I 
109TH CONGRESS 
2D SESSION 
H. R. 5517 
To amend the Small Business Act to establish a temporary loan program 
and a temporary vocational development program for small business 
concerns owned and controlled by veterans. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 25, 2006 
Mr. UDALL of New Mexico (for himself, Mrs. EMERSON, Mrs. KELLY, and Mr. 
MICHAUD) introduced the following bill; which was referred to the Com-
mittee on Small Business 
A BILL 
To amend the Small Business Act to establish a temporary 
loan program and a temporary vocational development 
program for small business concerns owned and con-
trolled by veterans. 
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 ‘‘Seeds for Soldiers 
Act’’. 
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SEC. 2. TEMPORARY LOAN PROGRAM FOR SMALL BUSI-
NESS CONCERNS OWNED AND CONTROLLED 
BY VETERANS. 
(a) IN GENERAL.—The Administrator may make a 
loan under section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) to a small business concern owned and 
controlled by veterans. 
(b) SPECIAL RULES.—Notwithstanding the require-
ments of section 7 of the Small Business Act (15 U.S.C. 
636), the following special rules apply to a loan under this 
section: 
(1) The Administrator may make a loan under 
this section for any business purpose, including the 
refinancing of any outstanding business debt. 
(2) No payment of principal on a loan under 
this section shall be due or payable during the 1- 
year period beginning on the date on which the loan 
is issued. Any interest payable with respect to the 
loan for such period shall be paid by the Administra-
tion. 
(3) A loan may be made under this section if 
the total amount outstanding and committed to the 
borrower under section 7(a) of the Small Business 
Act 
(15 
U.S.C. 
636(a)) 
would 
not 
exceed 
$3,000,000. 
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(4) In the case of an agreement to participate 
on a deferred basis in a loan under this section— 
(A) the participation of the Administration 
shall be equal to 90 percent of the balance of 
the financing outstanding at the time of dis-
bursement of the loan; 
(B) the Administrator shall collect (except 
in the case of a loan that is repayable in 1 year 
or less) a guarantee fee for any loan under this 
section, which shall be payable by the partici-
pating lender, and may be charged to the bor-
rower as follows: 
(i) A guarantee fee equal to 0.5 per-
cent of the deferred participation share of 
a total loan amount that is not more than 
$150,000. 
(ii) A guarantee fee equal to 1.5 per-
cent of the deferred participation share of 
a total loan amount that is more than 
$150,000, but not more than $700,000. 
(iii) A guarantee fee equal to 2 per-
cent of the deferred participation share of 
a total loan amount that is more than 
$700,000; and 
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(C) the annual fee assessed and collected 
on any such loan shall not exceed an amount 
equal to 0.15 percent of the outstanding bal-
ance of the deferred participation share of the 
loan. 
(5) The Administrator may make such loans 
without regard to the ability of a small business con-
cern to obtain credit elsewhere. 
(6) The Administrator shall make such loans 
without regard to the availability of collateral to se-
cure such loans. 
(c) TERMINATION.—The Administrator may not 
make a loan under this section after December 31, 2008. 
(d) DEFINITIONS.—For the purpose of this section, 
the terms ‘‘Administrator’’, ‘‘Administration’’, ‘‘credit 
elsewhere’’, and ‘‘small business concern owned and con-
trolled by veterans’’ have the respective meanings given 
such terms in section 3 of the Small Business Act (15 
U.S.C. 632). 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$25,000,000 for fiscal year 2007. Such sum shall remain 
available until expended. 
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SEC. 3. TEMPORARY VOCATIONAL DEVELOPMENT PRO-
GRAM FOR VETERANS. 
(a) ESTABLISHMENT.—In accordance with this sec-
tion, the Administrator shall make grants to small busi-
ness development centers for the provision of a program 
of assistance for veterans that includes training in a voca-
tional or technical trade and entrepreneurial assistance in 
establishing and operating a small business concern that 
provides services in such trade. 
(b) MINIMUM GRANT AMOUNT.—The Administrator 
shall not make a grant under this section for an amount 
less than $500,000. 
(c) APPLICATION AND AWARD.— 
(1) APPLICATION.—To be eligible to receive a 
grant under this section, a small business develop-
ment center shall submit to the Administrator an 
application in such form and containing such infor-
mation and assurances as the Administrator may re-
quire and that includes information regarding the 
applicant’s goals and objectives for the program of 
assistance to be provided with the grant. 
(2) PRIORITY
IN
AWARDING
GRANTS.—In 
awarding the grants, the Administrator shall con-
sider the needs of the area served by the small busi-
ness development center, including whether the small 
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business development center is located in the prox-
imity of a United States military installation. 
(d) TERMINATION.—The Administrator shall not 
make any grant under this section after December 31, 
2008. 
(e) COORDINATION WITH SMALL BUSINESS ACT.— 
A grant made under this section shall not be taken into 
account for purposes of section 21 of the Small Business 
Act (15 U.S.C. 648). 
(f) DEFINITIONS.—For purposes of this section the 
following definitions apply: 
(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Small Business Administration. 
(2) The term ‘‘small business development cen-
ter’’ means a small business development center de-
scribed in section 21 of the Small Business Act (15 
U.S.C. 648). 
(3) The term ‘‘veteran’’ has the meaning given 
such term in section 3(q)(4) of the Small Business 
Act (15 U.S.C. 632(q)(4)). 
(g) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$25,000,000 for fiscal year 2007. Such amount shall re-
main available until expended. 
Æ 
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