            ``(i) For declared disaster areas.--
                        Notwithstanding any other provision of law, for 
                        purposes of providing assistance under this 
                        paragraph to businesses located in areas of New 
                        York, Virginia, and the contiguous areas 
                        designated by the President or the 
                        Administrator as a disaster area following the 
                        September 11, 2001, terrorist attacks against 
                        the United States, a business shall be 
                        considered to be a `small business concern' if 
                        it meets otherwise applicable size regulations 
                        promulgated by the Administration, and, with 
                        respect to the applicable size standard it is--
                                    ``(I) a restaurant having not more 
                                than $8,000,000 in annual revenues;
                                    ``(II) a law firm having not more 
                                than $8,000,000 in annual revenues;
                                    ``(III) a certified public 
                                accounting business having not more 
                                than $8,000,000 in annual revenues;
                                    ``(IV) a performing arts business 
                                having not more than $8,000,000 in 
                                annual revenues;
                                    ``(V) a warehousing or storage 
                                business having not more than 
                                $25,000,000 in annual revenues;
                                    ``(VI) a contracting business 
                                having not more than $15,000,000 in 
                                annual revenues;
                                    ``(VII) a food manufacturing 
                                business having not more than 1,000 
                                employees; or
                                    ``(VIII) an apparel manufacturing 
                                business having not more than 1,000 
                                employees.
                            ``(ii) Authority to increase or waive size 
                        standards and size regulations.--For purposes 
                        of providing assistance under this paragraph, 
                        at the discretion of the Administrator, the 
                        Administrator may increase or waive otherwise 
                        applicable size standards or size regulations 
                        with respect to businesses that are located in 
                        areas of New York, Virginia, or the contiguous 
                        areas designated by the President or the 
                        Administrator as a disaster area following the 
                        September 11, 2001, terrorist attacks against 
                        the United States.
                            ``(iii) Exemption from administrative 
                        procedures.--The provisions of chapter 8 and 
                        subchapter II of chapter 5, of title 5, United 
                        States Code, shall not apply to any increase or 
                        waiver by the Administrator under clause (ii).
                    ``(G) Definition of substantial economic injury.--
                In this paragraph, the term `substantial economic 
                injury' means an economic harm to a small business 
                concern that results in the inability of the small 
                business concern--
                            ``(i) to meet its obligations on an ongoing 
                        basis;
                            ``(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 small business 
                        concern.
            ``(5) Increased loan caps.--
                    ``(A) Aggregate loan amounts.--Except as provided 
                in subparagraph (B), and in addition to amounts 
                otherwise authorized by this Act, the loan amount 
                outstanding and committed to a borrower may not 
                exceed--
                            ``(i) with respect to a small business 
                        concern located in the areas of New York, 
                        Virginia, or the contiguous areas designated by 
                        the President or the Administrator as a 
                        disaster area following the September 11, 2001, 
                        terrorist attacks perpetrated against the 
                        United States--
                                    ``(I) $6,000,000 in total 
                                obligations under paragraph (1); and
                                    ``(II) $6,000,000 in total 
                                obligations under paragraph (4); and
                            ``(ii) with respect to a small business 
                        concern that is not located in an area 
                        described in clause (i) and that is eligible 
                        for assistance under paragraph (4), $5,000,000 
                        in total obligations under paragraph (4).
                    ``(B) Waiver authority.--The Administrator may, at 
                the discretion of the Administrator, waive the 
                aggregate loan amounts established under subparagraph 
                (A).
            ``(6) Extended application period.--Notwithstanding any 
        other provision of law, the Administrator shall accept 
        applications for assistance under paragraphs (1) and (4) until 
        September 10, 2002, with respect to small business concerns 
        adversely affected by the terrorist attacks perpetrated against 
        the United States on September 11, 2001.
            ``(7) Limitation on sales of loans.--No loan made under 
        paragraph (1) or (4) made with respect to adverse impact as a 
        result of the terrorist attacks of September 11, 2001, shall be 
        sold until 4 years after the date of the loan disbursement.
            ``(8) Definition.--For purposes of this subsection--
                    ``(A) a small business concern is directly affected 
                by the terrorist attacks perpetrated against the United 
                States on September 11, 2001, if it--
                            ``(i) is located in or near the World Trade 
                        Center or the Pentagon, or in a disaster area 
                        declared by the President or the Administrator 
                        related to those terrorist attacks;
                            ``(ii) was closed or its business was 
                        suspended for National security purposes at the 
                        mandate of the Federal Government; or
                            ``(iii) is located in an airport that has 
                        been closed; and
                    ``(B) a small business concern is indirectly 
                affected by the terrorist attacks perpetrated against 
                the United States on September 11, 2001, if it--
                            ``(i) supplied or provided services to 
                        small businesses that were located in or near 
                        the World Trade Center or the Pentagon, or in a 
                        disaster area declared by the President or the 
                        Administrator related to those terrorist 
                        attacks;
                            ``(ii) is a supplier, service provider, or 
                        complementary industry to any affected 
                        industry, in particular, the financial, 
                        hospitality, and travel industries; or
                            ``(iii) it is integral to or dependent upon 
                        the business of a closed or suspended business 
                        or business sector.''.
    (b) Clerical Amendments.--Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended in the undesignated matter at the end--
            (1) by striking ``, (2), and (4)'' and inserting ``and 
        (2)''; and
            (2) by striking ``, (2), or (4)'' and inserting ``(2)''.

