I 
108TH CONGRESS 
1ST SESSION H. R. 3483
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 
NOVEMBER 7, 2003
Mr. UDALL of New Mexico (for himself and Mrs. KELLY) introduced the 
following bill; which was referred to the Committee 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’’.
SEC. 2. TEMPORARY LOAN PROGRAM FOR SMALL BUSI-
NESS CONCERNS OWNED AND CONTROLLED 
BY VETERANS. 
(a) IN GENERAL.—The Administrator of the Small 
Business Administration may make loans under section 
7(a) of the Small Business Act (15 U.S.C. 636(a)) to 
small business concerns 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 loans described 
in subsection (a): 
(1) PURPOSE OF LOANS.—The Administrator 
may make such loans for any business purpose, in-
cluding the refinancing of any outstanding business 
debt. 
(2) DEFERRAL OF PAYMENTS WITHOUT INTER-
EST.—No payment of principal on any such loan 
shall be due or payable during the 1-year period be-
ginning on the date that such loan is issued. Any in-
terest payable with respect to such loan for such pe-
riod shall be paid by the Administration. 
(3) AMOUNT OF LOANS.—Any such loan may be 
made 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.
(4) GUARANTEED LOANS.—In the case of an 
agreement to participate on a deferred basis in any 
such loan—
(A) PARTICIPATION.—Such participation 
by the Administration shall be equal to 90 per-
cent of the balance of the financing outstanding 
at the time of disbursement of the loan. 
(B) GUARANTEE
FEES.—The Adminis-
trator shall collect (except in the case of a loan 
that is repayable in 1 year or less) a guarantee 
fee, which shall be payable by the participating 
lender, and may be charged to the borrower 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.
(C) ANNUAL FEES.—The annual fee as-
sessed and collected on any such loan shall not 
exceed an amount equal to 0.15 percent of the 
outstanding balance of the deferred participa-
tion share of the loan. 
(5) CREDIT ELSEWHERE.—The Administrator 
may make such loans without regard to the ability 
of a small business concern to obtain credit else-
where. 
(6) COLLATERAL.—The Administrator shall 
make such loans without regard to the availability of 
collateral to secure such loans. 
(c) TERMINATION.—The Administrator shall not 
make any loan under this section after December 31, 
2005. 
(d) DEFINITIONS.—For purpose of this section, the 
terms ‘‘Administrator’’, ‘‘Administration’’, ‘‘credit else-
where’’, and ‘‘small business concern owned and controlled 
by veterans’’ have the respective meanings given such 
terms in section 3 of the Small Business Act (15 U.S.C. 
632), except as provided in subsection (b)(8). 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$25,000,000 for fiscal year 2004. Such sum shall remain 
available until expended.
(d) TERMINATION.—The Administrator shall not 
make any grant under this section after December 31, 
2005. 
(e) COORDINATION WITH SMALL BUSINESS ACT.—
Grants 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: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(2) SMALL
BUSINESS
DEVELOPMENT
CEN-
TER.—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) VETERAN.—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 2004. Such sum shall remain 
available until expended.
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