II 

109TH CONGRESS 

2D SESSION S. 3122 

To amend the Small Business Act to improve loans for members of the 

Guard and Reserve, and for other purposes. 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Patriot Loan Act of 

5 2006’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 

8 (1) the term ‘‘activated’’ means receiving an 

9 order placing a member of the Guard and Reserve 

10 on active duty; 


ycherry on PROD1PC64 with BILLS
2 

•S 3122 IS

1 (2) the term ‘‘active duty’’ has the meaning 

2 given the term in section 101 of title 10, United 

3 States Code; 

4 (3) the term ‘‘Administrator’’ means the Ad5 ministrator of the Small Business Administration; 

6 (4) the term ‘‘member of the Guard or Re7 serve’’ means a member of a reserve component of 

8 the armed forces, as defined in section 10101 of title 

9 10, United States Code; 

10 (5) the term ‘‘Secretary’’ means the Secretary 

11 of Defense; 

12 (6) the term ‘‘small business concern’’ has the 

13 same meaning as in section 3 of the Small Business 

14 Act (15 U.S.C. 632); and 

15 (7) the term ‘‘veteran’’ has the same meaning 

16 as in section 101(2) of title 38, United States Code. 

17 SEC. 3. GUARD AND RESERVE LOANS. 

18 (a) IN GENERAL.—Section 7(b)(3) of the Small Busi19 ness Act (15 U.S.C. 636(b)(3)) is amended— 

20 (1) in subparagraph (E), by striking 

21 ‘‘$1,500,000’’ each place such term appears and in22 serting ‘‘$2,000,000’’; and 

23 (2) by adding at the end the following: 


ycherry on PROD1PC64 with BILLS
3 

•S 3122 IS

1 ‘‘(G) Notwithstanding any other provision 

2 of law, a loan not greater than $25,000 may be 

3 made under this paragraph without collateral. 

4 ‘‘(H) The Administrator shall give priority 

5 to any application for a loan under this para6 graph and shall process and make a determina7 tion regarding such applications prior to proc8 essing or making a determination on other loan 

9 applications under this subsection, on a rolling 

10 basis.’’. 

11 (b) LOAN INFORMATION.— 

12 (1) IN GENERAL.—The Administrator and the 

13 Secretary shall develop a joint website and printed 

14 materials providing information regarding the pro15 gram under section 7(b)(3) of the Small Business 

16 Act. 

17 (2) MARKETING.—The Administrator is author18 ized— 

19 (A) to advertise and promote the program 

20 under section 7(b)(3) of the Small Business Act 

21 jointly with the Secretary and veteran’s service 

22 organizations; and 

23 (B) to advertise and promote participation 

24 by lenders in such program jointly with trade 


ycherry on PROD1PC64 with BILLS
4 

•S 3122 IS

1 associations for banks or other lending institu2 tions. 

3 SEC. 4. STUDY. 

4 (a) IN GENERAL.—The Administrator and the Sec5 retary shall jointly conduct a study of the feasibility of— 

6 (1) creating a business mobilization and inter7 ruption insurance program for members of the 

8 Guard or Reserve who own or operate small business 

9 concerns; 

10 (2) creating an insurance program to repay 

11 debts to the Administrator in the event of the death 

12 or significant injury of a member of the Guard or 

13 Reserve who is activated; and 

14 (3) increasing the utilization of credit unions 

15 affiliated with the Department of Defense in pro16 grams administered by the Administrator. 

17 (b) REPORT.—Not later than 6 months after the date 

18 of enactment of this Act, the Administrator and the Sec19 retary shall submit a joint report to the Committee on 

20 Small Business and Entrepreneurship of the Senate and 

21 the Committee on Small Business of the House of Rep22 resentatives regarding the study conducted under sub23 section (a). 

Æ 


ycherry on PROD1PC64 with BILLS