I 
108TH CONGRESS 
2D SESSION 
H. R. 5408 
To provide emergency relief to small businesses affected by significant in-
creases in the prices of electricity, heating oil, natural gas, propane, 
and kerosene, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 19, 2004 
Mr. LARSON of Connecticut introduced the following bill; which was referred 
to the Committee on Small Business, and in addition to the Committee 
on Agriculture, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To provide emergency relief to small businesses affected by 
significant increases in the prices of electricity, heating 
oil, natural gas, propane, and kerosene, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business and 
Farm Energy Emergency Relief Act of 2004’’. 
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, ker-
osene, 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 other-
wise 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 busi-
nesses 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 econ-
omy 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, in-
cluding global or regional supply difficulties, 
weather conditions, insufficient inventories, re-
finery 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. 
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 in-
crease’ 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 partici-
pate 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 re-
sult 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 para-
graph, 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 bor-
rower 
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) in lieu of the requirement of the 
declaration of a disaster area, a declaration 
that an area is affected by a sharp and 
significant increase in the price of heating 
fuel or electricity shall be required and 
shall be made by the President or the Ad-
ministrator; or 
‘‘(ii) if no declaration has been made 
pursuant to clause (i), the Governor of a
State in which a sharp and significant in-
crease in the price of heating fuel or elec-
tricity has occurred may certify to the Ad-
ministration that small business concerns 
have suffered economic injury as a result 
of such increase and are in need of finan-
cial assistance which is not available on 
reasonable terms in that State, and upon 
receipt of such certification, the Adminis-
tration may make such loans as would 
have been available under this paragraph if 
a declaration under clause (i) 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 subpara-
graph (B) to convert from the use of heating fuel or 
electricity to a renewable or alternative energy 
source, including agriculture and urban waste, geo-
thermal energy, cogeneration, solar energy, wind en-
ergy, and fuel cells.’’. 
SEC. 4. AGRICULTURAL PRODUCER EMERGENCY LOANS. 
(a) IN GENERAL.—Section 321(a) of the Consoli-
dated Farm and Rural Development Act (7 U.S.C. 
1961(a)) is amended—
(1) in the first sentence— 
(A) by striking ‘‘operations have’’ and in-
serting ‘‘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 eco-
nomic injury on or after November 1, 2004, as 
the result of a sharp and significant increase in 
energy costs or input costs from energy sources 
occurring on or after November 1, 2004, 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 Sec-
retary’’; 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 enact-
ment 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 Ad-
ministration and the Secretary of Agriculture shall each 
issue such guidelines as the Administrator and the Sec-
retary, 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 and Entrepreneurship 
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 con-
cerns 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 Agri-
culture of the guidelines issued under section 5, the Sec-
retary shall submit to the Committees on Small Business 
and Entrepreneurship and Agriculture, Nutrition, and 
Forestry of the Senate and the Committees on Small Busi-
ness 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. 
The amendments made by this Act shall apply with 
respect to economic injuries suffered or likely to be suf-
fered as the result of sharp and significant increases in 
energy prices which occur on or after November 1, 2004. 
Æ