[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1724 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1724

    To provide assistance for small businesses damaged by Hurricane 
                    Katrina, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 19, 2005

  Ms. Snowe (for herself, Mr. Vitter, and Mr. Talent) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
    To provide assistance for small businesses damaged by Hurricane 
                    Katrina, 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, 
Homeowners, and Renters Disaster Relief 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. Disaster loans.
Sec. 3. Development company debentures.
Sec. 4. Small business emergency relief.
Sec. 5. Entrepreneurial development.
Sec. 6. Small Business Development Centers.
Sec. 7. HUBZones.
Sec. 8. Outreach programs.
Sec. 9. Small business bonding threshold.
Sec. 10. Supplemental emergency loans.
Sec. 11. Small business participation.
Sec. 12. Energy emergency relief.
Sec. 13. Budgetary Treatment of Loans and Financings.
Sec. 14. Emergency spending.

SEC. 2. DISASTER LOANS.

    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.--
                    ``(A) Additional loan authority.--
                            ``(i) Loans to small businesses.--In 
                        addition to any other loan authorized by this 
                        subsection, the Administrator may make such 
                        loans under this subsection (either directly or 
                        in cooperation with banks or other lending 
                        institutions through agreements to participate 
                        on an immediate or deferred basis) as the 
                        Administrator determines appropriate to a small 
                        business concern or small agricultural 
                        cooperative that demonstrates a direct adverse 
                        economic impact caused by Hurricane Katrina, 
                        based on such criteria as the Administrator may 
                        set by rule, regulation, or order.
                            ``(ii) Loans to nonprofits.--In addition to 
                        any other loan authorized by this subsection, 
                        the Administrator may make such loans under 
                        this subsection (either directly or in 
                        cooperation with banks or other lending 
                        institutions through agreements to participate 
                        on an immediate or deferred basis) as the 
                        Administrator determines appropriate to a non-
                        profit organization for purposes of repairing 
                        damage caused by Hurricane Katrina or 
                        performing other hurricane relief services in a 
                        damaged area.
                    ``(B) Increased loan caps.--
                            ``(i) Aggregate loan amounts.--Except as 
                        provided in clause (ii), the aggregate loan 
                        amount outstanding and committed to a qualified 
                        borrower in a damaged area under this paragraph 
                        may not exceed $10,000,000.
                            ``(ii) Waiver authority.--The Administrator 
                        may, at the discretion of the Administrator, 
                        waive the aggregate loan amount established 
                        under clause (i).
                    ``(C) 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 
                        located in a damaged area made under this 
                        subsection before, on, or after the date of 
                        enactment of this paragraph 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 of issuance of 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.
                    ``(D) Definitions.--In this paragraph, the 
                following definitions shall apply:
                            ``(i) Damaged area.--The term `damaged 
                        area' means an area which the President has 
                        designated as a disaster area as a result of 
                        Hurricane Katrina of August 2005.
                            ``(ii) Qualified borrower.--The term 
                        `qualified borrower' means a small business 
                        concern or non-profit organization--
                                    ``(I) located in a damaged area; or
                                    ``(II) located in a State 
                                contiguous to a damaged area that is 
                                using, or intends to use, a loan made 
                                under this subsection for purposes of 
                                rebuilding or conducting operations in 
                                a damaged area.''.

SEC. 3. DEVELOPMENT COMPANY DEBENTURES.