SEC. 4. EMERGENCY RELIEF LOAN PROGRAM.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended by adding at the end the following:
            ``(31) Temporary loan authority following terrorist 
        attacks.--
                    ``(A) In general.--During the 1-year period 
                beginning on the date of enactment of this paragraph, 
the Administration may make loans under this subsection to a small 
business concern that has suffered, or that is likely to suffer, 
adverse impact.
                    ``(B) Loan terms.--With respect to a loan under 
                this paragraph--
                            ``(i) for purposes of paragraph (2)(A), 
                        participation by the Administration shall be 
                        equal to 90 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan;
                            ``(ii) no fee may be required or charged 
                        under paragraph (18);
                            ``(iii) the applicable rate of interest 
                        shall not exceed a rate that is one percentage 
                        point above the prime lending rate;
                            ``(iv) no such loan shall be made if the 
                        total amount outstanding and committed (by 
                        participation or otherwise) to the borrower 
                        under this paragraph--
                                    ``(I) would exceed $1,000,000; or
                                    ``(II) at the discretion of the 
                                Administrator, and upon notice to the 
                                Congress, would exceed $2,000,000, as 
                                necessary to provide relief in high-
                                cost areas that have suffered adverse 
                                impact; and
                            ``(v) upon request of the borrower, 
                        repayment of principal due on a loan made under 
                        this paragraph may be deferred during the 1-
                        year period beginning on the date of issuance 
                        of the loan.
                    ``(C) Applicability.--The loan terms described in 
                subparagraph (B) shall apply to a loan under this 
                paragraph notwithstanding any other provision of this 
                subsection, and except as specifically provided in this 
                paragraph, a loan under this paragraph shall otherwise 
                be subject to the same terms and conditions as any 
                other loan under this subsection.
                    ``(D) Definition.--For purposes of this paragraph, 
                the term `adverse impact' means an economic harm to or 
                disruption of the business operations of a small 
                business concern as a direct or indirect result of the 
                terrorist attacks perpetrated against the United States 
                on September 11, 2001.''.

SEC. 5. BUSINESS LOAN AND INVESTMENT ASSISTANCE FOLLOWING TERRORIST 
              ATTACKS.

    (a) One-Year Suspension of Section 7(a) Fees.--Section 7(a)(18) of 
the Small Business Act (15 U.S.C. 636(a)(18)) is amended by adding at 
the end the following:
                    ``(C) One-year waiver of fees following terrorist 
                attacks.--For loans approved on or after the date of 
                enactment of the American Small Business Emergency 
                Relief and Recovery Act of 2001, no fee may be 
                collected or charged under this paragraph, and no fee 
                shall accrue with respect to a borrower, during the 1-
                year period beginning on that date of enactment.''.
    (b) One-Year Increase in Participation Levels.--Section 7(a)(2) of 
the Small Business Act (15 U.S.C. 636(a)(2)) is amended--
            (1) in subparagraph (A), by striking ``subparagraph (B)'' 
        and inserting ``subparagraphs (B) and (E)''; and
            (2) by adding at the end the following:
                    ``(E) Temporary participation levels following 
                terrorist attacks.--For loans approved on or after the 
                date of enactment of the American Small Business 
                Emergency Relief and Recovery Act of 2001, during the 
                1-year period beginning on that date of enactment--
                            ``(i) the guarantee percentage specified by 
                        subparagraph (A)(i) shall be increased to 85 
                        percent; and
                            ``(ii) the guarantee percentage specified 
                        by subparagraph (A)(ii) shall be increased to 
                        90 percent.''.
    (c) One-Year Suspension of Section 504 Fees.--Section 503 of the 
Small Business Investment Act of 1958 (15 U.S.C. 697) is amended--
            (1) in subsection (b)(7)(A), by striking ``which amount 
        shall'' and inserting ``which amount shall not be assessed or 
        collected with respect to financings made on or after the date 
        of enactment of the American Small Business Emergency Relief 
        and Recovery Act of 2001, and no amount shall accrue, during 
        the 1-year period beginning on that date of enactment, and 
        which amount shall otherwise''; and
            (2) in subsection (d)(2), by adding at the end the 
        following: ``No fee may be assessed or collected under this 
        paragraph with respect to financings made on or after the date 
        of enactment of the American Small Business Emergency Relief 
        and Recovery Act of 2001, and no fee shall accrue, during the 
        1-year period beginning on that date of enactment.''.
    (d) Budgetary Treatment of Loans and Financings.--Any assistance 
made available under any loan issued by the Small Business 
Administration under section 7(a)(31) or 7(b)(4) of the Small Business 
Act (15 U.S.C. 636(a)) or any financings made under title III or V of 
the Small Business Investment Act of 1958 (15 U.S.C. 697a), as a result 
of this Act and the amendments made by this Act during the 1-year 
period beginning on the date of enactment of this Act, shall be 
excluded from any calculation of the subsidy rate with respect to the 
programs of the Small Business Administration under those provisions 
for purposes of the Federal Credit Reform Act of 1990.

