HR 1361
4-18-07, Bill Passed House 267-158
Placed on Senate Calendar
Calendar No. 334
110th CONGRESS
1st Session
H. R. 1361
IN THE SENATE OF THE UNITED STATES
April 19, 2007
Received
August 3, 2007
Read twice and placed on the calendar
AN ACT
To improve the disaster relief programs of the Small Business Administration,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This Act may be cited as the `Relief for Entrepreneurs: Coordination
of Objectives and Values for Effective Recovery Act of 2007' or the `RECOVER
Act'.
(b) Table of Contents- The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--PLANNING
Sec. 101. Comprehensive disaster response plan.
Sec. 102. Annual disaster simulation exercise.
Sec. 103. Disaster reserve corps.
Sec. 104. Plans to secure additional office space.
Sec. 105. Coordination of disaster assistance programs with FEMA.
Sec. 106. Associate Administrator for Disaster Assistance.
TITLE II--LENDING
Sec. 201. Incidents of National Significance.
Sec. 202. Information tracking and follow-up system.
Sec. 203. Immediate Disaster Assistance program.
Sec. 204. Increased deferment period.
Sec. 205. Revised repayment terms.
Sec. 206. Revised disbursement process.
Sec. 207. Revised collateral requirements.
Sec. 208. Enhanced lending authority for private lenders.
Sec. 209. Disaster processing redundancy.
Sec. 211. Hurricane Assistance Replacement Grant program.
Sec. 212. Increase legislative limit.
Sec. 213. Net earnings clauses prohibited.
Sec. 214. Economic injury disaster loans to nonprofits.
Sec. 215. Applicants that will constitute a major source of employment due
to changed economic circumstances.
Sec. 216. Preliminary application process for assistance for small business
concerns with essential employees ordered to serve on active duty in the
Armed Forces.
Sec. 217. Economic injury disaster loans in cases of ice storms and blizzards.
Sec. 218. Report regarding lack of snow fall.
Sec. 219. Gulf Coast Disaster Loan Refinancing program.
TITLE III--OVERSIGHT
Sec. 301. Reports on disaster assistance.
TITLE I--PLANNING
SEC. 101. COMPREHENSIVE DISASTER RESPONSE PLAN.
The Small Business Act is amended by redesignating section 37 as section 99
and by inserting after section 36 the following:
`SEC. 37. COMPREHENSIVE DISASTER RESPONSE PLAN.
`(a) Plan Required- The Administrator shall develop, implement, and maintain
a comprehensive written disaster response plan. The plan shall include the
following:
`(1) For each region of the Administration, a description of the disasters
most likely to occur in that region.
`(2) For each disaster described under paragraph (1)--
`(A) an assessment of the disaster;
`(B) an assessment of the demand for Administration assistance most likely
to occur in response to the disaster;
`(C) an assessment of the needs of the Administration, with respect to
such resources as information technology, telecommunications, human resources,
and office space, to meet the demand referred to in subparagraph (B);
and
`(D) guidelines pursuant to which the Administration will coordinate with
other Federal agencies and with State and local authorities to best respond
to the demand referred to in subparagraph (B) and to best use the resources
referred to in that subparagraph.
`(b) Completion; Revision- The first plan required by subsection (a) shall
be completed not later than 180 days after the date of the enactment of this
section. Thereafter, the Administrator shall update the plan on an annual
basis and following any incident of national significance (as declared by
the President or his designee).
`(c) Knowledge Required- The Administrator shall carry out subsections (a)
and (b) through an individual with substantial knowledge in the field of disaster
readiness and emergency response.
`(d) Report- The Administrator shall include a report on the plan whenever
the Administrator submits the report required by section 47(a).'.
SEC. 102. ANNUAL DISASTER SIMULATION EXERCISE.
The Small Business Act is amended by inserting after section 37 (as added
by section 101) the following:
`SEC. 38. ANNUAL DISASTER SIMULATION EXERCISE.
`(a) Exercise Required- The Administrator shall conduct a disaster simulation
exercise at least once each fiscal year. The exercise shall include the participation
of, at a minimum, not less than half of the individuals in the disaster reserve
corps and shall test, at maximum capacity, all of the information technology
and telecommunications systems of the Administration that are vital to the
activities of the Administration during such a disaster.
