[JYO] AOPA drafting GA relief package

AOPA drafting GA relief package 

10/1/01 4:40:42 P— AOPA has been working with staff on Capitol Hill to 
develop a <A 
HREF="http://www.aopa.org/whatsnew/newsitems/2001/011001bill.html";>rough draft 
of a legislative proposal</A> that would provide relief to 
those general aviation businesses damaged by the ground stop that occurred in 
the wake of the tragic events of September 11. The draft proposal would 
require the Small Business Administration to provide grants and loans to 
small GA businesses that qualify and would defer repayment of loans and 
interest rates on for 1 year.

Please note, the proposal is only in the preliminary stages and has not been 
assigned a bill number. More revisions to the proposal's language are 
expected in the coming days. AOPA Legislative Affairs staff is working with 
interested members of Congress to sponsor the proposal, as well as plan a 
coherent strategy to maneuver it through Congress


- - -
A BILL

To provide economic relief to general aviation small business concerns that 
have suffered substantial economic injury as a result of the terrorist 
attacks perpetrated against the United States on September 11, 2001.

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 "General Aviation Small Business Relief Act of 
2001".

SECTION 2. SMALL BUSINESS ASSISTANCE.

(a) IN GENERAL. --- Section 7(b) of the Small Business Act (15 U.S.C. 636 
(b)) is amended by adding at the end the following:

"(4) GENERAL AVIATION SMALL BUSINESS RELIEF.

"(A) GRANT AND LOAD AUTHORITY-Not withstanding any other provision of law the 
– 

"[(i) shall, upon application make grants to general aviation small business 
concerns in an amount equal to the amount of direct losses incurred by each 
such small business concern beginning on September 11, 2001, as a result of 
any Federal ground stop order issued by the Secretary of Transportation or 
any subsequent order which continues or renews such a stoppage related to the 
terrorist attacks occurring on September 11, 2001, with respect to general 
aviation small business concerns:]

"(ii) may make such loans (either directly or in cooperation with banks or 
other lending institutions through agreements to participate on an immediate 
–

"(I) is a general aviation small business concern and

"(II) has suffered or that is likely to suffer as a result of the terrorist 
attacks perpetrated against the United States on September 11, 2001, 
substantial economic injury that is not incidental to the revenue of that 
small business concern and is not compensated for by insurance or otherwise.

– 

"(i) no interest rate shall apply to the loan, and no interest shall accrue 
on the loan during the 1-year period beginning on the date on which the loan 
is issued; and

"(ii) after the 1-year period described in clause (i), the applicable 
interest rate and other terms and conditions shall be the same as the 
interest rate and other terms and conditions as are applicable to economic 
injury loans under paragraph 2).

"(D) NO EFFECT ON LOAD LIMITS. A grant or loan under this paragraph shall be 
in addition to any other grant or loan made under this Act, notwithstanding 
any limitation on the amounts of such grants or loans under this Act.

"(E) NO DISASTER DECLARATION REQUIRED.

For purposes of assistance under this paragraph, no declaration of a disaster 
area shall be required.

"(F) DEFINITIONS. In this paragraph

"(i) the term 'general aviation small business concern' means a small 
business concern that is a regular provider of general aviation services, 
including aircraft rentals and flight training instruction; and 

"(ii) the term 'substantial economic injury' means an economic harm to a 
small business concern that results in the inability of the small business 
—

"(I) to meet its obligations as they mature;

"(II) to pay its ordinary and necessary operating expenses; or

"(III) to market, produce, or provide a product or service ordinarily 
marketed, produced, or provided by the business concern."

(b) authorization of appropriations. There are authorized to be appropriated 
to the Small Business Administration, such sums as may be necessary to carry 
out section 7(b)(4) of the Small Business Act, as added by this section, 
including administrative expenses, to remain available until expended.

SEC. 3. DEFERMENT OF SMALL BUSINESS LOAN PAYMENTS. 

(a) IN GENERAL. Notwithstanding any other provision of law, payments on any 
loan issued to a general aviation small business concern by the Small 
Business Administration shall be deferred with respect to principal and 
interest, and no interest shall accrue with respect to such loan, during the 
1-year period following the date of enactment of this Act.

(b) RESUMPTION OF PAYMENTS. At the end of the 1-year period described in 
subsection (a) the payment of periodic installments of principal and interest 
shall be required with respect to loans described in subsection (a), in the 
same manner and subject to the same terms and conditions as would otherwise 
be applicable to such loan.

(c) DEFINITION. In this section, the term "general aviation small business 
concern" has the same meaning as in section 7(b)(4) of the Small Business 
Act, as added by section 2 of this Act.

SEC. 4. EXTENSION OF DUE DATE FOR EXCISE TAX DEPOSITS.

A. EXTENSION OF DUE DATE FOR EXCISE TAX DEPOSITS. In the case of the general 
aviation small business concern, any airline-related deposit required under 
section 6302 of the Internal Revenue Code of 1986 to be made after September 
10. 2001, and before November 15, 2001, shall be treated for purposes of such 
Code as timely made if such deposit is made on or before November 15, 2001. 
If the Secretary of the Treasury so prescribes, the preceding sentence shall 
be applied by substituting for "November 15, 2001" each place it appears

(1) "January 15, 2002" or (2) such earlier date after November 15, 2001, as 
the Secretary of the Treasury may prescribe. (b) DEFINITIONS. In this section

(1) the term "general aviation small business concern" has the same meaning 
as in section 7(b)(4) of the Small Business Act, as added by section 2 or his 
Act; and 

(2) the term "airline-related deposit" means any deposit of taxes imposed by 
subchapter C of chapter 33 of the Internal Revenue Code of 1986 (relating to 
transportation of air)

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