[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 318 Referred in House (RFH)]
1st Session
S. 318
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2003
Referred to the Committee on Small Business
_______________________________________________________________________
AN ACT
To provide emergency assistance to nonfarm-related small business
concerns that have suffered substantial economic harm from 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 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.
Passed the Senate March 31, 2003.
Attest:
EMILY J. REYNOLDS,
Secretary.