[Congressional Record Volume 147, Number 132 (Thursday, October 4, 2001)]
[Senate]
[Pages S10289-S10293]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself, Mr. Bond, Mr. Schumer, Mr. Bingaman, 
        Mr. Inouye, Mr. Wellstone, Mr. Sarbanes, Mr. Akaka, Mr. Harkin, 
        Mr. Reed, Mrs. Clinton, Mr. Durbin, Mr. Cleland, Mr. Kennedy, 
        Mr. Lieberman, Mr. Grassley, Mr. Torricelli, Mr. Daschle, Mrs. 
        Lincoln, Mr. Edwards, Mr. Rockefeller, Mrs. Carnahan, Mr. 
        Hollings, Ms. Snowe, Mr. Leahy, Mr. Corzine, Mr. Levin, Ms. 
        Cantwell, Ms. Landrieu, Mr. Allen, Mrs. Murray, Mr. Johnson, 
        Mr. Nelson of Florida, Mr. Biden, Ms. Collins, Mr. Enzi, Mr. 
        Burns, and Mr. Crapo):
  S. 1499. 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; read the 
first time.
  Mr. KERRY. Mr. President, I am introducing today, together with 
Senator Bond, the ranking member of the Committee on Small Business and 
Entrepreneurship, and 26 of my colleagues, including Senators 
Wellstone, Harkin, Cleland, Lieberman, Edwards, Carnahan, Levin, Snowe, 
Schumer, Clinton, Daschle, Bingaman, Inouye, Sarbanes, Akaka, Reed of 
Rhode Island, Durbin, Kennedy, Grassley, Torricelli, Lincoln, 
Rockefeller, Hollings, Leahy, Corzine, Cantwell, Landrieu, Allen, 
Murray, and Johnson, the American Small Business Emergency Relief and 
Recovery Act of 2001.
  This is emergency legislation to help small businesses that have been 
impacted as a consequence of the attacks that took place on September 
11. Thousands of small businesses employing millions of Americans are 
suffering significantly as a consequence of what has happened. Many of 
these companies may not survive. But these businesses are the engine of 
our economy and we need to act to help them.
  This bill is the product of bipartisan work on our committee. I thank 
Senator Bond for cosponsoring it and for working with us. It includes 
input from many sources, much of which was gathered through a 
combination of about 30 meetings and conference calls with small 
business trade associations, contractors, subcontractors, small 
business lenders, and small business consultants.
  Of course, I think we have all learned firsthand a lot from the small 
business owners who have told us their personal stories of healthy 
businesses--up until September 11--which have simply taken a nosedive 
as a consequence of the tragic events.
  Our airport small businesses, our taxi drivers, small hotels and 
restaurants, small suppliers, travel agents, crop dusters, charter bus 
companies, and many others have called to explain their plight. For 
example, there is a woman in my State who started a travel agency 26 
years ago in a suburb of Boston. She has six employees. She is hanging 
on now only through personal savings because they have zero business 
all of a sudden. The agency has virtually no incoming sales, and has 
had to refund commissions on all canceled vacation packages, cruises 
and airline tickets that had generated income over the past 6 months.
  Yesterday, I met with a fellow who does a lot of business out in 
North Dakota. Senator Conrad introduced us. They were doing 20,000 
sales a day. They went down to two sales a day for a period of time. 
They are now back up to about 10,000. But the problem is that banks are 
withholding the lines of credit for many of these companies, and we 
want them to survive.
  In New York where more than 14,000 businesses inside and around 
ground zero have been impacted, there's the story of Sydmore Sportswear 
just four blocks from where the World Trade Center once stood. Joseph 
Pinkas, who's owned the small business for 20 years owes $100,000 to 
his suppliers, and revenues are down 65 percent. ``We don't know where 
our customers are going to come from,'' he said in an AP story. ``I'm 
worried about the future, about survival. I don't sleep at night.'' 
Other businesses in the area are filled with dust and debris, and their 
phones are dead.
  Small businesses doing business with the Federal government have also 
felt the impact of the attacks on September 11, 2001. Small business 
contractors, because of very real and legitimate security concerns, 
have experienced a dramatic increase in costs for work in and around 
Federal government facilities. We have heard reports of small 
businesses being denied access to their equipment on military bases, 
waiting for hours each day to enter government facilities and being 
limited in the hours they can work on their

[[Page S10290]]

contracts. Once again, let me stress, these security precautions are 
very necessary, but they are having a dramatic impact on our small 
businesses. Many small businesses, particularly those performing 
government contracts, operate on a tight profit margin, so when the 
contract takes longer to complete, or rented equipment goes unused or 
can not be returned, unanticipated costs are incurred.

