I
107TH CONGRESS
1ST SESSION
H. R. 3073
To provide assistance to small business concerns adversely impacted by the
terrorist attacks perpetrated against the United States on September
11, 2001, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 10, 2001
Mr. MANZULLO (for himself, Mr. MORAN of Virginia, Mr. NADLER, Mr. FER-
GUSON, Mr. MEEKS of New York, Mr. WEINER, Mr. GRUCCI, and Mr.
JOHNSON of Illinois) introduced the following bill; which was referred to
the Committee on Small Business
A BILL
To provide assistance to small business concerns adversely
impacted by the terrorist attacks perpetrated against
the United States 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 ‘‘American Small Busi-
ness Emergency Relief and Recovery Act of 2001’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—Congress finds that—
(1) the Nation’s 25,000,000 small businesses
employ more than 58 percent of the private work-
force, and create 75 percent of all new jobs;
(2) as a result of the terrorist attacks on Sep-
tember 11, 2001, many small businesses nationwide
were adversely affected—
(A) directly because—
(i) they are located in or near the
World Trade Center or the Pentagon, or in
a disaster area declared by the President
or the Administrator;
(ii) they were closed or their business
was suspended for National security pur-
poses at the mandate of the Federal Gov-
ernment; or
(iii) they are located in an airport
that has been closed; and
(B) indirectly because—
(i) they supplied or provided services
to businesses that were located in or near
the World Trade Center or the Pentagon;
(ii) they are a supplier, service pro-
vider, or complementary industry to any
affected industry, in particular, the finan-
cial, hospitality, and travel industries; or
(iii) they are integral to or dependent
upon the business of a closed or suspended
business or business sector; and
(3) small business owners adversely impacted
by the terrorist attacks are finding it difficult or
impossible—
(A) to make loan payments on existing
debts;
(B) to pay their employees;
(C) to pay their vendors;
(D) to purchase materials, supplies, or in-
ventory;
(E) to pay their rent, mortgage, or other
operating expenses; and
(F) to secure financing for their busi-
nesses.
(b) PURPOSE.—The purpose of this Act is to
strengthen the loan and investment programs of the Small
Business Administration, in order to help small businesses
to meet their existing obligations, finance their businesses,
and maintain and create jobs, and thereby provide sta-
bility to the National economy.
SEC. 3. DISASTER LOANS AFTER TERRORIST ATTACKS.
(a) IN GENERAL.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended by inserting im-
mediately after paragraph (3) the following:
‘‘(4) DISASTER LOANS AFTER TERRORIST AT-
TACKS OF SEPTEMBER 11, 2001.—
‘‘(A) LOAN
AUTHORITY.—In addition to
any other loan authorized by this section, the
Administration may make such loans (either di-
rectly or in cooperation with banks or other
lending institutions through agreements to par-
ticipate on an immediate or deferred basis) to
a small business concern that has been directly
affected and suffered, or that is likely to suffer,
substantial economic injury as the direct result
of the terrorist attacks perpetrated against the
United States on September 11, 2001, includ-
ing due to the closure or suspension of its busi-
ness for National security purposes at the man-
date of the Federal Government.
‘‘(B) DEFERMENT OF LOAN PAYMENTS.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of law, payments of
principal and interest on a loan made
under this paragraph or paragraph (1) as
a result of the terrorist attacks perpetrated
against the United States on September
11, 2001, shall be deferred, and no interest
shall accrue with respect to such loan, dur-
ing the 2-year period following the date of
issuance of such loan.
‘‘(ii) RESUMPTION OF PAYMENTS.—At
the end of the 2-year period described in
clause (i), the payment of periodic install-
ments of principal and interest shall be re-
quired with respect to such loan, in the
same manner and subject to the same
terms and conditions as would otherwise be
applicable to any other loan made under
this subsection.
‘‘(C) REFINANCING EXISTING LOANS.—
‘‘(i) IN
GENERAL.—Any loan made
under this subsection that was outstanding
as to principal or interest on September
11, 2001, may be refinanced by a small
business concern that is also eligible to re-
ceive a loan under this paragraph, and the
refinanced amount shall be considered to
be part of the new loan for purposes of
this clause.
‘‘(ii) NO EFFECT ON ELIGIBILITY.—A
refinancing under this subparagraph by a
small business concern shall be in addition
to any other loan eligibility for that small
business concern under this Act.
