Military Reservists Small Business Relief Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military Reservists Small Business 
Relief Act of 1999''.

SEC. 2. REPAYMENT DEFERRAL FOR ACTIVE DUTY RESERVISTS.

    Section 7 of the Small Business Act (15 U.S.C. 636) is amended by 
adding at the end the following:
    ``(n) Repayment Deferred for Active Duty Reservists.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible reservist.--The term `eligible 
                reservist' means a member of a reserve component of the 
                Armed Forces ordered to active duty during a period of 
                military conflict.
                    ``(B) Essential employee.--The term `essential 
                employee' means an individual who is employed by a 
                small business concern and whose managerial or 
                technical expertise is critical to the successful day-
                to-day operations of that small business concern.
                    ``(C) Period of military conflict.--The term 
                `period of military conflict' means--
                            ``(i) a period of war declared by Congress;
                            ``(ii) a period of national emergency 
                        declared by Congress or by the President; or
                            ``(iii) a period of a contingency 
                        operation, as defined in section 101(a) of 
                        title 10, United States Code.
                    ``(D) Qualified borrower.--The term `qualified 
                borrower' means--
                            ``(i) an individual who is an eligible 
                        reservist and who received a direct loan under 
                        subsection (a) or (b) before being ordered to 
                        active duty; or
                            ``(ii) a small business concern that 
                        received a direct loan under subsection (a) or 
                        (b) before an eligible reservist, who is an 
                        essential employee, was ordered to active duty.
            ``(2) Deferral of direct loans.--
                    ``(A) In general.--The Administration shall, upon 
                written request, defer repayment of principal and 
                interest due on a direct loan made under subsection (a) 
                or (b), if such loan was incurred by a qualified 
                borrower.
                    ``(B) Period of deferral.--The period of deferral 
                for repayment under this paragraph shall begin on the 
                date on which the eligible reservist is ordered to 
                active duty and shall terminate on the date that is 180 
                days after the date such eligible reservist is 
                discharged or released from active duty.
                    ``(C) Interest rate reduction during deferral.--
                Notwithstanding any other provision of law, during the 
                period of deferral described in subparagraph (B), the 
                Administration may, in its discretion, reduce the 
                interest rate on any loan qualifying for a deferral 
                under this paragraph.
            ``(3) Deferral of loan guarantees and other financings.--
        The Administration shall--
                    ``(A) encourage intermediaries participating in the 
                program under subsection (m) to defer repayment of a 
                loan made with proceeds made available under that 
                subsection, if such loan was incurred by a small 
                business concern that is eligible to apply for 
                assistance under subsection (b)(3); and
                    ``(B) not later than 30 days after the date of 
                enactment of this subsection, establish guidelines to--
                            ``(i) encourage lenders and other 
                        intermediaries to defer repayment of, or 
                        provide other relief relating to, loan 
                        guarantees under subsection (a) and financings 
                        under section 504 of the Small Business 
                        Investment Act of 1958 that were incurred by 
                        small business concerns that are eligible to 
                        apply for assistance under subsection (b)(3), 
                        and loan guarantees provided under subsection 
                        (m) if the intermediary provides relief to a 
                        small business concern under this paragraph; 
                        and
                            ``(ii) implement a program to provide for 
                        the deferral of repayment or other relief to 
                        any intermediary providing relief to a small 
                        business borrower under this paragraph.''.

SEC. 3. DISASTER LOAN ASSISTANCE FOR MILITARY RESERVISTS' SMALL 
              BUSINESSES.

    Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting after the undesignated paragraph that begins with 
``Provided, That no loan'', the following:
            ``(3)(A) In this paragraph--
                    ``(i) the term `essential employee' means an 
                individual who is employed by a small business concern 
                and whose managerial or technical expertise is critical 
                to the successful day-to-day operations of that small 
                business concern;
                    ``(ii) the term `period of military conflict' has 
                the meaning given the term in subsection (n)(1); and
                    ``(iii) the term `substantial economic injury' 
                means an economic harm to a business concern that 
                results in the inability of the business concern--
                            ``(I) to meet its obligations as they 
                        mature;
                            ``(II) to pay its ordinary and necessary 
                        operating expenses; or
                            ``(III) to market, produce, or provide a 
                        product or service ordinarily marketed, 
                        produced, or provided by the business concern.
            ``(B) The Administration may make such disaster 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 an essential employee of such small 
        business concern being ordered to active military duty during a 
        period of military conflict.
            ``(C) A small business concern described in subparagraph 
        (B) shall be eligible to apply for assistance under this 
        paragraph during the period beginning on the date on which the 
        essential employee is ordered to active duty and ending on the 
        date that is 90 days after the date on which such essential 
        employee is discharged or released from active duty.
            ``(D) Any loan or guarantee extended pursuant to this 
        paragraph shall be made at the same interest rate as economic 
        injury loans under paragraph (2).
            ``(E) 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.
            ``(F) For purposes of assistance under this paragraph, no 
        declaration of a disaster area shall be required.''.

SEC. 4. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE FOR MILITARY 
              RESERVISTS' SMALL BUSINESSES.

    (a) In General.--Section 8 of the Small Business Act (15 U.S.C. 
637) is amended by adding at the end the following:
    ``(l) Management Assistance for Small Businesses Affected by 
Military Operations.--The Administration shall utilize, as appropriate, 
its entrepreneurial development and management assistance programs, 
including programs involving State or private sector partners, to 
provide business counseling and training to any small business concern 
adversely affected by the deployment of units of the Armed Forces of 
the United States in support of a period of military conflict (as 
defined in section 7(n)(1)).''.
    (b) Enhanced Publicity During Operation Allied Force.--For the 
duration of Operation Allied Force and for 120 days thereafter, the 
Administration shall enhance its publicity of the availability of 
assistance provided pursuant to the amendments made by this Act, 
including information regarding the appropriate local office at which 
affected small businesses may seek such assistance.

SEC. 5. GUIDELINES.

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

SEC. 6. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this Act shall take effect on the date of the 
enactment of this Act.
    (b) Disaster Loans.--The amendments made by section 3 shall apply 
to economic injury suffered or likely to be suffered as the result of a 
period of military conflict occurring or ending on or after March 24, 
1999.

            Passed the Senate July 27, 1999.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.

Summary: Military Reservists Small Business Relief Act of 1999 - Amends the Small Business Act to require the Small Business Administration (SBA), upon written request, to defer repayment of principal and interest due on a direct general business or disaster loan made to a member of the reserves ordered to active duty during a period of military conflict, as long as such reservist: (1) received the loan before being ordered to such duty. And (2) is an essential employee of a small business for which the loan was made. Extends such deferral period until 180 days after such reservist is discharged or released from active duty. Directs the SBA to encourage lenders and loan intermediaries participating in other SBA loan programs to defer repayment of similar loans as well as loans made under the Small Business Investment Act of 1958. Authorizes the SBA to make disaster loans to assist a small business that has or is likely to suffer economic injury as the result of the essential employee of such business being ordered to active duty during a period of military conflict. Extends such assistance until 90 days after such reservist is discharged or released from such duty. Provides a loan limitation. Applies such assistance to periods of military conflict occurring on or after March 24, 1999. Directs the SBA to utilize its entrepreneurial development and management assistance programs to provide business counseling and training to any small business adversely affected by the deployment of units of US armed forces in support of a period of military conflict. Requires the SBA, for the duration of Operation Allied Force and 120 days thereafter, to enhance its publicity of the availability of such assistance.