[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4234 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4234

 To provide for the relief, recovery, and expansion of small business 
 concerns affected by Hurricane Katrina through technical assistance, 
access to capital, and expanded Federal contracting opportunities, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 4, 2005

Ms. Velazquez introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
 To provide for the relief, recovery, and expansion of small business 
 concerns affected by Hurricane Katrina through technical assistance, 
access to capital, and expanded Federal contracting opportunities, 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 ``Small Business 
Gulf Coast Revitalization Act of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
 TITLE I--FINANCIAL ASSISTANCE FOR SMALL BUSINESS CONCERNS AFFECTED BY 
                           HURRICANE KATRINA

Sec. 101. Grants to Hurricane Katrina-affected small businesses.
Sec. 102. Modifications to section 7(b) disaster loan program for 
                            Hurricane Katrina-affected small business 
                            concerns.
Sec. 103. Gulf hurricane 7(b) loan guarantee program.
Sec. 104. Gulf Region New Markets Venture Capital Company.
Sec. 105. Increased assistance under PRIME program.
Sec. 106. Guarantees for bank loans made to Hurricane Katrina-affected 
                            small business concerns receiving 
                            development company financing.
    TITLE II--REQUIRING AND ENSURING SMALL BUSINESS USE IN LEADING 
                              DEVELOPMENT

Sec. 201. Small business access to Federal prime contracts for 
                            hurricane relief and recovery.
Sec. 202. Preferences for Hurricane Katrina-affected small business 
                            concerns.
Sec. 203. Small business access to subcontracts for hurricane relief 
                            and recovery.
Sec. 204. Extension of certain program participations and 
                            certifications.
Sec. 205. Suspension of certain limitations on contract size.
Sec. 206. Federal contracts in Hurricane Katrina-affected areas begun 
                            prior to August 28, 2005.
TITLE III--ENTREPRENEURIAL ASSISTANCE FOR SMALL BUSINESSES AFFECTED BY 
                                KATRINA

Sec. 301. Waiver of matching funds requirement for small business 
                            development centers and women's business 
                            centers located in Hurricane Katrina-
                            affected areas.
Sec. 302. Authorization of additional funding for assistance for 
                            Hurricane Katrina-affected businesses.
Sec. 303. Small business development center coordination.
Sec. 304. Gulf Coast Incubator Revitalization Program.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) The term ``Administrator'' means the Administrator of 
        the Small Business Administration.
            (2) The term ``Hurricane Katrina-affected area'' means an 
        area in a county or parish in Alabama, Louisiana, or 
        Mississippi, that on or after August 28, 2005, has been 
        designated by the Administrator as a disaster area by reason of 
        Hurricane Katrina.
            (3) The term ``Hurricane Katrina-affected small business 
        concern'' means a small business concern that, as of August 28, 
        2005, was located in a Hurricane Katrina-affected area.
            (4) The term ``small business concern'' has the same 
        meaning as under section 3 of the Small Business Act (15 U.S.C. 
        632).
            (5) The term ``small business concern owned and controlled 
        by women'' has the meaning given such term under section 3(n) 
        of such Act (15 U.S.C. 632(n)).
            (6) The term ``small business development center'' has the 
        same meaning as under section 21 of the Small Business Act (15 
        U.S.C. 648).
            (7) The term ``socially and economically disadvantaged 
        small business concern'' has the same meaning given that term 
        under section 8(a)(4) of such Act (15 U.S.C. 637(a)(4)) except 
        that in addition to the requirements of that section, the 
        concern shall be required to be certified by the Administrator 
        or by the head of an appropriate Federal or State entity as a 
        socially and economically disadvantaged small business concern.

 TITLE I--FINANCIAL ASSISTANCE FOR SMALL BUSINESS CONCERNS AFFECTED BY 
                           HURRICANE KATRINA

SEC. 101. GRANTS TO HURRICANE KATRINA-AFFECTED SMALL BUSINESSES.

    (a) Authority.--The Administrator may make a grant of up to 
$100,000 to an eligible small business concern.
    (b) Eligible Small Business Concern.--For purposes of this section, 
an eligible small business concern is a small business concern that--
            (1) is a Hurricane Katrina-affected small business concern; 
        and
            (2) submits to the Administrator a certification by the 
        owner of such concern of intent to reestablish the concern in a 
        Hurricane Katrina-affected area.
    (c) Priority for Certain Small Business Concerns.--In making grants 
under this section, the Administrator shall give priority to an 
eligible small business concern that the Administrator determines is 
economically viable but unable to meet short-term financial 
obligations.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated for grants under this section $500,000,000 to remain 
available until expended.