  Let me cite the situation faced by Dave Krueger, president of AS 
Horner Construction, Inc. out of Albuquerque, NM. Dave is currently 
doing work on a Federal contract at an Air Force facility pouring 
concrete parking aprons. Immediately after the attack, his company was 
locked out of the facility for nearly two weeks and currently have 
limited hours to access the construction site. Dave estimates that this 
will result in cost increases of at least 10 to 15 percent, meaning he 
will take a loss on this contract.
  Such situations cannot go unresolved. Small businesses are far too 
important, not just to our national economy, but to our national 
defense as well. Small business are a vital component of our national 
supply chain and essential to our national security interests.
  This act was designed to mitigate bankruptcies, business closures, 
and layoffs related to the attacks. It also addresses the shrinking 
availability of credit and venture capital to small businesses through 
traditional lenders and investors, which has been exacerbated by the 
attacks. It includes changes in SBA's main non-disaster lending and 
venture capital programs in order to encourage borrowing and lending 
for new and expanding small businesses that might otherwise be 
reluctant to start or expand their businesses in the post-September 11 
economy.
  This legislation addresses three categories of small businesses:
  One, small businesses directly affected because they are physically 
located in or near the buildings or areas attacked or closed for 
security measures, or are located in national airports. For example, a 
brokerage firm located in one of the World Trade Center Towers or an 
independent souvenir shop in the Reagan National Airport or the Miami 
International Airport. These businesses will be eligible for SBA's 
economic injury disaster loans, under more favorable terms, such as 
deferring the payments and forgiving the interest on these loans for 
two years, as well as increasing the loan caps and extending the 
deadline for applying for disaster loans to one year.
  Small businesses not physically damaged or destroyed or in the 
vicinity of such businesses, but directly or indirectly affected 
because they are a supplier, service provider or complementary 
industry, especially the financial, hospitality, travel and tour 
industries. For example, a tour company in Hawaii or Rhode Island that 
has had hardly any sales since the attacks because the average 
occupancy at its client hotels has dropped to 10 percent. These 
businesses are eligible for 7(a) loans, tailored to be easier to 
qualify for, to have lower interest rates, and to offer the option of 
deferring the principal payments for 1 year.
  Small businesses in need of capital and investment financing, 
procurement assistance or management counseling in the economic 
aftermath of September 11. These businesses will have access to a 
variety of SBA's programs with incentive features, such as waiving the 
borrower's fee for a regular 7(a) loan for working capital or a 504 
loan to buy equipment to increase productivity and beat the 
competition, or cut energy consumption and utility costs.

  Mr. President, history has taught us that, during an economic down 
turn, lenders become increasingly reluctant to lend to small 
businesses. From our contact with lenders, we know loan committees 
decided days after the attacks to clamp down on loans to small 
businesses. And to make matters worse, lenders are already calling in 
existing loans. One example is a woman who owns a manufacturing 
businesses in Quincy, MA, whose bank called her loan and credit line. 
She's never missed a payment. Where is she going to come up with more 
than $1 million? If her business closes, 40 jobs are lost, her 
contribution to the tax base is lost, and she's out of a job. It is 
critical to keep credit available to small businesses.
  In addition to getting credit into the hands of small businesses, it 
is important to make sure they have access to counseling and training 
to run their businesses better, deal with the volatile market, and 
adjust to the changing times. Providing access to such counseling helps 
protect our investment in their loans because a stronger business is 
more likely to repay its loans. This legislation increases funding for 
the Small Business Development Centers, with an emphasis on New York 
and Virginia, as well as the volunteer Service Corps of Retired 
Executives, the Women's Business Centers, and SBA's microlending 
experts.
  To help alleviate the unfortunate situations related to delayed 
Federal contracts, my legislation includes provisions to help expedite 
the claims of small business contractors applying for equitable 
adjustments to their contracts. The goal of this provision, simply, is 
to help offset the unanticipated and temporary costs of the increased 
security at Federal Government facilities. Additionally, it establishes 
a $100 million fund under the control of the Small Business 
Administration to ensure that no contracting agency has to pay out of 
previously allocated funds the increased costs of existing contracts 
because of the security measures implemented as a result of the 
September 11th attacks.
  I have confidence in our economy. The attacks may have arrested one 
of our financial centers momentarily and robbed families and businesses 
of thousands of brilliant and hard-working folks who helped make our 
country prosperous, but our economic foundation is strong. We have 
world-class universities, we have a great work force made up of people 
with an amazing work ethic, our banks are strong, we have a reliable 
infrastructure for communications, energy and transport, and the dollar 
is holding up.
  Now is not the time to pull back on investing in our economy, 
particularly in small-business development and growth. The SBA is doing 
a good job with the tools it has, but we need to improve those tools 
and give SBA more resources to deal with the scope of the problems 
faced by small businesses in the aftermath of September 11th. This 
legislation does just that. I urge my colleagues to support this bill, 
and the Senate to act quickly so that this emergency help is available 
very soon.
  Mr. President, Senator Akaka could not be present to voice his 
support for this bill and concern for the small businesses in Hawaii, 
so I ask unanimous consent that his statement be included in the 
Record. I also ask unanimous consent that a letter of support and the 
bill be printed in the Record.
  In addition to this legislation that I am introducing today, there 
are a series of tax items that we believe fall into the category of 
stimulus, but they are not within the jurisdiction of our committee. As 
a member of the Finance Committee, I am going to encourage our 
committee to embrace these. One would be an increase in expensing, so 
that you can deduct an expense up to $24,000 of the cost of qualifying 
property; and we would encourage that increase and expensing to 
encourage greater business investment, and we want that expensing 
allowance increased to a higher amount.

