§ 9-F — Special assistance for small and medium-sized businesses which are adversely affected by the absence of eligible reservists ordered to ac...

§ 9-f. Special assistance for small and medium-sized businesses which\nare adversely affected by the absence of eligible reservists ordered to\nactive duty with the armed forces. (1) In addition to loans for small\nand medium-sized business assistance projects authorized by this act,\nthe corporation is hereby authorized to make loans to assist a small or\nmedium-sized business concern which is likely to suffer economic injury\nas the result of the owner, manager or key employee of such small or\nmedium-sized business concern who is an eligible reservist being ordered\nto active military duty during a period of military conflict. The\ncorporation shall determine the term and interest rate of such loans\nexcept that no loan shall exceed one hundred fifty thousand dollars, no\nloan shall have an interest rate greater than five percent and no loan\nshall have a term that exceeds a number of years which in the opinion of\nthe corporation is necessary for the small or medium-sized business\nconcern to recover financially from the absence of such eligible\nreservist. Any such loan shall be secured by a security agreement\nchattel paper, loan agreement or such other instruments or documents\ndeemed necessary or convenient by the corporation to secure the loan. In\ndetermining the economic need for a loan authorized by this section, the\ncorporation shall consider the decline in income or gross receipts of\nthe business during the period of active military duty of the eligible\nreservist. Such loans shall be made in an expeditious manner to enable\nthe small or medium-sized business concern to recover forthwith from\nsuch absence. Loans made pursuant to this section shall be used for\nworking capital by the small or medium-sized business concern. The\ncorporation shall render such other assistance and services as it deems\nadvisable and proper in connection with such loans and the purpose\ntherefor.\n (2)(a) With respect to any loan granted to a small or medium-sized\nbusiness concern pursuant to this act, the corporation may temporarily\nsuspend the repayment obligation of any small or medium-sized business\nconcern if any person liable thereon is or if any owner, manager or key\nemployee is an eligible reservist called to active duty in the military\nservice subsequent to the disbursement of the proceeds of such loan and\nsuch business concern has suffered or is likely to suffer economic\ninjury as a result of such order. The suspension, if approved, shall be\neffective on the date the corporation is notified that the eligible\nreservist has commenced active duty status or, at the election of the\ncorporation it shall be made effective at any time subsequent to the\ndate such eligible reservist entered active duty status, and shall\ncontinue for ninety days after such person is discharged or released\nfrom active duty.\n (b) Within thirty days after the return to non-active duty status of\nany person to whom this subdivision may apply, the corporation shall\narrange a meeting with the affected small or medium-sized business to\narrange repayment of the loan. The corporation is authorized to extend\nthe terms of any loan or to set a repayment schedule for such loans made\nfor a period of up to one year for each sixty days of active duty, but\nnot to exceed five years.\n (c) If the corporation determines that such small or medium-sized\nbusiness concern meets the criteria of this subdivision, it may, in its\ndiscretion, reduce or eliminate the assistance provided herein if it\ndetermines such business has the financial ability to meet the terms and\nconditions of the obligation without substantially disrupting business\noperations. Any such determination shall be made only after affording\nthe applicant the opportunity to present information in person or\nthrough others in support of the request for assistance.\n (3) Nothing in this section shall preclude a small or medium-sized\nbusiness concern which is ineligible for assistance pursuant to the\nprovisions of this section from qualifying for any other assistance\npursuant to article 13 of the military law or the Federal Soldiers' and\nSailors' Civil Relief Act of 1940, as amended.\n (4) The corporation is directed to liberally construe the provisions\nof this section to benefit eligible small and medium-sized business\nconcerns in recovering from any demonstrated economic loss caused by the\nactive military service of the eligible reservist.\n