HR 564 - Disadvantaged Business Disaster Eligibility Act

110th CONGRESS
1st Session

H. R. 564

To amend the Small Business Act to ensure that when a small business participating in the 8(a) business development program is affected by a catastrophic incident, the period in which it can participate is extended by 18 months.

IN THE HOUSE OF REPRESENTATIVES

January 18, 2007

Mr. JEFFERSON introduced the following bill; which was referred to the Committee on Small Business

A BILL

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 `Disadvantaged Business Disaster Eligibility Act'.

SEC. 2. AVAILABILITY OF DISASTER LOANS FOR CATASTROPHIC INCIDENTS.

Section 7 of the Small Business Act (15 U.S.C. 636) is amended in subsection (j)(10) by adding at the end the following new subparagraph:

`(K) EXTENSION OF PARTICIPATION FOR CATASTROPHIC INCIDENTS-

`(i) DEFINITION- In this subparagraph, the term `catastrophic incident' means a disaster that--

`(I) results in extraordinary levels of mass casualties, damage, or disruption severely affecting the population, infrastructure, environment, economy, national morale, or government functions;

`(II) has the potential to result in sustained national impacts over a prolonged period of time;

`(III) almost immediately exceeds resources normally available to State, local, tribal, and private-sector authorities in the impacted area; and

`(IV) significantly interrupts governmental operations and emergency services to such an extent that national security could be threatened.

`(ii) EXTENSION OF PARTICIPATION- If a small business concern is affected by a catastrophic incident while participating in any program or activity under the authority of this paragraph, the period during which the small business concern is permitted continuing participation and eligibility in such program or activity shall be extended for an additional 18 months.'.

SEC. 3. RETROACTIVITY FOR VICTIMS OF HURRICANES KATRINA, RITA, AND WILMA.

(a) Retroactivity- Subparagraph (K) of section 7(j)(10) of the Small Business Act, as added by section 2 of this Act, applies to all catastrophic incidents occurring on or after August 29, 2005.

(b) Hurricanes Katrina, Rita, and Wilma- For purposes of such subparagraph (K), Hurricanes Katrina, Rita, and Wilma of 2005 are hereby deemed to be catastrophic incidents.

(c) Review and Compliance- The Administrator of the Small Business Administration shall ensure that the case of every small business concern participating before the date of the enactment of this Act in a program or activity covered by such subparagraph (K) is reviewed and brought into compliance with this section.

END