Small Business Act

§ 7(a)(34)(A)(i)(VIII) to
§ 7(b)

SMALL BUSINESS ACT

(VIII) providing term loans or other financing to
enable a small business concern, including an export trading company and an export
management company, to develop a market outside the United States; and
(IX) acquiring, constructing, renovating,
modernizing, improving, or expanding a production facility or equipment to be used in the
United States in the production of goods or services for export; and
(ii)
the term “express loan” means a loan in which a lender
uses to the maximum extent practicable the loan analyses, procedures, and documentation of
the lender to provide expedited processing of the loan application.

“Express
loan.”

(B)
AUTHORITY.—The Administrator may guarantee the timely
payment of an express loan to a small business concern made for an export development
activity.
(C)

LEVEL OF PARTICIPATION.—

(i)
MAXIMUM AMOUNT.—the maximum amount of an
express loan guaranteed under this paragraph shall be $500,000.
(ii)
PERCENTAGE.—For an express loan guaranteed
under this paragraph, the Administrator shall guarantee—
(I)

90 percent of a loan that is not more than

(II)

75 percent of a loan that is more than $350,000

$350,000; and

and not more than $500,000.
(b)220 Except as to agricultural enterprises as defined in section 18(b)(1) of this Act,
the Administration also is empowered to the extent and in such amounts as provided in
advance in appropriation Acts—

Disaster loans.

220

Sections 7(b)(1) and 7(b)(2) rewritten by § 1911 of P.L. 97-35, approved Aug. 13, 1981 (95 Stat. 357); the exception for
agricultural enterprises was added by § 18006 of P.L. 99-272, approved April 7, 1986 (100 Stat. 366). Section 12064 of P.L.
110-234, enacted May 22, 2008 (122 Stat. 1409) provides:
(a) IN GENERAL.—The Administrator shall, promptly following the date of enactment of this Act, conduct a study
of whether the standard operating procedures of the Administration for loans offered under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) are consistent with the regulations of the Administration for administering the
disaster loan program.
(b) REPORT.—Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to
Congress a report containing all findings and recommendations of the study conducted under subsection (a).
The same language was enacted again in P.L. 110-246, June 18, 2008 (122 Stat. 2171).
Section 12052 of P.L. 110-234, enacted May 22, 2008 (122 Stat. 1406) contained the following definitions:

102

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§ 7(b)(1)(A)
SMALL BUSINESS ACT

(1)
(A)
to make such loans (either directly or in cooperation with banks
or other lending institutions through agreements to participate on an immediate or deferred
(guaranteed) basis) as the Administration may determine to be necessary or appropriate to
repair, rehabilitate or replace property, real or personal, damaged or destroyed by or as a
result of natural or other disasters:221 Provided, That such damage or destruction is not
compensated for by insurance or otherwise: And provided further, That the Administration
may increase the amount of the loan by up to an additional 20 per centum of the aggregate
costs of such damage or destruction (whether or not compensated for by insurance or
otherwise)222 if it determines such increase to be necessary or appropriate in order to protect

SEC. 12052. DEFINITIONS.
In this subtitle—
(1) the terms “Administration” and “Administrator” mean the Small Business Administration and the Administrator
thereof, respectively;
(2) the term “disaster area” means an area affected by a natural or other disaster, as determined for purposes of
paragraph (1) or (2) of section 7(b) of the Small Business Act (15 U.S.C. 636(b)), during the period of such
declaration;
(3) the term “disaster loan program of the Administration” means assistance under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), as amended by this Act;
(4) the term “disaster update period” means the period beginning on the date on which the President declares a
major disaster (including any major disaster relating to which the Administrator declares eligibility for additional
disaster assistance under paragraph (9) of section 7(b) of the Small Business Act (15 U.S.C. 636(b)), as added by
this Act) and ending on the date on which such declaration terminates;
(5) the term “major disaster” has the meaning given that term in section 102 of the Robert T. Stafford Disaster relief
and Emergency Assistance Act (42 U.S.C. 5122);
(6) the term “small business concern” has the meaning given that term under section 3 of the Small Business Act
(15 U.S.C. 636(b)); and
(7) the term “State” means any State of the United States, the district of Columbia, the Commonwealth of Puerto
Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and any territory or possession of
the United States.
The same language was enacted again in P.L. 110-246, June 18, 2008 (122 Stat. 2168).
221

The phrase “floods, riots or civil disorders, or other catastrophes” in § 7(b)(1)(A) was replaced by current language by
subsection 119(a) of P.L. 100-590, approved Nov. 3, 1988 (102 Stat. 2999). Subsection 119(b) of the same Act provided the
definition of “disaster” in § 3(k) of the Small Business Act.
222

Language following “20 per centum” added by § 12078(b)(1) of P.L. 110-234, approved May 22, 2008 (122 Stat. 1415).
The same language was enacted again in P.L. 110-246, June 18, 2008 (122 Stat. 2177). Section 12078(b)(2) provides:
(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply with respect to a loan or guarantee
made after the date of enactment of this Act.