    Section 503 of the Small Business Investment Act of 1958 (15 U.S.C. 
697) is amended by adding at the end the following:
    ``(j) Debentures After Hurricane Katrina.--
            ``(1) Authority.--
                    ``(A) In general.--In addition to any other 
                guarantee authorized by this section, the Administrator 
                may guarantee the timely payment of all principal and 
                interest as scheduled on any debenture issued for 
                purposes of rebuilding or resuming operations in a 
                damaged area, as the Administrator determines 
                appropriate.
                    ``(B) Terms.--The Administrator shall establish a 
                fee for a guarantee issued under subparagraph (A) that 
                is lower than that for other guarantees under this 
                section.
            ``(2) Existing guarantees.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, the Administrator may temporarily 
                defer payments of principal and interest on a guarantee 
                made under this section before the date of enactment of 
                this subsection to a small business concern in a 
                damaged area, in any case in which the payments are 
                owed to the Administration.
                    ``(B) Payments to other parties.--Notwithstanding 
                any other provision of law, the Administrator may 
                temporarily make payments of principal and interest on 
                a loan made under this section before the date of 
                enactment of this subsection to a small business 
                concern in a damaged area, in any case in which the 
                payments are owed to a person other than the 
                Administration.
                    ``(C) Termination of authority.--The authority to 
                defer, or make, payments under this paragraph shall 
                terminate 1 year after the date of enactment of this 
                subsection.
            ``(3) Definitions.--In this subsection, the following 
        definitions shall apply:
                    ``(A) Damaged area.--The term `damaged area' means 
                an area which the President has designated as a 
                disaster area as a result of Hurricane Katrina of 
                August 2005.
                    ``(B) Qualified borrower.--The term `qualified 
                borrower' means a small business concern--
                            ``(i) located in a damaged area; or
                            ``(ii) that demonstrates a direct adverse 
                        economic impact caused by Hurricane Katrina, 
                        based on such criteria as the Administrator may 
                        set by rule, regulation, or order.''.

SEC. 4. SMALL BUSINESS EMERGENCY RELIEF.

    (a) Definitions.--As used in this section--
            (1) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act; and
            (2) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively.
    (b) Business Loan Programs.--Section 20(e) of the Small Business 
Act (15 U.S.C. 631 note) is amended--
            (1) by striking ``$25,050,000,000'' and inserting 
        ``$30,550,000,000''; and
            (2) in paragraph (1)(B)--
                    (A) by striking ``$17,000,000,000'' and inserting 
                ``$20,000,000,000'';
                    (B) by striking ``$7,500,000,000'' and inserting 
                ``$10,000,000,000''; and
                    (C) by striking ``25,050,000,000'' and inserting 
                ``30,550,000,000''.
    (c) Grants to States Damaged by Hurricane Katrina.--There is 
authorized to be appropriated, and there is appropriated, to the 
Department of Commerce $400,000,000 to provide, through appropriate 
government agencies in Louisiana, Alabama, Mississippi, Texas, and 
Florida, to provide bridge grants and loans to small business concerns 
located in the area which the President has designated as a disaster 
area as a result of Hurricane Katrina, to assist in covering costs of 
such concerns until they are able to obtain loans through 
Administration assistance programs or other sources.
    (d) Disaster Loan Additional Amounts.--In addition to any other 
amounts otherwise appropriated for such purpose, there is authorized to 
be appropriated, and there is appropriated, to the Administration 
$86,000,000, to make loans under section 7(b) of the Small Business 
Act.
    (e) Other Disaster Loans Following Hurricane Katrina.--
            (1) In general.--Paragraph (4) of section 7(b) of the Small 
        Business Act (15 U.S.C. 636(b)), as added by this Act, is 
        amended by adding at the end the following:
                    ``(E) Refinancing disaster loans after hurricane 
                katrina.--
                            ``(i) In general.--Any loan made under this 
                        subsection that was outstanding as to principal 
                        or interest on August 24, 2005, may be 
                        refinanced by a small business concern that is 
                        located in an area designated by the President 
                        as a disaster area as a result of Hurricane 
                        Katrina of 2005 (in this paragraph referred to 
                        as the `disaster area'), and the refinanced 
                        amount shall be considered to be part of the 
                        new loan for purposes of this subparagraph.
                            ``(ii) No effect on eligibility.--A 
                        refinancing under clause (i) by a small 
                        business concern shall be in addition to any 
                        other loan eligibility for that small business 
                        concern under this Act.
                    ``(F) Refinancing business debt.--
                            ``(i) In general.--Any business debt of a 
                        small business concern that was outstanding as 
                        to principal or interest on August 24, 2005, 
                        may be refinanced by the small business concern 
                        if it is located in the disaster area. With 
                        respect to a refinancing under this clause, 
                        payments of principal shall be deferred, and 
                        interest may accrue, during the 1-year period 
                        following the date of refinancing, and the 
                        refinanced amount shall be considered to be 
                        part of a new loan for purposes of this 
                        subparagraph.
                            ``(ii) Resumption of payments.--At the end 
                        of the 1-year period described in clause (i), 
                        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.
                    ``(G) Terms.--A loan under subparagraph (E) or (F) 
                shall be made at the same interest rate as economic 
                injury loans under paragraph (2).
                    ``(H) Extended application period.--Notwithstanding 
                any other provision of law, the Administrator shall 
                accept applications for assistance under paragraphs (1) 
                and (4) until one year after the date on which the 
                President designated the area as a disaster area as a 
                result of Hurricane Katrina.
                    ``(I) No sale.--No loan under this subsection made 
                as a result of Hurricane Katrina may be sold.''.
            (2) Clerical amendments.--Section 7(b) of the Small 
        Business Act (15 U.S.C. 636(b)) is amended in the undesignated 
        matter at the end--
                    (A) by striking ``, (2), and (4)'' and inserting 
                ``and (2)''; and
                    (B) by striking ``, (2), or (4)'' and inserting 
                ``(2)''.