  In addition, I have several times introduced--and I will 
reintroduce--a zero capital gains tax for those companies with 
capitalization up to $200 million or $300 million in new capitalization 
in the critical technologies or entrepreneurial businesses, where we 
would most respond to the creation of the high-value-added jobs or some 
of the technology fixes that will exist for security, for instance, or 
for national defense and other things that we need to do with respect 
to the battle against terrorism.
  Third would be changes in depreciation. There are a number of 
proposals for changes to depreciation rules. We would support some, 
such as changing the depreciation schedule for computer hardware from 5 
years to 3, software from 3 years to 2, or several other proposals.
  Mr. President, there are a number of these tax proposals which the 
Small Business Committee will refer to the Finance Committee and to our 
colleagues with hopes that we can embrace them as a component of the 
stimulus package because they will have a

[[Page S10291]]

stimulus effect and a long-term beneficial effect on our economy.
  Small businesses, as we all know, small businesses represent 99 
percent of all employers, provide 75 percent of all net new jobs and 
contribute significantly to our economy. Every single company on the 
stock exchange today began as a small business. Some of them, such as 
Callaway Golf, Federal Express, Intel, and many others, got help 
through the Small Business Administration's loans or venture capital.
  The Federal Government helped provide the impetus for those 
companies. We have many times over repaid the Federal Treasury the 
entire budget of the Small Business Administration and its lending 
programs through the taxes paid by the success stories of our 
investments.
  I encourage my colleagues to embrace this emergency relief act, the 
American Small Business Emergency Relief and Recovery Act, and these 
emergency tax measures, as a way of encouraging further business growth 
and development.
  Mr. President, I ask unanimous consent to print in the Record a 
letter from the National Community Reinvestment Corporation.
  There being no objection, the letter was ordered to be printed in the 
Record, as follows:

                                                National Community


                                       Reinvestment Coalition,

                                  Washington, DC, October 2, 2001.
     Hon. John F. Kerry,
     Chairman, Committee on Small Business and Entrepreneurship, 
         Washington, DC.
       Dear Chairman Kerry: The National Community Reinvestment 
     Coalition (NCRC) strongly supports the American Small 
     Business Emergency Relief and Recovery Act of 2001 as 
     essential to the efforts of lending institutions, community 
     organizations and local public agencies to help small 
     businesses directly and indirectly impacted by the September 
     11th terrorist attacks. NCRC and our 800+ member 
     organizations community groups and local public agencies 
     around the country also commend your leadership on this 
     legislative measure and pledge to promote this bill via our 
     membership and through our policy initiatives.
       In today's new enterprise marketplace, entrepreneurs have 
     surged into small businesses ownership in record numbers. 
     Their impact on U.S. growth and productivity is evident.
       America's 25.5 million small businesses represent more than 
     99 percent of our nation's employers. They employ 51 percent 
     of the private sector workforce and create over 80 percent of 
     all the net new jobs in the United States.
       In 2000, there were 612,400 new employer firms, an increase 
     of 4.3 percent from 1999. Small business bankruptcies 
     decreased by 14.8 percent between 1999 and 2000, to the 
     lowest level in over 20 years. And the business failure index 
     also decreased by 1.7 percent since, 1999.
       Small businesses' income increased 7.2 percent, rising from 
     595.2 billion in 1998 to $638.2 billion in 1999. They 
     represent 96 percent of all exporters of goods and generate 
     more than half of the nation's gross domestic product.
       Today, however, hardship and economic adversity have 
     stricken the small business marketplace as a result of the 
     September 11th attacks. NCRC commends the Small Business 
     Administration (SBA) for acting quickly to help entrepreneurs 
     deal with the aftermath of the attacks. Unfortunately, SBA's 
     authority is limited under the Disaster Loan Program 
     guidelines. SBA may only provide assistance in declared 
     disaster areas' contiguous communities.
       What will happen to the gift basket service whose sole 
     distribution source was a florist in one of the World Trade 
     Center towers? What will happen to the small catering 
     business that has had to lay off staff as a result of banquet 
     cancellations and no new bookings? And what will happen to 
     the independent souvenir store in Ronald Reagan International 
     Airport and other airports, given current lack of traffic in 
     the terminals?
       Your American Small Business Emergency Relief and Recovery 
     Act of 2001 is key to the recovery efforts. If enacted, it 
     will help small business entrepreneurs drive the American 
     economy. NCRC has long championed the role of small 
     businesses in growing and expanding our economy. Since our 
     inception in 1990, we have led the charge to bring equal 
     access to credit and capital to all emerging market sectors. 
     One highly successful capacity-building initiative is the 
     SBA/NCRC partnership on the CommunityExpress program.
       CommunityExpress is part of SBA's initiative to spur 
     economic development and job creation in under-served 
     communities. The program combines SBA loan guarantees, 
     targeted lending by select banks, and technical assistance 
     from local NCRC membes. The key to CommunityExpress is that 
     it provides small business entrepreneurs with technical and 
     managerial assistance before and after the loan is made.
       The SBA/NCRC cooperative effort has led to the rapid growth 
     of the loan program from a level of just over $2 million in 
     Fall 1999 to over $42 million in loans as of September 2001. 
     Of the 439 loans to date, women and minority entrepreneurs 
     have been the greatest beneficiaries, as nearly 56 percent of 
     the loans have gone to women and 52 percent of loans have 
     gone to minorities. The average size of a CommunityExpress 
     loan is $96,527 with 61 loans between $200,000 and $250,000.
       Your leadership has paved the way to support small 
     businesses in the wake of the September 11th tragedy. NCRC 
     pledges to continue support your efforts and to help 
     entrepreneurs in low- and moderate-income areas through 
     CommunityExpress and other initiatives.
       We thank you for your continuing efforts. We look forward 
     to working with you and your outstanding staff during the 
     course of the 107th Congress--and beyond.
           Yours sincerely,
                                                      John Taylor,
                                                President and CEO.

