article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Military Reserves Small Business Relief Act''. SEC. 2. REPAYMENT DEFERRAL FOR ACTIVE DUTY RESERVES. 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 Reserves.-- ``(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 reserve 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 described 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 `eligible reserve' means a member of a reserve component of the Armed Forces serving pursuant 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 employee.--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 concern described in subparagraph (D)(ii); ``(ii) is a manager responsible for the day-to-day operations of such small business 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 Congress; ``(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 received 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 ordered to remain on active duty, during a period of military conflict.''. SEC. 3. DISASTER LOAN ASSISTANCE FOR MILITARY RESERVES' SMALL BUSINESSES. (a) In General.--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) 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 (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 result of a call or order to active military duty, or an order to remain on active duty, of an owner, manager, 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 interest rate of 4 percent, without regard to the ability of the small business concern to secure credit elsewhere. ``(C) 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 $500,000, except that the Administration may waive the $500,000 limitation if the Administration determines 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 results 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 employee' 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 business concern; or ``(III) is a key employee (as defined by the Administration) of such small business 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.
summary: Military Reserves Small Business Relief Act - 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 the owner, manager, or key employee of a small business for which the loan was made. Extends such deferral period until the later of 180 days after: (1) such reservist is discharged or released from active duty; or (2) the date of enactment of this Act. Applies such assistance to periods of military conflict occurring on or after August 1, 1990. Authorizes the SBA to make disaster loans to assist a small business that has suffered or is likely to suffer economic injury as the result of the owner, manager, or key employee of such business being ordered to active duty during a period of military conflict. Provides a loan limitation. Applies such assistance to periods of military conflict occurring on or after August 1, 1990.