`(b) Report- The Administrator shall include a report on the disaster simulation
exercise whenever the Administration submits the report required by section
47(a).'.
SEC. 103. DISASTER RESERVE CORPS.
The Small Business Act is amended by inserting after section 38 (as added
by section 102) the following:
`SEC. 39. DISASTER RESERVE CORPS.
`(a) Corps Required- The Administrator shall maintain within the Administration
a disaster reserve corps, the purpose of which is to perform the functions
of the Administration related to disaster response. The corps shall consist
of at least 1,000 individuals, each of whom--
`(1) does not ordinarily have the duties of a full-time officer or employee
of the Administration; but
`(2) is able to assume duties related to disaster response when the Administrator
so requires.
`(b) Training- The Administrator shall ensure that each individual in the
corps receives training each year in one or more functions relating to disaster
response. To the maximum extent practicable, the function in which an individual
is trained in one year shall be different from the function in which the individual
was trained in prior years.
`(c) Geographic Distribution- The Administrator shall ensure that not more
than 30 percent of the individuals in the corps reside in any one region of
the Administration.
`(d) Report- The Administrator shall include a report on the corps whenever
the Administration submits the report required by section 47(a).'.
SEC. 104. PLANS TO SECURE ADDITIONAL OFFICE SPACE.
The Small Business Act is amended by inserting after section 39 (as added
by section 103) the following:
`SEC. 40. PLANS TO SECURE ADDITIONAL OFFICE SPACE.
`(a) Plans Required- The Administrator shall develop long-term plans to secure
additional office space to accommodate an expanded workforce in times of disaster.
`(b) Report- The Administrator shall include a report on the plans whenever
the Administration submits the report required by section 47(a).'.
SEC. 105. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.
The Small Business Act is amended by inserting after section 40 (as added
by section 104) the following:
`SEC. 41. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.
`(a) Coordination Required- The Administrator shall ensure that the disaster
assistance programs of the Administration are coordinated, to the maximum
extent practicable, with the disaster assistance programs of the Federal Emergency
Management Agency.
`(b) Regulations Required- The Administrator, in consultation with the Director
of the Federal Emergency Management Agency, shall establish regulations to
ensure that each application for disaster assistance is submitted as quickly
as practicable to the Administration or directed to the appropriate agency
under the circumstances.
`(c) Completion; Revision- The initial regulations shall be completed not
later than 270 days after the date of the enactment of this section. Thereafter,
the regulations shall be revised on an annual basis.
`(d) Report- The Administrator shall include a report on the regulations whenever
the Administration submits the report required by section 47(a).'.
SEC. 106. ASSOCIATE ADMINISTRATOR FOR DISASTER ASSISTANCE.
The Small Business Act is amended by inserting after section 41 (as added
by section 105) the following:
`SEC. 42. ASSOCIATE ADMINISTRATOR FOR DISASTER ASSISTANCE.
`(a) In General- There is established in the Administration an Associate Administrator
for Disaster Assistance, appointed by the President by and with the advice
and consent of the Senate, from among individuals who have--
`(1) proven management ability; and
`(2) substantial knowledge in the field of disaster readiness and emergency
response.
`(b) Director of Disaster Planning-
`(1) APPOINTMENT- There is established in the Administration a Director
for Disaster Planning, appointed by the Administrator from among the personnel
of the Administration.
`(2) DUTIES- Subject to the authority, direction, and control of the Associate
Administrator for Disaster Assistance, the Director shall--
`(A) develop and implement the Administration's plans for responding to
disasters; and
`(B) direct the Administration's training exercises with respect to disasters.
`(3) COORDINATION- In carrying out the duties under paragraph (2), the Director
shall coordinate with--
`(A) the Associate Administrator for the Office of Disaster Assistance
of the Administration;
`(B) the Director of the Federal Emergency Management Agency; and
`(C) other Federal, State, and local disaster planning offices, as necessary.
`(c) Director of Disaster Lending-
`(1) APPOINTMENT- There is established in the Administration a Director
for Disaster Lending, appointed by the Administrator from among the personnel
of the Administration.
`(2) DUTIES- Subject to the authority, direction, and control of the Associate
Administrator for Disaster Assistance, the Director shall direct all aspects
of the disaster lending program under section 7(b).
