Military Reserves Small Business Relief Act - Amends the Small Business Act to require the Small Business Administration (SBA), upon written request, to defer repayment of principal and interest due on a direct general business or disaster loan made to a member of the reserves ordered to active duty during a period of military conflict, as long as such reservist: (1) received the loan before being ordered to such duty; and (2) is the owner, manager, or key employee of a small business for which the loan was made. Extends such deferral period until the later of 180 days after: (1) such reservist is discharged or released from active duty; or (2) the date of enactment of this Act. Applies such assistance to periods of military conflict occurring on or after August 1, 1990.
Authorizes the SBA to make disaster loans to assist a small business that has suffered or is likely to suffer economic injury as the result of the owner, manager, or key employee of such business being ordered to active duty during a period of military conflict. Provides a loan limitation. Applies such assistance to periods of military conflict occurring on or after August 1, 1990.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1981 Introduced in House (IH)]
106th CONGRESS
1st Session
H. R. 1981
To authorize the Small Business Administration to provide financial and
business development assistance to military reservists' small
businesses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 27, 1999
Mr. Bilirakis introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To authorize the Small Business Administration to provide financial and
business development assistance to military reservists' small
businesses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Military Reserves Small Business
Relief Act''.
SEC. 2. REPAYMENT DEFERRAL FOR ACTIVE DUTY RESERVES.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by
adding at the end the following:
``(n) Repayment Deferred for Active Duty Reserves.--
``(1) Deferral of direct loans.--
``(A) In general.--The Administration shall, upon
written request, defer repayment of principal and
interest due during the period of deferral described in
subparagraph (B) on any direct loan made under
subsection (a) or (b), if such loan was incurred by a
qualified borrower.
``(B) Period of deferral.--The period of deferral
for repayment under this paragraph shall begin on the
date on which the eligible reserve is ordered to active
duty during a period of military conflict and shall
terminate on the later of--
``(i) the date that is 180 days after the
date such eligible reserve is discharged or
released from active duty; and
``(ii) the date that is 180 days after the
date of enactment of this subsection.
``(C) No accrual of interest during deferral.--
During the period of deferral described in subparagraph
(B), no interest shall accrue on any deferred loan.
``(2) Applicability.--This subsection shall apply with
respect to any period of military conflict beginning on or
after August 1, 1990.
``(3) Definitions.--In this subsection:
``(A) Eligible reserve.--The term `eligible
reserve' means a member of a reserve component of the
Armed Forces serving pursuant to a call or order to
active duty, or an order to remain on active duty,
during a period of military conflict.
``(B) Owner, manager, or key employee.--The term
`owner, manager, or key employee' means an individual
who--
``(i) has not less than a 20 percent
ownership interest in a small business concern
described in subparagraph (D)(ii);
``(ii) is a manager responsible for the
day-to-day operations of such small business
concern; or
``(iii) is a key employee (as defined by
the Administration) of such small business
concern.
``(C) Period of military conflict.--The term
`period of military conflict' means--
``(i) a period of war declared by Congress;
``(ii) a period of national emergency
declared by Congress or by the President; or
``(iii) a period for which members of
reserve components of the Armed Forces are
serving on active duty in the Armed Forces
under a call or order to active duty, under
section 688, 12301(a), 12302, 12304, or 12306
of title 10, United States Code.
``(D) Qualified borrower.--The term `qualified
borrower' means--
``(i) an individual who is an eligible
reserve and who received a direct loan under
subsection (a) or (b) before being called or
ordered to active duty, or being ordered to
remain on active duty, during a period of
military conflict; or
``(ii) a small business concern that
received a direct loan under subsection (a) or
(b) before an eligible reserve, who is
an owner, manager, or key employee, was called or ordered to active
duty, or was ordered to remain on active duty, during a period of
military conflict.''.
SEC. 3. DISASTER LOAN ASSISTANCE FOR MILITARY RESERVES' SMALL
BUSINESSES.
(a) In General.--Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended by inserting after the undesignated paragraph that
begins with ``Provided, That no loan'', the following:
``(3)(A) The Administration may make such disaster loans
(either directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis) to assist a small business concern
(including a small business concern engaged in the lease or
rental of real or personal property) that has suffered or that
is likely to suffer economic injury as the result of a call or
order to active military duty, or an order to remain on active
duty, of an owner, manager, or key employee of such small
business concern during a period of military conflict.
``(B) Any loan or guarantee extended pursuant to this
paragraph shall be made at an annual interest rate of 4
percent, without regard to the ability of the small business
concern to secure credit elsewhere.
``(C) No loan may be made under this paragraph, either
directly or in cooperation with banks or other lending
institutions through agreements to participate on an immediate
or deferred basis, if the total amount outstanding and
committed to the borrower under this subsection would exceed
$500,000, except that the Administration may waive the $500,000
limitation if the Administration determines that the applicant
for the loan constitutes a major source of employment in its
surrounding area, and such area is not larger than the
surrounding county.
``(D) For purposes of assistance under this paragraph, no
declaration of a disaster area shall be required.
``(E) This paragraph shall apply with respect to any period
of military conflict beginning on or after August 1, 1990.
``(F) In this paragraph--
``(i) the term `economic injury' means an economic
harm to a business concern that results in the
inability of the business concern to market, produce,
or provide a product or service ordinarily marketed,
produced, or provided by the business concern;
``(ii) the term `owner, manager, or key employee'
means an individual who--
``(I) has not less than a 20 percent
ownership interest in the small business
concern;
``(II) is a manager responsible for the
day-to-day operations of such small business
concern; or
``(III) is a key employee (as defined by
the Administration) of such small business
concern; and
``(iii) the term `period of military conflict' has
the meaning given the term in subsection (n)(3).''.
(b) Conforming Amendments.--Section 4(c) of the Small Business Act
(15 U.S.C. 633(c)) is amended--
(1) in paragraph (1), by striking ``7(b)(4),''; and
(2) in paragraph (2), by striking ``7(b)(4), 7(b)(5),
7(b)(6), 7(b)(7), 7(b)(8),''.
SEC. 4. REGULATIONS.
Not later than 60 days after the date of enactment of this Act, the
Small Business Administration shall issue such regulations as may be
necessary to carry out the amendments made by sections 2 and 3.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
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