[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1499 Referred in House (RFH)]

  2d Session
                                S. 1499


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 9, 2002

              Referred to the Committee on Small Business

_______________________________________________________________________

                                 AN ACT


 
To provide assistance to small business concerns adversely impacted by 
    the terrorist attacks perpetrated against the United States on 
              September 11, 2001, and for other purposes.

    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 ``American Small Business Emergency 
Relief and Recovery Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) the Nation's 25,000,000 small businesses employ more 
        than 58 percent of the private workforce, and create 75 percent 
        of all net new jobs;
            (2) as a result of the terrorist attacks perpetrated 
        against the United States on September 11, 2001, many small 
        businesses nationwide suffered--
                    (A) directly because--
                            (i) they are, or were as of September 11, 
                        2001, located in or near the World Trade Center 
                        or the Pentagon, or in a disaster area declared 
                        by the President or the Administrator of the 
                        Small Business Administration;
                            (ii) they were closed or their business was 
                        suspended for National security purposes at the 
                        mandate of the Federal Government; or
                            (iii) they are, or were as of September 11, 
                        2001, located in an airport that has been 
                        closed; and
                    (B) indirectly because--
                            (i) they supplied or provided services to 
                        businesses that were located in or near the 
                        World Trade Center or the Pentagon;
                            (ii) they are, or were as of September 11, 
                        2001, a supplier, service provider, or 
                        complementary industry to any business or 
                        industry adversely affected by the terrorist 
                        attacks perpetrated against the United States 
                        on September 11, 2001, in particular, the 
                        financial, hospitality, and travel industries; 
                        or
                            (iii) they are, or were as of September 11, 
                        2001, integral to or dependent upon a business 
                        or business sector closed or suspended for 
                        national security purposes by mandate of the 
                        Federal Government; and
            (3) small business owners adversely affected by the 
        terrorist attacks are finding it difficult or impossible--
                    (A) to make loan payments on existing debts;
                    (B) to pay their employees;
                    (C) to pay their vendors;
                    (D) to purchase materials, supplies, or inventory;
                    (E) to pay their rent, mortgage, or other operating 
                expenses; or
                    (F) to secure financing for their businesses.
    (b) Purpose.--The purpose of this Act is to strengthen the loan, 
investment, procurement assistance, and management education programs 
of the Small Business Administration, in order to help small businesses 
meet their existing obligations, finance their businesses, and maintain 
and create jobs, thereby providing stability to the national economy.

SEC. 3. DEFINITIONS RELATING TO TERRORIST ATTACKS.

    Section 3 of the Small Business Act (15 U.S.C. 632) is amended by 
adding at the end the following:
    ``(r) Definitions Relating to Terrorism Relief.--In this Act, the 
following definitions shall apply with respect to the provision of 
assistance under this Act in response to the terrorist attacks 
perpetrated against the United States on September 11, 2001, pursuant 
to the American Small Business Emergency Relief and Recovery Act:
            ``(1) Directly affected.--A small business concern is 
        directly affected by the terrorist attacks perpetrated against 
        the United States on September 11, 2001, if it--
                    ``(A) is, or was as of September 11, 2001, located 
                in or near the World Trade Center or the Pentagon, or 
                in a disaster area declared by the President or the 
                Administrator related to those terrorist attacks;
                    ``(B) was closed or its business was suspended for 
                national security purposes at the mandate of the 
                Federal Government; or
                    ``(C) is, or was as of September 11, 2001, located 
                in an airport that has been closed.
            ``(2) Indirectly affected.--A small business concern is 
        indirectly affected by the terrorist attacks perpetrated 
        against the United States on September 11, 2001, if it--
                    ``(A) supplied or provided services to any business 
                that was located in or near the World Trade Center or 
                the Pentagon, or in a disaster area declared by the 
                President or the Administrator related to those 
                terrorist attacks;
                    ``(B) is, or was as of September 11, 2001, a 
                supplier, service provider, or complementary industry 
                to any business or industry adversely affected by the 
                terrorist acts perpetrated against the United States on 
                September 11, 2001, in particular, the financial, 
                hospitality, and travel industries; or
                    ``(C) it is, or was as of September 11, 2001, 
                integral to or dependent upon a business or business 
                sector closed or suspended for national security 
                purposes by mandate of the Federal Government.
            ``(3) Adversely affected.--The term `adversely affected' 
        means having suffered economic harm to or disruption of the 
        business operations of a small business concern as a direct or 
        indirect result of the terrorist attacks perpetrated against 
        the United States on September 11, 2001.
            ``(4) Substantial economic injury.--As used in section 
        7(b)(4), the term `substantial economic injury' means an 
        economic harm to a small business concern that results in the 
        inability of the small business concern--
                    ``(A) to meet its obligations on an ongoing basis;
                    ``(B) to pay its ordinary and necessary operating 
                expenses; or
                    ``(C) to market, produce, or provide a product or 
                service ordinarily marketed, produced, or provided by 
                the small business concern.''.