`(d) Resources- The Administrator shall ensure that the Associate Administrator
for Disaster Assistance, the Director of Disaster Planning, and the Director
of Disaster Lending have adequate resources to carry out the duties under
this section.'.
TITLE II--LENDING
SEC. 201. INCIDENTS OF NATIONAL SIGNIFICANCE.
(a) Disaster Loans to Private Nonprofit Organizations- Section 7(b)(2) of
the Small Business Act (15 U.S.C. 636(b)(2)) is amended--
(1) in subparagraph (D) by striking the period at the end and inserting
`; or'; and
(2) by inserting after subparagraph (D) the following:
`(E) an incident of national significance, as declared by the President
or his designee, in which case assistance under this paragraph may be
provided, subject to the other applicable requirements of this paragraph,
to a private nonprofit organization (as that term is defined in section
29(a)(2)) that is located in an area affected by the incident of national
significance.'.
(b) Mitigation Loans to Small Business Concerns- Section 7 of the Small Business
Act (15 U.S.C. 636) is amended by inserting after subsection (d) the following:
`(e) Disaster Mitigation Loans-
`(1) AUTHORITY- The Administrator may make or guarantee a mitigation loan
to a small business concern that receives a loan under section 7(b)(1)(A)
for the damage or destruction, by reason of an incident of national significance
(as declared by the President or his designee), of property owned by the
small business concern.
`(2) AMOUNT OF LOAN- The amount of a loan under paragraph (1) shall not
exceed 20 percent of the total amount of the cost of the damage or destruction
referred to in paragraph (1). The total amount shall be calculated without
regard for any costs for which the small business concern is reimbursed
under any insurance policy or otherwise.'.
(c) Applicability for Fiscal Year 2006 to Hurricanes Katrina, Rita, and Wilma-
(1) IN GENERAL- For fiscal year 2006, the Administrator--
(A) may carry out subsection (e) of section 7 of the Small Business Act
(as added by subsection (b) of this section) with respect to a private
nonprofit organization that was located, as of August 28, 2005, in a hurricane-affected
area; and
(B) may carry out such subsection (e) with respect to a small business
concern that was located, as of August 28, 2005, in a hurricane-affected
area, for damage or destruction by reason of Hurricane Katrina, Hurricane
Rita, or Hurricane Wilma.
(2) HURRICANE-AFFECTED AREA DEFINED- In this section, the term `hurricane-affected
area' means a county or parish in the State of Alabama, Florida, Mississippi,
Louisiana, or Texas, that has been designated by the Administrator of the
Small Business Administration as a disaster area by reason of Hurricane
Katrina, Hurricane Rita, or Hurricane Wilma under disaster declaration 10176,
10177, 10178, 10179, 10180, 10181, 10203, 10204, 10205, 10206, 10222, or
10223.
SEC. 202. INFORMATION TRACKING AND FOLLOW-UP SYSTEM.
The Small Business Act is amended by inserting after section 42 (as added
by section 106) the following:
`SEC. 43. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR DISASTER ASSISTANCE.
`(a) System Required- The Administrator shall develop, implement, and maintain
a centralized information system to track communications between personnel
of the Administration and applicants for disaster assistance. The system shall
ensure that whenever an applicant for disaster assistance communicates with
such personnel on a matter relating to the application, the following information
is recorded:
`(1) The method of communication.
`(2) The date of communication.
`(3) The identity of the personnel.
`(4) A summary of the subject matter of the communication.
`(b) Follow-up Required- The Administrator shall ensure that an applicant
for disaster assistance receives, by telephone, mail, or electronic mail,
follow-up communications from the Administration at all critical stages of
the application process, including the following:
`(1) When the Administration determines that additional information or documentation
is required to process the application.
`(2) When the Administration determines whether to approve or deny the loan.
`(3) When the primary contact person managing the loan application has changed.'.
SEC. 203. IMMEDIATE DISASTER ASSISTANCE PROGRAM.
The Small Business Act is amended by inserting after section 43 (as added
by section 202) the following:
`SEC. 44. IMMEDIATE DISASTER ASSISTANCE PROGRAM.
