[Congressional Record (Bound Edition), Volume 147 (2001), Part 19]
[Extensions of Remarks]
[Page 26307]
[From the U.S. Government Publishing Office, www.gpo.gov]



           REGARDING THE SMALL BUSINESS ECONOMIC RECOVERY ACT

                                 ______
                                 

                           HON. PATSY T. MINK

                               of hawaii

                    in the house of representatives

                      Thursday, December 13, 2001

  Mrs. MINK of Hawaii. Mr. Speaker, on November 27, 2001 I introduced 
the Small Business Economic Recovery Act to help struggling small 
businesses survive.
  Countless small businesses have suffered significant economic injury 
since the September 11 terrorist attacks. Some suffered direct economic 
injury as a result of closed and damaged buildings. Many more have 
suffered from the economic fallout caused by an economy that has 
plunged into a recession.
  Small businesses are hurting and need help. The National Bureau of 
Economic Research announced that the United States entered a recession 
in March 2001. The Gross Domestic Product fell to 1.1 percent in the 
third quarter, and the unemployment rate has risen to 5.7 percent.
  Prompted by the widespread economic impact of the terrorist attacks 
on New York City and the Pentagon, on October 18, 2001 the Small 
Business Administration widened access to Economic Injury Disaster 
Loans (EIDLs) for small businesses throughout the country. To qualify 
for these loans, small businesses must have suffered direct and 
substantial economic injury due to the terrorist attacks or the federal 
government's response to the attacks. This notion of ``direct'' injury 
will severely limit the Small Business Administration's ability to help 
all suffering businesses. Clearly a small business in an airport will 
qualify, but small businesses dependent on tourism may have a harder 
time proving that they were directly affected by the terrorist actions.
  Even though 11,659 small businesses outside of New York City and 
Arlington, Virginia have requested Economic Injury Disaster Loans 
applications, the Small Business Administration has only granted 100 
loans. Small businesses who are suffering because the attacks plunged 
the economy into a recession cannot prove a direct relationship to the 
terrorist attacks. They cannot get the Small Businesses 
Administration's emergency loans. We must make sure there are no 
ambiguous rules that confuse applicants or make it difficult for the 
Small Business Administration to grant loans to struggling businesses.
  I have introduced a bill that removes any ambiguities and ensures 
that the Small Business Administration can help all small businesses 
that need assistance. The Small Business Economic Recovery Act does not 
require businesses to prove that they suffered a ``direct'' injury as a 
result of the terrorist attacks. It permits any small business that has 
suffered ``substantial economic injury'' to obtain Economic Injury 
Disaster Loans from the Small Business Administration. Normally, 
businesses must be in a federally designated disaster area to receive 
these loans. My bill temporarily waives the federal disaster area 
requirement. Businesses will only have to prove that they suffered 
substantial economic injury. It will help businesses that cannot: meet 
obligations as they mature, and pay necessary operating expenses.
  The act will authorize the Small Business Administration to provide 
up to $1.5 million in disaster assistance to a suffering small 
business. The interest rate on the loans will not exceed 4 percent per 
year, and the loan terms cannot exceed 30 years. This emergency 
assistance program will expire on September 11, 2002.
  Small businesses represent more than 99% of all employers and employ 
51% of private-sector workers. We must provide immediate assistance to 
help this vital sector of our economy.
  I urge my colleagues to help small businesses and cosponsor this 
important legislation.

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