I
107TH CONGRESS
1ST SESSION
H. R. 3230
To provide assistance to small business concerns adversely impacted by the
terrorist attacks perpetrated against the United States on September
11, 2001, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 6, 2001
Mr. MANZULLO (for himself, Mr. MORAN of Virginia, Mr. NADLER, Mr. CAS-
TLE, Mr. FERGUSON, Mr. FOSSELLA, Mr. GRAVES, Mr. GRUCCI, Ms.
HOOLEY of Oregon, Mr. JOHNSON of Illinois, Mr. LAFALCE, Mr. SHU-
STER, and Mr. SWEENEY) introduced the following bill; which was re-
ferred to the Committee on Small Business
A BILL
To provide assistance to small business concerns adversely
impacted by the terrorist attacks perpetrated against
the United States on September 11, 2001, 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 ‘‘American Small Busi-
ness Emergency Relief and Recovery Act of 2001’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds that—
(1) the Nation’s 25,000,000 small businesses
employ more than 58 percent of the private work-
force, and create 75 percent of all net new jobs;
(2) as a result of the terrorist attacks per-
petrated against the United States on September 11,
2001, many small businesses nationwide suffered—
(A) directly because—
(i) they are, or were as of September
11, 2001, located in or near the World
Trade Center or the Pentagon, or in a dis-
aster area declared by the President or the
Administrator;
(ii) they were closed or their business
was suspended for National security pur-
poses at the mandate of the Federal Gov-
ernment; or
(iii) they are, or were as of September
11, 2001, located in an airport that has
been closed; and
(B) indirectly because—
(i) they supplied or provided services
to businesses that were located in or near
the World Trade Center or the Pentagon;
(ii) they are, or were as of September
11, 2001, a supplier, service provider, or
complementary industry to any business or
industry adversely affected by the terrorist
attacks perpetrated against the United
States on September 11, 2001, in par-
ticular, the financial, hospitality, and travel
industries; or
(iii) they are, or were as of September
11, 2001, integral to or dependent upon a
business or business sector closed or sus-
pended for national security purposes by
mandate of the Federal Government; and
(3) small business owners adversely affected by
the terrorist attacks are finding it difficult or
impossible—
(A) to make loan payments on existing
debts;
(B) to pay their employees;
(C) to pay their vendors;
(D) to purchase materials, supplies, or in-
ventory;
(E) to pay their rent, mortgage, or other
operating expenses; or
(F) to secure financing for their busi-
nesses.
(b) PURPOSE.—The purpose of this Act is to
strengthen the loan, investment, procurement assistance,
and management education programs of the Small Busi-
ness Administration, in order to help small businesses
meet their existing obligations, finance their businesses,
and maintain and create jobs, thereby providing stability
to the national economy.
SEC. 3. DEFINITIONS RELATING TO TERRORIST ATTACKS.
Section 3 of the Small Business Act (15 U.S.C. 632)
is amended by adding at the end the following:
‘‘(r) DEFINITIONS RELATING TO TERRORISM RE-
LIEF.—In this Act, the following definitions shall apply
with respect to the provision of assistance under this Act
in response to the terrorist attacks perpetrated against the
United States on September 11, 2001, pursuant to the
American Small Business Emergency Relief and Recovery
Act of 2001:
‘‘(1) DIRECTLY AFFECTED.—A small business
concern is directly affected by the terrorist attacks
perpetrated against the United States on September
11, 2001, if it—
‘‘(A) is, or was as of September 11, 2001,
located in or near the World Trade Center or
the Pentagon, or in a disaster area declared by
the President or the Administrator related to
those terrorist attacks;
‘‘(B) was closed or its business was sus-
pended for national security purposes at the
mandate of the Federal Government; or
‘‘(C) is, or was as of September 11, 2001,
located in an airport that has been closed.
