Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	4,675	n/a	n/a
Reported in House	5,294	22	16%
Engrossed in House	5,713	53	22%
Placed on Calendar Senate	5,759	8 Show Changes Hide Changes	0%

Display Version Introduced in House Reported in House Engrossed in House Placed on Calendar Senate

HR 1361 EHPCSCommentsClose CommentsPermalink

110th CONGRESS 1st Session H. R. 1361 AN ACT

To improve the disaster relief programs of the Small Business Administration, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

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'.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--PLANNING

Sec. 101. Comprehensive disaster response plan.CommentsClose CommentsPermalink





Sec. 102. Annual disaster simulation exercise.CommentsClose CommentsPermalink





Sec. 103. Disaster reserve corps.CommentsClose CommentsPermalink





Sec. 104. Plans to secure additional office space.CommentsClose CommentsPermalink





Sec. 105. Coordination of disaster assistance programs with FEMA.CommentsClose CommentsPermalink





Sec. 106. Associate Administrator for Disaster Assistance.CommentsClose CommentsPermalink

TITLE II--LENDING

Sec. 201. Incidents of National Significance.CommentsClose CommentsPermalink





Sec. 202. Information tracking and follow-up system.CommentsClose CommentsPermalink





Sec. 203. Immediate Disaster Assistance program.CommentsClose CommentsPermalink





Sec. 204. Increased deferment period.CommentsClose CommentsPermalink





Sec. 205. Revised repayment terms.CommentsClose CommentsPermalink





Sec. 206. Revised disbursement process.CommentsClose CommentsPermalink





Sec. 207. Revised collateral requirements.CommentsClose CommentsPermalink





Sec. 208. Enhanced lending authority for private lenders.CommentsClose CommentsPermalink





Sec. 209. Disaster processing redundancy.CommentsClose CommentsPermalink





Sec. 210. Grant program.CommentsClose CommentsPermalink





Sec. 211. Hurricane Assistance Replacement Grant program.CommentsClose CommentsPermalink





Sec. 212. Increase legislative limit.CommentsClose CommentsPermalink





Sec. 213. Net earnings clauses prohibited.CommentsClose CommentsPermalink





Sec. 214. Economic injury disaster loans to nonprofits.CommentsClose CommentsPermalink





Sec. 215. Applicants that will constitute a major source of employment due to changed economic circumstances.CommentsClose CommentsPermalink





Sec. 216. Preliminary application process for assistance for small business concerns with essential employees ordered to serve on active duty in the Armed Forces.CommentsClose CommentsPermalink





Sec. 217. Economic injury disaster loans in cases of ice storms and blizzards.CommentsClose CommentsPermalink





Sec. 218. Report regarding lack of snow fall.CommentsClose CommentsPermalink





Sec. 219. Gulf Coast Disaster Loan Refinancing program.CommentsClose CommentsPermalink

TITLE III--OVERSIGHT

Sec. 301. Reports on disaster assistance.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

`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:CommentsClose CommentsPermalink





`(1) For each region of the Administration, a description of the disasters most likely to occur in that region.CommentsClose CommentsPermalink





`(2) For each disaster described under paragraph (1)--CommentsClose CommentsPermalink





`(A) an assessment of the disaster;CommentsClose CommentsPermalink





`(B) an assessment of the demand for Administration assistance most likely to occur in response to the disaster;CommentsClose CommentsPermalink





`(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); andCommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(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).CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(d) Report- The Administrator shall include a report on the plan whenever the Administrator submits the report required by section 47(a).'.CommentsClose CommentsPermalink

SEC. 102. ANNUAL DISASTER SIMULATION EXERCISE.

The Small Business Act is amended by inserting after section 37 (as added by section 101) the following:CommentsClose CommentsPermalink

`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.CommentsClose CommentsPermalink





`(b) Report- The Administrator shall include a report on the disaster simulation exercise whenever the Administration submits the report required by section 47(a).'.CommentsClose CommentsPermalink

SEC. 103. DISASTER RESERVE CORPS.

The Small Business Act is amended by inserting after section 38 (as added by section 102) the following:CommentsClose CommentsPermalink

`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--CommentsClose CommentsPermalink





`(1) does not ordinarily have the duties of a full-time officer or employee of the Administration; butCommentsClose CommentsPermalink





`(2) is able to assume duties related to disaster response when the Administrator so requires.CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(d) Report- The Administrator shall include a report on the corps whenever the Administration submits the report required by section 47(a).'.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

`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.CommentsClose CommentsPermalink





`(b) Report- The Administrator shall include a report on the plans whenever the Administration submits the report required by section 47(a).'.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

`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.CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(d) Report- The Administrator shall include a report on the regulations whenever the Administration submits the report required by section 47(a).'.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

`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--CommentsClose CommentsPermalink





`(1) proven management ability; andCommentsClose CommentsPermalink





`(2) substantial knowledge in the field of disaster readiness and emergency response.CommentsClose CommentsPermalink





`(b) Director of Disaster Planning-CommentsClose CommentsPermalink





`(1) APPOINTMENT- There is established in the Administration a Director for Disaster Planning, appointed by the Administrator from among the personnel of the Administration.CommentsClose CommentsPermalink