SEC. 5. ENTREPRENEURIAL DEVELOPMENT.

    In addition to any other amounts authorized for any fiscal year, 
there are authorized to be appropriated, and there is appropriated, to 
the Administration, to remain available until expended, for fiscal year 
2006--
            (1) $21,000,000, to be used for activities of small 
        business development centers pursuant to section 21 of the 
        Small Business Act, $15,000,000 of which shall be non-matching 
        funds and used to aid and assist small business concerns 
        affected by Hurricane Katrina;
            (2) $2,000,000, to be used for the SCORE program authorized 
        by section 8(b)(1) of the Small Business Act, for the 
        activities described in section 8(b)(1)(B)(ii) of that Act, 
        $1,000,000 of which shall be used to aid and assist small 
        business concerns affected by Hurricane Katrina;
            (3) $4,500,000, to be used for activities of women's 
        business centers authorized by section 29(b) of the Small 
        Business Act and for recipients of a grant under section 29(l) 
        of that Act, $2,500,000 of which shall be non-matching funds 
        used to aid and assist small business concerns affected by 
        Hurricane Katrina, which may also be made available to a 
        women's business center whose 5-year project ended in fiscal 
        year 2004;
            (4) $1,250,000, to be used for activities of the office of 
        veteran's business development pursuant to section 32 of the 
        Small Business Act, $750,000 of which shall be used to aid and 
        assist small business concerns affected by Hurricane Katrina; 
        and
            (5) $5,000,000, to be used for activities of the microloan 
        program authorized by clauses (ii) and (iii) of section 
        7(m)(1)(G) of the Small Business Act to aid and assist small 
        business concerns adversely affected by Hurricane Katrina.

SEC. 6. SMALL BUSINESS DEVELOPMENT CENTERS.

    Section 21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) is 
amended by adding at the end the following:
                    ``(D) Fiscal years 2005 and 2006.--For fiscal years 
                2005 and 2006, the Administrator has the authority to 
                waive the maximum amount of $100,000 for grants under 
                paragraph (C)(viii) for small business development 
                centers assisting small business concerns adversely 
                affected by Hurricane Katrina.''.

SEC. 7. HUBZONES.

    Section 3(p)(1) of the Small Business Act (15 U.S.C. 632(p)(1)) is 
amended--
            (1) in subparagraph (D), by striking ``or'';
            (2) in subparagraph (E), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(F) the Hurricane Katrina disaster area, as 
                designated by the Administrator.''.

SEC. 8. OUTREACH PROGRAMS.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Administrator of the Small Business Administration 
shall establish a contracting outreach and technical assistance program 
for small business concerns which have had a primary place of business 
in, or other significant presence in the Hurricane Katrina disaster 
area at any time following the 60 days prior to the designation of such 
area by the Administrator.
    (b) Administrator Action.--The Administrator may fulfill the 
requirement of subsection (a) by acting through--
            (1) the Small Business Administration;
            (2) the Federal agency small business officials designated 
        under Section 15(k)(1) of the Small Business Act (15 U.S.C. 
        644(k)(1)); and
            (3) any Federal, State, or local government entity, higher 
        education institution, or private nonprofit organization that 
        the Administrator may deem proper, upon conclusion of a 
        memorandum of understanding or assistance agreement, as 
        appropriate, with the Administrator.

SEC. 9. SMALL BUSINESS BONDING THRESHOLD.