103

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§ 7(b)(1)(A)(i) to
§ 7(b)(1)(C)
SMALL BUSINESS ACT

the damaged or destroyed property from possible future disasters by taking mitigating
measures, including, including—
(i)

construction of retaining walls and sea walls;

(ii)

grading and contouring land; and

(iii)223 relocating utilities and modifying structures, including
construction of a safe room or similar storm shelter designed to protect property and
occupants from tornadoes or other natural disasters, if such safe room or similar storm shelter
is constructed in accordance with applicable standards issued by the Federal Emergency
Management Agency.
(B)
to refinance any mortgage or other lien against a totally
destroyed or substantially damaged home or business concern: Provided, That no loan or
guarantee shall be extended unless the Administration finds that (i) the applicant is not able
to obtain credit elsewhere;224 (ii) such property is to be repaired, rehabilitated, or replaced;
(iii) the amount refinanced shall not exceed the amount of physical loss sustained; and (iv)
such amount shall be reduced to the extent such mortgage or lien is satisfied by insurance or
otherwise; and
225

(C)
during fiscal years 2000 through 2004, to establish a
predisaster mitigation program to make such loans (either directly or in cooperation with
banks or other lending institutions through agreements to participate on an immediate or
deferred (guaranteed) basis), as the Administrator may determine to be necessary or

Disaster
mitigation
pilot
program.

223

Second proviso in subparagraph 7(b)(1)(A) added by § 121 of P.L. 100-590, approved Nov. 3, 1988 (102 Stat. 2999).
Language after “mitigating measures” was reorganized and clause (iii) added by § 1102 of P.L. 114-88, approved Nov. 25,
2015 (129 Stat. 688).
224

“Credit elsewhere” defined in § 3(h).

225

New subparagraph 7(b)(1)(C) added by § 1(a) of P.L. 106-24, approved April 27, 1999 (113 Stat. 39). Section 1(c) of P.L.
106-24 provides:
EVALUATION.—On January 31, 2003, the Administrator of the Small Business Administration shall submit to
the Committees on Small Business of the House of Representatives and the Senate a report on the effectiveness
of the pilot program authorized by section 7(b)(1)(C) of the Small Business Act (15 U.S.C. 636(b)(1)(C)), as
added by subsection (a) of this section, which report shall include—
(1) information relating to—
(A) the areas served under the pilot program;
(B) the number and dollar value of loans made under the pilot program; and
(C) the estimated savings to the Federal Government resulting from the pilot program; and
(2) such other information as the Administrator determines to be appropriate for evaluating the pilot program.

104

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§ 7(b)(2)
SMALL BUSINESS ACT

appropriate, to enable small businesses to use mitigation techniques in support of a formal
mitigation program established by the Federal Emergency Management Agency, except that
no loan or guarantee may be extended to a small business under this subparagraph unless the
Administration finds that the small business is otherwise unable to obtain credit for the
purposes described in this subparagraph;
(2)226 to make such loans (either directly or in cooperation with banks or
other lending institutions through agreements to participate on an immediate or deferred
(guaranteed) basis as the Administration may determine to be necessary or appropriate) to
any small business concern, private nonprofit organization, or small agricultural
cooperative227 located in an area affected by a disaster, (including drought), with respect to
both farm-related and nonfarm-related small business concerns,228 if the Administration
226

Section 202 of P.L. 107-117, approved Jan. 10, 2002 (115 Stat. 2230) provides:
For purposes of assistance available under section 7(b)(2) [and (4)] of the Small Business Act to small business
concerns located in disaster areas declared as a result of the September 11, 2001, terrorist attacks—
(i) the term “small business concern” shall include not-for-profit institutions and small business concerns
described in United States Industry Codes 522320, 522390, 523210, 523920, 523991, 524113, 524114, 524126,
524128, 524210, 524291, 524292, and 524298 of the North American Industry Classification System (as
described in 13 C.F.R. 121.201, as in effect on January 2, 2001);
(ii) the Administrator may apply such size standards as may be promulgated under such section 121.201 after the
date of enactment of this provision, but no later than one year following the date of enactment of this Act; and
(iii) payments of interest and principal shall be deferred, and no interest shall accrue during the two-year period
following the issuance of such disaster loan.

