Small Business Year 2000 Readiness Act
Latest action (30 Jul 1998): Introduced
What this bill does
The Small Business Year 2000 Readiness Act (S. 2372) would establish a temporary pilot loan guarantee program through the Small Business Administration (SBA) to help small businesses address "Year 2000" (Y2K) computer problems—the risk that computer systems would fail to correctly process dates when transitioning from 1999 to 2000. Under the bill, SBA-approved lenders could make loans of up to $50,000 to small businesses, with the SBA guaranteeing up to 50 percent of the loan balance. Loan proceeds would have to be used specifically to repair or upgrade information technology and other automated systems affected by Y2K issues. The SBA would be required to issue implementing regulations within 60 days of enactment, and the program would automatically expire on October 1, 2001.
The bill primarily affects small businesses, particularly those lacking capital to update computer systems, and the lenders who participate in SBA's Preferred and Certified Lenders Programs. The bill's findings note that many small businesses had not yet begun addressing Y2K compliance and lacked access to financing for these fixes. The SBA would also be required to report annually to Congress on the program's use, and a separate section would require SBA to notify Congress in advance of changes to related pilot loan programs and to report annually on those programs' performance, including default and delinquency rates.
The bill was introduced in the Senate on July 30, 1998, by Senator Christopher Bond along with cosponsors Senators Snowe and Bennett, and was referred to the Senate Committee on Small Business. As of the latest available status, it had not received a vote and did not advance further in the 105th Congress.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
Small Business Year 2000 Readiness Act - Amends the Small Business Act to direct the Small Business Administration (SBA) to establish a pilot loan guarantee program under which the SBA shall guarantee loans made by eligible lenders to small businesses to address Year 2000 computer problems (Y2K problem), including the repair or acquisition of information technology systems and other automated systems. Limits: (1) the loan amount for each participating small business to $50,000; and (2) the amount which is guaranteed by the SBA to 50 percent of the total loan received from a lender. Requires the SBA to notify the small business committees at least 30 days in advance of the initiation of any pilot program under such Act or a pilot program which may affect the subsidy rate estimates for a loan program. Requires an annual report to such committees on each pilot program under which loans are guaranteed by the SBA.
Common questions
- What does S. 2372 do?
- The Small Business Year 2000 Readiness Act (S. 2372) would establish a temporary pilot loan guarantee program through the Small Business Administration (SBA) to help small businesses address "Year 2000" (Y2K) computer problems—the risk that computer systems would fail to correctly process dates when transitioning from 1999 to 2000. Under the bill, SBA-approved lenders could make loans of up to $50,000 to small businesses, with the SBA guaranteeing up to 50 percent of the loan balance. Loan proceeds would have to be used specifically to repair or upgrade information technology and other automated systems affected by Y2K issues. The SBA would be required to issue implementing regulations within 60 days of enactment, and the program would automatically expire on October 1, 2001. The bill primarily affects small businesses, particularly those lacking capital to update computer systems, and the lenders who participate in SBA's Preferred and Certified Lenders Programs. The bill's findings note that many small businesses had not yet begun addressing Y2K compliance and lacked access to financing for these fixes. The SBA would also be required to report annually to Congress on the program's use, and a separate section would require SBA to notify Congress in advance of changes to related pilot loan programs and to report annually on those programs' performance, including default and delinquency rates. The bill was introduced in the Senate on July 30, 1998, by Senator Christopher Bond along with cosponsors Senators Snowe and Bennett, and was referred to the Senate Committee on Small Business. As of the latest available status, it had not received a vote and did not advance further in the 105th Congress.
- Has S. 2372 become law?
- Not yet. As of 30 Jul 1998, S. 2372 is introduced.
- Who sponsored S. 2372?
- S. 2372 was sponsored by Sen. Christopher “Kit” Bond [R-MO, 1987-2010] (Republican-MO), with 3 cosponsors.
- What's the latest action on S. 2372?
- Introduced (30 Jul 1998).
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