‘‘(D) TERMS.—A loan under this para-
graph shall be made at the same interest rate
as economic injury loans under paragraph (2).
‘‘(E) NO
DISASTER
DECLARATION
RE-
QUIRED.—For purposes of assistance under this
paragraph, no declaration of a disaster area is
required for those small business concerns di-
rectly affected by the terrorist attacks per-
petrated against the United States on Sep-
tember 11, 2001.
‘‘(F) SIZE STANDARD ADJUSTMENTS.—
‘‘(i) 
FOR
DECLARED
DISASTER
AREAS.—Notwithstanding any other provi-
sion of law, for purposes of providing as-
sistance under this paragraph to busi-
nesses located in areas of New York, Vir-
ginia, and the contiguous areas designated
by the President or the Administrator as a
disaster area following the September 11,
2001, terrorist attacks against the United
States, a business shall be considered to be
a ‘small business concern’ if it meets other-
wise applicable size regulations promul-
gated by the Administration, and, with re-
spect to the applicable size standard it is—
‘‘(I) a restaurant having not
more than $8,000,000 in annual reve-
nues;
‘‘(II) a law firm having not more
than $8,000,000 in annual revenues;
‘‘(III) a certified public account-
ing business having not more than
$8,000,000 in annual revenues;
‘‘(IV) a performing arts business
having not more than $8,000,000 in
annual revenues;
‘‘(V) a warehousing or storage
business 
having 
not 
more 
than
$25,000,000 in annual revenues;
‘‘(VI) a contracting business hav-
ing not more than $15,000,000 in an-
nual revenues;
‘‘(VII) a food manufacturing
business having not more than 1,000
employees; or
‘‘(VIII) an apparel manufac-
turing business having not more than
1,000 employees.
‘‘(ii) AUTHORITY
TO
INCREASE
OR
WAIVE SIZE STANDARDS AND SIZE REGU-
LATIONS.—For purposes of providing as-
sistance under this paragraph, at the dis-
cretion of the Administrator, the Adminis-
trator may increase or waive otherwise ap-
plicable size standards or size regulations
with respect to businesses that are located
in areas of New York, Virginia, or the con-
tiguous areas designated by the President
or the Administrator as a disaster area fol-
lowing the September 11, 2001, terrorist
attacks against the United States.
‘‘(iii) EXEMPTION FROM ADMINISTRA-
TIVE
PROCEDURES.—The provisions of
chapter 8 and subchapter II of chapter 5,
of title 5, United States Code, shall not
apply to any increase or waiver by the Ad-
ministrator under clause (ii).
‘‘(G) DEFINITION OF SUBSTANTIAL ECO-
NOMIC INJURY.—In this paragraph, the term
‘substantial economic injury’ means an eco-
nomic harm to a small business concern that
results in the inability of the small business
concern—
‘‘(i) to meet its obligations on an on-
going basis;
‘‘(ii) to pay its ordinary and necessary
operating expenses; or
‘‘(iii) to market, produce, or provide a
product or service ordinarily marketed,
produced, or provided by the small busi-
ness concern.
‘‘(5) INCREASED LOAN CAPS.—
‘‘(A) AGGREGATE
LOAN
AMOUNTS.—Ex-
cept as provided in subparagraph (B), and in
addition to amounts otherwise authorized by
this Act, the loan amount outstanding and com-
mitted to a borrower may not exceed—
‘‘(i) with respect to a small business
concern located in the areas of New York,
Virginia, or the contiguous areas des-
ignated by the President or the Adminis-
trator as a disaster area following the Sep-
tember 11, 2001, terrorist attacks per-
petrated against the United States—
attacks of September 11, 2001, shall be sold until 4
years after the date of the loan disbursement.
‘‘(8) 
DEFINITION.—For 
purposes 
of 
this
subsection—
‘‘(A) a small business concern is directly
affected by the terrorist attacks perpetrated
against the United States on September 11,
2001, if it—
‘‘(i) is located in or near the World
Trade Center or the Pentagon, or in a dis-
aster area declared by the President or the
Administrator related to those terrorist at-
tacks;
‘‘(ii) was closed or its business was
suspended for National security purposes
at the mandate of the Federal Govern-
ment; or
‘‘(iii) is located in an airport that has
been closed; and
‘‘(B) a small business concern is indirectly
affected by the terrorist attacks perpetrated
against the United States on September 11,
2001, if it—
‘‘(i) supplied or provided services to
small businesses that were located in or
near the World Trade Center or the Pen-
tagon, or in a disaster area declared by the
President or the Administrator related to
those terrorist attacks;
‘‘(ii) is a supplier, service provider, or
complementary industry to any affected in-
dustry, in particular, the financial, hospi-
tality, and travel industries; or
‘‘(iii) it is integral to or dependent
upon the business of a closed or suspended
business or business sector.’’.