SEC. 102. MODIFICATIONS TO SECTION 7(B) DISASTER LOAN PROGRAM FOR 
              HURRICANE KATRINA-AFFECTED SMALL BUSINESS CONCERNS.

    (a) Program Modifications for All Hurricane Katrina-Affected Small 
Business Concerns.--In the case of a Hurricane Katrina-affected small 
business concern, the Administrator shall apply section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) with the following modifications:
            (1) The Administrator may refinance the existing debt of 
        such a business concern under such section.
            (2) The Administrator shall, for a period of 36 months, 
        suspend the obligation of such a business concern to make a 
        payment of principal or interest on loan under such section.
    (b) Reduction of Interest Rates for Small Business Concerns Unable 
to Obtain Credit Elsewhere.--In the case of a Hurricane Katrina-
affected small business concern that the Administrator finds is not 
able to obtain credit elsewhere, the annual interest rate on a loan 
made or guaranteed under such section shall not exceed 3 percent.
    (c) Extension of Terms for Loans to Small Business Concerns Able to 
Obtain Credit Elsewhere.--In the case of a Hurricane Katrina-affected 
small business concern that the Administrator finds is able to obtain 
credit elsewhere the period for which a loan may be made or guaranteed 
under such section shall not exceed 15 years.

SEC. 103. GULF HURRICANE 7(B) LOAN GUARANTEE PROGRAM.

    (a) Authority.--The Administrator may enter into an agreement with 
a preferred lender (as described in section 5(b)(7) of the Small 
Business Act (15 U.S.C. 634)) to participate on a deferred basis in a 
loan made by the preferred lender to a Hurricane Katrina-affected small 
business concern under section 7(b) of such Act (15 U.S.C. 636(b)) in 
accordance with this section.
    (b) Administration Guarantee.--The Administration shall guarantee 
100 percent of any loan covered by an agreement with a participating 
lender under subsection (a).
    (c) Guarantee Fees.--With respect to each loan guaranteed under 
this section (other than a loan that is repayable in one year of less), 
the Administrator shall pay to the preferred lender a guarantee fee of 
2 percent of the deferred participation share of the total loan amount.
    (d) Annual Fees.--With respect to a loan guaranteed under this 
section, the Administrator shall pay to the preferred lender an annual 
fee of 0.5 percent per year of the outstanding balance of the deferred 
participation share of the loan.
    (e) Conditions.--A loan under this section shall be made under the 
following conditions:
            (1) The borrower shall be made aware that the loan is for a 
        Hurricane Katrina-affected small business concern; and
            (2) In the case of a loan made in cooperation with a bank 
        or other lending institution, the lender shall submit to the 
        Administrator documentation establishing that the borrower is a 
        Hurricane Katrina-affected small business concern.
    (f) Sale of Loans on Secondary Market.--A loan guaranteed under 
this section may be sold on the secondary market under the terms and 
conditions of section 5 of the Small Business Act (15 U.S.C. 634).
    (g) Interest Rate Reduction.--
            (1) In general.--The Administrator shall reduce the 
        interest rates of certain loans guaranteed under this section 
        in accordance with this subsection.
            (2) Contracts with lenders.--In carrying out paragraph (1), 
        the Administrator shall enter into a contract with, and make 
        payments to, a preferred lender to reduce during the term of 
        such contract the interest rate paid by a Hurricane Katrina-
        affected small business concern on a loan made by such 
        preferred lender and guaranteed under this section if the 
        interest rate charged on such loan would otherwise exceed the 
        interest rate charged by the Administrator on loans made under 
        section 7(b) of the Small Business Act (15 U.S.C. 636(b)).
            (3) Payments to lenders.--In return for a contract entered 
        into by a preferred lender under paragraph (2), the 
        Administrator shall make payments to the preferred lender in an 
        amount equal to not more than 100 percent of the cost of 
        reducing the annual rate of interest on such loan to a rate 
        equal to the rate of interest charged by the Administrator on 
        loans made under such section, except that such payments may 
        not exceed the cost of reducing such rate by more than 4 
        percent.
            (4) Duration of contracts.--The term of a contract entered 
        into under this subsection to reduce the interest rate on a 
        guaranteed loan may not exceed the outstanding term of such 
        loan.
    (h) Report.--Not later than 6 months after the date of enactment of 
this Act, and every 6 months thereafter until the date that is 18 
months after the date of enactment of this Act, the Inspector General 
of the Small Business Administration shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives a report on loans made 
under this section, including verification that such loans have not 
been made to business concerns other than Hurricane Katrina-affected 
small business concerns.
    (i) Termination.--The authority to guarantee a new loan under this 
section shall terminate on the date that is three years after the date 
of the enactment of this Act.