SEC. 4. DISASTER LOANS AFTER TERRORIST ATTACKS.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately before the undesignated 
material following paragraph (3) the following:
            ``(4) Disaster loans after terrorist attacks of september 
        11, 2001.--
                    ``(A) Loan authority.--In addition to any other 
                loan authorized by this section, the Administration 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 a 
                small business concern that has been directly affected 
                and suffered substantial economic injury as the result 
                of the terrorist attacks on September 11, 2001, 
                including due to the closure or suspension of its 
                business for national security purposes at the mandate 
                of the Federal Government.
                    ``(B) Refinancing disaster loans.--
                            ``(i) In general.--Any loan made under this 
                        subsection that was outstanding as to principal 
                        or interest on September 11, 2001, may be 
                        refinanced by a small business concern that is 
                        also eligible to receive a loan under this 
                        paragraph, and the refinanced amount shall be 
                        considered to be part of the new loan for 
                        purposes of this clause.
                            ``(ii) No effect on eligibility.--A 
                        refinancing under clause (i) by a small 
                        business concern shall be in addition to any 
                        other loan eligibility for that small business 
                        concern under this Act.
                    ``(C) Refinancing business debt.--
                            ``(i) In general.--Any business debt of a 
                        small business concern that was outstanding as 
                        to principal or interest on September 11, 2001, 
                        may be refinanced by the small business concern 
                        if it is also eligible to receive a loan under 
                        this paragraph. With respect to a refinancing 
                        under this clause, payments of principal shall 
                        be deferred, and interest may accrue 
                        notwithstanding clause (iii) of section 202 of 
                        the Department of Defense and Emergency 
                        Supplemental Appropriations for Recovery from 
                        and Response to Terrorist Attacks on the United 
                        States Act, 2002 (Public Law 107-117, 115 Stat. 
                        2297), during the 1-year period following the 
                        date of refinancing.
                            ``(ii) Resumption of payments.--At the end 
                        of the 1-year period described in clause (i), 
                        the payment of periodic installments of 
                        principal and interest shall be required with 
                        respect to such loan, in the same manner and 
                        subject to the same terms and conditions as 
                        would otherwise be applicable to any other loan 
                        made under this subsection.
                            ``(iii) Authorization cap.--Notwithstanding 
                        any other provision of law, the total amount 
                        authorized to be obligated by the 
                        Administration, under this subparagraph only, 
                        for purposes of refinancing business debt, may 
                        not exceed $225,000,000, notwithstanding any 
                        amount otherwise obligated by the 
                        Administration under this paragraph.
                    ``(D) Terms.--A loan under this paragraph shall be 
                made at the same interest rate as economic injury loans 
                under paragraph (2). Any reasonable doubt concerning 
                the repayment ability of an applicant under this 
                paragraph shall be resolved in favor of the applicant.
                    ``(E) No disaster declaration required.--For 
                purposes of assistance under this paragraph, no 
                declaration of a disaster area is required for those 
                small business concerns directly affected by the 
                terrorist attacks on September 11, 2001.
                    ``(F) Size standard adjustments.--Notwithstanding 
                any other provision of law, for purposes of providing 
                assistance under this paragraph to businesses located 
                in areas of New York, Virginia, and the contiguous 
                areas designated by the President or the Administrator 
                as a disaster area following the terrorist attacks on 