  Mr. BOND. Mr. President, I rise today to express my strong support 
for the American Small Business Emergency Relief and Recovery Act of 
2001. I thank Senator John Kerry for introducing this bill, and I am 
pleased to be its principal cosponsor. In this period immediately 
following the September 11 terrorist attacks on the World Trade Center 
and the Pentagon, I urge all my colleagues to review this bill closely. 
Its prompt passage will provide important tools to small businesses 
that were directly and indirectly harmed by the terrorist attacks.
  As the ranking member of the Committee on Small Business and 
Entrepreneurship, I receive on a daily basis pleas for help from small 
business in Missouri and across the Nation: small restaurants who have 
lost much of their business due to the fall off in business travel; 
local flight schools that have been grounded as a result of the recent 
terrorist attacks; and Main Street retailers who are struggling to 
survive in the slowing economy. Clearly, we in Congress must act and 
act soon to help our Nation's small businesses.
  In response to these urgent calls for help, yesterday, I introduced 
the Small Business Leads to Economic Recovery Act of 2001 (S. 1493), 
which is designed to provide effective economic stimulus in three 
distinct but complementary ways: increasing access to capital for the 
Nation's small enterprises; providing tax relief and investment 
incentives for our small firms and the self-employed; and directing one 
of the Nation's largest consumers, the Federal Government, to shop with 
small business in America.
  The Kerry-Bond bill goes to the heart of the problem by addressing 
the access to capital barriers now confronting small businesses. This 
bill is a bipartisan collaboration between Senator Kerry and me and our 
staffs of the Committee on Small Business and Entrepreneurship. We have 
worked together to devise one-time modifications to the SBA Disaster 
Relief, 7(a) and 504 Loan Programs because the traditional approach to 
disaster relief will not address the critical needs of thousands of 
small businesses located at or around the World Trade Center, the 
Pentagon and in strategic locations throughout the United States.
  In New York City, it may be a year or more before many of the small 
businesses destroyed or shut down by the terrorist attacks can reopen 
their doors for business. Small firms near the Pentagon, such as those 
at the Reagan National Airport or Crystal City, Virginia, are also shut 
down or barely operating. And there are small businesses throughout the 
United States that have been shut down for national security concerns. 
For example, General Aviation aircraft remain grounded, closing all 
flight schools and other small businesses dependent on single engine 
aircraft.
  Regular small business disaster loans fall short of providing 
effective disaster relief to help these small businesses. Therefore, 
our bill will allow small businesses to defer for up to two years 
repayment of principal and interest on their SBA disaster relief loans. 
Interest that would otherwise accrue during the deferment period would 
be forgiven. The thrust of this essential new ingredient is to allow 
the small businesses to get back on their feet without jeopardizing 
their credit or driving them into bankruptcy.

  Small enterprises located in the presidentially declared disaster 
areas surrounding the World Trade Center and the Pentagon are not the 
only businesses experiencing extreme hardship as a direct result of the 
terrorist

[[Page S10292]]

