I 

108TH CONGRESS 

1ST SESSION H. R. 565

To provide emergency assistance to certain small business concerns that 

have suffered substantial economic injury from drought. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 5, 2003

Mr. DEMINT (for himself and Mr. SPRATT) introduced the following bill; 

which was referred to the Committee on Small Business 

A BILL

To provide emergency assistance to certain small business 

concerns that have suffered substantial economic injury 

from drought.

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; FINDINGS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Small Business Drought Relief Act of 2003’’. 

6 (b) FINDINGS.—Congress finds that—

7 (1) during 2002, more than 36 States suffered 

8 from continuing drought conditions; 

9 (2) droughts have a negative effect on State 

10 and regional economies; 
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1 (3) many small businesses in the United States 

2 sell, distribute, market, or otherwise engage in com3 merce related to water and water sources, such as 

4 lakes, rivers, and streams; 

5 (4) many small businesses in the United States 

6 suffer economic injury from drought conditions, 

7 leading to revenue losses, job layoffs, and bank8 ruptcies; 

9 (5) these small businesses need access to low10 interest loans for business-related purposes, includ11 ing paying their bills and making payroll until busi12 ness returns to normal; 

13 (6) absent a legislative change, only agriculture 

14 and agriculture-related businesses are eligible for 

15 Federal disaster loan assistance as a result of 

16 drought conditions; and 

17 (7) it is necessary to amend the Small Business 

18 Act to clarify that nonfarm small businesses that 

19 have suffered substantial economic injury from 

20 drought are eligible to receive financial assistance 

21 through the economic injury disaster loan program 

22 of the Small Business Administration. 
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1 SEC. 2. LOANS TO SMALL BUSINESS CONCERNS THAT SUF2 FER SUBSTANTIAL ECONOMIC INJURY FROM 

3 DROUGHT. 

4 (a) DROUGHT DISASTER AUTHORITY.—Section 3(k) 

5 of the Small Business Act (15 U.S.C. 632(k)) is amend6 ed—

7 (1) by inserting ‘‘(1)’’ after ‘‘(k)’’; and 

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

9 ‘‘(2) For purposes of section 7(b)(2), the term ‘dis10 aster’ includes drought.’’. 

11 (b) REQUIRED RESPONSE TO CERTIFICATION BY

12 GOVERNOR.—Section 7(b)(2)(D) of the Small Business 

13 Act (15 U.S.C. 636(b)(2)(D)) is amended by adding at 

14 the end the following: ‘‘Not later than 30 days after the 

15 receipt of such certification, the Administration shall re16 spond in writing to the Governor who submitted such cer17 tification and shall state the extent to which the Adminis18 tration intends to exercise its authority under the pre19 ceding sentence with respect to such certification and the 

20 reasons therefore.’’. 

21 (c) CLERICAL AMENDMENT.—Section 7(b)(2)(B) of 

22 the Small Business Act (15 U.S.C. 636(b)(2)(B)) is 

23 amended by striking ‘‘the Consolidated Farmers Home 

24 Administration Act of 1961 (7 U.S.C. 1961)’’ and insert25 ing ‘‘section 321 of the Consolidated Farm and Rural De26 velopment Act (7 U.S.C. 1961)’’. 
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1 (d) RULEMAKING.—Not later than 45 days after the 

2 date of enactment of this Act, the Administrator of the 

3 Small Business Administration shall promulgate final 

4 rules to carry out the provisions of this section.

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