SEC. 6. APPROVAL PROCESS.

    Notwithstanding any other provision of law, and in order to make 
assistance provided under this Act available to all eligible small 
business concerns, the Administrator of the Small Business 
Administration may adopt such approval processes as the Administrator 
determines to be appropriate for the provision of assistance under the 
amendments made by sections 4 and 5.

SEC. 7. ADDITIONAL SBIC AUTHORITY.

    Section 303 of the Small Business Investment Act of 1958 (15 U.S.C. 
683) is amended by adding at the end the following:
    ``(k) Authority After Terrorist Attacks of September 11, 2001.--
Small business investment companies may issue leverage under this title 
for the purpose of providing assistance to small business concerns 
adversely impacted, directly or indirectly, by the terrorist attacks 
perpetrated against the United States on September 11, 2001.''.

SEC. 8. STUDY AND REPORT ON EFFECTS ON SMALL BUSINESS CONCERNS.

    (a) Study.--
            (1) In general.--The Office of Advocacy of the Small 
        Business Administration shall conduct annual studies for a 5-
        year period on the impact of the terrorist attacks perpetrated 
        against the United States on September 11, 2001, on small 
        business concerns, and the effects of assistance provided under 
        this Act on such small business concerns.
            (2) Contents.--The study conducted under paragraph (1) 
        shall include information regarding--
                    (A) bankruptcies and business failures that 
                occurred as a result of the events of September 11, 
                2001, as compared to those that occurred in 1999 and 
                2000;
                    (B) the loss of jobs, revenue, and profits in small 
                business concerns as a result of those events, as 
                compared to those that occurred in 1999 and 2000;
                    (C) the impact of assistance provided under this 
                Act to small business concerns adversely affected or 
                adversely impacted by those attacks, including 
                information regarding whether--
                            (i) small business concerns that received 
                        such assistance would have remained in business 
                        without such assistance;
                            (ii) jobs were saved due to such 
                        assistance;
                            (iii) small business concerns recovered 
                        economically from those events; and
                            (iv) small business concerns that remained 
                        in business had increases in employment and 
                        sales since receiving assistance.
    (b) Report.--The Office of Advocacy shall submit a report to 
Congress on the studies required by subsection (a)(1), specifically 
addressing the requirements of subsection (a)(2) in September of each 
of fiscal years 2002 through 2006.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $125,000 for each of fiscal 
years 2002 through 2006.

SEC. 9. INCREASED AUTHORIZATIONS OF APPROPRIATIONS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by adding at the end the following:
    ``(j) Special Authorizations of Appropriations Following Terrorist 
Attacks.--In addition to any other amounts authorized by this Act for 
any fiscal year, there are authorized to be appropriated to the 
Administration, to remain available until expended--
            ``(1) for fiscal year 2002 and each fiscal year thereafter, 
        such sums as may be necessary to carry out paragraph (4) of 
        section 7(b), including necessary loan capital and funds for 
        administrative expenses related to making and servicing loans 
        pursuant to that paragraph;
            ``(2) for fiscal year 2002 and each fiscal year thereafter, 
        such sums as may be necessary to carry out paragraphs (2)(E), 
        (18)(C), and (31) of section 7(a), including any funds 
        necessary to offset fees and amounts waived under those 
        provisions, necessary loan capital, and funds for 
        administrative expenses;
            ``(3) for fiscal year 2002, such sums as may be necessary 
        to carry out the 1-year suspension of fees under subsections 
        (b)(7)(A) and (d)(2) of section 503 of the Small Business 
        Investment Act of 1958, in response to the acts of terrorism 
        perpetrated against the United States on September 11, 2001, 
        including any funds necessary to offset fees and amounts waived 
        under those provisions and including funds for administrative 
        expenses; and
            ``(4) for fiscal year 2002, for assistance authorized by 
        section 303(k) of the Small Business Investment Act of 1958--
                    ``(A) $700,000,000 in purchases of participating 
                securities; and
                    ``(B) $200,000,000 in guarantees of debentures.''.
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