[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1807 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1807

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 30, 2005

   Ms. Snowe (for herself, Mr. Kerry, Mr. Vitter, Ms. Landrieu, Mr. 
Talent, Mr. Kennedy, Mr. Cornyn, and Mr. Bayh) 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 
               or Hurricane Rita, 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 
Hurricane Relief and Reconstruction 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.
Sec. 3. Disaster loans after Hurricane Katrina and Hurricane Rita.
Sec. 4. Energy emergency relief.
Sec. 5. Supplemental emergency loans.
Sec. 6. Development company debentures.
Sec. 7. Small business emergency relief.
Sec. 8. Business counseling.
Sec. 9. Small business development centers.
Sec. 10. HUBZones.
Sec. 11. Outreach programs.
Sec. 12. Small business bonding threshold.
Sec. 13. Small business participation.
Sec. 14. Micropurchases.
Sec. 15. Loan defaults.
Sec. 16. Budgetary treatment of loans and financings.
Sec. 17. Emergency procurement authority.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``Disaster Area'' means an area which the 
        President has designated as a disaster area as a result of 
        Hurricane Katrina of August 2005 or Hurricane Rita of September 
        2005; and
            (3) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act.

SEC. 3. DISASTER LOANS AFTER HURRICANE KATRINA AND HURRICANE RITA.

    (a) In a Disaster Area.--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 and hurricane 
        rita in a disaster area.--
                    ``(A) Definition.--In this paragraph, the term 
                `Disaster Area' means an area which the President has 
                designated as a disaster area as a result of Hurricane 
                Katrina of August 2005 or Hurricane Rita of September 
                2005.
                    ``(B) 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 nonprofit organization 
                located or operating in a Disaster Area or providing 
                services to persons who have evacuated from a Disaster 
                Area.
                    ``(C) Increased loan caps.--
                            ``(i) Aggregate loan amounts.--Except as 
                        provided in clause (ii), the aggregate loan 
                        amount outstanding and committed to a borrower 
                        under this subsection, except for loans under 
                        paragraph (5) or (6), made as a result of 
                        Hurricane Katrina or Hurricane Rita, 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).
                    ``(D) Deferment of disaster loan payments.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, payments of principal 
                        and interest on a loan to a borrower located in 
                        a Disaster Area made before August 24, 2007, 
                        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.
                    ``(E) Refinancing disaster loans after hurricane 
                katrina and hurricane rita.--
                            ``(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 a 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, or was on that date, located in a 
                        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 this 
                subsection as a result of Hurricane Katrina or Rita 
                until 1 year after the date on which the President 
                designated the area as a disaster area as a result of 
                Hurricane Katrina or Hurricane Rita, as the case may 
                be.
                    ``(I) No sale.--No loan under this subsection made 
                as a result of Hurricane Katrina or Hurricane Rita may 
                be sold.''.
    (b) Nationwide Disaster Loans.--Section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)), as amended by this Act, is amended by inserting 
immediately after paragraph (4) the following:
            ``(5) Nationwide loans after hurricane katrina and 
        hurricane rita.--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, small 
        agricultural cooperative, small nursery, or small producer 
        cooperative located anywhere in the United States that 
        demonstrates a direct adverse economic impact caused by 
        Hurricane Katrina or Hurricane Rita, based on such criteria as 
        the Administrator may set by rule, regulation, or order.''.
    (c) Disaster Mitigation.--
            (1) In general.--Section 7(b)(1)(A) of the Small Business 
        Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ``of the 
        aggregate costs of such damage or destruction (whether or not 
        compensated for by insurance or otherwise)'' after ``20 per 
        centum''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to a loan or guarantee made after the 
        date of enactment of this Act.
    (d) Technical Amendments.--Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``the, Administration'' and inserting ``the Administration'';
            (2) in paragraph (2)(A), by striking ``Disaster Relief and 
        Emergency Assistance Act'' and inserting ``Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
        seq.)''; and
            (3) 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)''.
    (e) Disaster Loan Additional Amounts.--In addition to any other 
amounts otherwise appropriated for such purpose, there is authorized to 
be appropriated to the Administration $86,000,000, to make loans under 
section 7(b) of the Small Business Act.

SEC. 4. 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 immediately after paragraph (5), as added by this 
        Act, the following:
            ``(6) Energy emergency relief.--
                    ``(A) Definitions.--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) Loan authority.--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 August 24, 2005, as the result of a 
                significant increase in the price of heating oil, 
                natural gas, gasoline, propane, or kerosene occurring 
                on or after August 24, 2005.
                    ``(C) Applicable interest rate.--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) Loan limitation.--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 Administrator, in which case the Administrator, in 
                its discretion, may waive the $1,500,000 limitation.
                    ``(E) Loan criteria.--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) Permissible uses.--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 issues guidelines under subsection 
        (c)(1), and annually thereafter, until the date that is 12 
        months after the end of the effective period of section 7(b)(6) 
        of the Small Business Act, as added by this subsection, 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)(6) 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)(6) 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)(6), 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 under subsection (c)(1), or 30 days after the 
        date of enactment of this Act, with respect to assistance under 
        section 7(b)(6) 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 August 
                        24, 2005, as the result of a significant 
                        increase in energy costs or input costs from 
                        energy sources occurring on or after August 24, 
                        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)(1), 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 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, 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)(6)(A)(iii)(II) of the 
        Small Business Act, as added by this Act.

