Small Business Emergency Relief Act of 2001 (Introduced in the House) HR 3011 IH 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 occurred on September 11, 2001, and for other purposes. IN THE HOUSE OF REPRESENTATIVES October 3, 2001 Ms. VELAZQUEZ (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. KENNEDY 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 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 occurred on September 11, 2001, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the `Small Business Emergency 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 requirements 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 necessary 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 elsewhere. (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 section 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 financial institution, 200 percent) of each size standard applicable to such concern. (6) CHARITABLE ORGANIZATIONS- The Administrator may make such a loan to any charitable organization as the Administrator determines necessary 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 business 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 occurred on September 11, 2001, the Administrator may undertake all or part of the small business concern's obligation 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 forgive or undertake any loan under subsection (a) after the end of the 1-year period beginning on the date of the enactment 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 Administration's interest in, or the rights of the Administration with respect to, any loan made directly or through immediate participation under section 7(b), including by direct sale, through the sale of loan participations, or by including 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 `Administrator' means the Administrator of the Small Business Administration. (2) CHARITABLE ORGANIZATION- The term `charitable organization' means an organization described 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 section 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)).