‘‘(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RE-
SERVES.—
‘‘(1) DEFERRAL OF DIRECT LOANS.—
‘‘(A) IN
GENERAL.—The Administration
shall, upon written request, defer repayment of
principal and interest due during the period of
deferral described in subparagraph (B) on any
direct loan made under subsection (a) or (b), if
such loan was incurred by a qualified borrower.
‘‘(B) PERIOD OF DEFERRAL.—The period
of deferral for repayment under this paragraph
shall begin on the date on which the eligible re-
serve is ordered to active duty during a period
of military conflict and shall terminate on the
later of—
‘‘(i) the date that is 180 days after
the date such eligible reserve is discharged
or released from active duty; and
‘‘(ii) the date that is 180 days after
the date of enactment of this subsection.
‘‘(C) NO ACCRUAL OF INTEREST DURING
DEFERRAL.—During the period of deferral de-
scribed in subparagraph (B), no interest shall
accrue on any deferred loan.
‘‘(2) APPLICABILITY.—This subsection shall
apply with respect to any period of military conflict
beginning on or after August 1, 1990.
‘‘(3) DEFINITIONS.—In this subsection:
‘‘(A) ELIGIBLE RESERVE.—The term ‘eli-
gible reserve’ means a member of a reserve
component of the Armed Forces serving pursu-
ant to a call or order to active duty, or an order
to remain on active duty, during a period of
military conflict.
‘‘(B) OWNER, MANAGER, OR
KEY
EM-
PLOYEE.—The term ‘owner, manager, or key
employee’ means an individual who—
‘‘(i) has not less than a 20 percent
ownership interest in a small business con-
cern described in subparagraph (D)(ii);
‘‘(ii) is a manager responsible for the
day-to-day operations of such small busi-
ness concern; or
‘‘(iii) is a key employee (as defined by
the Administration) of such small business
concern.
‘‘(C) PERIOD
OF
MILITARY
CONFLICT.—
The term ‘period of military conflict’ means—
‘‘(i) a period of war declared by Con-
gress;
‘‘(ii) a period of national emergency
declared by Congress or by the President;
or
‘‘(iii) a period for which members of
reserve components of the Armed Forces
are serving on active duty in the Armed
Forces under a call or order to active duty,
under section 688, 12301(a), 12302,
12304, or 12306 of title 10, United States
Code.
‘‘(D) QUALIFIED
BORROWER.—The term
‘qualified borrower’ means—
‘‘(i) an individual who is an eligible
reserve and who received a direct loan
under subsection (a) or (b) before being
called or ordered to active duty, or being
ordered to remain on active duty, during a
period of military conflict; or
‘‘(ii) a small business concern that re-
ceived a direct loan under subsection (a) or
(b) before an eligible reserve, who is an
owner, manager, or key employee, was
called or ordered to active duty, or was or-
dered to remain on active duty, during a
period of military conflict.’’.
SEC. 3. DISASTER LOAN ASSISTANCE FOR MILITARY RE-
SERVES’ SMALL BUSINESSES.
(a) IN GENERAL.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended by inserting after
the undesignated paragraph that begins with ‘‘Provided,
That no loan’’, the following:
‘‘(3)(A) The Administration may make such
disaster loans (either directly or in cooperation with
banks or other lending institutions through agree-
ments to participate on an immediate or deferred
basis) to assist a small business concern (including
a small business concern engaged in the lease or
rental of real or personal property) that has suffered
or that is likely to suffer economic injury as the re-
sult of a call or order to active military duty, or an
order to remain on active duty, of an owner, man-
ager, or key employee of such small business concern
during a period of military conflict.
‘‘(B) Any loan or guarantee extended pursuant
to this paragraph shall be made at an annual inter-
est rate of 4 percent, without regard to the ability
of the small business concern to secure credit else-
where.
‘‘(C) No loan may be made under this para-
graph, either directly or in cooperation with banks
or other lending institutions through agreements to
participate on an immediate or deferred basis, if the
total amount outstanding and committed to the bor-
rower under this subsection would exceed $500,000,
except that the Administration may waive the
$500,000 limitation if the Administration deter-
mines that the applicant for the loan constitutes a
major source of employment in its surrounding area,
and such area is not larger than the surrounding
county.
‘‘(D) For purposes of assistance under this
paragraph, no declaration of a disaster area shall be
required.
‘‘(E) This paragraph shall apply with respect to
any period of military conflict beginning on or after
August 1, 1990.
‘‘(F) In this paragraph—
‘‘(i) the term ‘economic injury’ means an
economic harm to a business concern that re-
sults in the inability of the business concern to
market, produce, or provide a product or service
ordinarily marketed, produced, or provided by
the business concern;
‘‘(ii) the term ‘owner, manager, or key em-
ployee’ means an individual who—
‘‘(I) has not less than a 20 percent
ownership interest in the small business
concern;
‘‘(II) is a manager responsible for the
day-to-day operations of such small busi-
ness concern; or
‘‘(III) is a key employee (as defined
by the Administration) of such small busi-
ness concern; and
‘‘(iii) the term ‘period of military conflict’
has the meaning given the term in subsection
(n)(3).’’.
(b) CONFORMING AMENDMENTS.—Section 4(c) of
the Small Business Act (15 U.S.C. 633(c)) is amended—
(1) in paragraph (1), by striking ‘‘7(b)(4),’’;
and
(2) in paragraph (2), by striking ‘‘7(b)(4),
7(b)(5), 7(b)(6), 7(b)(7), 7(b)(8),’’.
SEC. 4. REGULATIONS.
Not later than 60 days after the date of enactment
of this Act, the Small Business Administration shall issue
such regulations as may be necessary to carry out the
amendments made by sections 2 and 3.
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