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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1463 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1463

  To clarify that the Small Business Administration has authority to 
    provide emergency assistance to non-farm-related small business 
  concerns that have suffered substantial economic harm from drought.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 21, 2005

   Mr. Kerry introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL

 
  To clarify that the Small Business Administration has authority to 
    provide emergency assistance to non-farm-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. SHORT TITLE.

    This Act may be cited as the ``Small Business Drought Relief Act of 
2005''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) as of July 2002, when this Act was originally 
        introduced in the 107th Congress as Senate Bill S. 2734, more 
        than 36 States (including Massachusetts, Montana, Texas, and 
        Nevada) had suffered from continuing drought conditions;
            (2) as of July 2005, drought continues to be a serious 
        national problem, with 19 States suffering from severe to 
        extreme drought conditions;
            (3) droughts have a negative effect on State and regional 
        economies;
            (4) 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;
            (5) many small businesses in the United States suffer 
        economic injury from drought conditions, leading to revenue 
        losses, job layoffs, and bankruptcies;
            (6) 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;
            (7) 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;
            (8) 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
            (9) it is necessary to amend the Small Business Act to 
        clarify that non-farm-related small businesses that have 
        suffered economic injury from drought are eligible to receive 
        financial assistance through Small Business Administration 
        Economic Injury Disaster Loans.

SEC. 3. DISASTER RELIEF FOR SMALL BUSINESS CONCERNS DAMAGED BY DROUGHT.

    (a) 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 non-farm-related small 
                business concerns,'' 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 non-farm-
                related small business concerns, subject to the other 
                applicable requirements of this paragraph''.
    (b) 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 each of fiscal years 2005 
through 2008, to provide drought disaster loans to non-farm-related 
small business concerns in accordance with this Act and the amendments 
made by this Act.
    (c) 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''.

SEC. 4. 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.
                                 <all>
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