                September 11, 2001, a business shall be considered to 
                be a `small business concern' if it meets otherwise 
                applicable size regulations promulgated by the 
                Administration, and, with respect to the applicable 
                size standard, it is--
                            ``(i) a restaurant having not more than 
                        $8,000,000 in annual receipts;
                            ``(ii) a law firm having not more than 
                        $8,000,000 in annual receipts;
                            ``(iii) a certified public accounting 
                        business having not more than $8,000,000 in 
                        annual receipts;
                            ``(iv) a performing arts business having 
                        not more than $8,000,000 in annual receipts;
                            ``(v) a warehousing or storage business 
                        having not more than $25,000,000 in annual 
                        receipts;
                            ``(vi) a contracting business having a size 
                        standard under the North American Industry 
                        Classification System, Subsector 235, and 
                        having not more than $15,000,000 in annual 
                        receipts;
                            ``(vii) a food manufacturing business 
                        having not more than 1,000 employees;
                            ``(viii) an apparel manufacturing business 
                        having not more than 1,000 employees; or
                            ``(ix) a travel agency having not more than 
                        $3,000,000 in annual receipts.
            ``(5) Authority to increase or waive size standards and 
        size regulations.--
                    ``(A) In general.--At the discretion of the 
                Administrator, the Administrator may increase or waive 
                otherwise applicable size standards or size regulations 
                with respect to businesses applying for assistance 
                under this Act in response to the terrorist attacks on 
                September 11, 2001.
                    ``(B) Exemption from administrative procedures.--
                The provisions of subchapter II of chapter 5, of title 
                5, United States Code, shall not apply to any increase 
                or waiver by the Administrator under subparagraph (A).
            ``(6) Increased loan caps.--
                    ``(A) Aggregate loan amounts.--Except as provided 
                in subparagraph (B), and in addition to amounts 
                otherwise authorized by this Act, the loan amount 
                outstanding and committed to a borrower may not 
                exceed--
                            ``(i) with respect to a small business 
                        concern located in the areas of New York, 
                        Virginia, or the contiguous areas designated by 
                        the President or the Administrator as a 
                        disaster area following the terrorist attacks 
                        on September 11, 2001--
                                    ``(I) $10,000,000 in total 
                                obligations under paragraph (1); and
                                    ``(II) $10,000,000 in total 
                                obligations under paragraph (4); and
                            ``(ii) with respect to a small business 
                        concern that is not located in an area 
                        described in clause (i) and that is eligible 
                        for assistance under paragraph (4), $5,000,000 
                        in total obligations under paragraph (4).
                    ``(B) Waiver authority.--The Administrator may, at 
                the discretion of the Administrator, waive the 
                aggregate loan amounts established under subparagraph 
                (A).
            ``(7) Extended application period.--Notwithstanding any 
        other provision of law, the Administrator shall accept 
        applications for assistance under paragraphs (1) and (4) until 
        September 10, 2002, with respect to applicants for such 
        assistance as a result of the terrorist attacks on September 
        11, 2001.
            ``(8) Limitation on sales of loans.--No loan under 
        paragraph (1) or (4), made as a result of the terrorist attacks 
        on September 11, 2001, shall be sold until 3 years after the 
        date of the final loan disbursement.''.
    (b) Clerical Amendments.--Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended in the undesignated matter at the end--
            (1) by striking ``, (2), and (4)'' and inserting ``and 
        (2)''; and
            (2) by striking ``, (2), or (4)'' and inserting ``(2)''.

