S. 3122 – Reading Mode

109th CONGRESS

2d Session

S. 3122

IN THE SENATE OF THE UNITED STATES

May 25, 2006

Ms. Snowe (for herself and Mr. Craig) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

A BILL

To amend the Small Business Act to improve loans for members of the Guard and Reserve, and for other purposes.

Short title

This Act may be cited as the Patriot Loan Act of 2006.

Definitions

In this Act—

(1)

the term activated means receiving an order placing a member of the Guard and Reserve on active duty;

(2)

the term active duty has the meaning given the term in section 101 of title 10, United States Code;

(3)

the term Administrator means the Administrator of the Small Business Administration;

(4)

the term member of the Guard or Reserve means a member of a reserve component of the armed forces, as defined in section 10101 of title 10, United States Code;

(5)

the term Secretary means the Secretary of Defense;

(6)

the term small business concern has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632); and

(7)

the term veteran has the same meaning as in section 101(2) of title 38, United States Code.

Guard and reserve loans

(a)

In general

Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) is amended—

(1)

in subparagraph (E), by striking $1,500,000 each place such term appears and inserting $2,000,000; and

(2)

by adding at the end the following:

(G)

Notwithstanding any other provision of law, a loan not greater than $25,000 may be made under this paragraph without collateral.

(H)

The Administrator shall give priority to any application for a loan under this paragraph and shall process and make a determination regarding such applications prior to processing or making a determination on other loan applications under this subsection, on a rolling basis.

(b)

Loan information

(1)

In general

The Administrator and the Secretary shall develop a joint website and printed materials providing information regarding the program under section 7(b)(3) of the Small Business Act.

(2)

Marketing

The Administrator is authorized—

(A)

to advertise and promote the program under section 7(b)(3) of the Small Business Act jointly with the Secretary and veteran's service organizations; and

(B)

to advertise and promote participation by lenders in such program jointly with trade associations for banks or other lending institutions.

Study

(a)

In general

The Administrator and the Secretary shall jointly conduct a study of the feasibility of—

(1)

creating a business mobilization and interruption insurance program for members of the Guard or Reserve who own or operate small business concerns;

(2)

creating an insurance program to repay debts to the Administrator in the event of the death or significant injury of a member of the Guard or Reserve who is activated; and

(3)

increasing the utilization of credit unions affiliated with the Department of Defense in programs administered by the Administrator.

(b)

Report

Not later than 6 months after the date of enactment of this Act, the Administrator and the Secretary shall submit a joint report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives regarding the study conducted under subsection (a).