I
106TH CONGRESS
1ST SESSION
H. R. 3479
To authorize the Small Business Administration to make grants and loans
to small business concerns, and grants to agricultural enterprises, to
enable such concerns and enterprises to reopen for business after a
natural or other disaster.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 18, 1999
Mrs. KELLY (for herself, Mr. FRANKS of New Jersey, and Mr. JONES of
North Carolina) introduced the following bill; which was referred to the
Committee on Small Business
A BILL
To authorize the Small Business Administration to make
grants and loans to small business concerns, and grants
to agricultural enterprises, to enable such concerns and
enterprises to reopen for business after a natural or
other disaster.
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 ‘‘Small Business Dis-
aster Assistance Act of 1999’’.
SEC. 2. DISASTER ASSISTANCE TO REOPEN SMALL BUSI-
NESS CONCERNS AND AGRICULTURAL EN-
TERPRISES.
Section 7 of the Small Business Act (15 U.S.C. 636)
is amended—
(1) in subsection (b), by inserting before the
undesignated paragraph that begins with ‘‘No loan
under this subsection,’’ the following:
‘‘(4) In accordance with subsection (o), the Adminis-
tration may make grants and loans under this sub-
section.’’; and
(2) by adding at the end the following:
‘‘(o) DISASTER ASSISTANCE PROGRAMS TO REOPEN
SMALL BUSINESS CONCERNS AND AGRICULTURAL EN-
TERPRISES.—
‘‘(1) GRANT PROGRAM.—
‘‘(A) IN
GENERAL.—In accordance with
this subsection and subsection (b) (to the extent
that subsection (b) is not inconsistent with this
subsection), the Administration may make
grants to small business concerns and agricul-
tural enterprises following a natural or other
disaster to assist such concerns and enterprises
in reopening for business.
‘‘(B) ELIGIBILITY.—A small business con-
cern or agricultural enterprise may receive a
grant under this paragraph only if it—
‘‘(i) was a viable business concern (as
determined by the Administration) at the
time of the disaster; and
‘‘(ii) is likely to be a viable business
concern (as determined by the Administra-
tion) after receiving assistance under this
subsection.
‘‘(C) MAXIMUM.—The Administration may
make no grant under this paragraph that ex-
ceeds $30,000.
‘‘(D) TIMING.—In making grants under
this paragraph, the Administration shall dis-
burse grant funds as soon as is practicable
after a disaster.
‘‘(2) LOAN PROGRAM.—
‘‘(A) IN
GENERAL.—In accordance with
this subsection and subsection (b) (to the extent
that subsection (b) is not inconsistent with this
subsection), the Administration may make loans
to small business concerns following a natural
or other disaster to assist such concerns in re-
opening and remaining open for business.
‘‘(B) DIRECT
AND
GUARANTEED
LOANS
PERMISSIBLE.—The Administration may make
loans under this paragraph either directly or in
cooperation with banks or other lending institu-
tions through agreements to participate on an
immediate or deferred (guaranteed) basis.
‘‘(C) REPAYMENT.—
‘‘(i) ONE-YEAR DEFERRAL.—The Ad-
ministration may not require the borrower
with respect to a loan made under this
paragraph to repay any principal of the
loan, or any interest on such principal, be-
fore the date that is 1 year after the date
on which the proceeds of the loan are dis-
bursed.
‘‘(ii) 
APPLICATION
OF
REPAID
AMOUNTS.—The 
Administration 
shall
apply all amounts repaid with respect to a
loan made under this paragraph—
‘‘(I) to the principal of the loan;
and
‘‘(II) to the extent that such
amounts are sufficient, to the interest
on such principal.
‘‘(3) LIMITATION
ON
ELIGIBILITY.—Notwith-
standing any other provision of this subsection, the
Administration may not make assistance available
under this subsection to any person, concern, or en-
terprise that is in default of any outstanding—
‘‘(A) Federal obligation;
‘‘(B) child support obligation; or
‘‘(C) judgment of a Federal of State court.
‘‘(4) USE OF PROCEEDS.—As a condition of re-
ceiving a grant or loan under this subsection, the
Administration shall require the recipient to—
‘‘(A) agree to use the proceeds of such
grant or loan only to repair or replace items
and structures that were lost or damaged as a
result of a disaster; and
‘‘(B) agree not to use any of the proceeds
of such grant or loan for relocation, unless the
recipient is directed by a government agency to
relocate for safety, health, or mitigation pur-
poses.
‘‘(5) FLOOD INSURANCE.—As a condition of re-
ceiving a grant or loan under this subsection, the
Administration shall require each recipient that op-
erates in a location that the Administration deter-
mines is prone to flooding—
‘‘(A) to obtain flood insurance, or to en-
sure that such insurance is obtained, for the
maximum insurable value of the concern’s
structure (whether owned or leased) and the
contents of such structure; and
‘‘(B) to maintain such flood insurance for
the period of time that the concern continues to
operate in such a location.
‘‘(6) AGRICULTURAL ENTERPRISES.—
‘‘(A) DEFINED.—In this subsection, the
term ‘agricultural enterprise’ means—
‘‘(i) an agricultural enterprise within
the meaning of the term under section
3(a); and
‘‘(ii) a farm not larger than a family
farm within the meaning of such term
under section 321 of the Consolidated
Farm and Rural Development Act (7
U.S.C. 1961).
‘‘(B) CONSULTATION REQUIREMENT.—Be-
fore issuing regulations to implement paragraph
(1), the Administration shall consult with the
Secretary of Agriculture with respect to the ef-
fect of such regulations on agricultural enter-
prises.’’.
SEC. 3. CONFORMING AMENDMENT.
Section 4(f)(1) (15 U.S.C. 633(f)(1)) of the Small
Business Act is amended by striking ‘‘section 462(b) of
the Social Security Act’’ and inserting ‘‘section 459 of the
Social Security Act’’.
SEC. 4. APPLICABILITY.
The amendments made by section 2 shall apply to
any major disaster declared after September 1, 1999.
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