Section 203 of the same act provides:
Notwithstanding any other provision of law, the limitation on the total amount of loans under section 7(b) of the
Small Business Act outstanding and committed to a borrower in the disaster areas declared in response to the
September 11, 2001, terrorist attacks shall be increased to $10,000,000 and the Administrator shall, in lieu of the
fee collected under section 7(a)(23)(A) of the Small Business Act, collect an annual fee of 0.25 percent of the
outstanding balance of deferred participation loans made under section 7(a) to small businesses adversely
affected by the September 11, 2001, terrorist attacks and their aftermath, for a period of one year following the
date of enactment and to the extent the costs of such reduced fees are offset by appropriations provided by this
Act.
227

The phrase “small business concern or small agricultural cooperative” or similar conforming language substituted in lieu of
“small business concern” throughout § 7(b)(2) by § 311 of P.L. 98-270, approved April 18, 1984 (98 Stat. 157) (effective, as
per § 313, on Oct. 1, 1983). Section 312 of P.L. 98-270 provides that this amendment shall apply to loans granted on the
basis of any disaster with respect to which a declaration has been issued after Sept. 1, 1982, under § 7(b)(2)(A), (B), or (C) of
the Small Business Act or with respect to which a certification has been made after such date under § 7(b)(2)(D) of such Act.
Note: See also § 3(j) of the Small Business Act, defining “small agricultural cooperative.” References to “private nonprofit
organization” added by § 12061(a)(1) of P.L. 110-234, enacted May 22, 2008 (122 Stat. 1406). The same language was
enacted again in P.L. 110-246, June 18, 2008 (122 Stat. 2168).
228

Language regarding drought added by § 845(a)(2) of P.L. 109-163, approved Jan. 6, 2006 (119 Stat. 3390). Section
845(b) of that law provides:
(b) LIMITATION ON LOANS.—From funds otherwise appropriated for loans under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), not more than $9,000,000 may be used during each of fiscal years 2005 through

105

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§ 7(b)(2)(A) to
§ 7(b)(2)(D)
SMALL BUSINESS ACT

determines that the concern, the organization, or the cooperative has suffered a substantial
economic injury as a result of such disaster and if such disaster constitutes—
(A)
a major disaster, as determined by the President under the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.);229 [42 USC 5121].
or
(B)
a natural disaster, as determined by the Secretary of
Agriculture pursuant to section 321 of the Consolidated Farm and Rural Development Act (7
U.S.C. 1961), in which case, assistance under this paragraph may be provided to farm-related
and nonfarm-related small business concerns, subject to the other applicable requirements of
this paragraph;230 or
(C)231 a disaster, as determined by the Administrator of the Small
Business Administration; or
(D)
if no disaster declaration has been issued pursuant to
subparagraph (A), (B), or (C), the Governor of a State in which a disaster has occurred may Certification
certify to the Small Business Administration that232 small business concerns, private
by Governor.
nonprofit organizations, or small agricultural cooperatives (1) have suffered economic injury
as a result of such disaster, and (2) are in need of financial assistance which is not available
on reasonable terms in the disaster stricken area. Not later than 30 days after the date of
2008, to provide drought disaster loans to nonfarm-related small business concerns in accordance with this section
and the amendments made by this section.
Section 845(d) of P.L. 109-163 provides:
(d) RULEMAKING.—Not later than 45 days after the date of enactment of this Act, the Administrator of the Small
Business Administrtion shall promulgate final rules to carry out this section and the amendments made by this
section.
229

The reference to the 1950 Act deleted and existing language inserted by subsection 109(f)(1) of P.L. 100-707, approved
Nov. 23, 1988 (102 Stat. 4708). “Major disaster” is defined in § 102(2) of the 1974 Act, as amended by § 103(c) of P.L.
100-707, supra. Reference changed to the Stafford Act by § 12063(c)(2) of P.L. 110-234, enacted May 22, 2008 (122 Stat.
1409). The same language was enacted again in P.L. 110-246, June 18, 2008 (122 Stat. 2171).
230

