A bill to provide emergency relief to small businesses affected by significant increases in the prices of heating oil, natural gas, propane, and kerosene, and for other purposes.

Summary: Small Business and Farm Energy Emergency Relief Act of 2001 - Amends the Small Business Act to authorize the Small Business Administration (SBA) to make disaster loans to assist small businesses that have suffered or are likely to suffer substantial economic injury as the result of a sharp and significant increase in the price of heating fuel or electricity. Prohibits any such loan from being made if the total amount outstanding and committed to the borrower would exceed $1.5 million, unless the applicant is a major source of employment in its surrounding area. Requires, for such assistance: (1) a declaration of a disaster by the President or the SBA Administrator; or (2) a certification from the governor of the State that its small businesses have suffered such economic injury and are in need of assistance which is not otherwise available.Amends the Consolidated Farm and Rural Development Act to authorize the Secretary of Agriculture to make loans to farm operations that qualify as a small business and have or are likely to suffer substantial economic injury from a sharp and significant increase in energy costs or input costs from energy sources occurring on or after June 1, 2000, in connection with an energy emergency declared by the President or the Secretary.Requires the SBA Administrator and the Secretary to report to specified congressional committees on the effectiveness of such loan programs.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business and Farm Energy 
Emergency Relief Act of 2001''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) a significant number of small businesses in the United 
        States, non-farm as well as agricultural producers, use heating 
        oil, natural gas, propane, kerosene, or electricity to heat 
        their facilities and for other purposes;
            (2) a significant number of small businesses in the United 
        States sell, distribute, market, or otherwise engage in 
        commerce directly related to heating oil, natural gas, propane, 
        and kerosene; and
            (3) sharp and significant increases in the price of heating 
        oil, natural gas, propane, or kerosene--
                    (A) disproportionately harm small businesses 
                dependent on those fuels or that use, sell, or 
                distribute those fuels in the ordinary course of their 
                business, and can cause them substantial economic 
                injury;
                    (B) can negatively affect the national economy and 
                regional economies;
                    (C) have occurred in the winters of 1983-1984, 
                1988-1989, 1996-1997, and 1999-2000; and
                    (D) can be caused by a host of factors, including 
                global or regional supply difficulties, weather 
                conditions, insufficient inventories, refinery 
                capacity, transportation, and competitive structures in 
                the markets, causes that are often unforeseeable to 
                those who own and operate small businesses.

SEC. 3. SMALL BUSINESS ENERGY EMERGENCY DISASTER LOAN PROGRAM.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting after paragraph (3) the following:
            ``(4)(A) In this paragraph--
                    ``(i) the term `heating fuel' means heating oil, 
                natural gas, propane, or kerosene; and
                    ``(ii) the term `sharp and significant increase' 
                shall have the meaning given that term by the 
                Administrator, in consultation with the Secretary of 
                Energy.
            ``(B) The Administration may make such 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 that has 
        suffered or that is likely to suffer substantial economic 
        injury as the result of a sharp and significant increase in the 
        price of heating fuel or electricity.
            ``(C) Any loan or guarantee extended pursuant to this 
        paragraph shall be made at the same interest rate as economic 
        injury loans under paragraph (2).
            ``(D) 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 
        $1,500,000, unless such applicant constitutes a major source of 
        employment in its surrounding area, as determined by the 
        Administration, in which case the Administration, in its 
        discretion, may waive the $1,500,000 limitation.
            ``(E) For purposes of assistance under this paragraph--
                    ``(i) a declaration of a disaster area based on 
                conditions specified in this paragraph shall be 
                required, and shall be made by the President or the 
                Administrator; or
                    ``(ii) if no declaration has been made pursuant to 
                clause (i), the Governor of a State in which a sharp 
                and significant increase in the price of heating fuel 
                or electricity has occurred may certify to the 
                Administration that small business concerns have 
                suffered economic injury as a result of such increase 
                and are in need of financial assistance which is not 
                available on reasonable terms in that State, and upon 
                receipt of such certification, the Administration may 
                make such loans as would have been available under this 
                paragraph if a disaster declaration had been issued.
            ``(F) Notwithstanding any other provision of law, loans 
        made under this paragraph may be used by a small business 
        concern described in subparagraph (B) to convert from the use 
        of heating fuel or electricity to a renewable or alternative 
        energy source, including agriculture and urban waste, 
        geothermal energy, cogeneration, solar energy, wind energy, and 
        fuel cells.''.
    (b) Conforming Amendments Relating to Heating Fuel and 
Electricity.--Section 3(k) of the Small Business Act (15 U.S.C. 632(k)) 
is amended--
            (1) by inserting ``, sharp and significant increases in the 
        price of heating fuel or electricity'' after ``civil 
        disorders''; and
            (2) by inserting ``other'' before ``economic''.