`(2) DUTIES- Subject to the authority, direction, and control of the Associate Administrator for Disaster Assistance, the Director shall--CommentsClose CommentsPermalink





`(A) develop and implement the Administration's plans for responding to disasters; andCommentsClose CommentsPermalink





`(B) direct the Administration's training exercises with respect to disasters.CommentsClose CommentsPermalink





`(3) COORDINATION- In carrying out the duties under paragraph (2), the Director shall coordinate with--CommentsClose CommentsPermalink





`(A) the Associate Administrator for the Office of Disaster Assistance of the Administration;CommentsClose CommentsPermalink





`(B) the Director of the Federal Emergency Management Agency; andCommentsClose CommentsPermalink





`(C) other Federal, State, and local disaster planning offices, as necessary.CommentsClose CommentsPermalink





`(c) Director of Disaster Lending-CommentsClose CommentsPermalink





`(1) APPOINTMENT- There is established in the Administration a Director for Disaster Lending, appointed by the Administrator from among the personnel of the Administration.CommentsClose CommentsPermalink





`(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).CommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) in subparagraph (D) by striking the period at the end and inserting `; or'; andCommentsClose CommentsPermalink





(2) by inserting after subparagraph (D) the following:CommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





`(e) Disaster Mitigation Loans-CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink





(c) Applicability for Fiscal Year 2006 to Hurricanes Katrina, Rita, and Wilma-CommentsClose CommentsPermalink





(1) IN GENERAL- For fiscal year 2006, the Administrator--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

`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:CommentsClose CommentsPermalink





`(1) The method of communication.CommentsClose CommentsPermalink





`(2) The date of communication.CommentsClose CommentsPermalink





`(3) The identity of the personnel.CommentsClose CommentsPermalink





`(4) A summary of the subject matter of the communication.CommentsClose CommentsPermalink





`(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:CommentsClose CommentsPermalink





`(1) When the Administration determines that additional information or documentation is required to process the application.CommentsClose CommentsPermalink





`(2) When the Administration determines whether to approve or deny the loan.CommentsClose CommentsPermalink





`(3) When the primary contact person managing the loan application has changed.'.CommentsClose CommentsPermalink

SEC. 203. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

The Small Business Act is amended by inserting after section 43 (as added by section 202) the following:CommentsClose CommentsPermalink

`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.CommentsClose CommentsPermalink





`(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).CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





`(f) Additional Requirements for 7(b) Loans-CommentsClose CommentsPermalink





`(1) INCREASED DEFERMENT AUTHORIZED-CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(B) PERIOD- A deferment under subparagraph (A) may not exceed 4 years.'.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





`(2) REVISED REPAYMENT TERMS- In making loans under section 7(b), the Administrator--CommentsClose CommentsPermalink





`(A) shall not require repayment to be made until 12 months after the date on which the final disbursement of approved amounts is made; andCommentsClose CommentsPermalink





`(B) shall calculate the amount of repayment based solely on the amounts disbursed.'.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





`(3) REVISED DISBURSEMENT PROCESS- In making loans under section 7(b), the Administrator shall disburse the loan amounts in stages as follows:CommentsClose CommentsPermalink





`(A) LOANS UP TO $150,000- If the total amount approved is less than or equal to $150,000--CommentsClose CommentsPermalink





`(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;CommentsClose CommentsPermalink





`(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; andCommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(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--CommentsClose CommentsPermalink





`(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;CommentsClose CommentsPermalink





`(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;CommentsClose CommentsPermalink





`(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; andCommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(C) LOANS GREATER THAN $500,000- If the total amount approved is more than $500,000--CommentsClose CommentsPermalink





`(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; andCommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

`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.CommentsClose CommentsPermalink





`(b) Periods During Which Program Is Required- The program under subsection (a) is required to be carried out during the following periods:CommentsClose CommentsPermalink





`(1) Any period of an incident of national significance (as declared by the President or his designee).CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(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:CommentsClose CommentsPermalink





`(1) Exclude the lender from participating in the program under subsection (a).CommentsClose CommentsPermalink





`(2) Exclude the lender from participating in the Preferred Lenders Program under section 7(a)(2)(C)(ii).CommentsClose CommentsPermalink





`(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:CommentsClose CommentsPermalink





`(1) The loans processed, approved, and closed by the lender under the program under subsection (a).CommentsClose CommentsPermalink





`(2) The participation or non-participation of the lender in the program under subsection (a).'.CommentsClose CommentsPermalink

SEC. 209. DISASTER PROCESSING REDUNDANCY.

