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‘‘(iii) a period of a contingency oper-
ation, as defined in section 101(a) of title
10, United States Code.
‘‘(D) QUALIFIED
BORROWER.—The term
‘qualified borrower’ means—
‘‘(i) an individual who is an eligible
reservist and who received a direct loan
under subsection (a) or (b) before being or-
dered to active duty; or
‘‘(ii) a small business concern that re-
ceived a direct loan under subsection (a) or
(b) before an eligible reservist, who is an es-
sential employee, was ordered to active
duty.
‘‘(2) DEFERRAL OF DIRECT LOANS.—
‘‘(A) IN
GENERAL.—The Administration
shall, upon written request, defer repayment of
principal and interest due on a direct loan made
under subsection (a) or (b), if such loan was in-
curred by a qualified borrower.
‘‘(B) PERIOD OF DEFERRAL.—The period of
deferral for repayment under this paragraph
shall begin on the date on which the eligible re-
servist is ordered to active duty and shall termi-
nate on the date that is 180 days after the date
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such eligible reservist is discharged or released
from active duty.
‘‘(C) INTEREST RATE REDUCTION DURING
DEFERRAL.—Notwithstanding any other provi-
sion of law, during the period of deferral de-
scribed in subparagraph (B), the Administration
may, in its discretion, reduce the interest rate on
any loan qualifying for a deferral under this
paragraph.
‘‘(3) DEFERRAL
OF
LOAN
GUARANTEES
AND
OTHER FINANCINGS.—The Administration shall—
‘‘(A) encourage intermediaries participating
in the program under subsection (m) to defer re-
payment of a loan made with proceeds made
available under that subsection, if such loan was
incurred by a small business concern that is eli-
gible to apply for assistance under subsection
(b)(3); and
‘‘(B) not later than 30 days after the date
of enactment of this subsection, establish guide-
lines to—
‘‘(i) encourage lenders and other inter-
mediaries to defer repayment of, or provide
other relief relating to, loan guarantees
under subsection (a) and financings under
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section 504 of the Small Business Invest-
ment Act of 1958 that were incurred by
small business concerns that are eligible to
apply for assistance under subsection (b)(3),
and loan guarantees provided under sub-
section (m) if the intermediary provides re-
lief to a small business concern under this
paragraph; and
‘‘(ii) implement a program to provide
for the deferral of repayment or other relief
to any intermediary providing relief to a
small business borrower under this para-
graph.’’.
(b) DISASTER LOAN ASSISTANCE FOR MILITARY RE-
SERVISTS’ SMALL BUSINESSES.—Section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) is amended by inserting
after the undesignated paragraph that begins with ‘‘Pro-
vided, That no loan’’, the following:
‘‘(3)(A) In this paragraph—
‘‘(i) the term ‘essential employee’ means an
individual who is employed by a small business
concern and whose managerial or technical ex-
pertise is critical to the successful day-to-day op-
erations of that small business concern;
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‘‘(ii) the term ‘period of military conflict’
has the meaning given the term in subsection
(n)(1); and
‘‘(iii) the term ‘substantial economic injury’
means an economic harm to a business concern
that results in the inability of the business
concern—
‘‘(I) to meet its obligations as they ma-
ture;
‘‘(II) to pay its ordinary and nec-
essary operating expenses; or
‘‘(III) to market, produce, or provide a
product or service ordinarily marketed, pro-
duced, or provided by the business concern.
‘‘(B) The Administration may make such dis-
aster loans (either directly or in cooperation with
banks or other lending institutions through agree-
ments to participate on an immediate or deferred
basis) to assist a small business concern that has suf-
fered or that is likely to suffer substantial economic
injury as the result of an essential employee of such
small business concern being ordered to active mili-
tary duty during a period of military conflict.
‘‘(C) A small business concern described in sub-
paragraph (B) shall be eligible to apply for assistance
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under this paragraph during the period beginning on
the date on which the essential employee is ordered to
active duty and ending on the date that is 90 days
after the date on which such essential employee is dis-
charged or released from active duty.
‘‘(D) Any loan or guarantee extended pursuant
to this paragraph shall be made at the same interest
rate as economic injury loans under paragraph (2).
‘‘(E) No loan may be made under this para-
graph, either directly or in cooperation with banks or
other lending institutions through agreements to par-
ticipate 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 Administra-
tion, in its discretion, may waive the $1,500,000 lim-
itation.
‘‘(F) For purposes of assistance under this para-
graph, no declaration of a disaster area shall be re-
quired.’’.
(c) ENHANCED PUBLICITY DURING OPERATION AL-
LIED FORCE.—For the duration of Operation Allied Force
and for 120 days thereafter, the Administration shall en-
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hance its publicity of the availability of assistance provided
pursuant to the amendments made by this section, includ-
ing information regarding the appropriate local office at
which affected small businesses may seek such assistance.
(d) GUIDELINES.—Not later than 30 days after the
date of enactment of this section, the Administrator of the
Small Business Administration shall issue such guidelines
as the Administrator determines to be necessary to carry
out this section and the amendments made by this section.
(e) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall
take effect on the date of the enactment of this section.
(2) DISASTER LOANS.—The amendments made
by subsection (b) shall apply to economic injury suf-
fered or likely to be suffered as the result of a period
of military conflict occurring or ending on or after
March 24, 1999.
SEC. 403. MICROLOAN PROGRAM.
Section 7(m)(1)(A)(i) of the Small Business Act (15
U.S.C. 636(m)(1)(A)(i)) is amended by inserting ‘‘veteran
(within the meaning of such term under section 3(q)),’’ after
‘‘low-income,’’.