DATE: July 13, 2000

FROM: Barry McVay, CPCM

SUBJECT: Small Business Administration; Military Reservist Economic Injury Disaster Loans

SOURCE: Federal Register, July 13, 2000, Vol. 65, No. 135, page 43261

AGENCIES: Small Business Administration (SBA)

ACTION: Notice of Proposed Rulemaking

SYNOPSIS: SBA is proposing to amend its Disaster Loan Program regulations to implement a new program authorized by the Veterans Entrepreneurship and Small Business Development Act of 1999 (Public Law 106-50). Under this program, SBA would make a low interest, fixed rate loan available to a small business employing a military reservist if the reservist is called up to active military duty and he or she is an essential employee critical to the success of the business' daily operation.

DATES: Submit comments on or before August 14, 2000.

ADDRESSES: Send comments to Bernard Kulik, Associate Administrator, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street, SW, Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: Herbert Mitchell, Deputy Associate Administrator, Office of Disaster Assistance, 202-205-6734.

SUPPLEMENTAL INFORMATION: Public Law 106-50, Section 402, Assistance to Active Duty Military Reservists, paragraph (b), Disaster Loan Assistance for Military Reservists' Small Businesses, authorizes the government 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) 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." SBA is proposing to implement this provision by instituting the "Military Reservist Economic Injury Disaster Loan (EIDL)" program.

The Military Reservist EIDL program would be covered by the addition of the following sections to Title 13 of the Code of Federal Regulations (CFR), Business and Credit Administration; Chapter 1, Small Business Administration; Part 123, Business Loans:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

Copyright 2000 by Panoptic Enterprises. All Rights Reserved.

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