SEC. 5. EMERGENCY RELIEF LOAN PROGRAM.

    (a) Loan Program.--Section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) is amended by adding at the end the following:
            ``(31) Temporary loan authority following terrorist 
        attacks.--
                    ``(A) In general.--During the 9-month period 
                beginning on the date of enactment of this paragraph, 
                the Administration may make loans under this subsection 
                to a small business concern that has been directly or 
                indirectly adversely affected.
                    ``(B) Loan terms.--With respect to a loan under 
                this paragraph--
                            ``(i) for purposes of paragraph (2)(A), 
                        participation by the Administration shall be 
                        equal to 85 percent of the balance of the 
                        financing outstanding at the time of 
                        disbursement of the loan;
                            ``(ii) section 203 of the Department of 
                        Defense and Emergency Supplemental 
                        Appropriations for Recovery from and Response 
                        to Terrorist Attacks on the United States Act, 
                        2002 (Public Law 107-117, 115 Stat. 2297), as 
                        it relates to annual fees, shall apply;
                            ``(iii) the Administrator shall collect a 
                        guarantee fee in accordance with paragraph 
                        (18)(C), as amended by the American Small 
                        Business Emergency Relief and Recovery Act;
                            ``(iv) the applicable rate of interest 
                        shall not exceed a rate that is 2 percentage 
                        points above the prime lending rate;
                            ``(v) no such loan shall be made if the 
                        total amount outstanding and committed (by 
                        participation or otherwise) to the borrower 
                        under this paragraph--
                                    ``(I) would exceed $1,000,000; or
                                    ``(II) at the discretion of the 
                                Administrator, and upon notice to the 
                                Congress, would exceed $2,000,000, as 
                                necessary to provide relief in high-
                                cost areas or to high-cost industries 
                                that have been adversely affected; or
                            ``(vi) no such loan shall be made if the 
                        gross amount of the loan would exceed 
                        $3,000,000;
                            ``(vii) upon request of the borrower, 
                        repayment of principal due on a loan made under 
                        this paragraph may be deferred during the 1-
                        year period beginning on the date of issuance 
                        of the loan; and
                            ``(viii) any reasonable doubt concerning 
                        the repayment ability of an applicant for a 
                        loan under this paragraph shall be resolved in 
                        favor of the applicant.
                    ``(C) Applicability.--The loan terms described in 
                subparagraph (B) shall apply to a loan under this 
                paragraph notwithstanding any other provision of this 
                subsection, and except as specifically provided in this 
                paragraph, a loan under this paragraph shall otherwise 
                be subject to the same terms and conditions as any 
                other loan under this subsection.
                    ``(D) Travel agencies.--For purposes of loans made 
                under this paragraph, the size standard for a travel 
                agency shall be $3,000,000 in annual receipts.''.
    (b) Conforming Amendment.--Section 7(a)(23)(A) of the Small 
Business Act (15 U.S.C. 636(a)(23)(A)) is amended by inserting ``other 
than a loan under paragraph (31),'' after ``this subsection,''.

SEC. 6. REDUCTION OF FEES.

    (a) Temporary Reduction of Section 7(a) Fees.--
            (1) Guarantee fees.--Section 7(a)(18) of the Small Business 
        Act (15 U.S.C. 636(a)(18)) is amended by adding at the end the 
        following:
                    ``(C) Temporary reduction in fees.--With respect to 
                loans approved during the period beginning on the date 
                of enactment of the American Small Business Emergency 
                Relief and Recovery Act and ending on September 30, 
                2004, the guarantee fee under subparagraph (A) shall be 
                as follows:
                            ``(i) A guarantee fee equal to 1 percent of 
                        the deferred participation share of a total 
                        loan amount that is not more than $150,000.
                            ``(ii) A guarantee fee equal to 2.5 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 3.5 
                        percent of the deferred participation share of 
                        a total loan amount that is more than 
                        $700,000.''.
            (2) Annual fees.--Section 7(a)(23)(A) of the Small Business 
        Act (15 U.S.C. 636(a)(23)(A)) is amended by adding at the end 
        the following: ``With respect to loans approved during the 
        period beginning on the date of enactment of the American Small 
        Business Emergency Relief and Recovery Act and ending on 
        September 30, 2004, other than a loan under paragraph (31), the 
        annual fee assessed and collected under the preceding sentence 
        shall be in an amount equal to 0.25 percent of the outstanding 
        balance of the deferred participation share of the loan.''.
    (b) Reduction of Section 504 Fees.--Section 503 of the Small 
Business Investment Act of 1958 (15 U.S.C. 697) is amended--
            (1) in subsection (b)(7)(A)--
                    (A) by redesignating clauses (i) and (ii) as 
                subclauses (I) and (II), respectively, and moving the 
                margins 2 ems to the right;
                    (B) by striking ``not exceed the lesser'' and 
                inserting ``not exceed--
                            ``(i) the lesser''; and
                    (C) by adding at the end the following:
                            ``(ii) 50 percent of the amount established 
                        under clause (i) in the case of a loan made 
                        during the period beginning on the date of 
                        enactment of the American Small Business 
                        Emergency Relief and Recovery Act and ending on 
                        September 30, 2004, for the life of the loan; 
                        and''; and
            (2) by adding at the end the following new subsection:
    ``(i) Temporary Waiver of Fees.--The Administration may not assess 
or collect any up front guarantee fee with respect to loans made under 
this title during the period beginning on the date of enactment of the 
American Small Business Emergency Relief and Recovery Act and ending on 
September 30, 2004.''.
    (c) Budgetary Treatment of Loans and Financings.--Assistance made 
available under any loan made or approved by the Small Business 
Administration under section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) or financings made under title V of the Small Business 
Investment Act of 1958 (15 U.S.C. 695 et seq.), during the period 
beginning on the date of enactment of the American Small Business 
Emergency Relief and Recovery Act and ending on September 30, 2004, 
shall be treated as separate programs of the Small Business 
Administration for purposes of the Federal Credit Reform Act of 1990 
only.
    (d) Use of Funds.--The amendments made by this section to section 
503 of the Small Business Investment Act of 1958, shall be effective 
only to the extent that funds are made available under appropriations 
Acts, which funds shall be utilized by the Administrator to offset the 
cost (as such term is defined in section 502 of the Federal Credit 
Reform Act of 1990) of such amendments.
    (e) Conforming Repeal.--Effective on the day before the date of 
enactment of this Act, section 6 of the Small Business Investment 
Company Amendments Act of 2001 (Public Law 107-100, 115 Stat. 970), and 
the amendments made by that section, are repealed.

