I
106TH CONGRESS
1ST SESSION
H. R. 1614
To authorize the Small Business Administration to provide financial and
business development assistance to military reservists’ small businesses,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 28, 1999
Mr. PHELPS (for himself, Ms. VELA´ZQUEZ, Mr. TALENT, Mrs. CHRISTENSEN,
Mr. GONZALEZ, Mr. EVANS, Mr. CONYERS, Mr. SHOWS, Mr. BRADY of
Pennsylvania, Mr. SKELTON, Mr. GUTIERREZ, Mr. BAIRD, Mr. MOORE,
Mrs. MCCARTHY of New York, Mrs. NAPOLITANO, Mrs. JONES of Ohio,
Mr. FROST, Mr. PASCRELL, and Mr. HINOJOSA) introduced the following
bill; which was referred to the Committee on Small Business
A BILL
To authorize the Small Business Administration to provide
financial and business development assistance to military
reservists’ small businesses, 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 ‘‘Military Reservists
Small Business Relief Act of 1999’’.
SEC. 2. REPAYMENT DEFERRAL FOR ACTIVE DUTY RESERV-
ISTS.
Section 7 of the Small Business Act (15 U.S.C. 636)
is amended by adding at the end the following:
‘‘(n) REPAYMENT DEFERRED FOR ACTIVE DUTY RE-
SERVISTS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) ELIGIBLE RESERVIST.—The term ‘el-
igible reservist’ means a member of a reserve
component of the Armed Forces ordered to ac-
tive duty during a period of military conflict.
‘‘(B) OWNER, MANAGER, OR
KEY
EM-
PLOYEE.—An owner, manager, or key employee
described in this subparagraph is an individual
who—
‘‘(i) has not less than a 20 percent
ownership interest in the small business
concern 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 of a contingency oper-
ation, as defined in section 101(a) of title
10, United States Code.
‘‘(D) QUALIFIED
BORROWER.—The term
‘qualified borrower’ means—
‘‘(i) an individual who is an eligible
reservist and who received a direct loan
under subsection (a) or (b) before being
ordered to active duty; or
‘‘(ii) a small business concern that re-
ceived a direct loan under subsection (a) or
(b) before an eligible reservist, who is an
owner, manager, or key employee described
in subparagraph (B), was ordered to active
duty.
‘‘(2) DEFERRAL OF DIRECT LOANS.—
‘‘(A) IN
GENERAL.—The Administration
shall, upon written request, defer repayment of
principal and interest due on a direct loan made
under subsection (a) or (b), if such loan was in-
curred 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-
servist is ordered to active duty and shall termi-
nate on the date that is 180 days after the date
such eligible reservist is discharged or released
from active duty.
‘‘(C) INTEREST RATE REDUCTION DURING
DEFERRAL.—Notwithstanding any other provi-
sion of law, during the period of deferral de-
scribed in subparagraph (B), the Administra-
tion may, in its discretion, reduce the interest
rate on any loan qualifying for a deferral under
this paragraph.
‘‘(3) DEFERRAL
OF
LOAN
GUARANTEES
AND
OTHER FINANCINGS.—The Administration shall—
‘‘(A) encourage intermediaries partici-
pating in the program under subsection (m) to
defer repayment of a loan made with proceeds
made available under that subsection, if such
loan was incurred by a small business concern
that is eligible to apply for assistance under
subsection (b)(3); and
‘‘(B) not later than 30 days after the date
of enactment of this subsection, establish guide-
lines to—
‘‘(i) encourage lenders and other
intermediaries to defer repayment of, or
provide other relief relating to, loan guar-
antees under subsection (a) and financings
under section 504 of the Small Business
Investment Act of 1958 that were incurred
by small business concerns that are eligible
to apply for assistance under subsection
(b)(3), and loan guarantees provided under
subsection (m) if the intermediary provides
relief to a small business concern under
this paragraph; and
‘‘(ii) implement a program to provide
for the deferral of repayment or other re-
lief to any intermediary providing relief to
a small business borrower under this para-
graph.’’.
SEC. 3. DISASTER LOAN ASSISTANCE FOR MILITARY RE-
SERVISTS’ 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) 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—
‘‘(I) to meet its obligations as they
mature;
‘‘(II) to pay its ordinary and nec-
essary operating expenses; or
‘‘(III) to market, produce, or provide
a product or service ordinarily marketed,
produced, or provided by the business con-
cern;
‘‘(ii) the term ‘owner, manager, or key em-
ployee’ means an individual who—
‘‘(I) has not less than a 20 percent
ownership 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)(1).
‘‘(B) The Administration may make such dis-
aster 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 the owner, manager, or key employee of such
small business concern being ordered to active mili-
tary duty during a period of military conflict.
‘‘(C) A small business concern described in sub-
paragraph (B) shall be eligible to apply for assist-
ance under this paragraph during the period begin-
ning on the date on which the owner, manager, or
key employee is ordered to active duty and ending
on the date that is 180 days after the date on which
such owner, manager, or key employee is discharged
or released from active duty.
‘‘(D) 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
SEC. 4. BUSINESS DEVELOPMENT AND MANAGEMENT AS-
SISTANCE 
FOR 
MILITARY 
RESERVISTS’
SMALL BUSINESSES.
(a) IN GENERAL.—Section 8 of the Small Business
Act (15 U.S.C. 637) is amended by adding at the end the
following:
‘‘(l) MANAGEMENT ASSISTANCE FOR SMALL BUSI-
NESSES AFFECTED BY MILITARY OPERATIONS.—The Ad-
ministration shall utilize, as appropriate, its entrepre-
neurial development and management assistance pro-
grams, including programs involving State or private sec-
tor partners, to provide business counseling and training
to any small business concern adversely affected by the
deployment of units of the Armed Forces of the United
States in support of a period of military conflict (as de-
fined in section 7(n)(1)).
(b) ENHANCED PUBLICITY DURING OPERATION AL-
LIED FORCE.—For the duration of Operation Allied Force
and for 120 days thereafter, the Administration shall en-
hance its publicity of the availability of assistance provided
pursuant to the amendments made by this Act, including
information regarding the appropriate local office at which
affected small businesses may seek such assistance.
SEC. 5. GUIDELINES.
Not later than 30 days after the date of enactment
of this Act, the Administrator of the Small Business Ad-
ministration shall issue such guidelines as the Adminis-
trator determines to be necessary to carry out this Act
and the amendments made by this Act.
SEC. 6. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by this Act shall take effect
on the date of the enactment of this Act.
(b) DISASTER LOANS.—The amendments made by
section 3 shall apply to economic injury suffered or likely
to be suffered as the result of a period of military conflict
occurring on or after March 24, 1999.
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