SEC. 104. GULF REGION NEW MARKETS VENTURE CAPITAL COMPANY.

    (a) Solicitation of Applications.--The Administrator shall solicit 
applications from companies that are eligible to apply to participate 
in the New Markets Venture Capital Program under section 354 of the 
Small Business Investment Act of 1958 (15 U.S.C. 689c) and shall select 
from among the applicants, a company as a new markets venture capital 
company (as that term is defined in section 351(5) of such Act (15 
U.S.C. 689(5)) to be known as the ``Gulf Region New Markets Venture 
Capital Company''.
    (b) Qualification.--The company selected under subsection (a) shall 
have a primary objective of economic development in Hurricane Katrina-
affected areas.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated, to remain available until expended, the following sums:
            (1) Such subsidy budget authority as may be necessary to 
        guarantee, under part B of title III of the Small Business 
        Investment Act of 1958 (15 U.S.C. 689 et seq.), $50,000,000 of 
        debentures issued by the Gulf Region New Markets Venture 
        Capital Company, as established pursuant to this section.
            (2) $10,000,000 for grants to the Gulf Region New Markets 
        Venture Capital Company under such part.

SEC. 105. INCREASED ASSISTANCE UNDER PRIME PROGRAM.

    (a) Increase in Assistance.--The Administrator shall make grants 
under the microenterprise technical assistance and capacity building 
grant program under subtitle C of title I of the Riegle Community 
Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6901 et 
seq.) to qualified organizations (as that term is defined in section 
175 of such Act) that provide assistance to Hurricane Katrina-affected 
small business concerns.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated $5,000,000 to carry out this section.

SEC. 106. GUARANTEES FOR BANK LOANS MADE TO HURRICANE KATRINA-AFFECTED 
              SMALL BUSINESS CONCERNS RECEIVING DEVELOPMENT COMPANY 
              FINANCING.

    (a) Authority.--The Administrator may guarantee a portion not to 
exceed 75 percent of a loan made by a financial institution to a 
Hurricane Katrina-affected small business concern that receives 
financing through a development company under title V of the Small 
Business Investment Act of 1958 (15 U.S.C. 695 et seq.).
    (b) Terms of Guarantee.--A guarantee made under subsection (a) 
shall be made under the same terms and conditions as a guarantee under 
section 7(a) of the Small Business Act (15 U.S.C. 636(a)).
    (c) Termination.--The authority to guarantee a new loan under this 
section shall terminate on the date that is three years after the date 
of the enactment of this Act.

    TITLE II--REQUIRING AND ENSURING SMALL BUSINESS USE IN LEADING 
                              DEVELOPMENT

SEC. 201. SMALL BUSINESS ACCESS TO FEDERAL PRIME CONTRACTS FOR 
              HURRICANE RELIEF AND RECOVERY.

