I 
109TH CONGRESS 
1ST SESSION H. R. 4178 
To amend the Small Business Act to establish an energy emergency disaster 
loan program. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 28, 2005 
Mr. ISRAEL (for himself and Mr. BISHOP of New York) introduced the 
following bill; which was referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to establish an energy 
emergency disaster loan program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SMALL BUSINESS AND AGRICULTURAL PRO-
DUCER 
ENERGY 
EMERGENCY 
DISASTER 
LOAN PROGRAM. 
(a) SMALL BUSINESS PRODUCER ENERGY EMER-
GENCY DISASTER LOAN PROGRAM.—Section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) is amended by 
adding at the end the following new paragraph: 
‘‘(4) ENERGY EMERGENCY DISASTER LOANS.—
‘‘(A) 
AUTHORITY.—The 
Administrator 
may make or guarantee a loan to a small busi-
ness concern that the Administrator determines 
has suffered or is likely to suffer substantial 
economic injury as a result of a significant in-
crease in the price of heating oil, natural gas, 
gasoline, transportation fuel, propane, or ker-
osene. 
‘‘(B) INTEREST
RATES.—Any loan or 
guarantee extended pursuant to this paragraph 
shall be made at the same interest rate as an 
economic injury loan made or guaranteed under 
paragraph (2). 
‘‘(C) LIMITATION.— 
‘‘(i) IN GENERAL.—No loan may be 
made or guaranteed under this paragraph 
if the total amount outstanding and com-
mitted to the borrower under this sub-
section would exceed $1,500,000. 
‘‘(ii) EXCEPTION.—The Administrator 
may waive the limitation under clause (i) 
for a borrower if the Administrator deter-
mines that the borrower constitutes a 
major source of employment in its sur-
rounding area.
‘‘(D) DECLARATIONS
OF
DISASTER.—No 
assistance shall be available under this para-
graph unless— 
‘‘(i) the President or the Adminis-
trator has made a declaration of a disaster 
area by reason of a significant increase in 
the price of heating oil, natural gas, gaso-
line, transportation fuel, propane, or ker-
osene; or 
‘‘(ii) the Governor of a State in which 
a significant increase in the price of heat-
ing oil, natural gas, gasoline, transpor-
tation fuel, propane, or kerosene has oc-
curred certifies to the Administrator that 
small business concerns have suffered eco-
nomic injury as a result of such increase 
and are in need of financial assistance that 
is not otherwise available on reasonable 
terms in that State. 
‘‘(E) CONVERSION TO RENEWABLE OR AL-
TERNATIVE
ENERGY
SOURCES.—Notwith-
standing any other provision of law, a small 
business concern receiving a loan under this 
paragraph may use the loan to convert from the 
use of heating oil, natural gas, gasoline, pro-
pane, or kerosene to a renewable or alternative 
energy source, including agricultural and mu-
nicipal solid waste, geothermal energy, cogen-
eration, solar energy, wind energy, or fuel cells. 
‘‘(F) DEFINITIONS.—In this paragraph, 
the following definitions apply: 
‘‘(i) The term ‘base price index’ 
means the moving average of the closing 
unit price on the New York Mercantile Ex-
change for heating oil, natural gas, gaso-
line, transportation fuel, or propane for the 
10 days, in each of the most recent 2 pre-
ceding years, which correspond to the trad-
ing days described in clause (ii). 
‘‘(ii) The term ‘current price index’ 
means the moving average of the closing 
unit price on the New York Mercantile Ex-
change, for the 10 most recent trading 
days, for contracts to purchase heating oil, 
natural gas, gasoline, transportation fuel, 
or propane during the subsequent calendar 
month, commonly known as the ‘front 
month’. 
‘‘(iii) The term ‘significant increase’ 
means—
‘‘(I) with respect to the price of 
heating oil, natural gas, gasoline, 
transportation fuel, or propane, an in-
crease of the current price index over 
the base price index by not less than 
40 percent; and 
‘‘(II) with respect to the price of 
kerosene, any increase which the Ad-
ministrator, in consultation with the 
Secretary of Energy, determines to be 
significant.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this Act shall apply with respect to economic injury suf-
fered on or after the date of the enactment of this Act. 
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