[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5197 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5197

To provide emergency assistance to certain small business concerns that 
         have suffered substantial economic harm from drought.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 2002

Mr. DeMint (for himself, Mr. Etheridge, Mr. Spratt, Mr. Ballenger, Mr. 
   Thune, Mr. Hayes, Mr. Price of North Carolina, and Mr. Matheson) 
 introduced the following bill; which was referred to the Committee on 
                             Small Business

_______________________________________________________________________

                                 A BILL


 
To provide emergency assistance to certain small business concerns that 
         have suffered substantial economic harm from drought.

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

SECTION 1. LOANS TO SMALL BUSINESS CONCERNS DAMAGED BY DROUGHT.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Drought Relief Act''.
    (b) Findings.--Congress finds that--
            (1) as of July 2002, more than 36 States have suffered from 
        continuing drought conditions;
            (2) droughts have a negative effect on State and regional 
        economies;
            (3) many small businesses in the United States sell, 
        distribute, market, or otherwise engage in commerce related to 
        water and water sources, such as lakes, rivers, and streams;
            (4) many small businesses in the United States suffer 
        economic injury from drought conditions, leading to revenue 
        losses, job layoffs, and bankruptcies;
            (5) these small businesses need access to low-interest 
        loans for business-related purposes, including paying their 
        bills and making payroll until business returns to normal;
            (6) absent a legislative change, only agriculture and 
        agriculture-related businesses are eligible for Federal 
        disaster loan assistance as a result of drought conditions; and
            (7) it is necessary to amend the Small Business Act to 
        clarify that nonfarm-related small businesses that have 
        suffered economic injury from drought are eligible to receive 
        financial assistance through Small Business Administration 
        Economic Injury Disaster Loans.
    (c) Drought Disaster Authority.--
            (1) Definition of disaster.--Section 3(k) of the Small 
        Business Act (15 U.S.C. 632(k)) is amended--
                    (A) by inserting ``(1)'' after ``(k)''; and
                    (B) by adding at the end the following:
    ``(2) For purposes of section 7(b)(2), the term `disaster' includes 
drought.''.
            (2) Drought disaster relief authority.--Section 7(b)(2) of 
        the Small Business Act (15 U.S.C. 637(b)(2)) is amended--
                    (A) by inserting ``including drought, with respect 
                to both farm-related and nonfarm-related small business 
                concerns affected by drought,'' before ``if the 
                Administration'';
                    (B) in subparagraph (B), by striking ``the 
                Consolidated Farmers Home Administration Act of 1961 (7 
                U.S.C. 1961)'' and inserting the following: ``section 
                321 of the Consolidated Farm and Rural Development Act 
                (7 U.S.C. 1961), in which case, assistance under this 
                paragraph may be provided to farm-related and nonfarm-
                related small business concerns, subject to the other 
                applicable requirements of this paragraph''; and
                    (C) in subparagraph (D), by striking ``Upon receipt 
                of such certification, the Administration may'' and 
                inserting ``Not later than 30 days after the date of 
                receipt by the Administration of such a certification 
                submitted by a Governor of a State, the Administration 
                shall respond in writing to that Governor on its 
                determination, and may then''.
    (d) Rulemaking.--Not later than 45 days after the date of enactment 
of this Act, the Administrator of the Small Business Administration 
shall promulgate final rules to carry out the provisions of this Act.
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