Statement of Administration Policy: H.R. 902 - Small Business Desert Storm Loan Relief Act of 1991

(House)
(LaFalce (D) New York and 18 others)

A comprehensive package of benefits for active duty military personnel and activated reservists now serving in America's Armed Forces has been endorsed by the Administration. This package includes resources sufficient to meet the direct needs of military personnel and activated reservists.

The Administration strongly opposes H.R. 902 because it inappropriately authorizes the Small Business Administration (SBA) to make disaster loans for economic injuries not related to physical disasters. The Administration believes that disaster loans should continue to be limited to assisting recovery from physical disasters. Moreover, the Administration opposes this authorization because businesses in need of capital for the reasons specified in the bill can already seek financing from the SBA through its other presently authorized lending programs.

The Administration also opposes H.R. 902 because it would:

—   Single out one group for special assistance from all of those who may be adversely affected by a call up to active duty.

—   Require the SBA to suspend repayments in the absence of any showing of adverse economic impact on a borrower due to a call to active duty.

—   Authorize the SBA to make all or part of payments due under SBA guaranteed loans.

—   Mandate that complex implementing regulations be issued in final form within an unreasonably short time period, and without prior notice and opportunity for public comment.