‘‘(2) INDIRECTLY
AFFECTED.—A small busi-
ness concern is indirectly affected by the terrorist
attacks perpetrated against the United States on
September 11, 2001, if it—
‘‘(A) supplied or provided services to any
business that was located in or near the World
Trade Center or the Pentagon, or in a disaster
area declared by the President or the Adminis-
trator related to those terrorist attacks;
‘‘(B) is, or was as of September 11, 2001,
a supplier, service provider, or complementary
industry to any business or industry adversely
affected by the terrorist acts perpetrated
against the United States on September 11,
2001, in particular, the financial, hospitality,
and travel industries; or
‘‘(C) it is, or was as of September 11,
2001, integral to or dependent upon a business
or business sector closed or suspended for na-
tional security purposes by mandate of the Fed-
eral Government.
‘‘(3) ADVERSELY
AFFECTED.—The term ‘ad-
versely affected’ means having suffered economic
harm to or disruption of the business operations of
a small business concern as a direct or indirect re-
sult of the terrorist attacks perpetrated against the
United States on September 11, 2001.
‘‘(4) SUBSTANTIAL
ECONOMIC
INJURY.—As
used in section 7(b)(4), the term ‘substantial eco-
nomic injury’ means an economic harm to a small
business concern that results in the inability of the
small business concern—
‘‘(A) to meet its obligations on an ongoing
basis;
‘‘(B) to pay its ordinary and necessary op-
erating expenses; or
‘‘(C) to market, produce, or provide a
product or service ordinarily marketed, pro-
duced, or provided by the small business con-
cern.’’.
SEC. 4. DISASTER LOANS AFTER TERRORIST ATTACKS.
(a) IN GENERAL.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended by inserting im-
mediately before the undesignated material following para-
graph (3) the following:
‘‘(4) DISASTER LOANS AFTER TERRORIST AT-
TACKS OF SEPTEMBER 11, 2001.—
‘‘(A) LOAN
AUTHORITY.—In addition to
any other loan authorized by this section, the
Administration may make such loans (either di-
rectly or in cooperation with banks or other
lending institutions through agreements to par-
ticipate on an immediate or deferred basis) to
a small business concern that has been directly
affected and suffered, or that is likely to suffer,
substantial economic injury as the result of the
terrorist attacks on September 11, 2001, in-
cluding due to the closure or suspension of its
business for National security purposes at the
mandate of the Federal Government.
‘‘(B) DEFERMENT OF LOAN PAYMENTS.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of law, payments of
principal and interest on a loan made
under this paragraph (other than a refi-
nancing under subparagraph (D)) or para-
graph (1) as a result of the terrorist at-
tacks on September 11, 2001, shall be de-
ferred, and no interest shall accrue with
respect to such loan, during the 2-year pe-
riod following the date of issuance of such
loan.
‘‘(ii) RESUMPTION OF PAYMENTS.—At
the end of the 2-year period described in
clause (i), the payment of periodic install-
ments of principal and interest shall be re-
quired with respect to such loan, in the
same manner and subject to the same
terms and conditions as would otherwise be
applicable to any other loan made under
this subsection.
‘‘(C) REFINANCING DISASTER LOANS.—
‘‘(i) IN
GENERAL.—Any loan made
under this subsection that was outstanding
as to principal or interest on September
11, 2001, may be refinanced by a small
business concern that is also eligible to re-
ceive a loan under this paragraph, and the
refinanced amount shall be considered to
be part of the new loan for purposes of
this clause.
‘‘(ii) NO EFFECT ON ELIGIBILITY.—A
refinancing under clause (i) by a small
business concern shall be in addition to
any other loan eligibility for that small
business concern under this Act.
‘‘(D) REFINANCING BUSINESS DEBT.—
‘‘(i) IN GENERAL.—Any business debt
of a small business concern that was out-
standing as to principal or interest on Sep-
tember 11, 2001, may be refinanced by the
small business concern if it is also eligible
to receive a loan under this paragraph.
With respect to a refinancing under this
clause, payments of principal shall be de-
ferred, and interest may accrue notwith-
standing subparagraph (B), during the 1-
year period following the date of refi-
nancing.
‘‘(ii) RESUMPTION OF PAYMENTS.—At
the end of the 1-year period described in
clause (i), the payment of periodic install-
ments of principal and interest shall be re-
quired with respect to such loan, in the
same manner and subject to the same
terms and conditions as would otherwise be
applicable to any other loan made under
this subsection.
