Statements on Introduced Bills and Joint Resolutions

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - May 25, 2006)

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Ms. SNOWE. Mr. President, our country has forever prided itself on providing individuals the opportunity to pursue a fair and prosperous existence. Our Nation's free markets enable small business owners to grow their enterprise and realize their dreams. Yet, small business owners and entrepreneurs are not blind to the costs of maintaining a free and open society. These same small business owners and entrepreneurs play a vital role in protecting freedom, at home and abroad, as members of the U.S. National Guard and Reserve Forces.

In recent years, however, the Department of Defense, DOD, has placed greater reliance on our nation's Guard and Reserve forces. In fact, since Septeber 2001, over 550,000 Guard and Reserve members have been called up in support of current operations, at the same time, making up nearly one-third of deployed service members in Iraq and Afghanistan. In addition, Guard and Reserve members have been charged in assisting with recovery efforts in the Gulf Coast, following some of the most devastating natural disasters in our country's history.

As these brave men and women are called to serve our Nation, the small businesses they temporarily leave behind often suffer. Many affected small buinesses experience slowing production and lost sales or incur additional expenses to compensate for an employee's absence. As a result, self-employed Guard and Reserve members and small businesses that employ Guard and Reserve members are ``paying'' a disproportionate and unfair share of the burden of increased call-ups. This is particularly troubling, because according to the majority of non-government-employed Guard and Reserve members are either self-employed or work for small businesses.

To help stem the ill affects of Guard and Reserve call-ups on small businesses, Senator CRAIG and I are introducing the Patriot Loan Act of 2006. This legislation improves the U.S. Small Business Administration's Military Reservist Economic Injury Disaster Loan, MREIDL, program. The MREIDL program was created to provide funds to eligible small businesses to meet ordinary and necessary operating expenses that the business cannot meet, because an essential employee was ``called-up'' to active duty in their role as a military reservist.

Specifically, our legislation would raise the maximum military reservist loan amount from $1,500,000 to $2,000,000. A maximum military reservist loan amount of $2,000,000 is the same level as many ofthe SBA's other loan programs, including: the 7(a) loans, international trade loans, and 504 Certified Development Corporation loans that serve a public policy goal.

This bill would allow the SBA Administrator, either directly or through banks to offer loans up to $25,000 without requiring collateral fr a loan applicant. Currently, the BA offers military reservist loans up to $5,000 without requiring collateral. This provision would increase that level to eligible small businesses.

The bill would also require the Administrator to give military reservist loan applications priority for processing and ensure that Guard and Reserve members are adequately assisted with their loan application by incorporating the support and expertise of SBA entrepreneurial development partners, such as Small Business Development Centers.

Finally, the legislation requires the SBA and DOD to develop a joint website and printed materials providing information regarding the MREIDL program for Guard and Reserve members, and that the SBA and DOD jointly conduct a feasibility study on introducing business mobilization and interruption insurance for members of the Guard and Reserve forces, and increased utilization of credit unions affiliated with the DOD.

I thank Senator CRAIG for working with me to help address this critical issue and I urge my colleagues to support this bill.

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