    Notwithstanding any other provision of law, for all procurements 
related to Hurricane Katrina, the Administrator may, upon such terms 
and conditions as it may prescribe, guarantee and enter into 
commitments to guarantee any surety against loss resulting from a 
breach of the terms of a bid bond, payment bond, performance bond, or 
bonds ancillary thereto, by a principal on any total work order or 
contract amount at the time of bond execution that does not exceed 
$10,000,000.

SEC. 10. SUPPLEMENTAL EMERGENCY LOANS.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following:
            ``(32) Supplemental emergency loans after hurricane 
        katrina.--
                    ``(A) Loan authority.--In addition to any other 
                loan authorized by this subsection, the Administrator 
                shall make such loans under this subsection (either 
                directly or in cooperation with banks or other lending 
                institutions through agreements to participate on an 
                immediate or deferred basis) as the Administrator 
                determines appropriate to a small business concern 
                adversely affected by Hurricane Katrina, subject to 
                subparagraph (B).
                    ``(B) Oversight protections.--In making any loan 
                under subparagraph (A)--
                            ``(i) the borrower shall be made aware that 
                        such loans are for those adversely affected by 
                        Hurricane Katrina; and
                            ``(ii) for loans made in cooperation with a 
                        bank or other lending institution--
                                    ``(I) lenders shall document for 
                                the Administrator how the borrower was 
                                adversely affected by Hurricane 
                                Katrina, whether directly, or 
                                indirectly; and
                                    ``(II) not later than 6 months 
                                after the date of enactment of this 
                                paragraph, and every 6 months 
                                thereafter until the date that is 18 
                                months after the date of enactment of 
                                this paragraph, the Comptroller General 
                                shall make a report regarding such 
                                loans to the Committee on Small 
                                Business and Entrepreneurship of the 
                                Senate and the Committee on Small 
                                Business of the House of 
                                Representatives, including verification 
                                that such loans are being used for 
                                purposes authorized by this paragraph.
                    ``(C) Fees.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, the Administrator 
                        shall, in lieu of the fee established under 
                        paragraph (23)(A), collect an annual fee of 
                        0.25 percent of the outstanding balance of 
                        deferred participation loans made under this 
                        subsection to qualified borrowers for a period 
                        of 1 year after the date of enactment of this 
                        paragraph.
                            ``(ii) Guarantee fees.--Notwithstanding any 
                        other provision of law, the guarantee fee under 
                        paragraph (18)(A) for a period of 1 year after 
                        the date of enactment of this subparagraph 
                        shall be as follows:
                                    ``(I) A guarantee fee equal to 1 
                                percent of the deferred participation 
                                share of a total loan amount that is 
                                not more than $150,000.
                                    ``(II) A guarantee fee equal to 2.5 
                                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 
                                3.5 percent of the deferred 
                                participation share of a total loan 
                                amount that is more than $700,000.''.
    (b) Appropriation.--There is authorized to be appropriated, and 
there is appropriated, $75,000,000 to carry out the amendment made by 
subsection (a).

SEC. 11. SMALL BUSINESS PARTICIPATION.

    In order to facilitate the maximum practicable participation of 
small business concerns in activities related to relief and recovery 
from Hurricane Katrina, the Administrator and the head of any Federal 
agency making procurements related to the aftermath of Hurricane 
Katrina, shall set a goal, to be met within a reasonable time, of 
awarding to small business concerns not less than 30 percent of amounts 
expended for prime contracts and not less than 40 percent of amounts 
expended for subcontracts on procurements such agency related to the 
aftermath of Hurricane Katrina.

SEC. 12. ENERGY EMERGENCY RELIEF.

