text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Military Reserves Small Business 
  Relief Act''.
  
  SEC. 2. REPAYMENT DEFERRAL FOR ACTIVE DUTY RESERVES.
  
      Section 7 of the Small Business Act (15 U.S.C. 636) is amended by 
  adding at the end the following:
      ``(n) Repayment Deferred for Active Duty Reserves.--
              ``(1) Deferral of direct loans.--
                      ``(A) In general.--The Administration shall, upon 
                  written request, defer repayment of principal and 
                  interest due during the period of deferral described in 
                  subparagraph (B) on any direct loan made under 
                  subsection (a) or (b), if such loan was incurred by a 
                  qualified borrower.
                      ``(B) Period of deferral.--The period of deferral 
                  for repayment under this paragraph shall begin on the 
                  date on which the eligible reserve is ordered to active 
                  duty during a period of military conflict and shall 
                  terminate on the later of--
                              ``(i) the date that is 180 days after the 
                          date such eligible reserve is discharged or 
                          released from active duty; and
                              ``(ii) the date that is 180 days after the 
                          date of enactment of this subsection.
                      ``(C) No accrual of interest during deferral.--
                  During the period of deferral described in subparagraph 
                  (B), no interest shall accrue on any deferred loan.
              ``(2) Applicability.--This subsection shall apply with 
          respect to any period of military conflict beginning on or 
          after August 1, 1990.
              ``(3) Definitions.--In this subsection:
                      ``(A) Eligible reserve.--The term `eligible 
                  reserve' means a member of a reserve component of the 
                  Armed Forces serving pursuant to a call or order to 
                  active duty, or an order to remain on active duty, 
                  during a period of military conflict.
                      ``(B) Owner, manager, or key employee.--The term 
                  `owner, manager, or key employee' means an individual 
                  who--
                              ``(i) has not less than a 20 percent 
                          ownership interest in a small business concern 
                          described in subparagraph (D)(ii);
                              ``(ii) is a manager responsible for the 
                          day-to-day operations of such small business 
                          concern; or
                              ``(iii) is a key employee (as defined by 
                          the Administration) of such small business 
                          concern.
                      ``(C) Period of military conflict.--The term 
                  `period of military conflict' means--
                              ``(i) a period of war declared by Congress;
                              ``(ii) a period of national emergency 
                          declared by Congress or by the President; or
                              ``(iii) a period for which members of 
                          reserve components of the Armed Forces are 
                          serving on active duty in the Armed Forces 
                          under a call or order to active duty, under 
                          section 688, 12301(a), 12302, 12304, or 12306 
                          of title 10, United States Code.
                      ``(D) Qualified borrower.--The term `qualified 
                  borrower' means--
                              ``(i) an individual who is an eligible 
                          reserve and who received a direct loan under 
                          subsection (a) or (b) before being called or 
                          ordered to active duty, or being ordered to 
                          remain on active duty, during a period of 
                          military conflict; or
                              ``(ii) a small business concern that 
                          received a direct loan under subsection (a) or 
                          (b) before an eligible reserve, who is 
  an owner, manager, or key employee, was called or ordered to active 
  duty, or was ordered to remain on active duty, during a period of 
  military conflict.''.
  
  SEC. 3. DISASTER LOAN ASSISTANCE FOR MILITARY RESERVES' SMALL 
                BUSINESSES.
  
      (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
  636(b)) is amended by inserting after the undesignated paragraph that 
  begins with ``Provided, That no loan'', the following:
              ``(3)(A) 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 
          (including a small business concern engaged in the lease or 
          rental of real or personal property) that has suffered or that 
          is likely to suffer economic injury as the result of a call or 
          order to active military duty, or an order to remain on active 
          duty, of an owner, manager, or key employee of such small 
          business concern during a period of military conflict.
              ``(B) Any loan or guarantee extended pursuant to this 
          paragraph shall be made at an annual interest rate of 4 
          percent, without regard to the ability of the small business 
          concern to secure credit elsewhere.
              ``(C) 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 
          $500,000, except that the Administration may waive the $500,000 
          limitation if the Administration determines that the applicant 
          for the loan constitutes a major source of employment in its 
          surrounding area, and such area is not larger than the 
          surrounding county.
              ``(D) For purposes of assistance under this paragraph, no 
          declaration of a disaster area shall be required.
              ``(E) This paragraph shall apply with respect to any period 
          of military conflict beginning on or after August 1, 1990.
              ``(F) In this paragraph--
                      ``(i) the term `economic injury' means an economic 
                  harm to a business concern that results in the 
                  inability of the business concern to market, produce, 
                  or provide a product or service ordinarily marketed, 
                  produced, or provided by the business concern;
                      ``(ii) the term `owner, manager, or key employee' 
                  means an individual who--
                              ``(I) has not less than a 20 percent 
                          ownership interest in the small business 
                          concern;
                              ``(II) is a manager responsible for the 
                          day-to-day operations of such small business 
                          concern; or
                              ``(III) is a key employee (as defined by 
                          the Administration) of such small business 
                          concern; and
                      ``(iii) the term `period of military conflict' has 
                  the meaning given the term in subsection (n)(3).''.
      (b) Conforming Amendments.--Section 4(c) of the Small Business Act 
  (15 U.S.C. 633(c)) is amended--
              (1) in paragraph (1), by striking ``7(b)(4),''; and
              (2) in paragraph (2), by striking ``7(b)(4), 7(b)(5), 
          7(b)(6), 7(b)(7), 7(b)(8),''.
  
  SEC. 4. REGULATIONS.
  
      Not later than 60 days after the date of enactment of this Act, the 
  Small Business Administration shall issue such regulations as may be 
  necessary to carry out the amendments made by sections 2 and 3.
target: Military Reserves Small Business Relief Act - Amends the Small Business Act to require the Small Business Administration (SBA), upon written request, to defer repayment of principal and interest due on a direct general business or disaster loan made to a member of the reserves ordered to active duty during a period of military conflict, as long as such reservist: (1) received the loan before being ordered to such duty; and (2) is the owner, manager, or key employee of a small business for which the loan was made.  Extends such deferral period until the later of 180 days after: (1) such reservist is discharged or released from active duty; or (2) the date of enactment of this Act.  Applies such assistance to periods of military conflict occurring on or after August 1, 1990. 
  Authorizes the SBA to make disaster loans to assist a small business that has suffered or is likely to suffer economic injury as the result of the owner, manager, or key employee of such business being ordered to active duty during a period of military conflict.  Provides a loan limitation.  Applies such assistance to periods of military conflict occurring on or after August 1, 1990.
feat_title: Military Reserves Small Business Relief Act