1.Short
title; table of contents
(a)This Act may be cited
as the Small Business, Homeowners, and
Renters Disaster Relief Act of 2005
.
(b)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.
2.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
businessesIn 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)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)
(i)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)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)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)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)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)In
this paragraph, the following definitions shall apply:
(i)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)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.
.
3.Development
company debenturesSection 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)
(A)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)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)
(A)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 partiesNotwithstanding 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)The authority to defer, or make, payments under this
paragraph shall terminate 1 year after the date of enactment of this
subsection.
(3)In
this subsection, the following definitions shall apply:
(A)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)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.
.
4.Small business
emergency relief
(a)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)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 katrinaThere 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 amountsIn 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)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)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)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)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)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)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 periodNotwithstanding 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 loan under this subsection made as a result of Hurricane
Katrina may be
sold.
.
(2)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)
.
5.Entrepreneurial
developmentIn 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.
6.Small Business
Development CentersSection
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 2006For 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.
.
7.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.
.
8.
(a)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)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.
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.
10.Supplemental
emergency loans
(a)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)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)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)
(i)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)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)There
is authorized to be appropriated, and there is appropriated, $75,000,000 to
carry out the amendment made by subsection (a).
11.Small business
participationIn 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.
12.
(a)Small business
and farm energy emergency disaster loan program
(1)Small business
disaster loan authoritySection 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)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)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)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)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)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)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)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)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)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.
13.Budgetary
Treatment of Loans and Financings
(a)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)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.
14.Appropriations under
this Act are designated as emergency spending, as provided under section 402 of
H. Con. Res. 95 (109th Congress).