SEC. 7. OTHER SPECIALIZED ASSISTANCE AND MONITORING AUTHORIZED.

    (a) Additional SBDC Authority.--
            (1) In general.--Section 21(c)(3) of the Small Business Act 
        (15 U.S.C. 648(c)(3)) is amended--
                    (A) in subparagraph (S), by striking ``and'' at the 
                end;
                    (B) in subparagraph (T), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(U) providing individualized assistance with respect to 
        financing, refinancing of existing debt, and business 
        counseling to small business concerns adversely affected, 
        directly or indirectly, by the terrorist attacks on September 
        11, 2001.''.
            (2) Waiver of matching requirements.--Section 21(a)(4)(A) 
        of the Small Business Act (15 U.S.C. 648(a)(4)(A)) is amended 
        by inserting before the period at the end the following: ``, 
        except that the matching requirements of this paragraph do not 
        apply with respect to any assistance provided under subsection 
        (c)(3)(U)''.
    (b) Additional SCORE Authority.--Section 8(b)(1)(B) of the Small 
Business Act (15 U.S.C. 637(b)(1)(B) is amended--
            (1) by inserting ``(i)'' after ``(B)''; and
            (2) by adding at the end the following:
            ``(ii) The functions of the Service Corps of Retired 
        Executives (SCORE) shall include the provision of 
        individualized assistance with respect to financing, 
        refinancing of existing debt, and business counseling to small 
        business concerns adversely affected by the terrorist attacks 
        on September 11, 2001.''.
    (c) Additional Microloan Program Authority.--Section 7(m) of the 
Small Business Act (15 U.S.C. 636(m)) is amended by adding at the end 
the following:
            ``(14) Assistance after terrorist attacks of september 11, 
        2001.--Amounts made available under this subsection may be used 
        by intermediaries to provide individualized assistance with 
        respect to financing, refinancing of existing debt, and 
        business counseling to small business concerns adversely 
        affected by the terrorist attacks on September 11, 2001.''.
    (d) Additional Women's Business Development Center Authority.--
Section 29 of the Small Business Act (15 U.S.C. 656) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) individualized assistance with respect to financing, 
        refinancing of existing debt, and business counseling to small 
        business concerns that were adversely affected by the terrorist 
        attacks on September 11, 2001.''; and
            (2) in subsection (c), by adding at the end the following:
            ``(5) Waiver of matching requirements.--A recipient 
        organization shall not be subject to the non-Federal funding 
        requirements of paragraph (1) with respect to assistance 
        provided under subsection (b)(4).''.
    (e) Additional SBIC Authority.--Section 303 of the Small Business 
Investment Act of 1958 (15 U.S.C. 683) is amended by adding at the end 
the following:
    ``(k) Authority After Terrorist Attacks of September 11, 2001.--
Small business investment companies are authorized and encouraged to 
provide equity capital and to make loans to small business concerns 
pursuant to sections 304(a) and 305(a) of the Small Business Investment 
Act of 1958, respectively, for the purpose of providing assistance to 
small business concerns adversely affected by the terrorist attacks on 
September 11, 2001.''.

