To provide economic relief to general aviation small business concerns that have suffered substantial economic injury as a result of the terrorist attacks perpetrated against the United States on September 11, 2001.

June 17, 2003

Mr. SHUSTER (for himself, Mr. HAYES, Mr. BOSWELL, Mr. LAMPSON, Mr. EHLERS, Mr. OTTER, Mr. DUNCAN, Mr. MORAN of Kansas, Mr. GRAVES, and Mr. BOOZMAN) introduced the following bill; which was referred to the Committee on Small Business

To provide economic relief to general aviation small business concerns that have suffered substantial economic injury as a result of the terrorist attacks perpetrated against the United States on September 11, 2001.

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 `General Aviation Small Business Relief Act of 2003'.

SEC. 2. SMALL BUSINESS ASSISTANCE.

(a) IN GENERAL- Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended by adding after paragraph (3) the following:

`(4) GENERAL AVIATION SMALL BUSINESS RELIEF-

`(A) GRANT AND LOAN AUTHORITY- Notwithstanding any other provision of law, the Administration--

`(i) shall, upon application, make grants to general aviation small business concerns in an amount equal to the amount of direct losses incurred by each such small business concern beginning on September 11, 2001, as a result of any Federal ground stop order issued by the Secretary of Transportation or any subsequent order which continues or renews such a stoppage related to the terrorist attacks occurring on September 11, 2001, with respect to general aviation small business concerns;

`(ii) may make such 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--

`(I) is a general aviation small business concern; and

`(II) has suffered or that is likely to suffer as a result of the terrorist attacks perpetrated against the United States on September 11, 2001, substantial economic injury that is not incidental to the revenue of that small business concern and is not compensated for by insurance or otherwise.

`(B) TERMS- With respect to a loan under this paragraph--

`(i) no interest rate shall apply to the loan, and no interest shall accrue on the loan, during the 1-year period beginning on the date on which the loan is issued; and

`(ii) after the 1-year period described in clause (i), the applicable interest rate and other terms and conditions shall be the same as the interest rate and other terms and conditions as are applicable to economic injury loans under paragraph (2).

`(D) NO EFFECT ON LOAN LIMITS- A grant or loan under this paragraph shall be in addition to any other grant or loan made under this Act, notwithstanding any limitation on the amounts of such grants or loans under this Act.

`(E) NO DISASTER DECLARATION REQUIRED- For purposes of assistance under this paragraph, no declaration of a disaster area shall be required.

`(F) DEFINITIONS- In this paragraph--

`(i) the term `general aviation small business concern' means a small business concern that is a regular provider of general aviation services, including aircraft rentals and flight training instruction; and

`(ii) the term `substantial economic injury' means an economic harm to a small business concern that results in the inability of the small 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) CONFORMING AMENDMENTS- Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended--

(1) in the second undesignated paragraph following paragraph (4), as added by this section, by striking `paragraphs (1), (2), and (4)' and inserting `paragraphs (1) and (2)'; and

(2) in subparagraph (E) of such undesignated paragraph, by striking `paragraph (1), (2), or (4)' and inserting `paragraph (1) or (2)'.

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Small Business Administration, such sums as may be necessary to carry out section 7(b)(4) of the Small Business Act, as added by this section, including administrative expenses, to remain available until expended.

SEC. 3. DEFERMENT OF SMALL BUSINESS LOAN PAYMENTS.

(a) IN GENERAL- Notwithstanding any other provision of law, payments on any loan issued to a general aviation small business concern by the Small Business Administration shall be deferred with respect to principal and interest, and no interest shall accrue with respect to such loan, during the 1-year period following the date of enactment of this Act.

(b) RESUMPTION OF PAYMENTS- At the end of the 1-year period described in subsection (a), the payment of periodic installments of principal and interest shall be required with respect to loans described in subsection (a), in the same manner and subject to the same terms and conditions as would otherwise be applicable to such loan.

(c) DEFINITION- In this section, the term `general aviation small business concern' has the same meaning as in section 7(b)(4) of the Small Business Act, as added by section 2 of this Act.

END