Seeds for Soldiers Act - Authorizes the Administrator of the Small Business Administration (SBA), using loan authority under the Small Business Act, to make loans to small businesses owned and controlled by veterans. Allows such loans to be made for any business purpose, including the refinancing of outstanding business debt. Defers loan principal payments for one year after loan issuance. Prohibits the total amount outstanding and committed to a borrower from exceeding $3 million. Provides conditions under which the Administrator may participate in SBA-guaranteed loans to such businesses, including collection of a loan guarantee fee. Terminates the loan authority at the end of 2008.
Directs the Administrator to make grants to small business development centers to enable such centers to provide to veterans a program of assistance that includes training in a vocational or technical trade and entrepreneurial assistance in establishing and operating a small business that provides services in such trade. Provides a minimum grant amount of $500,000. Terminates the grant authority at the end of 2008.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5517 Introduced in House (IH)]
109th CONGRESS
2d Session
H. R. 5517
To amend the Small Business Act to establish a temporary loan program
and a temporary vocational development program for small business
concerns owned and controlled by veterans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 25, 2006
Mr. Udall of New Mexico (for himself, Mrs. Emerson, Mrs. Kelly, and Mr.
Michaud) introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to establish a temporary loan program
and a temporary vocational development program for small business
concerns owned and controlled by veterans.
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 ``Seeds for Soldiers Act''.
SEC. 2. TEMPORARY LOAN PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND
CONTROLLED BY VETERANS.
(a) In General.--The Administrator may make a loan under section
7(a) of the Small Business Act (15 U.S.C. 636(a)) to a small business
concern owned and controlled by veterans.
(b) Special Rules.--Notwithstanding the requirements of section 7
of the Small Business Act (15 U.S.C. 636), the following special rules
apply to a loan under this section:
(1) The Administrator may make a loan under this section
for any business purpose, including the refinancing of any
outstanding business debt.
(2) No payment of principal on a loan under this section
shall be due or payable during the 1-year period beginning on
the date on which the loan is issued. Any interest payable with
respect to the loan for such period shall be paid by the
Administration.
(3) A loan may be made under this section if the total
amount outstanding and committed to the borrower under section
7(a) of the Small Business Act (15 U.S.C. 636(a)) would not
exceed $3,000,000.
(4) In the case of an agreement to participate on a
deferred basis in a loan under this section--
(A) the participation of the Administration shall
be equal to 90 percent of the balance of the financing
outstanding at the time of disbursement of the loan;
(B) the Administrator shall collect (except in the
case of a loan that is repayable in 1 year or less) a
guarantee fee for any loan under this section, which
shall be payable by the participating lender, and may
be charged to the borrower as follows:
(i) A guarantee fee equal to 0.5 percent of
the deferred participation share of a total
loan amount that is not more than $150,000.
(ii) A guarantee fee equal to 1.5 percent
of the deferred participation share of a total
loan amount that is more than $150,000, but not
more than $700,000.
(iii) A guarantee fee equal to 2 percent of
the deferred participation share of a total
loan amount that is more than $700,000; and
(C) the annual fee assessed and collected on any
such loan shall not exceed an amount equal to 0.15
percent of the outstanding balance of the deferred
participation share of the loan.
(5) The Administrator may make such loans without regard to
the ability of a small business concern to obtain credit
elsewhere.
(6) The Administrator shall make such loans without regard
to the availability of collateral to secure such loans.
(c) Termination.--The Administrator may not make a loan under this
section after December 31, 2008.
(d) Definitions.--For the purpose of this section, the terms
``Administrator'', ``Administration'', ``credit elsewhere'', and
``small business concern owned and controlled by veterans'' have the
respective meanings given such terms in section 3 of the Small Business
Act (15 U.S.C. 632).
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $25,000,000 for fiscal year
2007. Such sum shall remain available until expended.
SEC. 3. TEMPORARY VOCATIONAL DEVELOPMENT PROGRAM FOR VETERANS.
(a) Establishment.--In accordance with this section, the
Administrator shall make grants to small business development centers
for the provision of a program of assistance for veterans that includes
training in a vocational or technical trade and entrepreneurial
assistance in establishing and operating a small business concern that
provides services in such trade.
(b) Minimum Grant Amount.--The Administrator shall not make a grant
under this section for an amount less than $500,000.
(c) Application and Award.--
(1) Application.--To be eligible to receive a grant under
this section, a small business development center shall submit
to the Administrator an application in such form and containing
such information and assurances as the Administrator may
require and that includes information regarding the applicant's
goals and objectives for the program of assistance to be
provided with the grant.
(2) Priority in awarding grants.--In awarding the grants,
the Administrator shall consider the needs of the area served
by the small business development center, including whether the
small business development center is located in the proximity
of a United States military installation.
(d) Termination.--The Administrator shall not make any grant under
this section after December 31, 2008.
(e) Coordination With Small Business Act.--A grant made under this
section shall not be taken into account for purposes of section 21 of
the Small Business Act (15 U.S.C. 648).
(f) Definitions.--For purposes of this section the following
definitions apply:
(1) The term ``Administrator'' means the Administrator of
the Small Business Administration.
(2) The term ``small business development center'' means a
small business development center described in section 21 of
the Small Business Act (15 U.S.C. 648).
(3) The term ``veteran'' has the meaning given such term in
section 3(q)(4) of the Small Business Act (15 U.S.C.
632(q)(4)).
(g) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $25,000,000 for fiscal year
2007. Such amount shall remain available until expended.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
Sponsor introductory remarks on measure. (CR E977)
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