Section 1(a) of P.L. 88-264, approved Feb. 5, 1964 (78 Stat. 7), extended paragraph (2) beyond its former scope relating
solely to drought and excessive rainfall disasters. The Act referred to is now the Consolidated Farm and Rural Development
Act. Language after the reference to the Consolidated Farm and Rural Development Act added by § 845(a)(2)(B) of P.L.
109-163, approved Jan. 6, 2006 ( 119 Stat. 3390).
231

Former paragraphs (C), (D) and (E) were originally added by § 403 of P.L. 95-89, approved Aug. 4, 1977 (91 Stat. 553).
Paragraphs (C) and (D) were amended by § 1911 of P.L. 97-35, approved Aug. 13, 1981 (95 Stat. 357), which also deleted
previous paragraph (E). P.L. 98-166, approved Nov. 28, 1983 (97 Stat. 1071 at 1079), provides that beginning with disasters
commencing between Jan. 1, 1983, through Sept. 30, 1983, the determination of a natural disaster by the Secretary of
Agriculture pursuant to 7 USC 1961 shall be deemed a disaster declaration by the Administrator of SBA for eligibility
purposes under § 7(b)(1) for agricultural enterprises as defined in § 18(b) of the Small Business Act.
232

Section 311 of P.L. 98-270, approved April 18, 1984 (98 Stat. 157), added “or small agricultural cooperatives” here.

106

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§ 7(b)(2)(D)
SMALL BUSINESS ACT

receipt of such certification by a Governor of a State, the Administration shall respond in
writing to that Governor on its determination and the reasons therefore, and may233 then
make such loans as would have been available under this paragraph if a disaster declaration
had been issued.
Provided, That no loan or guarantee shall be extended pursuant to this paragraph (2) unless
the Administration finds that the applicant is not able to obtain credit elsewhere.234

Credit
elsewhere.

233

The phrase “Upon receipt of such certification, the Administration may” was replaced by the current language by § 845(c)
of P.L. 109-163, approved Jan. 6, 2006 (119 Stat. 3391).
234

Sections 7(b)(3) and (4), providing non-physical disaster loans to small business concerns, were repealed by § 18006(a) of
P.L. 99-272, approved April 7, 1986 (100 Stat. 366). Section 18006(b) of P.L. 99-272 provides that SBA should continue to
accept, process and approve loan applications under paragraphs (1) - (4) of subsection 7(b) and shall obligate and disburse
loan funds on account of disasters declared before Oct. 1, 1985, even if such application is filed after April 7, 1986. P.L.
99-349, approved July 2, 1986 (100 Stat. 718), amends § 18006(b) to apply to a disaster which occurred prior to Oct. 1, 1985,
and with respect to which a disaster declaration application was submitted prior to Oct. 1, 1985. The text of repealed
paragraphs (3) and (4) is provided:
(3) to make such loans (either directly or in cooperation with banks or other lending institutions through agreements
to participate on an immediate or deferred basis) as the Administration may determine to be necessary or appropriate
to assist any small business concern in effecting continuation of, additions to, alterations in, or reestablishment in the
same or a new location of its plant, facilities, or methods of operation made necessary by direct action of the Federal
Government or as a consequence of Federal Government action or to meet requirements or restrictions imposed on
such concern under any Federal law heretofore or hereafter enacted or any State law enacted in conformity
therewith, or any regulation or order of a duly authorized Federal, State, regional, or local agency issued in
conformity with such Federal law, if the Administration determines that such concern is likely to suffer substantial
economic injury or be unable to market a product without assistance under this paragraph: Provided, That the
maximum loan made to any small business concern under this paragraph shall not exceed $500,000 and the amount
thereof shall be based solely on a determination made on each application: Provided further, That no loan or
guarantee shall be extended unless the Administration finds that the applicant is unable to obtain credit elsewhere.
For the purposes of this paragraph, the impact of the 1983 Payment-in-Kind Land Diversion program, or any
successor Payment-in-Kind program with a similar impact on the small business community, shall be deemed to be
a consequence of Federal Government Action; and
(4) To 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) as the Administration may determine to be necessary to
assist, or refinance all or part of the existing indebtedness (specifically including any direct loans under section 7(a)
of this Act which were made to small businesses affected by currency fluctuations and exchange freezes), of any
small business concern located in an area of economic dislocation that is the result of the drastic fluctuation in the
value of the currency of a country contiguous to the United States and adjustments in the regulation of its monetary
system if such concern is unable to obtain credit elsewhere. The Governor of a State may certify to the
Administration (A) that small business concerns within the State have suffered substantial economic injury as a
result of such economic dislocation, and (B) that such concerns are in need of financial assistance which is not
available on reasonable terms. Such economic dislocations must be of such magnitude that without the benefit of
disaster loans provided hereunder a significant number of otherwise financially sound small businesses in the
impacted regions or business sectors would either become insolvent or be unable to return quickly to their former
level of operation. No disaster loan made hereunder shall exceed $100,000, nor shall the proceeds thereof be used to
reduce the exposure of any other lender. The Administration may permit deferral of payment of principal and
interest for one year on loans made hereunder.
Prior history of repealed paragraphs (3) and (4):
Former §§ 7(b)(3) - 7(b)(9) repealed by § 1913(a) of P.L. 97-35, approved Aug. 13, 1981 (95 Stat. 357). A new §