SEC. 8. STUDY AND REPORT ON EFFECTS ON SMALL BUSINESS CONCERNS.

    (a) Study.--
            (1) In general.--The Office of Advocacy of the Small 
        Business Administration shall conduct annual studies for a 5-
        year period on the impact of the terrorist attacks perpetrated 
        against the United States on September 11, 2001, on small 
        business concerns, and the effects of assistance provided under 
        this Act on such small business concerns.
            (2) Contents.--The study conducted under paragraph (1) 
        shall include information regarding--
                    (A) bankruptcies and business failures that 
                occurred as a result of the events of September 11, 
                2001, as compared to those that occurred in 1999 and 
                2000;
                    (B) the loss of jobs, revenue, and profits in small 
                business concerns as a result of those events, as 
                compared to those that occurred in 1999 and 2000;
                    (C) the impact of assistance provided under this 
                Act to small business concerns adversely affected by 
                those attacks, including information regarding 
                whether--
                            (i) small business concerns that received 
                        such assistance would have remained in business 
                        without such assistance;
                            (ii) jobs were saved due to such 
                        assistance; and
                            (iii) small business concerns that remained 
                        in business had increases in employment and 
                        sales since receiving assistance.
    (b) Report.--The Office of Advocacy shall submit a report to 
Congress on the studies required by subsection (a)(1), specifically 
addressing the requirements of subsection (a)(2), in September of each 
of fiscal years 2002 through 2006.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $500,000 for each of fiscal 
years 2002 through 2006.

SEC. 9. EMERGENCY EQUITABLE RELIEF FOR FEDERAL CONTRACTORS.

    (a) Guidance Required.--
            (1) In general.--Under guidance issued by the Administrator 
        for Federal Procurement Policy in conjunction with the 
        Administrator of the Small Business Administration, the head of 
        a contracting agency of the United States may increase the 
        price of a prime contract entered into by the agency prior to 
        September 11, 2001 with a small business concern (as defined in 
        section 3 of the Small Business Act) to the extent determined 
        equitable under this section on the basis of loss resulting 
        from security measures taken by the Federal Government at 
        Federal facilities as a result of the terrorist attacks on 
        September 11, 2001.
            (2) Expedited issuance.--Guidance required by paragraph (1) 
        shall be issued under expedited procedures, not later than 45 
        days after the date of enactment of this Act.
    (b) Expedited Procedures.--
            (1) In general.-- The Administrator for Federal Procurement 
        Policy shall prescribe expedited procedures for considering 
        whether to grant an equitable adjustment in the case of a 
        contract of an agency under subsection (a).
            (2) Requirements.--The procedures required by paragraph (1) 
        shall provide for--
                    (A) an initial review of the merits of a 
                contractor's request by the contracting officer 
                concerned with the contract;
                    (B) a final determination of the merits of the 
                contractor's request, including the value of any price 
                adjustment, by the Head of the Contracting Agency, in 
                consultation with the Administrator of the Small 
                Business Administration, taking into consideration the 
                initial review under subparagraph (A); and
                    (C) payment from the fund established under 
                subsection (d) for the contract's price adjustment.
            (3) Timing.--The procedures required by paragraph (1) shall 
        require completion of action on a contractor's request for 
        adjustment not later than 30 days after the date on which the 
        contractor submits the request to the contracting officer 
        concerned.
    (c) Authorized Remedies.--In addition to making a price adjustment 
under subsection (a), the time for performance of a contract may be 
extended under this section.
    (d) Payment of Adjusted Price.--
            (1) Fund established.--The Secretary of the Treasury shall 
        establish a fund for the payment of contract price adjustments 
        under this section. Payments of amounts for price adjustments 
        shall be made out of the fund.
            (2) Availability.--Notwithstanding any other provision of 
        law, amounts in the fund under this subsection shall remain 
        available until expended.
    (e) Termination of Authority.--
            (1) Requests.--No request for adjustment under this section 
        may be accepted more than 330 days after the date of enactment 
        of this Act.
            (2) Termination.--The authority under this section shall 
        terminate 1 year after the date of enactment of this Act.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of the Treasury, for deposit into the 
fund established under subsection (d), $50,000,000 to carry out this 
section, including funds for administrative expenses and costs. Any 
funds remaining in the fund established under subsection (d) 1 year 
after the date of enactment of this Act shall be transferred to the 
disaster loan account of the Small Business Administration.