    (a) Small Business and Farm Energy Emergency Disaster Loan 
Program.--
            (1) Small business disaster loan authority.--Section 7(b) 
        of the Small Business Act (15 U.S.C. 636(b)) is amended by 
        inserting after paragraph (4), as added by this Act, the 
        following:
            ``(5)(A) For purposes of this paragraph--
                    ``(i) the term `base price index' means the moving 
                average of the closing unit price on the New York 
                Mercantile Exchange for heating oil, natural gas, 
                gasoline, or propane for the 10 days, in each of the 
                most recent 2 preceding years, which correspond to the 
                trading days described in clause (ii);
                    ``(ii) the term `current price index' means the 
                moving average of the closing unit price on the New 
                York Mercantile Exchange, for the 10 most recent 
                trading days, for contracts to purchase heating oil, 
                natural gas, gasoline, or propane during the subsequent 
                calendar month, commonly known as the `front month';
                    ``(iii) the term `significant increase' means--
                            ``(I) with respect to the price of heating 
                        oil, natural gas, gasoline, or propane, any 
                        time the current price index exceeds the base 
                        price index by not less than 40 percent; and
                            ``(II) with respect to the price of 
                        kerosene, any increase which the Administrator, 
                        in consultation with the Secretary of Energy, 
                        determines to be significant; and
                    ``(iv) a small business concern engaged in the 
                heating oil business is eligible for a loan, if the 
                small business concern sells not more than 10,000,000 
                gallons of heating oil per year.
            ``(B) The Administration may make such loans, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis, to assist a small business concern that has 
        suffered or that is likely to suffer substantial economic 
        injury on or after January 1, 2005, as the result of a 
        significant increase in the price of heating oil, natural gas, 
        gasoline, propane, or kerosene occurring on or after January 1, 
        2005.
            ``(C) Any loan or guarantee extended pursuant to this 
        paragraph shall be made at the same interest rate as economic 
        injury loans under paragraph (2).
            ``(D) No loan may be made under this paragraph, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis, if the total amount outstanding and 
        committed to the borrower under this subsection would exceed 
        $1,500,000, unless such borrower constitutes a major source of 
        employment in its surrounding area, as determined by the 
        Administration, in which case the Administration, in its 
        discretion, may waive the $1,500,000 limitation.
            ``(E) For purposes of assistance under this paragraph--
                    ``(i) a declaration of a disaster area based on 
                conditions specified in this paragraph shall be 
                required, and shall be made by the President or the 
                Administrator; or
                    ``(ii) if no declaration has been made pursuant to 
                clause (i), the Governor of a State in which a 
                significant increase in the price of heating oil, 
                natural gas, gasoline, propane, or kerosene has 
                occurred may certify to the Administration that small 
                business concerns have suffered economic injury as a 
                result of such increase and are in need of financial 
                assistance which is not otherwise available on 
                reasonable terms in that State, and upon receipt of 
                such certification, the Administration may make such 
                loans as would have been available under this paragraph 
                if a disaster declaration had been issued.
            ``(F) Notwithstanding any other provision of law, loans 
        made under this paragraph may be used by a small business 
        concern described in subparagraph (B) to convert from the use 
        of heating oil, natural gas, gasoline, propane, or kerosene to 
        a renewable or alternative energy source, including agriculture 
        and urban waste, geothermal energy, cogeneration, solar energy, 
        wind energy, or fuel cells.''.
            (2) Conforming amendments.--Section 3(k) of the Small 
        Business Act (15 U.S.C. 632(k)) is amended--
                    (A) by inserting ``, significant increase in the 
                price of heating oil, natural gas, gasoline, propane, 
                or kerosene'' after ``civil disorders''; and
                    (B) by inserting ``other'' before ``economic''.
            (3) Report.--Not later than 12 months after the date on 
        which the Administrator of the Small Business Administration 
        issues guidelines under subsection (c)(1), and annually 
        thereafter, the Administrator 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 the effectiveness of the assistance made available 
        under section 7(b)(5) of the Small Business Act, as added by 
        this subsection, including--
                    (A) the number of small business concerns that 
                applied for a loan under that section 7(b)(5) and the 
                number of those that received such loans;
                    (B) the dollar value of those loans;
                    (C) the States in which the small business concerns 
                that received such loans are located;
                    (D) the type of energy that caused the significant 
                increase in the cost for the participating small 
                business concerns; and