`(a) Program Required- The Administrator shall carry out a program, to be
known as the Immediate Disaster Assistance program, under which the Administration
participates on a deferred (guaranteed) basis in 85 percent of the balance
of the financing outstanding at the time of disbursement of the loan if such
balance is less than or equal to $25,000 for businesses affected by a disaster.
`(b) Eligibility Requirement- To receive a loan guaranteed under subsection
(a), the applicant must also apply for, and meet basic eligibility standards
for, a loan under section 7(b).
`(c) Use of Proceeds- A person who receives a loan under section 7(b) must
use the proceeds of that loan to repay all loans guaranteed under subsection
(a), if any, before using the proceeds for any other purpose.
`(d) Approval or Disapproval- The Administrator shall ensure that each applicant
for a loan under the program receives a decision approving or disapproving
of the application within 36 hours after the Administration receives the application.'.
SEC. 204. INCREASED DEFERMENT PERIOD.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended by inserting
after subsection (e) (as added by section 201(b)) the following:
`(f) Additional Requirements for 7(b) Loans-
`(1) INCREASED DEFERMENT AUTHORIZED-
`(A) IN GENERAL- In making loans under section 7(b), the Administrator
may provide, to the person receiving the loan, an option to defer repayment
on the loan.
`(B) PERIOD- A deferment under subparagraph (A) may not exceed 4 years.'.
SEC. 205. REVISED REPAYMENT TERMS.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended in subsection
(f) by adding after paragraph (1) (as added by section 204) the following:
`(2) REVISED REPAYMENT TERMS- In making loans under section 7(b), the Administrator--
`(A) shall not require repayment to be made until 12 months after the
date on which the final disbursement of approved amounts is made; and
`(B) shall calculate the amount of repayment based solely on the amounts
disbursed.'.
SEC. 206. REVISED DISBURSEMENT PROCESS.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended in subsection
(f) by adding after paragraph (2) (as added by section 205) the following:
`(3) REVISED DISBURSEMENT PROCESS- In making loans under section 7(b), the
Administrator shall disburse the loan amounts in stages as follows:
`(A) LOANS UP TO $150,000- If the total amount approved is less than or
equal to $150,000--
`(i) the first disbursement shall consist of 40 percent of the total
loan amount, or a lesser percentage of the total loan amount if the
Administrator and the borrower agree on such a lesser percentage;
`(ii) the second disbursement shall consist of 50 percent of the amounts
that remain after the first disbursement, and shall be made when the
borrower has produced satisfactory receipts to demonstrate the proper
use of the first half of the first disbursement; and
`(iii) the third disbursement shall consist of the amounts that remain
after the preceding disbursements, and shall be made when the borrower
has produced satisfactory receipts to demonstrate the proper use of
the first disbursement and the first half of the second disbursement.
`(B) LOANS FROM $150,000 TO $500,000- If the total amount approved is
more than $150,000 but less than or equal to $500,000--
`(i) the first disbursement shall consist of 20 percent of the total
loan amount, or a lesser percentage if the Administrator and the borrower
agree on such a lesser percentage;
`(ii) the second disbursement shall consist of 30 percent of the total
loan amount remaining after the first disbursement, and shall be made
when the borrower has produced satisfactory receipts to demonstrate
the proper use of the first half of the first disbursement;
`(iii) the third disbursement shall consist of 25 percent of the total
loan amount remaining after the first and second disbursements, and
shall be made when the borrower has produced satisfactory receipts to
demonstrate the proper use of the first disbursement and the first half
of the second disbursement; and
`(iv) the fourth disbursement shall consist of the amounts that remain
after the preceding disbursements, and shall be made when the borrower
has produced satisfactory receipts to demonstrate the proper use of
the first and second disbursements and the first half of the third disbursement.
`(C) LOANS GREATER THAN $500,000- If the total amount approved is more
than $500,000--
`(i) the first disbursement shall consist of at least $100,000, or a
lesser amount if the Administrator and the borrower agree on such a
lesser amount; and
`(ii) the number of disbursements after the first, and the amount of
each such disbursement, shall be in the discretion of the Administrator,
but the amount of each such disbursement shall be not less than $100,000.'.
SEC. 207. REVISED COLLATERAL REQUIREMENTS.
