Seeds for Soldiers Act

109th CONGRESS
2d Session

H. R. 5517

To amend the Small Business Act to establish a temporary loan program and a temporary vocational development program for small business concerns owned and controlled by veterans.

IN THE HOUSE OF REPRESENTATIVES

May 25, 2006

Mr. UDALL of New Mexico (for himself, Mrs. EMERSON, Mrs. KELLY, and Mr. MICHAUD) introduced the following bill; which was referred to the Committee on Small Business

A BILL

To amend the Small Business Act to establish a temporary loan program and a temporary vocational development program for small business concerns owned and controlled by veterans.

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 `Seeds for Soldiers Act'.

SEC. 2. TEMPORARY LOAN PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY VETERANS.

(a) In General- The Administrator may make a loan under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) to a small business concern owned and controlled by veterans.

(b) Special Rules- Notwithstanding the requirements of section 7 of the Small Business Act (15 U.S.C. 636), the following special rules apply to a loan under this section:

(1) The Administrator may make a loan under this section for any business purpose, including the refinancing of any outstanding business debt.

(2) No payment of principal on a loan under this section shall be due or payable during the 1-year period beginning on the date on which the loan is issued. Any interest payable with respect to the loan for such period shall be paid by the Administration.

(3) A loan may be made under this section if the total amount outstanding and committed to the borrower under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) would not exceed $3,000,000.

(4) In the case of an agreement to participate on a deferred basis in a loan under this section--

(A) the participation of the Administration shall be equal to 90 percent of the balance of the financing outstanding at the time of disbursement of the loan;

(B) the Administrator shall collect (except in the case of a loan that is repayable in 1 year or less) a guarantee fee for any loan under this section, which shall be payable by the participating lender, and may be charged to the borrower as follows:

(i) A guarantee fee equal to 0.5 percent of the deferred participation share of a total loan amount that is not more than $150,000.

(ii) A guarantee fee equal to 1.5 percent of the deferred participation share of a total loan amount that is more than $150,000, but not more than $700,000.

(iii) A guarantee fee equal to 2 percent of the deferred participation share of a total loan amount that is more than $700,000; and

(C) the annual fee assessed and collected on any such loan shall not exceed an amount equal to 0.15 percent of the outstanding balance of the deferred participation share of the loan.

(5) The Administrator may make such loans without regard to the ability of a small business concern to obtain credit elsewhere.

(6) The Administrator shall make such loans without regard to the availability of collateral to secure such loans.

(d) Definitions- For the purpose of this section, the terms `Administrator', `Administration', `credit elsewhere', and `small business concern owned and controlled by veterans' have the respective meanings given such terms in section 3 of the Small Business Act (15 U.S.C. 632).

(e) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $25,000,000 for fiscal year 2007. Such sum shall remain available until expended.

SEC. 3. TEMPORARY VOCATIONAL DEVELOPMENT PROGRAM FOR VETERANS.

(a) Establishment- In accordance with this section, the Administrator shall make grants to small business development centers for the provision of a program of assistance for veterans that includes training in a vocational or technical trade and entrepreneurial assistance in establishing and operating a small business concern that provides services in such trade.

(b) Minimum Grant Amount- The Administrator shall not make a grant under this section for an amount less than $500,000.

(1) APPLICATION- To be eligible to receive a grant under this section, a small business development center shall submit to the Administrator an application in such form and containing such information and assurances as the Administrator may require and that includes information regarding the applicant's goals and objectives for the program of assistance to be provided with the grant.

(2) PRIORITY IN AWARDING GRANTS- In awarding the grants, the Administrator shall consider the needs of the area served by the small business development center, including whether the small business development center is located in the proximity of a United States military installation.

(d) Termination- The Administrator shall not make any grant under this section after December 31, 2008.

(e) Coordination With Small Business Act- A grant made under this section shall not be taken into account for purposes of section 21 of the Small Business Act (15 U.S.C. 648).

(f) Definitions- For purposes of this section the following definitions apply:

(1) The term `Administrator' means the Administrator of the Small Business Administration.

(2) The term `small business development center' means a small business development center described in section 21 of the Small Business Act (15 U.S.C. 648).

(3) The term `veteran' has the meaning given such term in section 3(q)(4) of the Small Business Act (15 U.S.C. 632(q)(4)).

(g) Authorization of Appropriations- There is authorized to be appropriated to carry out this section $25,000,000 for fiscal year 2007. Such amount shall remain available until expended.

END