    (a) Small Business Contracting Requirement.--Not less than 30 
percent of the total value of all prime contracts awarded by Federal 
agencies for recovery or reconstruction activities related to Hurricane 
Katrina shall be awarded to small business concerns that, as of August 
28, 2005, were located in the State of Alabama, Mississippi, or 
Louisiana.
    (b) Restricted Competition for Hurricane Katrina-Affected Small 
Business Concerns.--A contracting officer of a Federal agency that 
awards a contract for recovery or reconstruction activities to be 
carried out in a Hurricane Katrina-affected area may award such 
contract on the basis of competition restricted to Hurricane Katrina-
affected small business concerns if the contracting officer has a 
reasonable expectation that two or more Hurricane Katrina-affected 
small business concerns will submit offers and that the award can be 
made at a fair and reasonable price that offers best value to the 
United States.
    (c) Restricted Competition for Socially and Economically 
Disadvantaged Small Business Concerns.--A contracting officer of a 
Federal agency that awards a contract for recovery or reconstruction 
activities to be carried out in a Hurricane Katrina-affected area may 
award such contract on the basis of competition restricted to socially 
and economically disadvantaged small business concerns if the 
contracting officer has a reasonable expectation that two or more 
socially and economically disadvantaged small business concerns will 
submit offers and that the award can be made at a fair and reasonable 
price that offers best value to the United States.
    (d) Reservation of Certain Small Contracts for Small Business 
Concerns.--
            (1) Reservation.--Notwithstanding section 15(j) of the 
        Small Business Act (15 U.S.C. 644(j)), each Federal contract 
        for recovery or reconstruction activities to be carried out in 
        a Hurricane Katrina-affected area that has an anticipated value 
        greater than $2,500 but not greater than $1,000,000 shall be 
        reserved exclusively for Hurricane Katrina-affected small 
        business concerns unless the contracting officer is unable to 
        obtain offers with respect to such contract from two or more 
        Hurricane Katrina-affected small business concerns that are 
        competitive with market prices and with regard to the quality 
        and delivery of the goods or services being purchased.
            (2) Consideration of offers.-- In carrying out paragraph 
        (1), a Federal contracting officer shall consider a responsive 
        offer timely received from a Hurricane Katrina-affected small 
        business concern.
            (3) No preclusion of certain other contract awards.--
        Nothing in paragraph (1) shall be construed as precluding an 
        award of a contract with a value not greater than $1,000,000 
        under the authority of--
                    (A) section 8(a) of such Act;
                    (B) section 2323 of title 10, United States Code;
                    (C) section 712 of the Business Opportunity 
                Development Reform Act of 1988 (Public Law 100-656; 15 
                U.S.C. 644 note); or
                    (D) section 7102 of the Federal Acquisition 
                Streamlining Act of 1994.
    (e) Contracting Plan Required.--The head of each Federal agency 
that awards a contract for recovery or reconstruction activities to be 
carried out in a Hurricane Katrina-affected area shall develop a 
contracting plan for such contracts awarded by that agency to maximize 
prime contracting opportunities for small business concerns.
    (f) Contracting Database.--If a Federal agency maintains a database 
of small business concerns for the purpose of entering into contracts 
for recovery or reconstruction activities to be carried out in 
Hurricane Katrina-affected areas, the head of that agency shall, not 
later than 30 days after the date on which a small business concern is 
registered in the database, with respect to such contracts--
            (1) notify the small business concern whether or not a 
        contracting opportunity with the agency exists for the 
        provision of goods or services of the kind provided by the 
        small business concern;
            (2) identify whether or not the small business concern is 
        eligible to bid on a contract for which notice has been 
        provided under paragraph (1); and
            (3) if such a contracting opportunity exists, provide the 
        small business concern with information about such opportunity.

SEC. 202. PREFERENCES FOR HURRICANE KATRINA-AFFECTED SMALL BUSINESS 
              CONCERNS.

    (a) Preference for Hurricane Katrina-Affected Small Business 
Concerns.--For any Federal contract awarded for recovery or 
reconstruction activities to be carried out in a Hurricane Katrina-
affected area, the Federal agency awarding the contract shall use--
            (1) in the case of contracts for activities other than 
        construction activities, a price evaluation preference not in 
        excess of 10 percent when evaluating an offer received from a 
        Hurricane Katrina-affected small business concern; and
            (2) in the case of contracts for construction activities, a 
        price evaluation preference not in excess of 5 percent when 
        evaluating an offer received from such a small business 
        concern.
    (b) Preference for Experienced Hurricane Katrina-Affected Small 
Business Concerns.--In the evaluation of any offer received for a 
Federal contract for recovery or reconstruction activities to be 
carried out in a Hurricane Katrina-affected area, the Federal agency 
evaluating the offers shall give a preference to Hurricane Katrina-
affected small business concerns that have experience with the Federal 
agency as a prime contractor or a subcontractor under a prime contract 
with the agency.

SEC. 203. SMALL BUSINESS ACCESS TO SUBCONTRACTS FOR HURRICANE RELIEF 
              AND RECOVERY.