Section 7 of the Small Business Act is amended in subsection (f) by adding
after paragraph (3) (as added by section 206) the following:
`(4) REVISED COLLATERAL REQUIREMENTS- In making a business loan under section
7(b), the total approved amount of which is less than or equal to $100,000,
the Administrator shall not require the borrower to use the borrower's home
as collateral.'.
SEC. 208. ENHANCED LENDING AUTHORITY FOR PRIVATE LENDERS.
The Small Business Act is amended by inserting after section 44 (as added
by section 203) the following:
`SEC. 45. ENHANCED LENDING AUTHORITY FOR PRIVATE LENDERS.
`(a) Program Authorized- The Administrator may, and during a period specified
in subsection (b) shall, carry out a program under which the Administrator
permits banks and other financial institutions to process, approve, close,
and service disaster loans under section 7(b) for a fee not to exceed 2 percent
of the total loan amount.
`(b) Periods During Which Program Is Required- The program under subsection
(a) is required to be carried out during the following periods:
`(1) Any period of an incident of national significance (as declared by
the President or his designee).
`(2) Any period during which the average time for the Administration to
approve disaster loans in response to any single disaster is 30 days or
more.
`(c) Exclusion of Lenders- If the number or rate of defaults on loans processed,
approved, and closed by a lender under the program under subsection (a) are
inordinate, as determined by the Administrator, the Administrator may do any
one or more of the following:
`(1) Exclude the lender from participating in the program under subsection
(a).
`(2) Exclude the lender from participating in the Preferred Lenders Program
under section 7(a)(2)(C)(ii).
`(d) Factor in Preferred Lenders Program- In determining whether a lender
is to be certified or recertified to participate in the Preferred Lenders
Program under section 7(a)(2)(C)(ii), the Administrator may consider as a
factor the following:
`(1) The loans processed, approved, and closed by the lender under the program
under subsection (a).
`(2) The participation or non-participation of the lender in the program
under subsection (a).'.
SEC. 209. DISASTER PROCESSING REDUNDANCY.
The Small Business Act is amended by inserting after section 45 (as added
by section 208) the following:
`SEC. 46. DISASTER PROCESSING REDUNDANCY.
`(a) In General- The Administrator shall ensure that the Administration has
in place a facility for disaster loan processing that, whenever the Administration's
primary facility for disaster loan processing becomes unavailable, is able
to take over all disaster loan processing from that primary facility within
2 days.
`(b) Authorization of Appropriations- There are authorized to be appropriated
to carry out this section such sums as may be necessary.'.
SEC. 210. GRANT PROGRAM.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended by inserting
immediately after paragraph (3) the following:
`(4) GRANTS TO DISASTER-AFFECTED SMALL BUSINESSES-
`(A) IN GENERAL- The Administrator may make a grant of up to $100,000
to a small business concern that--
`(i) was located in a designated disaster area affected by disaster
declaration 10176, 10177, 10178, 10179, 10180, 10181, 10203, 10204,
10205, 10206, 10222, or 10233, and was located in a county or parish
that, as a result of Hurricanes Katrina, Rita, or Wilma of 2005, experienced
a loss of at least 100 housing units, experienced a loss of at least
1 percent of available housing stock, and required Federal infrastructure
assistance of a least $200,000;
`(ii) submits to the Administrator a certification by the owner of the
concern of intent to reestablish the concern in the same county or parish
in which the business was originally located, or in any other county
or parish described in clause (i);
`(iii) has applied for, and was rejected for, a conventional disaster
assistance loan under section 7(b); and
`(iv) was in existence for at least 2 years before the date on which
the applicable disaster declaration was made.
`(B) PRIORITY- In making grants under this paragraph, the Administrator
shall give priority to a small business concern that the Administrator
determines is economically viable but unable to meet short-term financial
obligations.
`(C) DEFINITION- In this paragraph, the term `disaster-affected area'
means an area that has been designated by the Administrator as a disaster
area.
`(D) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
for grants under this paragraph such funds as may be necessary.'.
SEC. 211. HURRICANE ASSISTANCE REPLACEMENT GRANT PROGRAM.
(a) Program Established- The Administrator may carry out a program under which
the Administrator may, in the Administrator's discretion, make grants to individuals
who--
(1) are victims of a disaster under disaster declaration 10176, 10177, 10178,
10179, 10180, 10181, 10203, 10204, 10205, 10206, 10222, or 10223; and
(2) receive (whether before, on, or after the date of the enactment of this
Act) 7(b) disaster assistance because of that disaster.