(b) CLERICAL AMENDMENTS.—Section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) is amended in the
undesignated matter at the end—
(1) by striking ‘‘, (2), and (4)’’ and inserting
‘‘and (2)’’; and
(2) by striking ‘‘, (2), or (4)’’ and inserting
‘‘(2)’’.
SEC. 4. EMERGENCY RELIEF LOAN PROGRAM.
Section 7(a) of the Small Business Act (15 U.S.C.
636(a)) is amended by adding at the end the following:
‘‘(31) TEMPORARY
LOAN
AUTHORITY
FOL-
LOWING TERRORIST ATTACKS.—
‘‘(A) IN GENERAL.—During the 1-year pe-
riod beginning on the date of enactment of this
paragraph, the Administration may make loans
under this subsection to a small business con-
cern that has suffered, or that is likely to suf-
fer, adverse impact.
‘‘(B) LOAN
TERMS.—With respect to a
loan under this paragraph—
‘‘(i) for purposes of paragraph (2)(A),
participation by the Administration shall
be equal to 90 percent of the balance of
the financing outstanding at the time of
disbursement of the loan;
‘‘(ii) no fee may be required or
charged under paragraph (18);
‘‘(iii) the applicable rate of interest
shall not exceed a rate that is one percent-
age point above the prime lending rate;
‘‘(iv) no such loan shall be made if the
total amount outstanding and committed
(by participation or otherwise) to the bor-
rower under this paragraph—
‘‘(I) would exceed $1,000,000; or
‘‘(II) at the discretion of the Ad-
ministrator, and upon notice to the
Congress, would exceed $2,000,000,
as necessary to provide relief in high-
cost areas that have suffered adverse
impact; and
‘‘(v) upon request of the borrower, re-
payment of principal due on a loan made
under this paragraph may be deferred dur-
ing the 1-year period beginning on the date
of issuance of the loan.
‘‘(C) APPLICABILITY.—The loan terms de-
scribed in subparagraph (B) shall apply to a
loan under this paragraph notwithstanding any
other provision of this subsection, and except as
specifically provided in this paragraph, a loan
under this paragraph shall otherwise be subject
to the same terms and conditions as any other
loan under this subsection.
‘‘(D) DEFINITION.—For purposes of this
paragraph, the term ‘adverse impact’ means an
economic harm to or disruption of the business
operations of a small business concern as a di-
rect or indirect result of the terrorist attacks
perpetrated against the United States on Sep-
tember 11, 2001.’’.
SEC. 5. BUSINESS LOAN AND INVESTMENT ASSISTANCE
FOLLOWING TERRORIST ATTACKS.
(a) ONE-YEAR
SUSPENSION
OF
SECTION
7(a)
FEES.—Section 7(a)(18) of the Small Business Act (15
U.S.C. 636(a)(18)) is amended by adding at the end the
following:
‘‘(C) ONE-YEAR
WAIVER
OF
FEES
FOL-
LOWING TERRORIST ATTACKS.—For loans ap-
proved on or after the date of enactment of the
American Small Business Emergency Relief and
Recovery Act of 2001, no fee may be collected
or charged under this paragraph, and no fee
shall accrue with respect to a borrower, during
the 1-year period beginning on that date of en-
actment.’’.
(b) ONE-YEAR INCREASE IN PARTICIPATION LEV-
ELS.—Section 7(a)(2) of the Small Business Act (15
U.S.C. 636(a)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘subpara-
graph (B)’’ and inserting ‘‘subparagraphs (B) and
(E)’’; and
(2) by adding at the end the following:
‘‘(E) TEMPORARY PARTICIPATION LEVELS
FOLLOWING
TERRORIST
ATTACKS.—For loans
approved on or after the date of enactment of
the American Small Business Emergency Relief