    (a) Small Business Subcontracting Requirement.--
            (1) Requirement.--As a condition of entering into a Federal 
        prime contract for recovery or reconstruction activities 
        related to Hurricane Katrina, a large business contractor shall 
        agree to award subcontracts, the aggregate value of which shall 
        not be less than 30 percent of the value of the contract, to 
        small business concerns that, as of August 28, 2005, were 
        located in the State of Alabama, Mississippi, or Louisiana. 
        Upon completion of each contract under the preceding sentence, 
        the Administrator shall determine whether or not the contractor 
        complied with the small business award requirement. The 
        determination of the Administrator shall be final.
            (2) Fines for noncompliance.--
                    (A) Fines.--If a contractor fails to comply with 
                the requirement under paragraph (1), the contractor 
                shall pay to the Administrator a fine in an amount not 
                less than 1 percent of the value of the contract. The 
                Administrator shall enforce payment under the preceding 
                sentence.
                    (B) Deposit of amounts.--The Administrator shall 
                deposit any amounts collected under subsection (A) into 
                the Contract Assistance Technical Fund, established 
                under paragraph (3).
            (3) Contract assistance technical fund.--
                    (A) Establishment.--The Administrator shall 
                establish in the Small Business Administration an 
                account to be known as the ``Contract Assistance 
                Technical Fund''.
                    (B) Use of funds.--Amounts deposited in the account 
                established under subparagraph (A) shall be available 
                to the Administrator to provide technical assistance 
                and contracting assistance to Hurricane Katrina-
                affected small business concerns.
    (b) Review of Certain Contract Awards.--
            (1) Review required.--Not later than 60 days after the date 
        of the enactment of this Act, the head of each Federal agency 
        that enters into a contract for recovery or reconstruction 
        activities to be carried out in a Hurricane Katrina-affected 
        area with a business concern other than a small business 
        concern using procedures other than competitive procedures 
        shall conduct an review of any such contracts entered into by 
        the agency.
            (2) Matters for review.--In carrying out the review under 
        paragraph (1), the head of the agency shall identify--
                    (A) the total dollar value of all subcontracts of 
                any such contracts awarded to small business concerns, 
                small business concerns owned and controlled by women, 
                and socially and economically disadvantaged small 
                business concerns; and
                    (B) any contract awarded to a business concern 
                other than a small business concern that could have 
                been awarded to a small business concern.
            (3) Reports.--Not later than 90 days after completion of 
        each review under paragraph (1), the head of the Federal agency 
        involved shall submit a report of the review to the Committee 
        on Small Business of the House of Representatives and the 
        Committee on Small Business and Entrepreneurship of the Senate.
    (c) Procedures for Payment of Small Business Subcontractors.--
            (1) Implementation of procedures.--As a condition of 
        entering into a Federal contract for recovery or reconstruction 
        activities to be carried out in a Hurricane Katrina-affected 
        area, a prime contractor that is not a small business concern 
        shall implement a procedure for paying a subcontractor that is 
        a Hurricane Katrina-affected small business concern during the 
        7-day period beginning on the date on which the prime 
        contractor receives an invoice from the subcontractor.
            (2) Applicability.--With respect to a Federal contract for 
        recovery or reconstruction activities to be carried out in a 
        Hurricane Katrina-affected area entered into before the date of 
        the enactment of this Act, the condition under paragraph (1) 
        shall apply beginning on the date that is 30 days after the 
        date of the enactment of this Act.

SEC. 204. EXTENSION OF CERTAIN PROGRAM PARTICIPATIONS AND 
              CERTIFICATIONS.

    (a) 8(a) and HUBZone Program Participation.--In the case of a 
Hurricane Katrina-affected small business concern that, as of August 
28, 2005, was participating in the program under section 8(a) of the 
Small Business Act (15 U.S.C. 637(a)) or the HUBZone program under 
section 31 of such Act (15 U.S.C. 657a), the Administrator shall 
provide for the participation of such concern in such program until the 
date that is one year after the date on which such participation would 
otherwise terminate.
    (b) Social and Economic Disadvantage Certification.--In the case of 
a Hurricane Katrina-affected small business concern that, as of August 
28, 2005, was certified by the Administrator as a socially and 
economically disadvantaged small business concern, the Administrator 
shall provide for the certification of such concern as a socially and 
economically disadvantaged small business concern until the date that 
is one year after the date on which such certification would otherwise 
terminate.

SEC. 205. SUSPENSION OF CERTAIN LIMITATIONS ON CONTRACT SIZE.

    In the case of a Hurricane Katrina-affected small business concern 
that, as of August 28, 2005, was participating in the program under 
section 8(a) of the Small Business Act (15 U.S.C. 637(a)), the 
Administrator shall waive the limitation under section 
8(a)(1)(D)(i)(II) with respect to any Federal contract for recovery or 
reconstruction activities to be carried out in a Hurricane Katrina-
affected area.

SEC. 206. FEDERAL CONTRACTS IN HURRICANE KATRINA-AFFECTED AREAS BEGUN 
              PRIOR TO AUGUST 28, 2005.

    (a) Additional Amounts for Certain Small Business Concerns.--In the 
case of a small business concern that incurred any destruction or 
damage by reason of Hurricane Katrina that is directly related to the 
fulfillment of a Federal contract that was awarded before August 28, 
2005, to provide goods or services in a Gulf-hurricane affected area 
the head of the Federal agency that entered into such contract shall 
pay such small business concern, in addition to the amount specified in 
the contract, such amounts as are required to pay for the damage or 
destruction.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated $50,000,000 to carry out subsection (a).

TITLE III--ENTREPRENEURIAL ASSISTANCE FOR SMALL BUSINESSES AFFECTED BY 
                                KATRINA

SEC. 301. WAIVER OF MATCHING FUNDS REQUIREMENT FOR SMALL BUSINESS 
              DEVELOPMENT CENTERS AND WOMEN'S BUSINESS CENTERS LOCATED 
              IN HURRICANE KATRINA-AFFECTED AREAS.

