article: 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 RESERVISTS. 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 Reservists.-- ``(1) Definitions.--In this subsection: ``(A) Eligible reservist.--The term `eligible reservist' means a member of a reserve component of the Armed Forces ordered to active duty during a period of military conflict. ``(B) Essential employee.--The term `essential employee' means an individual who is employed by a small business concern and whose managerial or technical expertise is critical to the successful day- to-day operations of that small business concern. ``(C) Period of military conflict.--The term `period of military conflict' means-- ``(i) a period of war declared by Congress; ``(ii) a period of national emergency declared by Congress or by the President; or ``(iii) a period of a contingency operation, 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 received a direct loan under subsection (a) or (b) before an eligible reservist, who is an essential employee, 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 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 reservist is ordered to active duty and shall terminate 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 provision of law, during the period of deferral described in subparagraph (B), the Administration 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 participating 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 guidelines to-- ``(i) encourage lenders and other intermediaries to defer repayment of, or provide other relief relating to, loan guarantees 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 relief to any intermediary providing relief to a small business borrower under this paragraph.''. SEC. 3. DISASTER LOAN ASSISTANCE FOR MILITARY RESERVISTS' SMALL BUSINESSES. Section 7(b) of the Small Business 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 `essential employee' means an individual who is employed by a small business concern and whose managerial or technical expertise is critical to the successful day-to-day operations of that small business concern; ``(ii) the term `period of military conflict' has the meaning given the term in subsection (n)(1); and ``(iii) the term `substantial economic injury' means an economic harm to a business concern that results in the inability of the business concern-- ``(I) to meet its obligations as they mature; ``(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 business concern. ``(B) The Administration may make such disaster loans (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis) to assist a small business concern that has suffered or that is likely to suffer substantial economic injury as the result of an essential employee of such small business concern being ordered to active military duty during a period of military conflict. ``(C) A small business concern described in subparagraph (B) shall be eligible to apply for assistance under this paragraph during the period beginning on the date on which the essential employee is ordered to active duty and ending on the date that is 90 days after the date on which such essential employee is discharged or released from active duty. ``(D) Any loan or guarantee extended pursuant to this paragraph shall be made at the same interest rate as economic injury loans under paragraph (2). ``(E) No loan may be made under this paragraph, 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 borrower under this subsection would exceed $1,500,000, unless such applicant constitutes a major source of employment in its surrounding area, as determined by the Administration, in which case the Administration, in its discretion, may waive the $1,500,000 limitation. ``(F) For purposes of assistance under this paragraph, no declaration of a disaster area shall be required.''. SEC. 4. BUSINESS DEVELOPMENT AND MANAGEMENT ASSISTANCE 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 Businesses Affected by Military Operations.--The Administration shall utilize, as appropriate, its entrepreneurial development and management assistance programs, including programs involving State or private sector 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 defined in section 7(n)(1)).''. (b) Enhanced Publicity During Operation Allied Force.--For the duration of Operation Allied Force and for 120 days thereafter, the Administration shall enhance 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 Administration shall issue such guidelines as the Administrator 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 or ending on or after March 24, 1999. Passed the Senate July 27, 1999. Attest: GARY SISCO, Secretary.
summary: Military Reservists Small Business Relief Act of 1999 - Amends the Small Business Act to require the Small Business Administration (SBA), upon written request, to defer repayment of principal and interest due on a direct general business or disaster loan made to a member of the reserves ordered to active duty during a period of military conflict, as long as such reservist: (1) received the loan before being ordered to such duty; and (2) is an essential employee of a small business for which the loan was made. Extends such deferral period until 180 days after such reservist is discharged or released from active duty. Directs the SBA to encourage lenders and loan intermediaries participating in other SBA loan programs to defer repayment of similar loans as well as loans made under the Small Business Investment Act of 1958. Authorizes the SBA to make disaster loans to assist a small business that has or is likely to suffer economic injury as the result of the essential employee of such business being ordered to active duty during a period of military conflict. Extends such assistance until 90 days after such reservist is discharged or released from such duty. Provides a loan limitation. Applies such assistance to periods of military conflict occurring on or after March 24, 1999. Directs the SBA to utilize its entrepreneurial development and management assistance programs to provide business counseling and training to any small business adversely affected by the deployment of units of U.S. armed forces in support of a period of military conflict. Requires the SBA, for the duration of Operation Allied Force and 120 days thereafter, to enhance its publicity of the availability of such assistance.