To provide emergency assistance to certain small business concerns that have suffered substantial economic injury from drought.

February 5, 2003

Mr. DEMINT (for himself and Mr. SPRATT) introduced the following bill; which was referred to the Committee on Small Business

To provide emergency assistance to certain small business concerns that have suffered substantial economic injury from drought.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; FINDINGS.

(a) SHORT TITLE- This Act may be cited as the `Small Business Drought Relief Act of 2003'.

(b) FINDINGS- Congress finds that--

(1) during 2002, more than 36 States suffered from continuing drought conditions;

(2) droughts have a negative effect on State and regional economies;

(3) many small businesses in the United States sell, distribute, market, or otherwise engage in commerce related to water and water sources, such as lakes, rivers, and streams;

(4) many small businesses in the United States suffer economic injury from drought conditions, leading to revenue losses, job layoffs, and bankruptcies;

(5) these small businesses need access to low-interest loans for business-related purposes, including paying their bills and making payroll until business returns to normal;

(6) absent a legislative change, only agriculture and agriculture-related businesses are eligible for Federal disaster loan assistance as a result of drought conditions; and

(7) it is necessary to amend the Small Business Act to clarify that nonfarm small businesses that have suffered substantial economic injury from drought are eligible to receive financial assistance through the economic injury disaster loan program of the Small Business Administration.

SEC. 2. LOANS TO SMALL BUSINESS CONCERNS THAT SUFFER SUBSTANTIAL ECONOMIC INJURY FROM DROUGHT.

(a) DROUGHT DISASTER AUTHORITY- Section 3(k) of the Small Business Act (15 U.S.C. 632(k)) is amended--

(1) by inserting `(1)' after `(k)'; and

(2) by adding at the end the following:

`(2) For purposes of section 7(b)(2), the term `disaster' includes drought.'.

(b) REQUIRED RESPONSE TO CERTIFICATION BY GOVERNOR- Section 7(b)(2)(D) of the Small Business Act (15 U.S.C. 636(b)(2)(D)) is amended by adding at the end the following: `Not later than 30 days after the receipt of such certification, the Administration shall respond in writing to the Governor who submitted such certification and shall state the extent to which the Administration intends to exercise its authority under the preceding sentence with respect to such certification and the reasons therefore.'.

(c) CLERICAL AMENDMENT- Section 7(b)(2)(B) of the Small Business Act (15 U.S.C. 636(b)(2)(B)) is amended by striking `the Consolidated Farmers Home Administration Act of 1961 (7 U.S.C. 1961)' and inserting `section 321 of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961)'.

(d) RULEMAKING- Not later than 45 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall promulgate final rules to carry out the provisions of this section.

END