    Small business development centers under section 21 of the Small 
Business Act (15 U.S.C. 648) and Women's Business Centers under section 
29 of that Act (15 U.S.C. 656) that are located in a Hurricane Katrina-
affected area, shall not be required to obtain matching non-Federal 
funds in accordance with in section 21(a)(4) of that Act (15 U.S.C. 
648(a)(4)) or section 29(l)(4) of that Act (15 U.S.C. 656(l)(4)), 
respectively.

SEC. 302. AUTHORIZATION OF ADDITIONAL FUNDING FOR ASSISTANCE FOR 
              HURRICANE KATRINA-AFFECTED BUSINESSES.

    (a) Counselors.--Small business development centers, under section 
21 of the Small Business Act (15 U.S.C. 648), throughout the United 
States are authorized to send counselors to centers located in a 
Hurricane Katrina-affected area. Salaries, travel expenses and lodging 
for such counselors shall be paid out of amounts authorized under this 
section. The Administrator of the Small Business Administration shall 
not prohibit centers that have willing counselors from sending those 
counselors to a Hurricane Katrina-affected area to provide services to 
centers in a Hurricane Katrina-affected area.
    (b) Certain Reimbursements.--Small business development centers 
that send counselors to a Hurricane Katrina-affected area may apply for 
reimbursement of costs related to temporary replacement of such 
counselors under the amounts authorized under this section.
    (c) Program Grants for Recovery Assistance.--Grants of not more 
than $500,000 shall be available for small business development 
centers, the Service Corps for Retired Executives, and Women's Business 
Centers in Hurricane Katrina-affected areas to establish supplementary 
programs that will do at least one of the following:
            (1) Provide assistance to Hurricane Katrina-affected small 
        business concerns in completing disaster loan paperwork and 
        dealing with private financing issues for their businesses. The 
        Administrator of the Small Business Administration shall work 
        with grantees to ensure that loans are processed in a timely 
        manner.
            (2) Assist Hurricane Katrina-affected small business 
        concerns in Hurricane Katrina-affected areas to obtain Federal 
        contracting opportunities, as outlined in section 303, and 
        assist local small businesses to identify and hire employees.
            (3) Assist Hurricane Katrina-affected small business 
        concerns in identifying and hiring potential employees. The 
        grantee shall work to help and identify displaced workers to 
        find employment with small business concerns.
    (d) Entrepreneurial Service Centers.--Small Business Administration 
Entrepreneurial Assistance Centers that are located in Hurricane 
Katrina-affected areas, including grantees in Women's Business Center 
and small business development center programs, as well as SCORE 
Centers authorized by section 8(b)(1) of the Small Business Act (15 
U.S.C. 637 (b)(1)), shall be eligible to apply for grants up to 
$250,000 for purpose of dealing with increased demand for services.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 to carry out this section.

SEC. 303. SMALL BUSINESS DEVELOPMENT CENTER COORDINATION.

    (a) Contract Award Notification.--The head of each Federal agency 
that awards a contract for recovery or reconstruction activities to be 
carried out in a Hurricane Katrina-affected area shall provide, not 
later than 30 days before the award of such contract, information about 
such contract to the director of each small business development center 
located in the area for which the goods or services are to be provided 
under the contract.
    (b) Coordination of Opportunities.--Upon receipt of the information 
about a contract provided under paragraph (1), the director of a small 
business development center shall--
            (1) make a reasonable effort to identify a small business 
        concern located in the area served by the small business 
        development center to perform the contract; and
            (2) upon such identification, notify the head of the 
        Federal agency awarding the contract of such identification.
    (c) Provision of Database Assistance.--The director of a small 
business development center located in a Hurricane Katrina-affected 
area shall provide assistance for small business concerns located in 
the area served by that small business development center in 
registering in any database maintained by a Federal agency or by a 
prime contractor for the purpose of entering into contracts for 
recovery or reconstruction activities to be carried out in Hurricane 
Katrina-affected areas.

SEC. 304. GULF COAST INCUBATOR REVITALIZATION PROGRAM.

