[Congressional Record (Bound Edition), Volume 149 (2003), Part 6]
[Senate]
[Page 7856]
[From the U.S. Government Publishing Office, www.gpo.gov]




               SMALL BUSINESS DROUGHT RELIEF ACT OF 2003

  Mr. BENNETT. Mr. President, I ask unanimous consent that the Small 
Business Committee be discharged from further action on S. 318 and that 
the Senate then proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered. The clerk 
will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 318) to provide emergency assistance to nonfarm-
     related small business concerns that have suffered 
     substantial economic harm from drought.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. BENNETT. Mr. President, I ask unanimous consent that the bill be 
read a third time and passed, the motion to reconsider be laid on the 
table, and any statements regarding this matter be printed in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 318) was read the third time and passed, as follows:

                                 S. 318

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. LOANS TO SMALL BUSINESS CONCERNS DAMAGED BY 
                   DROUGHT.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Drought Relief Act of 2003''.
       (b) Findings.--Congress finds that--
       (1) as of July 2002, more than 36 States (including 
     Massachusetts, South Carolina, and Louisiana) have suffered 
     from continuing drought conditions;
       (2) droughts have a negative effect on State and regional 
     economies;
       (3) many small businesses in the United States sell, 
     distribute, market, or otherwise engage in commerce related 
     to water and water sources, such as lakes, rivers, and 
     streams;
       (4) many small businesses in the United States suffer 
     economic injury from drought conditions, leading to revenue 
     losses, job layoffs, and bankruptcies;
       (5) these small businesses need access to low-interest 
     loans for business-related purposes, including paying their 
     bills and making payroll until business returns to normal;
       (6) absent a legislative change, the practice of the Small 
     Business Administration of permitting only agriculture and 
     agriculture-related businesses to be eligible for Federal 
     disaster loan assistance as a result of drought conditions 
     would likely continue;
       (7) during the past several years small businesses that 
     rely on the Great Lakes have suffered economic injury as a 
     result of lower than average water levels, resulting from low 
     precipitation and increased evaporation, and there are 
     concerns that small businesses in other regions could suffer 
     similar hardships beyond their control and that they should 
     also be eligible for assistance; and
       (8) it is necessary to amend the Small Business Act to 
     clarify that nonfarm-related small businesses that have 
     suffered economic injury from drought are eligible to receive 
     financial assistance through Small Business Administration 
     Economic Injury Disaster Loans.
       (c) Drought Disaster Authority.--
       (1) Definition of disaster.--Section 3(k) of the Small 
     Business Act (15 U.S.C. 632(k)) is amended--
       (A) by inserting ``(1)'' after ``(k)''; and
       (B) by adding at the end the following:
       ``(2) For purposes of section 7(b)(2), the term `disaster' 
     includes--
       ``(A) drought; and
       ``(B) below average water levels in the Great Lakes, or on 
     any body of water in the United States that supports commerce 
     by small business concerns.''.
       (2) Drought disaster relief authority.--Section 7(b)(2) of 
     the Small Business Act (15 U.S.C. 636(b)(2)) is amended--
       (A) by inserting ``including drought, with respect to both 
     farm-related and nonfarm-related small business concerns 
     affected by drought,'' before ``if the Administration''; and
       (B) in subparagraph (B), by striking ``the Consolidated 
     Farmers Home Administration Act of 1961 (7 U.S.C. 1961)'' and 
     inserting the following: ``section 321 of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1961), in which 
     case, assistance under this paragraph may be provided to 
     farm-related and nonfarm-related small business concerns, 
     subject to the other applicable requirements of this 
     paragraph''.
       (d) Prompt Response to Disaster Requests.--Section 
     7(b)(2)(D) of the Small Business Act (15 U.S.C. 636(b)(2)(D)) 
     is amended by striking ``Upon receipt of such certification, 
     the Administration may'' and inserting ``Not later than 30 
     days after the date of receipt of such certification by a 
     Governor of a State, the Administration shall respond in 
     writing to that Governor on its determination and the reasons 
     therefore, and may''.
       (e) Limitation on Loans.--From funds otherwise appropriated 
     for loans under section 7(b) of the Small Business Act (15 
     U.S.C. 636(b)), not more than $9,000,000 may be used during 
     fiscal year 2003 to provide drought disaster loans to non-
     farm related small business concerns.
       (f) Rulemaking.--Not later than 45 days after the date of 
     enactment of this Act, the Administrator of the Small 
     Business Administration shall promulgate final rules to carry 
     out this Act and the amendments made by this Act.

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