110th CONGRESS
1st Session
S. 537
To address ongoing small business and homeowner needs in the Gulf
Coast States impacted by Hurricane Katrina and Hurricane Rita.
IN THE SENATE OF THE UNITED STATES
February 8, 2007
Ms. LANDRIEU (for herself, Mr. LOTT, Mr. KERRY, and Mr. LIEBERMAN) introduced
the following bill; which was read twice and referred to the Committee on
Small Business and Entrepreneurship
A BILL
To address ongoing small business and homeowner needs in the Gulf
Coast States impacted by Hurricane Katrina and Hurricane Rita.
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 `Gulf Coast Back to Business Act of 2007'.
SEC. 2. FINDINGS.
(1) 43 percent of businesses that close following a natural disaster never
reopen;
(2) an additional 29 percent of businesses close down permanently within
2 years of a natural disaster;
(3) Hurricane Katrina struck the Gulf Coast of the United States on August
29, 2005, negatively impacting small business concerns and disrupting
commerce in the States of Louisiana, Mississippi, and Alabama;
(4) Hurricane Rita struck the Gulf Coast of the United States on September
24, 2005, negatively impacting small business concerns and disrupting
commerce in the States of Texas and Louisiana;
(5) according to the United States Chamber of Commerce, more than 125,000
small- and medium-sized businesses in the Gulf Coast were disrupted by
Hurricane Katrina or Hurricane Rita;
(6) due to a slow initial Federal response and the widespread devastation
in the affected States, businesses impacted by Hurricane Katrina are in
dire need of increased access to capital and technical assistance to recover
and prosper; and
(7) without the full recovery and prosperity of affected businesses, the
Gulf Coast, and the rest of the United States, will be negatively impacted.
SEC. 3. DEFINITIONS.
(1) the term `Disaster Area' means an area in which the President has
declared a major disaster in response to Hurricane Katrina of 2005 or
Hurricane Rita of 2005;
(2) the term `major disaster' has the meaning given that term in section
102 of the Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122); and
(3) the term `small business concern' has the meaning given that term
in section 3 of the Small Business Act (15 U.S.C. 632).
SEC. 4. SMALL BUSINESS CONCERN RECOVERY GRANTS.
(a) In General- There are authorized to be appropriated to the Secretary
of Commerce $100,000,000 for the Economic Development Administration of
the Department of Commerce to make grants to the appropriate State government
agencies in Louisiana and Mississippi, to carry out this section.
(b) Disbursement of Funds-
(1) IN GENERAL- Subject to paragraph (2), the Secretary of Commerce shall
disburse the funds authorized under subsection (a) as follows:
(A) $75,000,000 to the State of Louisiana.
(B) $25,000,000 to the State of Mississippi.
(2) PROPORTIONATE ALLOCATION- Regardless of the amount appropriated under
subsection (a), the amount appropriated shall be allocated among the States
listed in paragraph (1) of this subsection in direct proportion to the
allocation under that paragraph.
(1) IN GENERAL- Grants awarded to a State under subsection (a) shall be
used by the State to provide grants, which may be made to any small business
concern located in a Disaster Area that was negatively impacted by Hurricane
Katrina of 2005 or Hurricane Rita of 2005, to assist such small business
concern for the purposes of--
(B) paying bills, insurance costs, and other existing financial obligations;
(D) purchasing inventory;
(E) restarting or operating that business in the community in which
it was conducting operations prior to Hurricane Katrina of 2005 or Hurricane
Rita of 2005, or to a neighboring area or county or parish in a Disaster
Area;
(F) compensating such small business concerns for direct economic injury
suffered as a result of Hurricane Katrina of 2005 or Hurricane Rita
of 2005; or
(G) covering additional costs until that small business concern is able
to obtain funding through insurance claims, Federal assistance programs,
or other sources.
(A) IN GENERAL- Notwithstanding any other provision of law, in making
grants under paragraph (1), a State may use such criteria as the State
determines appropriate, and shall not be required to apply eligibility
criteria for programs administered by the Federal Government, including
the Department of Commerce.