attacks of September 11. Nationwide, thousands of small businesses are 
unable to conduct business or are operating at a bare-minimum level. 
Tens of thousands of jobs are at risk of being lost as small businesses 
weather the fall out from the September 11 attacks.
  The Kerry-Bond bill provides a special financial tool to assist small 
businesses as they deal with these significant business disruptions. 
Small businesses in need of working capital would be able to obtain 
SBA-guaranteed ``Emergency Relief Loans'' from their banks to help them 
during this period. Fees normally paid by the borrower to the SBA would 
be eliminated, and the SBA would guarantee 95 percent of the loan. A 
key feature of the bill is the authorization for banks to defer 
repayment of principal for up to one year.
  My colleagues and I have been hearing time and time again during the 
last three weeks since the terrorist attacks that small businesses are 
experiencing significant hardship. The downturn in business activity, 
however, was clearly underway prior to September 11. The downturn was 
further exacerbated by the terrorist attacks.
  Historically, when our economy slows or turns into a recession, the 
strength of the small business sector helps to right our economic ship, 
with small businesses leading the nation to economic recovery. Today, 
small businesses employ 58 percent of the U.S. workforce and create 75 
percent of the net new jobs. Clearly, we cannot afford to ignore 
America's small businesses as we consider measures to stimulate our 
economy.
  The Kerry-Bond bill would provide for changes in the SBA 7(a) 
Guaranteed Business Loan Program and the 504 Certified Development 
Company Loan Program to stimulate lending to small businesses that are 
most likely to grow and add new employees. These enhancements to the 
SBA's 7(a) and 504 loan programs are to extend for one year. They are 
designed to make the program more affordable during the period when the 
economy is weak and banks have tightened their underwriting 
requirements for small business loans.
  Specifically, when the economy is slowing, it is normal for banks to 
raise the bar for obtaining commercial loans. However, making it harder 
for small businesses to survive is the wrong reaction to a slowing 
economy. By making these one-year adjustments to the 7(a) and 504 loans 
to make them more affordable to borrowers and lenders, we will be 
working against history's rules governing a slowing economy, thereby 
adding a stimulus for small businesses. Essentially, we will be 
providing a counter-cyclical action in the face of a slow economy with 
the express purpose of accelerating the recovery.
  The SBA has a very effective infrastructure for providing management 
assistance to small businesses located nationwide. The Small Business 
Development Center (SBDC), SCORE, Women's Business Center and Microloan 
programs provide much needed counseling to small businesses that are 
struggling or facing problems in their start-up phase. With the U.S. 
economy under unusual stress, many segments of the small business 
community are today unable to cope with daily management issues.
  The Kerry-Bond bill would authorize expansions in these programs so 
that the SBDCs, the SCORE chapters and the Women's Business Centers are 
positioned to address the needs of a large influx of small businesses 
looking for help. Our bill would create special authorizations for each 
program to provide assistance tailored to the needs of small businesses 
following the September 11 terrorist attacks. In addition, the bill 
would increase the authorization levels by the following amounts: SBDC 
program $25 million, SCORE $2 million, Women's Business Centers, $2 
million, and Microloan technical assistance, $5 million.
  In order to measure the impact of the terrorist attacks on small 
businesses and the effectiveness of the Federal response to provide 
assistance, the Kerry-Bond bill directs the Office of Advocacy at the 
SBA to submit annual studies to the Congress for the next five years 
outlining its findings. Specifically, each annual report should include 
information and data on bankruptcies and business failures, job losses, 
and the impact of the assistance to the adversely affected small 
businesses. $500,000 annually is authorized for the Office of Advocacy 
to carry out this important five year project.
  The American Small Business Emergency Relief and Recovery Act of 2001 
is important legislation that is needed to help the many struggling 
small businesses. I am pleased to join Senator Kerry and my colleagues 
who are cosponsoring the bill in urging an early debate on this bill. 
Swift passage will very helpful to the long-term survival of many of 
American's small businesses.
  Mr. BINGAMAN. Mr. President, I rise today in extremely strong support 
of S. 1499, the American Small Business Emergency Relief and Protection 
Act, and I am pleased to be an original co-sponsor of the legislation. 
In the aftermath of the attacks on New York City and the Pentagon on 
September 11, we were right I believe, to focus our attention on the 
loss of human life and the enormous tragedy that had affected our 
entire Nation. From my perspective, there would have been something 
callous about calculating economic impact when there was so much 
visible pain and suffering going on around us.
  But as time has passed, there is an economic reality that must be 
addressed in a coherent and effective fashion. The increasingly 
negative economic reports we face cannot be ignored as they have 
immediate and tangible effects on the people and communities of our 
country. Over the last week or so the administration, along with key 
Members of Congress, have discussed the creation of an economic 
stimulus plan that is designed to pull our country and our economy back 
on track and back to where it belongs. Although this plan has yet to be 
solidified, it will provide Americans with a stable and secure 
foundation upon which public confidence can grow again, economic growth 
can expand again, and business productivity can increase again.
  The bipartisan legislation that was introduced today by Senator Kerry 
will complement this economic stimulus package by giving substantial 
assistance to the small businesses that were either directly affected 
by the events on September 11 or subsequently affected by the ripple 
that has spread across the United States. Senator Kerry has very wisely 
taken an approach that looks not only at the small businesses that were 
in the immediate areas of the attack and thus suffered as a result of 
the damage or closures, but also those businesses--supplier firms, 
contractors, and so on--that have suffered indirectly as a result of 
the initial destruction. These businesses will now have the opportunity 
to obtain a number of benefits not previously available under current 
legislation. In brief, the legislation: expands and facilities access 
for small business to the SBA Disaster Loan Program; offers incentives 
that allows business to use the 7(a) and 504 Loan Programs; provides 
additional funds to the SCORE and SBDC Programs, and; increases 
outreach done by SBA to small businesses in need of management 
consulting.
  Let me provide some context to this effort. From where I sit, no 
sector of the economy is as vital, dynamic, and creative as small 
business. If you read the paper or listen to the news, you know that 
there has been an entrepreneurial explosion in the United States over 
the last decade, and that this explosion has significantly impacted 
every region in the country. According to the latest estimates, there 
are at least 24 million full time small businesses in the United States 
at this time, employing millions of Americans. Make no mistake about 
it, these businesses drive the U.S. economy, as they are the ones that 
fire innovation, provide jobs, and create wealth for the country as a 
whole. When we talk about the knowledge economy, we are talking about 
small business. When we talk about energy and risk-taking, we are 
talking about small business. When we talk about the ``creative 
destruction'' that enhances our over-all competitiveness and pushes our 
country forward, we are talking about small business.
  Small business represents the best of the United States, and from 
where I sit we should always make sure it has everything it needs to 
make a go of it. In my State of New Mexico, there are nearly 40,000 
small businesses, over half