107

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§ 7(b)(3)(A) to
§ 7(b)(3)(A)(ii)
SMALL BUSINESS ACT

(3)235 (A)

In this paragraph—
“Essential

(i)
the term “essential employee” means an individual who employee.”
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

“Period of
military
conflict.”

7(b)(3) was added which contained a “credit elsewhere” test. These amendments were effective Oct. 1, 1981, per §
1918 of P.L. 97-35. See also § 23(2) of the Small Business Act. The words “continuation of” after “in effecting”
added by § 308 of P.L. 98-270, approved April 18, 1984, effective Oct. 1, 1983. Words “heretofore of hereafter
enacted” were in prior § 7(b)(5) and were originally added by § 302 of P.L. 95-89, approved Aug. 4, 1977 (91 Stat.
553), to resolve the question of retroactivity of prior § 7(b)(5).
Elements of this subsection are derived from previous § 7(b)(5) which was added by § 2 of P.L. 93-237, approved
Jan. 2, 1974 (87 Stat. 1023). Previous § 7(b)(5) consolidated and expanded existing SBA authority to finance small
businesses required to make structural, operational and other changes by Federal laws or State laws enacted in
conformity therewith, to comply with environmental, consumer, pollution, and safety standards. The section
consolidated three subsections of the Small Business Act into a single section: the Coal Mine Health and Safety Act
of l969 (subsection 7(b)(5) of the Small Business Act), the Occupational Safety and Health Act of l970 (subsection
7(b)(5)), and the Egg Product Inspection Act of l970 (which also extended eligibility to small firms affected by the
Wholesome Meat Act of l967 and the Wholesome Poultry Products Act of l968 (subsection 7(b)(6)). “Credit
elsewhere” defined in § 3(h).
The sentence in former § 7(b)(3) relating to payment-in-kind beginning “For the purposes of this paragraph . . .” was
added by § 308 of P.L. 98-270, approved April 18, 1984 (98 Stat. 157) (effective, as per § 313, on Oct. 1, 1983).
Former subsection 7(b)(4) added by § 304 of P.L. 98-270, approved April 18, 1984 (98 Stat. 157) (effective, as per §
313, on Oct. 1, 1983).
235

New paragraph 7(b)(3) added by § 402(b) of P.L. 106-50, approved August 17, 1999 (113 Stat. 245). That section further
provides:
(c) 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 section, including information regarding the appropriate local
office at which affected small businesses may seek such assistance.
(d) GUIDELINES.—Not later than 30 days after the date of the enactment of this section, the Administrator of the
Small Business Administration shall issue such guidelines as the Administrator determines to be necessary to carry
out this section and the amendments made by this section.
(e) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in paragraph (2), the amendments made by this section shall take effect on
the date of the enactment of this section.
(2) DISASTER LOANS.—The amendments made by subsection (b) 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.

108

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§ 7(b)(3)(A)(iii) to
§ 7(b)(3)(B)

SMALL BUSINESS ACT

(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

“Substantial
economic
injury.”

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. 236
236

Section 201(b) of P.L. 110-186, approved Feb. 14, 2008 (122 Stat. 627) provides:
(1) DEFINITION.—In this subsection, the term “eligible Reservist” means a Reservist who—
(A) has not been ordered to active duty;
(B) expects to be ordered to active duty during a period of military conflict; and
(C) can reasonably demonstrate that the small business concern for which that Reservist is a key employee will
suffer economic injury in the absence of that Reservist.
(2) ESTABLISHMENT.—Not later than 6 months after the date of enactment of this Act, the Administrator
shall establish a pre-consideration process, under which the Administrator—
(A) may collect all relevant materials necessary for processing a loan to a small business concern under section
7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) before an eligible Reservist employed by that small
business concern is activated; and
(B) shall distribute funds for any loan approved under subparagraph (A) if that eligible Reservist is activated.

