ORIGINAL
assistance to certain companies based in the District of Columbia that are
engaged in the surface transportation, tourism, restaurant, catering, or
lodging industries to preserve their continued viability.
COLUMBIA, That this act may be cited as the "Emergency Economic
Assistance Emergency Act of 2001 ".
Sec. 2. Definitions.
For purposes of this act, the term:
(1) "Chief Financial Officer" means the Chief Financial
Officer of the District of Columbia.
(2) "District" means the District of Columbia.
(3) "Guaranteed loan" means a loan or other debt obligation
incurred by a qualified company and funded by a lender pursuant to the
terms of section 4, all or part of the principal of which and interest
thereon are guaranteed by the District pursuant to this act.
(4) "Lender" means any non-Federal qualified institutional
buyer, as defined in SEC Rule 144A, 17 C.F.R. § 230.144A, or any other
commercial lending institution located in the District designated by the
Chief Financial Officer with which the District has entered into an
agreement pursuant to section 4(a).
(5) "Obligor" means a party primarily liable for payment of
the principal of, or interest on, a loan or other debt obligation funded
by a lender.
(6) "Qualified company" means a business entity which meets the
criteria of section 3(a).
Sec. 3. Qualified companies.
(a) To be eligible to receive guaranteed loans under this act, a
company shall meet the following criteria:
(1) The company shall be based in the District and have employees
based in the District;(2) The company shall be a District taxpayer;
(3) The company shall be engaged in the surface transportation,
tourism, restaurant, catering, or lodging industries; and(4) The company shall have suffered a loss of revenues as a result of
the closing of Reagan National Airport and the terrorist attacks on
September 11, 2001.
(b) It shall be the responsibility of the lender to:
(1) Review the applications of companies that apply for guaranteed loans
under this act to ensure that they meet the requirements set forth in
subsection (a) of this section;(2) Verify that any applicants approved for guaranteed loans meet the
criteria set forth in subsection (a) of this section; and(3) Notify the Chief Financial Officer of any and all guaranteed
loans approved and applications denied under this act no later than 5
days after the first day of every month.
(c) The Chief Financial Officer shall report to the Council and the
Mayor 15 days after the end of every quarter identifying the guaranteed
loans that have been issued in the previous quarter.
Sec. 4. Guaranteed loans for qualified companies.
(a) The District shall enter into agreements with one or more lenders,
on such terms and conditions as the Chief Financial Officer, in his or her
discretion, shall consider to be appropriate, pursuant to which the
District shall guarantee guaranteed loans to be issued by the lender to
qualified companies.
(b) The total amount of obligations guaranteed by the District under
this act shall not exceed $100 million.
(c) Lenders may enter into agreements with qualified companies to issue
guaranteed loans pursuant to this act on such terms and conditions as the
lenders, in consultation with the Chief Financial Officer, shall
determine; provided, that:
(1) The guaranteed loan is initially made after September 11, 2001 and
before April 1. 2002;(2) The final maturity date of the guaranteed loan shall not be more
than 4 v ears after the date the guaranteed loan is initially made and
the obligor shall have demonstrated, to the satisfaction of the lender,
an ability to repay the guaranteed loan;(3) The purpose of the guaranteed loan (whether in a term loan or a
revolving credit facility) is to pay operating expenses of, or provide
working capital to, the obligor;(4) Guaranteed loans shall bear interest at a rate not to exceed a
rate to be agreed upon between the lender and the Chief Financial
Officer;(5) Guaranteed loans shall not require the guarantee of the owners of
the obligor or the payment of any compensation to the District or the
lender for issuing the guaranteed loan other than:(A) An up-front application fee and a loan fee payable to the
lender upon issuance of the guaranteed loan in amounts to be agreed
upon between the lender and the Chief Financial Officer; and(B) A loan guarantee fee payable to the District upon the issuance
of the guaranteed loan in the amount of 2.5 % of the maximum
guaranteed amount; and(6) The aggregate amount of the guaranteed loans made to any one
obligor shall not exceed $5 million.
(c) Nothing in this act shall be construed to create an entitlement to
a guaranteed loan.
Sec. 5. Criteria for issuance of guaranteed loans.
(a) Lenders shall solicit applications for guaranteed loans and shall
issue guaranteed loans to qualified companies based on the merits of the
company’s application within 15 days after receipt of the application. In
making a decision whether to issue a guaranteed loan. the lender shall
consider:
(1) The impact of the closure of Reagan National Airport and the
terrorist attacks on the revenues of the applicant;(2) The economic impact of the closure of Reagan National Airport and
the terrorist attacks on the applicant’s employees located in the
District:(3) The extent to which the applicant’s business is related to
visitors coming into the District;(4) The extent to which the applicant promotes or facilitates the
bringing of visitors to the District; and(5) The ability of the applicant to obtain financing without
assistance from the District under this act.
(b) Qualified companies seeking guaranteed loans shall submit to the
lender sworn financial statements or other appropriate data demonstrating
profits, creditworthiness, and losses incurred since September 11, 2001,
and during the 12 months preceding September 11, 2001. The Chief Financial
Officer may audit the statements and may request any information that he
or she considers necessary to conduct the audit.
Sec. 6. Funding of guaranteed loan program.
The Chief Financial Officer may use such sums as may be necessary to
fulfill the District’s obligations with respect to the guaranteed loans
issued pursuant to this act, subject to the Chief Financial Officer’s
determination of the availability of such funds.
Sec. 7. Fiscal impact statement.
The Council adopts the attached fiscal impact statement as the fiscal
impact statement required by section 602(c)(3) of the District of Columbia
Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official
Code § 1-206.02(c)(3)).
Sec. 8. Effective date.
This act shall take effect following approval by the Mayor (or in the
event of veto by the Mayor, action by the Council to override the veto),
and remain in effect for no longer than 90 days, as provided for emergency
acts of the Council of the District of Columbia in section 412(a) of the
District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat.
788; D.C. Official Code § 1-204.12(a)), and publication in the District
of Columbia Register.
Chairman
Council of the District of Columbia
Mayor
District of Columbia