[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 748 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 748
To authorize the Small Business Administration to make grants and loans
to small business concerns, and grants to agricultural enterprises, to
enable such concerns and enterprises to reopen for business after a
natural or other disaster.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2001
Mrs. Kelly introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To authorize the Small Business Administration to make grants and loans
to small business concerns, and grants to agricultural enterprises, to
enable such concerns and enterprises to reopen for business after a
natural or other disaster.
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 ``Small Business Disaster Assistance
Act of 2001''.
SEC. 2. DISASTER ASSISTANCE TO REOPEN SMALL BUSINESS CONCERNS AND
AGRICULTURAL ENTERPRISES.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended--
(1) in subsection (b), by inserting before the undesignated
paragraph that begins with ``No loan under this subsection,''
the following:
``(4) In accordance with subsection (o), the Administration may
make grants and loans under this subsection.''; and
(2) by adding at the end the following:
``(o) Disaster Assistance Programs To Reopen Small Business
Concerns and Agricultural Enterprises.--
``(1) Grant program.--
``(A) In general.--In accordance with this
subsection and subsection (b) (to the extent that
subsection (b) is not inconsistent with this
subsection), the Administration may make grants to
small business concerns and agricultural enterprises
following a natural or other disaster to assist such
concerns and enterprises in reopening for business.
``(B) Eligibility.--A small business concern or
agricultural enterprise may receive a grant under this
paragraph only if it--
``(i) was a viable business concern (as
determined by the Administration) at the time
of the disaster; and
``(ii) is likely to be a viable business
concern (as determined by the Administration)
after receiving assistance under this
subsection.
``(C) Maximum.--The Administration may make no
grant under this paragraph that exceeds $30,000.
``(D) Timing.--In making grants under this
paragraph, the Administration shall disburse grant
funds as soon as is practicable after a disaster.
``(2) Loan program.--
``(A) In general.--In accordance with this
subsection and subsection (b) (to the extent that
subsection (b) is not inconsistent with this
subsection), the Administration may make loans to small
business concerns following a natural or other disaster
to assist such concerns in reopening and remaining open for business.
``(B) Direct and guaranteed loans permissible.--The
Administration may make loans under this paragraph
either directly or in cooperation with banks or other
lending institutions through agreements to participate
on an immediate or deferred (guaranteed) basis.
``(C) Repayment.--
``(i) One-year deferral.--The
Administration may not require the borrower
with respect to a loan made under this
paragraph to repay any principal of the loan,
or any interest on such principal, before the
date that is 1 year after the date on which the
proceeds of the loan are disbursed.
``(ii) Application of repaid amounts.--The
Administration shall apply all amounts repaid
with respect to a loan made under this
paragraph--
``(I) to the principal of the loan;
and
``(II) to the extent that such
amounts are sufficient, to the interest
on such principal.
``(3) Limitation on eligibility.--Notwithstanding any other
provision of this subsection, the Administration may not make
assistance available under this subsection to any person,
concern, or enterprise that is in default of any outstanding--
``(A) Federal obligation;
``(B) child support obligation; or
``(C) judgment of a Federal or State court.
``(4) Use of proceeds.--As a condition of receiving a grant
or loan under this subsection, the Administration shall require
the recipient to--
``(A) agree to use the proceeds of such grant or
loan only to repair or replace items and structures
that were lost or damaged as a result of a disaster;
and
``(B) agree not to use any of the proceeds of such
grant or loan for relocation, unless the recipient is
directed by a government agency to relocate for safety,
health, or mitigation purposes.
``(5) Flood insurance.--As a condition of receiving a grant
or loan under this subsection, the Administration shall require
each recipient that operates in a location that the
Administration determines is prone to flooding--
``(A) to obtain flood insurance, or to ensure that
such insurance is obtained, for the maximum insurable
value of the concern's structure (whether owned or
leased) and the contents of such structure; and
``(B) to maintain such flood insurance for the
period of time that the concern continues to operate in
such a location.
``(6) Agricultural enterprises.--
``(A) Defined.--In this subsection, the term
`agricultural enterprise' means--
``(i) an agricultural enterprise within the
meaning of the term under section 3(a); and
``(ii) a farm not larger than a family farm
within the meaning of such term under section
321 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1961).
``(B) Consultation requirement.--Before issuing
regulations to implement paragraph (1), the
Administration shall consult with the Secretary of
Agriculture with respect to the effect of such
regulations on agricultural enterprises.''.
SEC. 3. CONFORMING AMENDMENT.
Section 4(f)(1) (15 U.S.C. 633(f)(1)) of the Small Business Act is
amended by striking ``section 462(b) of the Social Security Act'' and
inserting ``section 459 of the Social Security Act''.
SEC. 4. APPLICABILITY.
The amendments made by section 2 shall apply to any major disaster
declared after September 1, 1999.
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