[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Senate]
[Pages 690-691]
[From the U.S. Government Publishing Office, www.gpo.gov]




                CONTINUING WORK ON THE STIMULUS PACKAGE

  Mr. BOND. Mr. President, I thank my colleagues from Georgia and from 
Texas for presenting some very cogent arguments as to why we need to 
keep working on this stimulus bill. I am disappointed by the sounds I 
am hearing that it is going to be pulled. We need stimulus in this 
economy, and we have already adopted an amendment that I proposed, on 
an overwhelmingly bipartisan vote, to allow small businesses to write 
off immediately their investments.
  As I have said, I have two more amendments, frankly, in addition, 
that are pending at the desk that I think my colleagues, if given an 
opportunity to vote on them, would vote for overwhelmingly.
  First is a measure that addresses the tax benefits for the armed 
services members who served in the operations in Somalia. I don't think 
there would be many on this floor who would not vote for it if they had 
a chance. It provides that those who served during peacekeeping efforts 
in Somalia should receive the same tax benefits in the same manner as 
if such services were performed in a combat zone.
  As we fight the global reach of the terrorist networks, we are asking 
our men and women in uniform to perform at the very highest levels and 
at an unprecedented operational tempo. This amendment I filed would 
allow the men and women who served within the hostile fire zone in 
Somalia to file for the same tax breaks afforded to military forces who 
serve in a combat zone. Anybody who has seen the movie ``Blackhawk 
Down,'' based on the real world conflict in Somalia, will understand 
that our forces who served in that conflict were in a combat zone.
  The Pentagon criterion for hostile fire pay requires the duty is 
``event based, payable to members certified that have been subject to a 
hostile fire. . . .''
  Former SSG Kenneth Chatman, from Oran, MO, served the Army for 16 
years as an avionics electronics repair technician. He served in 
Somalia from August of 1993 to January of 1994 with the 101st Airborne 
Division, air assault. The only tax exemption soldiers in Somalia got 
was when they transited to some other zone. In his case, he flew over 
Egypt and got a tax-free month. That is unjust. I believe anybody who 
appreciates the battle that our military are taking on against 
terrorism will understand that the sacrifices made by our forces 
require that we give these brave men and women the same tax breaks that 
others under direct fire receive.
  The second amendment I have is truly a stimulus measure. It is 
designed to increase the amount of venture capital available to small 
business. The Small Business Administration Small Business Investment 
Company Program--the SBIC Program--has a significant role in providing 
venture capital to small businesses seeking investments in the range of 
$500,000 to $3 million.
  Small Business Investment Companies are Government-licensed, 
Government-regulated, privately managed, venture capital firms created 
to invest only in original debt or equity securities of U.S. small 
businesses that meet size standards set by law.
  In the current economic environment, the SBIC Program represents an 
increasingly important source of capital for small enterprises--small 
enterprises that are struggling to get back on their feet, to grow now 
in the face of this economic recession we have been in for well over a 
year. They need to have funding. While debenture SBICs qualify for SBA-
guaranteed borrowed capital, the Government guarantee forces a number 
of potential investors--namely, pension funds--to avoid investing in 
SBICs because they would be subject to tax liability for unrelated 
business tax income--UBTI. Thus, they don't put their money in it. As a 
result, 60 percent of the private capital potentially available to 
invest for these SBICs to create jobs, put men and women to work, 
create wealth in the community, is ``off limits.''
  My amendment would correct that problem by excluding Government-
guaranteed capital borrowed by debenture SBICs from debt for purposes 
of the UBTI rules.
  When we are looking at the need to diversify pension funds, this 
gives those who hold pension funds who seek retirement security an 
opportunity to use Government-guaranteed funds for investment in small 
businesses in a professionally managed small business investment 
company the opportunity to put their retirement funds to work and 
create jobs in their community, create growth and opportunity for men 
and women who need those jobs now.

[[Page 691]]

  I hope and expect, once again, that if this targeted small business 
stimulus incentive were put up on this floor for a vote, it would be 
overwhelmingly adopted and we would see jobs and growth of small 
business.
  I urge the leader, the Senator from South Dakota, to give us an 
opportunity to continue to work on this very important package, which 
has some good things in it and, if we had the chance to work on it, 
would have more good things in it.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from New York is recognized.

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