(b) Authorization of Appropriations- There are authorized to be appropriated
such sums as may be necessary to carry out this section.
(c) Eligibility- An individual is eligible to receive a grant under this section
only if the individual--
(1) receives benefits (other than the 7(b) disaster assistance) because
of the disaster; and
(2) is required to remit those benefits to the Small Business Administration
because of a duplication of benefits.
(d) Amount- The amount of a grant under this section to an individual shall
not exceed the amount of the benefits required to be remitted by the individual,
as described in subsection (c).
(e) Time- The Administrator shall ensure that, to the maximum extent practicable,
a grant made under this section is made--
(1) concurrent with the Administration's receipt of the remittance, if the
remittance is made after the date of the enactment of this Act; and
(2) as soon as possible after the Administration's receipt of the remittance,
in all other cases.
(f) Treatment of Grants- Grants made under this section shall not be considered
a duplication of benefits by the Administrator.
(g) Definitions- In this section:
(1) The term `Administrator' means the Administrator of the Small Business
Administration.
(2) The term `7(b) disaster assistance' means assistance under paragraph
(1) or (2) of section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)).
SEC. 212. INCREASE LEGISLATIVE LIMIT.
Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 636(b)(3)(E)) is amended
by striking `$1,500,000' and inserting `$3,000,000' both places such term
appears.
SEC. 213. NET EARNINGS CLAUSES PROHIBITED.
Section 7 of the Small Business Act is amended in subsection (f) by adding
after paragraph (4) (as added by section 207) the following:
`(5) NET EARNINGS CLAUSES PROHIBITED- In making loans under section 7(b),
the Administrator shall not require the borrower to pay any non-amortized
amount for the first 5 years after repayment begins.'.
SEC. 214. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS.
(a) In General- Section 7 of the Small Business Act (15 U.S.C. 636) is amended
in subsection (b)(2)--
(1) in the matter preceding subparagraph (A)--
(A) by inserting after `small business concern' the following: `, private
nonprofit organization,'; and
(B) by inserting after `the concern' the following: `, organization,';
and
(2) in subparagraph (D) by inserting after `small business concerns' the
following: `, private nonprofit organizations,'.
(b) Conforming Amendment- Such section is further amended in subsection (c)(5)(C)
by inserting after `business' the following: `, organization,'.
SEC. 215. APPLICANTS THAT WILL CONSTITUTE A MAJOR SOURCE OF EMPLOYMENT DUE
TO CHANGED ECONOMIC CIRCUMSTANCES.
Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 636(b)(3)(E)) is amended
by inserting after `constitutes' the following: `, or will due to changed
economic circumstances constitute,'.
SEC. 216. PRELIMINARY APPLICATION PROCESS FOR ASSISTANCE FOR SMALL BUSINESS
CONCERNS WITH ESSENTIAL EMPLOYEES ORDERED TO SERVE ON ACTIVE DUTY IN THE ARMED
FORCES.
Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) is amended--
(1) in subparagraph (C)--
(A) by striking `90 days' and inserting `1 year'; and
(B) by adding at the end the following: `The Administrator may, when appropriate
(as determined by the Administrator), waive the ending date specified
in the preceding sentence and provide a later ending date.'; and
(2) by adding at the end the following new subparagraph:
`(G) The Administrator shall establish a process under which a small business
concern described in subparagraph (B) may file a preliminary application
for assistance under this paragraph, accompanied by supporting documentation,
before the date on which the essential employee is ordered to active duty.
The Administrator may not actively consider such an application or provide
assistance to the small business concern based on such an application until
the date on which the essential employee is ordered to active duty.'.
SEC. 217. ECONOMIC INJURY DISASTER LOANS IN CASES OF ICE STORMS AND BLIZZARDS.
Section 3(k)(2) of the Small Business Act (15 U.S.C. 632(k)(2)) is amended--
(1) in subparagraph (A) by striking `and';
(2) in subparagraph (B) by striking the period at the end and inserting
`; and'; and
(3) by adding at the end the following:
`(C) ice storms and blizzards.'.