SEC. 4. AGRICULTURAL PRODUCER EMERGENCY LOANS.

    (a) In General.--Section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)) is amended--
            (1) in the first sentence--
                    (A) by striking ``operations have'' and inserting 
                ``operations (i) have''; and
                    (B) by inserting before ``: Provided,'' the 
                following: ``, or (ii)(I) are owned or operated by such 
                an applicant that is also a small business concern (as 
                defined in section 3 of the Small Business Act (15 
                U.S.C. 632)), and (II) have suffered or are likely to 
                suffer substantial economic injury on or after June 1, 
                2000, as the result of a sharp and significant increase 
                in energy costs or input costs from energy sources 
                occurring on or after June 1, 2000, in connection with 
                an energy emergency declared by the President or the 
                Secretary'';
            (2) in the third sentence, by inserting before the period 
        at the end the following: ``or by an energy emergency declared 
        by the President or the Secretary''; and
            (3) in the fourth sentence--
                    (A) by inserting ``or energy emergency'' after 
                ``natural disaster'' each place it appears; and
                    (B) by inserting ``or declaration'' after 
                ``emergency designation''.
    (b) Funding.--Funds available on the date of enactment of this Act 
for emergency loans under subtitle C of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961 et seq.) made to meet the needs 
resulting from natural disasters shall be available to carry out the 
amendments made by subsection (a).

SEC. 5. GUIDELINES.

    Not later than 30 days after the date of enactment of this Act, the 
Administrator of the Small Business Administration and the Secretary of 
Agriculture shall each issue such guidelines as the Administrator and 
the Secretary, as applicable, determines to be necessary to carry out 
this Act and the amendments made by this Act.

SEC. 6. REPORTS.

    (a) Small Business.--Not later than 18 months after the date of 
final publication by the Administrator of the Small Business 
Administration of the guidelines issued under section 5, the 
Administrator shall submit to the Committee on Small Business of the 
Senate and the Committee on Small Business of the House of 
Representatives, a report on the effectiveness of the program 
established under section 7(b)(4) of the Small Business Act, as added 
by this Act, including--
            (1) the number of small businesses that applied to 
        participate in the program and the number of those that 
        received loans under the program;
            (2) the dollar value of those loans;
            (3) the States in which the small business concerns that 
        participated in the program are located;
            (4) the type of heating fuel or energy that caused the 
        sharp and significant increase in the cost for the 
        participating small business concerns; and
            (5) recommendations for improvements to the program, if 
        any.
    (b) Agriculture.--Not later than 18 months after the date of final 
publication by the Secretary of Agriculture of the guidelines issued 
under section 5, the Secretary shall submit to the Committees on Small 
Business and Agriculture, Nutrition, and Forestry of the Senate and the 
Committees on Small Business and Agriculture of the House of 
Representatives, a report on the effectiveness of loans made available 
as a result of the amendments made by section 4, together with 
recommendations for improvements to the loans, if any.

SEC. 7. EFFECTIVE DATE.

    (a) Small Business.--The amendments made by this Act shall apply 
during the 2-year period beginning on the date of final publication of 
guidelines under section 5 by the Administrator, with respect to 
assistance under section 7(b)(4) of the Small Business Act (15 U.S.C. 
636(b)), as added by this Act, to economic injury suffered or likely to 
be suffered as the result of--
            (1) sharp and significant increases in the price of heating 
        fuel occurring on or after November 1, 2000; or
            (2) sharp and significant increases in the price of 
        electricity occurring on or after June 1, 2000.
    (b) Agriculture.--The amendments made by section 4 shall apply 
during the 2-year period beginning on the date of final publication of 
guidelines under section 5 by the Secretary of Agriculture.

            Passed the Senate March 26, 2001.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.