                    (E) recommendations for ways to improve the 
                assistance provided under that section 7(b)(5), if any.
            (4) Effective date.--The amendments made by this subsection 
        shall apply during the 4-year period beginning on the earlier 
        of the date on which guidelines are published by the 
        Administrator of the Small Business Administration under 
        subsection (c), or 30 days after the date of enactment of this 
        Act, with respect to assistance under section 7(b)(5) of the 
        Small Business Act, as added by this subsection.
    (b) Farm Energy Emergency Relief.--
            (1) In general.--Section 321(a) of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 1961(a)) is amended--
                    (A) in the first sentence--
                            (i) by striking ``operations have'' and 
                        inserting ``operations (i) have''; and
                            (ii) by inserting before ``: Provided,'' 
                        the following: ``, or (ii)(I) are owned or 
                        operated by such an applicant that is also a 
                        small business concern (as defined in section 3 
                        of the Small Business Act (15 U.S.C. 632)), and 
                        (II) have suffered or are likely to suffer 
                        substantial economic injury on or after January 
                        1, 2005, as the result of a significant 
                        increase in energy costs or input costs from 
                        energy sources occurring on or after January 1, 
                        2005, in connection with an energy emergency 
                        declared by the President or the Secretary'';
                    (B) in the third sentence, by inserting before the 
                period at the end the following: ``or by an energy 
                emergency declared by the President or the Secretary''; 
                and
                    (C) in the fourth sentence--
                            (i) by inserting ``or energy emergency'' 
                        after ``natural disaster'' each place that term 
                        appears; and
                            (ii) by inserting ``or declaration'' after 
                        ``emergency designation''.
            (2) Funding.--Funds available on the date of enactment of 
        this Act for emergency loans under subtitle C of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
        seq.) shall be available to carry out the amendments made by 
        paragraph (1) to meet the needs resulting from natural 
        disasters.
            (3) Report.--Not later than 12 months after the date on 
        which the Secretary of Agriculture issues guidelines under 
        subsection (c)(1), and annually thereafter, the Secretary shall 
        submit to the Committee on Small Business and Entrepreneurship 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate and to the Committee on Small Business and the 
        Committee on Agriculture of the House of Representatives, a 
        report that--
                    (A) describes the effectiveness of the assistance 
                made available under section 321(a) of the Consolidated 
                Farm and Rural Development Act (7 U.S.C. 1961(a)), as 
                amended by this section; and
                    (B) contains recommendations for ways to improve 
                the assistance provided under such section 321(a).
            (4) Effective date.--The amendments made by this subsection 
        shall apply during the 4-year period beginning on the earlier 
        of the date on which guidelines are published by the Secretary 
        of Agriculture under subsection (c), or 30 days after the date 
        of enactment of this Act, with respect to assistance under 
        section 321(a) of the Consolidated Farm and Rural Development 
        Act (7 U.S.C. 1961(a)), as amended by this subsection.
    (c) Guidelines and Rulemaking.--
            (1) Guidelines.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator of the Small Business 
        Administration and the Secretary of Agriculture shall each 
        issue guidelines to carry out subsections (a) and (b), 
        respectively, and the amendments made thereby, which guidelines 
        shall become effective on the date of their issuance.
            (2) Rulemaking.--Not later than 30 days after the date of 
        enactment of this Act, the Administrator of the Small Business 
        Administration, after consultation with the Secretary of 
        Energy, shall promulgate regulations specifying the method for 
        determining a significant increase in the price of kerosene 
        under section 7(b)(5)(A)(iii)(II) of the Small Business Act, as 
        added by this Act.

SEC. 13. BUDGETARY TREATMENT OF LOANS AND FINANCINGS.

    (a) In General.--Assistance made available under any loan made or 
approved by the Administration under this Act, subsections (a) or (b) 
of section 7 of the Small Business Act (15 U.S.C. 636(a)), as amended 
by this Act, except for subsection 7(a)(23)(C), or financings made 
under title V of the Small Business Investment Act of 1958 (15 U.S.C. 
695 et seq.), as amended by this Act, on and after the date of 
enactment of this Act, shall be treated as separate programs of the 
Small Business Administration for purposes of the Federal Credit Reform 
Act of 1990 only.
    (b) Use of Funds.--Assistance under this Act and the amendments 
made by this Act shall be available effective only to the extent that 
funds are made available under appropriations Acts, which funds shall 
be utilized to offset the cost (as such term is defined in section 502 
of the Federal Credit Reform Act of 1990) of such assistance.

SEC. 14. EMERGENCY SPENDING.

    Appropriations under this Act are designated as emergency spending, 
as provided under section 402 of H. Con. Res. 95 (109th Congress).
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