The Small Business Act is amended by inserting after section 45 (as added by section 208) the following:CommentsClose CommentsPermalink

`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.CommentsClose CommentsPermalink





`(b) Authorization of Appropriations- There are authorized to be appropriated to carry out this section such sums as may be necessary.'.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





`(4) GRANTS TO DISASTER-AFFECTED SMALL BUSINESSES-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Administrator may make a grant of up to $100,000 to a small business concern that--CommentsClose CommentsPermalink





`(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;CommentsClose CommentsPermalink





`(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);CommentsClose CommentsPermalink





`(iii) has applied for, and was rejected for, a conventional disaster assistance loan under section 7(b); andCommentsClose CommentsPermalink





`(iv) was in existence for at least 2 years before the date on which the applicable disaster declaration was made.CommentsClose CommentsPermalink





`(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.CommentsClose CommentsPermalink





`(C) DEFINITION- In this paragraph, the term `disaster-affected area' means an area that has been designated by the Administrator as a disaster area.CommentsClose CommentsPermalink





`(D) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for grants under this paragraph such funds as may be necessary.'.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) are victims of a disaster under disaster declaration 10176, 10177, 10178, 10179, 10180, 10181, 10203, 10204, 10205, 10206, 10222, or 10223; andCommentsClose CommentsPermalink





(2) receive (whether before, on, or after the date of the enactment of this Act) 7(b) disaster assistance because of that disaster.CommentsClose CommentsPermalink





(b) Authorization of Appropriations- There are authorized to be appropriated such sums as may be necessary to carry out this section.CommentsClose CommentsPermalink





(c) Eligibility- An individual is eligible to receive a grant under this section only if the individual--CommentsClose CommentsPermalink





(1) receives benefits (other than the 7(b) disaster assistance) because of the disaster; andCommentsClose CommentsPermalink





(2) is required to remit those benefits to the Small Business Administration because of a duplication of benefits.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(e) Time- The Administrator shall ensure that, to the maximum extent practicable, a grant made under this section is made--CommentsClose CommentsPermalink





(1) concurrent with the Administration's receipt of the remittance, if the remittance is made after the date of the enactment of this Act; andCommentsClose CommentsPermalink





(2) as soon as possible after the Administration's receipt of the remittance, in all other cases.CommentsClose CommentsPermalink





(f) Treatment of Grants- Grants made under this section shall not be considered a duplication of benefits by the Administrator.CommentsClose CommentsPermalink





(g) Definitions- In this section:CommentsClose CommentsPermalink





(1) The term `Administrator' means the Administrator of the Small Business Administration.CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink

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)--CommentsClose CommentsPermalink





(1) in the matter preceding subparagraph (A)--CommentsClose CommentsPermalink





(A) by inserting after `small business concern' the following: `, private nonprofit organization,'; andCommentsClose CommentsPermalink





(B) by inserting after `the concern' the following: `, organization,'; andCommentsClose CommentsPermalink





(2) in subparagraph (D) by inserting after `small business concerns' the following: `, private nonprofit organizations,'.CommentsClose CommentsPermalink





(b) Conforming Amendment- Such section is further amended in subsection (c)(5)(C) by inserting after `business' the following: `, organization,'.CommentsClose CommentsPermalink

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,'.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) in subparagraph (C)--CommentsClose CommentsPermalink





(A) by striking `90 days' and inserting `1 year'; andCommentsClose CommentsPermalink





(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.'; andCommentsClose CommentsPermalink





(2) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





`(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.'.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) in subparagraph (A) by striking `and';CommentsClose CommentsPermalink





(2) in subparagraph (B) by striking the period at the end and inserting `; and'; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





`(C) ice storms and blizzards.'.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(3) other Federal assistance (including loans) available to small business concerns that are adversely affected by a lack of snow fall; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Amount- The amount of a Gulf Coast disaster loan refinanced under the program shall not exceed the amount of the original loan.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(e) Definition- In this section, the term `Gulf Coast disaster loan' means a loan--CommentsClose CommentsPermalink





(1) made under section 7(b) of the Small Business Act;CommentsClose CommentsPermalink





(2) in response to Hurricane Katrina, Hurricane Rita, or Hurricane Wilma of 2005; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(f) Authorization of Appropriations- There are authorized to be appropriated such sums as may be necessary to carry out this section.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink

`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--CommentsClose CommentsPermalink





`(1) specify the number of Administration personnel involved in such operations;CommentsClose CommentsPermalink





`(2) describe any material changes to those operations, such as changes to technologies used or to personnel responsibilities;CommentsClose CommentsPermalink





`(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; andCommentsClose CommentsPermalink





`(4) describe the plans of the Administration for preparing to respond to disasters during the next fiscal year.CommentsClose CommentsPermalink





`(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--CommentsClose CommentsPermalink





`(1) the number of applications distributed;CommentsClose CommentsPermalink





`(2) the number of applications received;CommentsClose CommentsPermalink





`(3) the average time for the Administration to approve or disapprove an application;CommentsClose CommentsPermalink





`(4) the amount of disaster loans approved;CommentsClose CommentsPermalink





`(5) the average time for initial disbursement of loan proceeds; andCommentsClose CommentsPermalink





`(6) the amount of disaster loan proceeds disbursed.'.CommentsClose CommentsPermalink

Passed the House of Representatives April 18, 2007.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk. LORRAINE C. MILLER, CommentsClose CommentsPermalink

110th CONGRESS 1st Session H. R. 1361 AN ACT

To improve the disaster relief programs of the Small Business Administration, and for other purposes.CommentsClose CommentsPermalink