[Congressional Record Volume 152, Number 67 (Thursday, May 25, 2006)]
[Senate]
[Page S5242]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mr. Craig):
  S. 3122. A bill to amend the Small Business Act to improve loans for 
members of the Guard and Reserve, and for other purposes; to the 
Committee on Small Business and Entrepreneurship.
  Ms. SNOWE. Mr. President, our country has forever prided itself on 
providing individuals the opportunity to pursue a fair and prosperous 
existence. Our Nation's free markets enable small business owners to 
grow their enterprise and realize their dreams. Yet, small business 
owners and entrepreneurs are not blind to the costs of maintaining a 
free and open society. These same small business owners and 
entrepreneurs play a vital role in protecting freedom, at home and 
abroad, as members of the U.S. National Guard and Reserve Forces.
  In recent years, however, the Department of Defense, DOD, has placed 
greater reliance on our nation's Guard and Reserve forces. In fact, 
since Septeber 2001, over 550,000 Guard and Reserve members have been 
called up in support of current operations, at the same time, making up 
nearly one-third of deployed service members in Iraq and Afghanistan. 
In addition, Guard and Reserve members have been charged in assisting 
with recovery efforts in the Gulf Coast, following some of the most 
devastating natural disasters in our country's history.
  As these brave men and women are called to serve our Nation, the 
small businesses they temporarily leave behind often suffer. Many 
affected small buinesses experience slowing production and lost sales 
or incur additional expenses to compensate for an employee's absence. 
As a result, self-employed Guard and Reserve members and small 
businesses that employ Guard and Reserve members are ``paying'' a 
disproportionate and unfair share of the burden of increased call-ups. 
This is particularly troubling, because according to the majority of 
non-government-employed Guard and Reserve members are either self-
employed or work for small businesses.
  To help stem the ill affects of Guard and Reserve call-ups on small 
businesses, Senator Craig and I are introducing the Patriot Loan Act of 
2006. This legislation improves the U.S. Small Business 
Administration's Military Reservist Economic Injury Disaster Loan, 
MREIDL, program. The MREIDL program was created to provide funds to 
eligible small businesses to meet ordinary and necessary operating 
expenses that the business cannot meet, because an essential employee 
was ``called-up'' to active duty in their role as a military reservist.
  Specifically, our legislation would raise the maximum military 
reservist loan amount from $1,500,000 to $2,000,000. A maximum military 
reservist loan amount of $2,000,000 is the same level as many ofthe 
SBA's other loan programs, including: the 7(a) loans, international 
trade loans, and 504 Certified Development Corporation loans that serve 
a public policy goal.
  This bill would allow the SBA Administrator, either directly or 
through banks to offer loans up to $25,000 without requiring collateral 
fr a loan applicant. Currently, the BA offers military reservist loans 
up to $5,000 without requiring collateral. This provision would 
increase that level to eligible small businesses.
  The bill would also require the Administrator to give military 
reservist loan applications priority for processing and ensure that 
Guard and Reserve members are adequately assisted with their loan 
application by incorporating the support and expertise of SBA 
entrepreneurial development partners, such as Small Business 
Development Centers.
  Finally, the legislation requires the SBA and DOD to develop a joint 
website and printed materials providing information regarding the 
MREIDL program for Guard and Reserve members, and that the SBA and DOD 
jointly conduct a feasibility study on introducing business 
mobilization and interruption insurance for members of the Guard and 
Reserve forces, and increased utilization of credit unions affiliated 
with the DOD.
  I thank Senator Craig for working with me to help address this 
critical issue and I urge my colleagues to support this bill.
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