Section 201(c) of P.L. 110-186 provides:
(c) OUTREACH AND TECHNICAL ASSISTANCE PROGRAM.—
(1) IN GENERAL.—Not later than 6 months after the date of enactment of this Act, the Administrator, in
consultation with the Secretary of Veterans Affairs and the Secretary of Defense, may develop a comprehensive
outreach and technical assistance program (in this subsection referred to as the “program”) to—
(A) market the loans available under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) to Reservists,
and family members of Reservists, that are on active duty and that are not on active duty; and
(B) provide technical assistance to a small business concern applying for a loan under that section.
(2) COMPONENTS.—The program shall—

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§ 7(b)(3)(C)
SMALL BUSINESS ACT

(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
1 year237 after the date on which such essential employee is discharged or released from
(A) incorporate appropriate websites maintained by the Administration, the Department of Veterans Affairs, and the
Department of Defense; and
(B) require that information on the program is made available to small business concerns directly through—
(i) the district offices and resource partners of the Administration, including small business development centers,
women’s business centers, and the Service Corps of Retired Executives; and
(ii) other Federal agencies, including the Department of Veterans Affairs and the Department of Defense.
(3) REPORT.—
(A) IN GENERAL.—Not later than 6 months after the date of enactment of this Act, and every 6 months thereafter
until the date that is 30 months after such date of enactment, the Administrator shall submit to Congress a report on
the status of the program.
(B) CONTENTS.—Each report submitted under subparagraph (A) shall include—
(i) for the 6-month period ending on the date of that report—
(I) the number of loans approved under section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3));
(II) the number of loans disbursed under that section; and
(III) the total amount disbursed under that section; and
(ii) recommendations, if any, to make the program more effective in serving small business concerns that employ
Reservists.
Section 202 of P.L. 110-186 provides:
Sec. 202. RESERVIST LOANS.
(a) IN GENERAL.—the Administrator and the Secretary of Defense shall develop a joint website and printed
materials providing information regarding any program for small business concerns that is available to veterans or
Reservists.
(b) MARKETING.—The Administrator is authorized—
(1) to advertise and promote the program under section 7(b)(3) of the Small Business Act jointly with the Secretary
of Defense and veterans’ service organizations; and
(2) to advertise and promote participation by lenders in such program jointly with trade associations for banks
or other lending institutions.
237

“90 days” changed to “1 year” by § 201(a)(1) of P.L. 110-186, approved Feb. 14, 2008 (122 Stat. 627). The last sentence
in the paragraph was added by § 201(a)(2) of the same law.

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§ 7(b)(3)(D) to
§ 7(b)(4)
SMALL BUSINESS ACT

active duty. The Administrator may, when appropriate (as determined by the Administrator),
extend the ending date specified in the preceding sentence by not more than 1 year.
(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, or have
[sic] become due to changed economic circumstances,238 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.
Notwithstanding any other provision of law, the
(G)239 (i)
Administrator may make a loan under this paragraph of not more than $50,000 without
collateral.
(ii)
The Administrator may defer payment of principal and
interest on a loan described in clause (i) during the longer of—
(I)

the 1-year period beginning on the date of the

(II)

the period during which the relevant essential

initial disbursement of the loan; and

employee is on active duty.
(H)240 The Administrator shall give priority to any application for a
loan under this paragraph and shall process and make a determination regarding such
applications prior to processing or making a determination on other loan applications under
this subsection, on a rolling basis.

Loan
application
priority.

(4)241 COORDINATION WITH FEMA.—

238

Language following “constitutes” added by § 12077 of P.L. 110-234, enacted May 22, 2008 (122 Stat. 1415). The same
language was enacted again in P.L. 110-246, June 18, 2008 (122 Stat. 2177).
239

New subparagraph 7(b)(3)(G) added by § 203 of P.L. 110-186, approved Feb. 14, 2008 (122 Stat. 629).

240

New subparagraph 7(b)(3)(H) added by § 204 of P.L. 110-186, approved Feb. 14, 2008 (122 Stat. 629).

241

New paragraphs 7(b)(4) and (5) added by § 12063(a) of P.L. 110-234, enacted May 22, 2008 (122 Stat. 1407). The same
language was enacted again in P.L. 110-246, June 18, 2008 (122 Stat. 2169). Section 12063(b) provides:

111

(Rev. 15)