I
107TH CONGRESS
1ST SESSION
H. R. 3011
To authorize the Administrator of the Small Business Administration to
make loans to certain concerns that suffered economic and other injury
as a result of the terrorist attacks against the United States that oc-
curred on September 11, 2001, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 3, 2001
Ms. VELA´ZQUEZ (for herself, Mr. DAVIS of Illinois, Mr. PASCRELL, Mrs.
CHRISTENSEN, Mr. BRADY
of Pennsylvania, Mr. GONZALEZ, Mrs.
NAPOLITANO, Mr. PHELPS, Mrs. JONES of Ohio, Mr. UDALL of New
Mexico, Mr. UDALL of Colorado, Mr. BAIRD, Mr. ROSS, Mr. LANGEVIN,
Mr. CARSON of Oklahoma, Mr. ACEVEDO-VILA´, Mr. ALLEN, Mr. KEN-
NEDY of Rhode Island, Mr. PALLONE, Mr. ANDREWS, Mr. OWENS, Mr.
WEINER, and Ms. MILLENDER-MCDONALD) introduced the following bill;
which was referred to the Committee on Small Business
A BILL
To authorize the Administrator of the Small Business Ad-
ministration to make loans to certain concerns that suf-
fered economic and other injury as a result of the ter-
rorist attacks against the United States that occurred
on September 11, 2001, and for other purposes.
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 Emer-
gency Relief Act of 2001’’.
SEC. 2. LOANS FOR DISASTER OF SEPTEMBER 11, 2001.
(a) IN GENERAL.—The Administrator of the Small
Business Administration may make loans under section
7(b) of the Small Business Act (15 U.S.C. 636(b)) to
small business concerns and other entities made eligible
under subsection (b) that were injured as a result of the
terrorist attacks against the United States that occurred
on September 11, 2001.
(b) SPECIAL RULES.—Notwithstanding the require-
ments of section 7(b) of the Small Business Act (15
U.S.C. 636(b)), the following special rules apply to loans
described in subsection (a):
(1) PURPOSE OF LOANS.—The Administrator
may make such loans for—
(A) repair, rehabilitation, refinancing, or
replacement of damaged or destroyed real or
personal property; and
(B) any economic injury.
(2) INTEREST RATE.—The Administrator may
charge interest on any such loan. Such charge may
not exceed a rate of 4 percent per year.
(3) AMOUNT OF LOANS.—For the purpose of
such loans, if the Administrator considers it nec-
essary or appropriate, the Administrator may waive
the $1,500,000 limitation on the total amount that
can be outstanding and committed to a concern
under section 7(b) of the Small Business Act (15
U.S.C. 636(b)).
(4) CREDIT ELSEWHERE.—The Administrator
may make such loans without regard to the ability
of a small business concern to obtain credit else-
where.
(5) WAIVER
OF
SIZE
STANDARDS.—For the
purpose such loans, if the Administrator determines
it to be necessary or appropriate, the Administrator
may waive any size standard established under sec-
tion 3(a)(2) of the Small Business Act (15 U.S.C.
632(a)(2)) with respect to a business concern that
does not exceed 150 percent (or, in the case of a fi-
nancial institution, 200 percent) of each size stand-
ard applicable to such concern.
(6) CHARITABLE
ORGANIZATIONS.—The Ad-
ministrator may make such a loan to any charitable
organization as the Administrator determines nec-
essary or appropriate.
(c) TERMINATION.—The Administrator may not
make a loan pursuant to the special rules of this section
after the end of the 1-year period beginning on the date
of the enactment of this Act.
SEC. 3. LOAN FORGIVENESS.
(a) IN GENERAL.—Upon application by a small busi-
ness concern which is the recipient of a loan made under
the Small Business Act (15 U.S.C. 631 et seq.) and which
has suffered a substantial economic injury as a result of
the terrorist attacks against the United States that oc-
curred on September 11, 2001, the Administrator may un-
dertake all or part of the small business concern’s obliga-
tion to make the required payments under such loan, or
may forgive all or part of such obligation if the loan was
a direct loan made by the Administrator, if, and to the
extent that, the Administrator considers such undertaking
or forgiveness to be necessary or appropriate.
(b) TERMINATION.—The Administrator may not for-
give or undertake any loan under subsection (a) after the
end of the 1-year period beginning on the date of the en-
actment of this Act.
SEC. 4. PROHIBITION ON SALE OF DISASTER LOANS.
Section 4 of the Small Business Act (15 U.S.C. 633)
is amended by adding at the end the following:
‘‘(g) PROHIBITION ON SALE OF DISASTER LOANS.—
The Administrator may not sell any portion of the Admin-
istration’s interest in, or the rights of the Administration
with respect to, any loan made directly or through imme-
diate participation under section 7(b), including by direct
sale, through the sale of loan participations, or by includ-
ing such loans in a pool of assets for the purpose of selling
asset-backed securities.’’.
SEC. 5. DEFINITIONS.
For purposes of this Act:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration.
(2) CHARITABLE
ORGANIZATION.—The term
‘‘charitable organization’’ means an organization de-
scribed in section 501(c)(3) of the Internal Revenue
Code of 1986.
(3) CREDIT
ELSEWHERE.—The term ‘‘credit
elsewhere’’ has the meaning given such term in sec-
tion 3(h) of the Small Business Act (15 U.S.C.
632(h)).
(4) SMALL
BUSINESS
CONCERN.—The term
‘‘small business concern’’ has the meaning given
such term in section 3(a) of the Small Business Act
(15 U.S.C. 632(a)).
(5) SUBSTANTIAL
ECONOMIC
INJURY.—The
term ‘‘substantial economic injury’’ has the meaning
given such term in section 7(b)(3)(A)(iii) of the
Small Business Act (15 U.S.C. 636(b)(3)(A)(iii)).
Æ