(B) EXCLUSION- In making grants under paragraph (1), a State may not
exclude a small business concern based on any increase in the revenue
of that small business concern during the 12-month period beginning
on October 1, 2005.
(3) ADMINISTRATIVE EXPENSES- The Department of Commerce may use not more
than $1,500,000 of the funds authorized under subsection (a) to administer
the provision of grants to the designated States under this subsection.
SEC. 5. DISASTER LOANS AFTER HURRICANE KATRINA OR HURRICANE RITA.
(a) In General- 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) DISASTER LOANS AFTER HURRICANE KATRINA OR HURRICANE RITA IN A DISASTER
AREA-
`(A) DEFINITIONS- In this paragraph--
`(i) the term `Disaster Area' means an area in which the President
has declared a major disaster in response to Hurricane Katrina of
2005 or Hurricane Rita of 2005; and
`(ii) the term `qualified borrower' means a person to whom the Administrator
made a loan under this section because of Hurricane Katrina of 2005
or Hurricane Rita of 2005.
`(B) DEFERMENT OF DISASTER LOAN PAYMENTS-
`(i) IN GENERAL- Notwithstanding any other provision of law, payments
of principal and interest on a loan to a qualified borrower made before
December 31, 2006, shall be deferred, and no interest shall accrue
with respect to such loan, during the time period described in clause
(ii).
`(ii) TIME PERIOD- The time period for purposes of clause (i) shall
be 1 year from the later of the date of enactment of this paragraph
or the date on which funds are distributed under a loan described
in clause (i), but may be extended to 2 years from such date, at the
discretion of the Administrator.
`(iii) RESUMPTION OF PAYMENTS- At the end of the time period described
in clause (ii), the payment of periodic installments of principal
and interest shall be required with respect to such loan, in the same
manner and subject to the same terms and conditions as would otherwise
be applicable to any other loan made under this subsection.'.
(b) Increasing Collateral Requirements-
(1) IN GENERAL- Notwithstanding any other provision of law, including
section 7(c)(6) of the Small Business Act (15 U.S.C. 636(c)(6)), the Administrator
may not require collateral for any covered loan made by the Administrator.
(2) DEFINITION- In this subsection, the term `covered loan' means a loan
in an amount of not more than $35,000 made--
(A) under section 7(b)(1) of the Small Business Act (15 U.S.C. 636(b)(1));
(B) as a result of Hurricane Katrina of 2005 or Hurricane Rita of 2005;
and
(C) after the date of enactment of this Act.
SEC. 6. OTHER PROGRAMS.
(a) HUBZones- Section 3(p) of the Small Business Act (15 U.S.C. 632(p))
is amended--
(A) in subparagraph (D), by striking `or';
(B) in subparagraph (E), by striking the period at the end and inserting
`; or'; and
(C) by adding at the end the following:
`(F) an area in which the President has declared a major disaster (as
that term is defined in section 102 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5122)) as a result of
Hurricane Katrina of August 2005 or Hurricane Rita of September 2005,
during the time period described in paragraph (8).'; and
(2) by adding at the end the following:
`(8) TIME PERIOD- The time period for the purposes of paragraph (1)(F)--
`(A) shall be the 2-year period beginning on the later of the date of
enactment of this paragraph and August 29, 2007; and
`(B) may, at the discretion of the Administrator, be extended to be
the 3-year period beginning on the later of the date of enactment of
this paragraph and August 29, 2007.'.
(b) Relief From Test Program- Section 711(d) of the Small Business Competitive
Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended--
(1) by striking `The Program' and inserting the following:
`(1) IN GENERAL- Except as provided in paragraph (2), the Program'; and
(2) by adding at the end the following:
`(A) IN GENERAL- The Program shall not apply to any contract related
to relief or reconstruction from Hurricane Katrina of 2005 or Hurricane
Rita of 2005 during the time period described in subparagraph (B).
`(B) TIME PERIOD- The time period for the purposes of subparagraph (A)--
`(i) shall be the 2-year period beginning on the later of the date
of enactment of this paragraph and August 29, 2007; and
`(ii) may, at the discretion of the Administrator, be extended to
be the 3-year period beginning on the later of the date of enactment
of this paragraph and August 29, 2007.'.
END