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owned by women and minorities. These entities employ nearly 60 percent 
of the individuals that are now working in my state and generate 
billions of dollars in revenue. New Mexico depends on small business 
for its continued economic welfare, and I am committed to helping them 
succeed in good times and in bad.
  It is never easy to start a small business or earn a profit, but it 
has gotten significantly harder recently. Many small businesses were 
already teetering on the brink as a result of the economic downturn, 
but in number of cases, conditions have become unmanageable as a result 
of the September 11 events and the recession. It is time to recognize 
that these folks need some help. This legislation does that. It shows 
that the Congress cares about what has happened and will do everything 
in its power to put things back on track again. It accepts the fact 
that these folks are not experiencing a normal business cycle downturn, 
and that they can't wait for the next upturn for things to get better. 
They need some assistance, and they need it now.
  As far as I am concerned, it would be a good fit to have this 
specific legislation in the economic stimulus package being put 
together at this time. However, given how far down the road the 
negotiations over that package are, I doubt if that is possible. If 
this is indeed the case, I think it is imperative absolutely 
imperative, that this legislation be passed by both the Senate and the 
House, and then signed by the President as soon as possible. If we are 
looking for stability and confidence to be re-established in the United 
States, small business is a good place to start. It is time to act, and 
I urge my colleagues on both sides of the aisle to support this bill.
  Mr. AKAKA. Mr. President, I am pleased to join my colleagues from 
Massachusetts, Mr. Kerry, and Missouri, Mr. Bond, as an original 
cosponsor of the American Small Business Emergency Relief and 
Protection Act of 2001.
  As our Nation grieves for the victims and honors the rescuers, the 
American people stand with President Bush and support his assurance 
that our response to this terrible event and our pursuit of justice 
will be ``calm and resolute.'' The challenge and responsibility we all 
share in the aftermath of September 11 is to return to work, carry on 
with business, bolster our economy, and restore public confidence in 
the freedom of movement which we enjoy.
  We have already begun to repair the damage, enhance airline security, 
strengthen our national security, and fight terrorism. We have acted to 
support the airline industry in this difficult time. Now, legislation 
is needed to support small businesses as they face increasing 
challenges.
  It has been twenty-three days since the disaster and millions of 
workers and small businesses nationwide in a variety of industries have 
felt the economic aftershock of these events. Hawaii's hospitality 
industry has been hit particularly hard by the significant decrease in 
business and leisure travelers who are staying close to home. Airlines 
are having to adjust to the reduced number of travelers, while hotels 
are dealing with low occupancy rates due to the cancellation or 
postponement of planned trips to Hawaii. Since the airports reopened, 
domestic visitor arrivals in Hawaii have decreased by 31 percent 
compared to the same time period last year. Comparing international 
arrivals during the period from September 15-25 for 2000 and 2001, 
reveals a 65 percent decrease in visitors. Restaurants, hospitality 
services, shopping centers, and other tourism-related businesses are 
also being affected by the lack of visitors. The Hawaii Department of 
Labor and Industrial Relations reports that unemployment claims for the 
week of September 17 were double the weekly average. It is estimated 
that 80 percent of these claims are tourism related.
  Hawaii is not alone in experiencing a downturn in tourist and 
business travel. Popular visitor destinations across the country, 
including Washington, DC, Florida, and Las Vegas have also endured 
sharp drops in visitors. The losses to airlines, hotels, restaurants, 
and other small businesses are already in the billions of dollars. The 
economic repercussions extend to all fifty states, as the economic 
decline impacts the lives of millions of people.
  While I am confident that Hawaii's and our Nation's tourism industry 
can withstand this downturn in the economy, action is necessary to help 
preserve existing jobs and support the economy during this difficult 
time. Further job reductions will have significant spillover effects on 
the economy.
  The legislation is aimed at alleviating the economic strain on small 
businesses by providing crucial access to credit. By expanding the 
application eligibility of the Small Business Administration's Disaster 
Loan programs to event-based instead of location-based criteria, many 
more struggling companies in all 50 states will be able to obtain the 
assistance they need. For example, small companies which provide 
hospitality or travel services would be eligible. Many others in a wide 
range of industries would be permitted to apply for assistance. The 
measure would also create incentives for small businesses to utilize 
the non-disaster relief loan programs. The incentives would encourage 
wary individuals and companies to borrow and lend to establish and 
expand small businesses in the current economic environment.
  I thank my colleagues from Massachusetts and Missouri for introducing 
this legislation and ask my colleagues to join in supporting this 
essential measure to assist small businesses in the aftermath of the 
heinous attacks of September 11.
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