SEC. 10. REPORTS TO CONGRESS.

    (a) Reports Required.--The Administrator of the Small Business 
Administration shall submit regular reports to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives regarding the implementation 
of this Act and the amendments made by this Act, including program 
delivery, staffing, and administrative expenses related to such 
implementation.
    (b) Frequency of Reports.--The reports required by subsection (a) 
shall be submitted 20 days after the date of enactment of this Act and 
monthly thereafter until 1 year after the date of enactment of this 
Act, at which time the reports shall be submitted on a quarterly basis 
through December 31, 2003.

SEC. 11. EXPEDITED ISSUANCE OF IMPLEMENTING GUIDELINES.

    Not later than 20 days after the date of enactment of this Act, the 
Administrator of the Small Business Administration shall issue interim 
final rules and guidelines to implement this Act and the amendments 
made by this Act.

SEC. 12. SPECIAL AUTHORIZATIONS OF APPROPRIATIONS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by adding at the end the following:
    ``(j) Special Authorizations of Appropriations Following Terrorist 
Attacks.--In addition to any other amounts authorized by this Act for 
any fiscal year, there are authorized to be appropriated to the 
Administration, to remain available until expended--
            ``(1) for each of fiscal years 2002 through 2004, such sums 
        as may be necessary to carry out paragraph (4) of section 7(b), 
        including necessary loan capital and funds for administrative 
        expenses related to making and servicing loans pursuant to that 
        paragraph;
            ``(2) for fiscal year 2002, $25,000,000, to be used for 
        activities of small business development centers pursuant to 
        section 21(c)(3)(U)--
                    ``(A) $2,500,000 of which shall be used to assist 
                small business concerns (as that term is defined for 
                purposes of section 7(b)(4)) located in the areas of 
                New York and the contiguous areas designated by the 
                President as a disaster area following the terrorist 
                attacks on September 11, 2001; and
                    ``(B) $1,500,000 of which shall be used to assist 
                small business concerns located in areas of Virginia 
                and the contiguous areas designated by the President as 
                a disaster area following those terrorist attacks;
            ``(3) for fiscal year 2002, $2,000,000, to be used under 
        the Service Corps of Retired Executives program authorized by 
        section 8(b)(1) for the activities described in section 
        8(b)(1)(B)(ii);
            ``(4) for fiscal year 2002, $5,000,000 for microloan 
        technical assistance authorized under section 7(m)(14);
            ``(5) for fiscal year 2002, $2,000,000 to be used for 
        activities of women's business centers authorized by section 
        29(b)(4);
            ``(6) for each of fiscal years 2002 through 2004, such sums 
        as may be necessary to carry out paragraphs (18)(C) and (31) of 
        section 7(a), including any funds necessary to offset fees and 
        amounts waived or reduced under those provisions, necessary 
        loan capital, and funds for administrative expenses; and
            ``(7) for each of fiscal years 2002 through 2004, such sums 
        as may be necessary to carry out the temporary suspension of 
        fees under subsections (b)(7)(A) and (i) of section 503 of the 
        Small Business Investment Act of 1958, in response to the 
        terrorist attacks on September 11, 2001, including any funds 
        necessary to offset fees and amounts waived under those 
        provisions and including funds for administrative expenses.''.

            Passed the Senate March 22, 2002.

            Attest:

                                                  JERI THOMSON,

                                                             Secretary.