I
107TH CONGRESS
1ST SESSION
H. R. 748
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
FEBRUARY 27, 2001
Mrs. KELLY 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 2001’’.
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.