    (a) Purpose.--It is the purpose of the Gulf Coast Incubator 
Revitalization Program--
            (1) to promote economic development in Hurricane Katrina-
        affected areas, particularly focussing on the creation of 
        wealth and job opportunity in low-income demographic areas;
            (2) to develop a business incubation program with the 
        mission of providing focused assistance to aid in the 
        development of small businesses for those areas that were 
        devastated by the effects of Hurricane Katrina;
            (3) to make grants to economic development organizations 
        and other entities in Hurricane Katrina-affected areas, for the 
        purpose of providing business incubation services to small 
        businesses; and
            (4) to revitalize and reuse industrial sites for economic 
        growth.
    (b) Grant Program.--
            (1) In general.--In accordance with this subsection, the 
        Administrator may make a 5-year grant to each of 10 eligible 
        organizations to establish and operate a small business 
        incubator program in Hurricane Katrina-affected areas.
            (2) Applications.--To be eligible to receive a grant under 
        this subsection, an eligible organization shall submit an 
        application to the Administrator at such time and in such form 
        and manner as the Administrator may require. Each such 
        application shall include the grantee's plan for establishing 
        and operating a small business incubator program.
            (3) Selection of grantees.--In selecting the 10 grantees 
        under this subsection, the Administrator shall evaluate and 
        rank applicants in accordance with predetermined selection 
        criteria that will be stated in terms of relevant importance of 
        such criteria. The relative importance of the criteria shall be 
        made publicly available and stated in each solicitation for 
        applicants made by the Administrator. The criteria shall 
        include the following:
                    (A) The experience of the applicant in conducting 
                business development.
                    (B) The experience of the applicant in technology 
                and manufacturing.
                    (C) The extent to which the incubator will assist 
                in the development of low-income, women, or minority 
                business, or the revitalization of a Hurricane Katrina-
                affected area.
                    (D) The extent to which the proposed site is in an 
                area of high unemployment and will result in the reuse 
                of a previously used industrial site.
                    (E) The extent to which the applicant has a 
                management team in place with experience in running a 
                business incubator or relevant business development 
                experience.
                    (F) The extent to which the applicant's plan will 
                result in the economic development of low-income 
                communities or high-unemployment areas and economic 
                revitalization of devastated areas.
                    (G) The ability of the applicant to successfully 
                establish and operate a small business incubator 
                program.
                    (H) The ability of the applicant to enter into 
                cooperative agreements with lending institutions to 
                provide a streamlined process for business concerns 
                utilizing the small business incubator program to 
                obtain financial assistance, including loans under 
                subsection (c).
                    (I) The extent to which the applicant's plan for 
                establishing and operating a small business incubator 
                program will do the following:
                            (i) Enhance small business development.
                            (ii) Meet the needs and goals of the 
                        community in which the incubator is to be 
                        located.
                            (iii) Serve as a catalyst for further 
                        development.
                            (iv) Involve the rehabilitation of a 
                        warehouse, factory, or building which has 
                        fallen into disrepair.
                            (v) Assist in redeveloping a disadvantaged 
                        area.
                            (vi) Target minority and women 
                        entrepreneurs.
                            (vii) Focus on the development of 
                        manufacturing and technology.
                            (viii) Retain or create jobs.
                            (ix) Include assistance regarding 
                        marketing, financial management, human 
                        resources development, and access to capital 
                        (both debt and equity).
                    (J) Level of devastation to local community due to 
                Hurricane Katrina.
            (4) Grant requirements.--Each grantee shall use the grant 
        funds to establish a small business incubator program, which 
        shall make the following assistance available (on a shared or 
        unshared basis, as the grantee may determine) to businesses 
        participating in such program:
                    (A) Office space.
                    (B) Office equipment, including computers, 
                facsimile machines, photocopiers, access to 
                telecommunications services (including broadband 
                services), and manufacturing equipment.
                    (C) Administrative and technical staff.
                    (D) Training in the areas of marketing, financial 
                management, human resources, and contracting.
                    (E) Assistance in obtaining loans, including loans 
                under subsection (c).
                    (F) Assistance in locating investors and networking 
                with local business organizations.
                    (G) Individualized reviews of marketing, financial, 
                and business plans, which shall occur monthly for such 
                period as the Administrator may determine and quarterly 
                thereafter.
                    (H) Legal, accounting, and marketing services.
                    (I) Mentoring program with established, successful, 
                large businesses to last the duration of the business' 
                stay in the incubator.
            (5) Additional assistance.--A grantee may use grant funds 
        to provide child care services to participating business and 
        any other assistance which is approved by the Administrator.
            (6) Additional program requirements.--
                    (A) Participating businesses.--Each grantee shall 
                select the businesses which will participate in the 
                grantee's small business incubation program. The 
                grantee shall select businesses which are not yet well 
                established or were established prior to August 28, 