SEC. 218. REPORT REGARDING LACK OF SNOW FALL.
Not later that 6 months after the date of enactment of this Act, the Administrator
of the Small Business Administration shall conduct a study of, and submit
a report to the Committee on Small Business of the House of Representatives
and the Committee on Small Business and Entrepreneurship of the Senate that
describes--
(1) the ability of the Administrator to provide loans under section 7(b)(2)
of the Small Business Act (15 U.S.C. 636(b)(2)) to small business concerns
that depend on high snow fall amounts and sustain economic injury (as described
under that section) due to a lack of snow fall;
(2) the criteria the Administrator would use to determine whether to provide
a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2))
to a small business concern that has been adversely affected by a lack of
snow fall;
(3) other Federal assistance (including loans) available to small business
concerns that are adversely affected by a lack of snow fall; and
(4) the history relating to providing loans under section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)) to small business concerns that
have been adversely affected by a lack of snow fall.
SEC. 219. GULF COAST DISASTER LOAN REFINANCING PROGRAM.
(a) In General- The Administrator of the Small Business Administration may
carry out a program to refinance Gulf Coast disaster loans.
(b) Terms- The terms of a Gulf Coast disaster loan refinanced under the program
shall be identical to the terms of the original loan, except that the Administrator
may provide an option to defer repayment on the loan. Such a deferment may
not exceed 4 years after the date on which the initial disbursement under
the original loan was made.
(c) Amount- The amount of a Gulf Coast disaster loan refinanced under the
program shall not exceed the amount of the original loan.
(d) Disclosure of Accrued Interest- Whenever the Administrator provides an
option to defer repayment under subsection (b), the Administrator shall disclose
the accrued interest that must be paid under the option.
(e) Definition- In this section, the term `Gulf Coast disaster loan' means
a loan--
(1) made under section 7(b) of the Small Business Act;
(2) in response to Hurricane Katrina, Hurricane Rita, or Hurricane Wilma
of 2005; and
(3) for a small business located in a county or parish designated by the
Administrator as a disaster area by reason of such Hurricane Katrina, Hurricane
Rita, or Hurricane Wilma under disaster declaration 10176, 10177, 10178,
10179, 10180, 10181, 10203, 10204, 10205, 10206, 10222, or 10223.
(f) Authorization of Appropriations- There are authorized to be appropriated
such sums as may be necessary to carry out this section.
TITLE III--OVERSIGHT
SEC. 301. REPORTS ON DISASTER ASSISTANCE.
The Small Business Act is amended by inserting after section 46 (as added
by section 209) the following:
`SEC. 47. REPORTS ON DISASTER ASSISTANCE.
`(a) Annual Report Required- Not later than 45 days after the end of a fiscal
year, the Administrator shall submit to the Committee on Small Business of
the Senate and the Committee on Small Business of the House of Representatives
a report on the disaster assistance operations of the Administration for that
fiscal year. The report shall--
`(1) specify the number of Administration personnel involved in such operations;
`(2) describe any material changes to those operations, such as changes
to technologies used or to personnel responsibilities;
`(3) describe and assess the effectiveness of the Administration in responding
to disasters during that fiscal year, including a description of the number
and amounts of loans made for damage and for economic injury; and
`(4) describe the plans of the Administration for preparing to respond to
disasters during the next fiscal year.
`(b) Incidents of National Significance- During the period of an incident
of national significance (as declared by the President or his designee), the
Administrator shall, on a monthly basis, submit to the committees specified
in subsection (a) a report on the disaster assistance operations of the Administration
with respect to that incident of national significance. The report shall specify--
`(1) the number of applications distributed;
`(2) the number of applications received;
`(3) the average time for the Administration to approve or disapprove an
application;
`(4) the amount of disaster loans approved;
`(5) the average time for initial disbursement of loan proceeds; and
`(6) the amount of disaster loan proceeds disbursed.'.
Passed the House of Representatives April 18, 2007.
Attest:
LORRAINE C. MILLER,
Clerk.
By Marjorie C. Kelaher,
Deputy Clerk.
Calendar No. 334
110th CONGRESS
1st Session
H. R. 1361
AN ACT
To improve the disaster relief programs of the Small Business Administration,
and for other purposes.
August 3, 2007
Read twice and placed on the calendar
END