‘‘(E) TERMS.—A loan under this para-
graph shall be made at the same interest rate
as economic injury loans under paragraph (2).
Any reasonable doubt concerning the repayment
ability of an applicant under this paragraph
shall be resolved in favor of the applicant.
‘‘(F) NO
DISASTER
DECLARATION
RE-
QUIRED.—For purposes of assistance under this
paragraph, no declaration of a disaster area is
required for those small business concerns di-
rectly affected by the terrorist attacks on Sep-
tember 11, 2001.
‘‘(G) SIZE
STANDARD
ADJUSTMENTS.—
Notwithstanding any other provision of law, for
purposes of providing assistance under this
paragraph to businesses located in areas of New
York, Virginia, and the contiguous areas des-
ignated by the President or the Administrator
as a disaster area following the terrorist attacks
on September 11, 2001, a business shall be con-
sidered to be a ‘small business concern’ if it
meets otherwise applicable size regulations pro-
mulgated by the Administration, and, with re-
spect to the applicable size standard, it is—
‘‘(i) a restaurant having not more
than $8,000,000 in annual receipts;
‘‘(ii) a law firm having not more than
$8,000,000 in annual receipts;
‘‘(iii) a certified public accounting
business having not more than $8,000,000
in annual receipts;
‘‘(iv) a performing arts business hav-
ing not more than $8,000,000 in annual
receipts;
‘‘(v) a warehousing or storage busi-
ness having not more than $25,000,000 in
annual receipts;
‘‘(vi) a contracting business having a
size standard under the North American
Industry Classification System, Subsector
235, 
and 
having 
not 
more 
than
$15,000,000 in annual receipts;
‘‘(vii) a food manufacturing business
having not more than 1,000 employees;
‘‘(viii) an apparel manufacturing busi-
ness having not more than 1,000 employ-
ees; or
‘‘(ix) a travel agency having not more
than $2,000,000 in annual receipts.
‘‘(5) AUTHORITY TO INCREASE OR WAIVE SIZE
STANDARDS AND SIZE REGULATIONS.—
‘‘(A) IN GENERAL.—At the discretion of
the Administrator, the Administrator may in-
crease or waive otherwise applicable size stand-
ards or size regulations with respect to busi-
nesses applying for assistance under this Act in
response to the terrorist attacks on September
11, 2001.
‘‘(B) EXEMPTION FROM ADMINISTRATIVE
PROCEDURES.—The provisions of subchapter II
of chapter 5, of title 5, United States Code,
shall not apply to any increase or waiver by the
Administrator under subparagraph (A).
‘‘(6) INCREASED LOAN CAPS.—
‘‘(A) AGGREGATE
LOAN
AMOUNTS.—Ex-
cept as provided in subparagraph (B), and in
addition to amounts otherwise authorized by
this Act, the loan amount outstanding and com-
mitted to a borrower may not exceed—
‘‘(i) with respect to a small business
concern located in the areas of New York,
Virginia, or the contiguous areas des-
ignated by the President or the Adminis-
trator as a disaster area following the ter-
rorist attacks on September 11, 2001—
‘‘(I) $6,000,000 in total obliga-
tions under paragraph (1); and
‘‘(II) $6,000,000 in total obliga-
tions under paragraph (4); and
‘‘(ii) with respect to a small business
concern that is not located in an area de-
scribed in clause (i) and that is eligible for
assistance 
under 
paragraph 
(4),
$5,000,000 in total obligations under para-
graph (4).
‘‘(B) WAIVER AUTHORITY.—The Adminis-
trator may, at the discretion of the Adminis-
trator, waive the aggregate loan amounts estab-
lished under subparagraph (A).
‘‘(7) EXTENDED
APPLICATION
PERIOD.—Not-
withstanding any other provision of law, the Admin-
istrator shall accept applications for assistance
under paragraphs (1) and (4) until September 10,
2002, with respect to applicants for such assistance
as a result of the terrorist attacks on September 11,
2001.
‘‘(8) LIMITATION
ON
SALES
OF
LOANS.—No
loan under paragraph (1) or (4), made as a result