                2005, and have been severely economically damaged and 
                which have the potential to be self-sustaining. Each 
                grantee shall require participating businesses to 
                participate in the training described in paragraph 
                (4)(D), to submit marketing, financial, and business 
                plans and to participate in the review of such plans 
                described in paragraph (4)(G).
                    (B) Cooperative agreements with lenders.--Each 
                grantee shall enter into a cooperative agreement with 
                one or more lenders to provide a streamlined process by 
                which participating businesses may obtain loans, 
                including loans under subsection (c).
            (7) Eligible organizations.--For purposes of this section, 
        the term ``eligible organization'' means any of the following 
        that are located in a Hurricane Katrina-affected area:
                    (A) An organization described in section 501(c)(3) 
                of the Internal Revenue Code of 1986 and exempt from 
                tax under section 501(a) of such Code.
                    (B) A business league, chamber of commerce, or 
                board of trade described in section 501(c)(6) of the 
                Internal Revenue Code of 1986 and exempt from tax under 
                section 501(a) of such Code.
                    (C) A local development agency that is chartered, 
                established, or otherwise sanctioned by a State or 
                local government.
                    (D) A small business development center.
                    (E) A college or university.
                    (F) A unit of State or local government.
            (9) Federal coordination.--The Administrator, in 
        consultation with the Economic Development Administration and 
        the Minority Business Development Agency--
                    (A) shall undertake efforts to coordinate and 
                enhance Federal programs that relate to small business 
                incubation programs; and
                    (B) shall invite State and local governments, 
                lending institutions, and other appropriate public and 
                private organizations to serve as intermediaries in 
                outreach efforts related to small business incubation 
                programs.
            (10) Termination.--The Administrator shall not make any new 
        5-year grants under this subsection after the end of the 180-
        day period beginning on the date that funds are first made 
        available to carry out this subsection.
            (11) Reports.--
                    (A) Initial report.--One year after the first grant 
                is made under this subsection, the Administrator shall 
                transmit to the Congress a preliminary report regarding 
                the Gulf Coast Incubator Revitalization Program 
                conducted under this section.
                    (B) Final report.--Four years after the first grant 
                is made under this subsection, the Administrator shall 
                transmit to the Congress a final report regarding the 
                Gulf Coast Incubator Revitalization Program conducted 
                under this section. Such report shall include any 
                recommendations of the Administrator regarding ways to 
                improve such program and the recommendation of the 
                Administrator as to whether such program should be 
                extended.
            (12) Authorization of appropriations.--There are authorized 
        to be appropriated to carry out this subsection $25,000,000.
    (c) Loan Program.--
            (1) In general.--The Administrator may make loans under 
        section 7(a) of the Small Business Act (15 U.S.C. 636 (a)) to 
        small business concerns participating in a small business 
        incubation program described in subsection (b).
            (2) Loan terms.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the rules which apply to loans under section 7(a) 
                of the Small Business Act (15 U.S.C. 636(a)) shall 
                apply with respect to loans made under this subsection.
                    (B) Special rules for deferred participation 
                loans.--In the case of an agreement to participate on a 
                deferred basis in any such loan--
                            (i) such participation by the 
                        Administration shall be equal to 90 percent of 
                        the balance of the financing outstanding at the 
                        time of the disbursement of the loan;
                            (ii) the Administrator shall collect 
                        (except in the case of a loan that is repayable 
                        in 1 year or less) a guarantee fee, which shall 
                        be payable by the participating lender and may 
                        be charged to the borrower as follows:
                                    (I) A guarantee fee equal to 0.5 
                                percent of the deferred participation 
                                share of a total loan amount that is 
                                not more than $150,000.
                                    (II) A guarantee fee equal to 1.5 
                                percent of the deferred participation 
                                share of a total loan amount that is 
                                more than $150,000, but not more than 
                                $700,000.
                                    (III) A guarantee fee equal to 2 
                                percent of the deferred participation 
                                share of a total loan amount that is 
                                more than $700,000;
                            (iii) the annual fee assessed and collected 
                        on any such loan shall not exceed an amount 
                        equal to 0.15 percent of the outstanding 
                        balance of the deferred participation share of 
                        the loan;
                            (iv) the Administrator may make such loans 
                        without regard to the ability of a small 
                        business concern to obtain credit elsewhere;
                            (v) the Administrator shall make such loans 
                        without regard to the availability of 
                        collateral to secure such loans; and
                            (vi) the Administrator may charge interest 
                        on any such loan. Such charge may not exceed a 
                        rate of 4 percent per year.
            (3) Regulations.--Not later than 120 days after the date of 
        enactment of this Act, the Administrator shall issue interim 
        final rules and guidelines to implement this subsection.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to carry out 
        this subsection.
                                 <all>