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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; FINDINGS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Drought Relief Act of 2003’’. 
(b) FINDINGS.—Congress finds that—
(1) during 2002, more than 36 States suffered 
from continuing drought conditions; 
(2) droughts have a negative effect on State 
and regional economies;
(3) many small businesses in the United States 
sell, distribute, market, or otherwise engage in com-
merce related to water and water sources, such as 
lakes, rivers, and streams; 
(4) many small businesses in the United States 
suffer economic injury from drought conditions, 
leading to revenue losses, job layoffs, and bank-
ruptcies; 
(5) these small businesses need access to low-
interest loans for business-related purposes, includ-
ing paying their bills and making payroll until busi-
ness returns to normal; 
(6) absent a legislative change, only agriculture 
and agriculture-related businesses are eligible for 
Federal disaster loan assistance as a result of 
drought conditions; and 
(7) it is necessary to amend the Small Business 
Act to clarify that nonfarm small businesses that 
have suffered substantial economic injury from 
drought are eligible to receive financial assistance 
through the economic injury disaster loan program 
of the Small Business Administration.
SEC. 2. LOANS TO SMALL BUSINESS CONCERNS THAT SUF-
FER SUBSTANTIAL ECONOMIC INJURY FROM 
DROUGHT. 
(a) DROUGHT DISASTER AUTHORITY.—Section 3(k) 
of the Small Business Act (15 U.S.C. 632(k)) is amend-
ed—
(1) by inserting ‘‘(1)’’ after ‘‘(k)’’; and 
(2) by adding at the end the following: 
‘‘(2) For purposes of section 7(b)(2), the term ‘dis-
aster’ includes drought.’’. 
(b) REQUIRED RESPONSE
TO CERTIFICATION
BY 
GOVERNOR.—Section 7(b)(2)(D) of the Small Business 
Act (15 U.S.C. 636(b)(2)(D)) is amended by adding at 
the end the following: ‘‘Not later than 30 days after the 
receipt of such certification, the Administration shall re-
spond in writing to the Governor who submitted such cer-
tification and shall state the extent to which the Adminis-
tration intends to exercise its authority under the pre-
ceding sentence with respect to such certification and the 
reasons therefore.’’. 
(c) CLERICAL AMENDMENT.—Section 7(b)(2)(B) of 
the Small Business Act (15 U.S.C. 636(b)(2)(B)) is 
amended by striking ‘‘the Consolidated Farmers Home 
Administration Act of 1961 (7 U.S.C. 1961)’’ and insert-
ing ‘‘section 321 of the Consolidated Farm and Rural De-
velopment Act (7 U.S.C. 1961)’’.
(d) 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 the provisions of this section.
Æ