Small Business Drought Relief Act

Small Business Drought Relief Act - Amends the Small Business Act to include within the definition of "disaster," for purposes of disaster loans provided to small businesses through the Small Business Administration (SBA), droughts and below average water levels in the Great Lakes. Authorizes such loan assistance for farm- and nonfarm-related small businesses affected by droughts.

Requires the SBA to respond in writing to a State Governor regarding its determination concerning the provision of disaster loan assistance within 30 days after receiving such Governor's certification that small businesses in that State have suffered economic injury as a result of a disaster.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2734 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2734

  To provide emergency assistance to non-farm small business concerns 
   that have suffered substantial economic harm from the devastating 
                          effects of drought.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 16, 2002

  Mr. Kerry (for himself, Mr. Hollings, Ms. Landrieu, Mr. Baucus, Mr. 
Bingaman, Mr. Daschle, and Mr. Johnson) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
                          and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
  To provide emergency assistance to non-farm small business concerns 
   that have suffered substantial economic harm from the devastating 
                          effects of drought.

    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''.
    (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 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, only agriculture-related 
        businesses are eligible for Federal disaster loan assistance as 
        a result of drought conditions; and
            (7) it is necessary to amend the Small Business Act to 
        allow non-farm small businesses that have suffered economic 
        injury from drought to receive financial assistance through 
        Small Business Administration Economic Injury Disaster Loans.
    (c) Expansion of Disaster Definition.--Section 3(k) of the Small 
Business Act (15 U.S.C. 632(k)) is amended by inserting ``drought,'' 
after ``windstorms,''.
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