[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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