SEC. 5. 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 
        and hurricane rita.--
                    ``(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, 
                located anywhere in the United States, that is directly 
                adversely affected by Hurricane Katrina or Hurricane 
                Rita, based on such criteria as the Administrator may 
                set by rule, regulation, or order, 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 directly adversely 
                        affected by Hurricane Katrina or Hurricane 
                        Rita, as the case may be; and
                            ``(ii) if such loans are made in 
                        cooperation with a bank or other lending 
                        institution--
                                    ``(I) lenders shall document for 
                                the Administrator how the borrower was 
                                directly adversely affected by 
                                Hurricane Katrina or Hurricane Rita;
                                    ``(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 Inspector General 
                                of the Administration 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 the program is being 
                                administered appropriately and that 
                                such loans are being used for purposes 
                                authorized by this paragraph; and
                                    ``(III) not later than 12 months 
                                after the date on which the final 
                                report submitted by the Inspector 
                                General under subclause (II), the 
                                Comptroller General of the United 
                                States shall conduct a review of the 
                                administration of the supplemental 
                                emergency loan program authorized under 
                                this paragraph and submit a report to 
                                the Committee on Small Business and 
                                Entrepreneurship of the Senate and the 
                                Committee on Small Business of the 
                                House of Representatives containing the 
                                findings of the review and any 
                                recommendations.
                    ``(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 a small business concern, located 
                        anywhere in the United States, directly 
                        adversely affected by Hurricane Katrina or 
                        Hurricane Rita 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) Authorization of Appropriations.--There is authorized to be 
appropriated $75,000,000 to carry out section 7(a)(32) of the Small 
Business Act, as added by this section.

SEC. 6. DEVELOPMENT COMPANY DEBENTURES.

    (a) Authority.--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 and Hurricane Rita.--
            ``(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 to a 
                qualified borrower.
                    ``(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 qualified borrower located in a 
                Disaster 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 qualified borrower 
                located in a Disaster 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) Disaster area.--The term `Disaster Area' 
                means an area which the President has designated as a 
                disaster area as a result of Hurricane Katrina of 
                August 2005 or Hurricane Rita of September 2005.
                    ``(B) Qualified borrower.--The term `qualified 
                borrower' means a small business concern located 
                anywhere in the United States that has been directly 
                adversely affected by Hurricane Katrina or Hurricane 
                Rita, based on such criteria as the Administrator may 
                set by rule, regulation, or order.''.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated $75,000,000 to carry out section 503(j) of the Small 
Business Investment Act of 1958, as added by this section.

SEC. 7. SMALL BUSINESS EMERGENCY RELIEF.

    (a) Business Loan Programs.--Section 20(e)(1)(B) of the Small 
Business Act (15 U.S.C. 631 note) is amended--
            (1) in the matter preceding clause (i), by striking 
        ``$25,050,000,000'' and inserting ``$40,050,000,000'';
            (2) in clause (i), by striking ``$17,000,000,000'' and 
        inserting ``$27,000,000,000''; and
            (3) in clause (ii), by striking ``$7,500,000,000'' and 
        inserting ``$12,500,000,000''.
    (b) Grants to States Damaged by Hurricane Katrina or Hurricane 
Rita.--
            (1) In general.--There is authorized to be appropriated to 
        the Secretary of Commerce $450,000,000 for the Economic 
        Development Administration of the Department of Commerce to 
        make grants to the appropriate State government agencies in 
        Louisiana, Alabama, Mississippi, Texas, and Florida, to carry 
        out this subsection.
            (2) Disbursement of funds.--The Department of Commerce 
        shall disburse the funds authorized under paragraph (1) in the 
        most expeditious manner possible to the designated States, 
        based on--
                    (A) the number of businesses directly damaged or 
                disrupted by Hurricane Katrina or Hurricane Rita in the 
                State;
                    (B) the number of residents displaced from the 
                State by Hurricane Katrina or Hurricane Rita;
                    (C) the number of jobs lost or disrupted by 
                Hurricane Katrina or Hurricane Rita in the State;
                    (D) the extent of economic disruption by Hurricane 
                Katrina or Hurricane Rita in the State; and
                    (E) the number of evacuees from any other State due 
                to Hurricane Katrina or Hurricane Rita to whom the 
                designated State is providing assistance.
            (3) Use of funds.--
                    (A) In general.--Grants awarded to a State under 
                paragraph (1) shall be used by the State to provide 
                bridge grants and loans, which may be made to any 
                person located in a Disaster Area who was directly 
                adversely affected by Hurricane Katrina or Hurricane 
                Rita, to assist such person in covering costs until the 
                person is able to obtain loans through Administration 
                assistance programs or other sources.
                    (B) Reimbursement.--A State may use a grant awarded 
                under paragraph (1) as reimbursement for any State 
                funds used to provide bridge grants or loans to any 
                person located in a Disaster Area who was directly 
                adversely affected by Hurricane Katrina or Hurricane 
                Rita before the date on which the funds authorized 
                under paragraph (1) are disbursed.
                    (C) Criteria.--Notwithstanding any other provision 
                of law, in making bridge grants and loans under 
                subparagraph (A), the State may use such criteria as 
                the State determines appropriate, and shall not be 
                required to apply eligibility criteria for programs 
                administered by the Department of Commerce.
                    (D) Terms.--For any loan made by a State under 
                subparagraph (A)--
                            (i) such a loan may initially be a 
                        noncollateralized, low-interest loan;
                            (ii) payments and interest on such a loan 
                        may be deferred for at least 1 year after the 
                        date on which the loan is made;
                            (iii) the balance remaining on such a loan 
                        5 years after the date on which the loan is 
                        made may be forgiven entirely by the State, if 
                        the borrower has continued to operate during 
                        that 5-year period in a Disaster Area; and
                            (iv) such a loan may be forgiven by the 
                        State, under such terms as it may set, if the 
                        borrower cannot repay such loan.
                    (E) Administrative expenses.--The Department of 
                Commerce may use not more than $1,000,000 of the funds 
                authorized under paragraph (1) to administer the 
                provision of grants to the designated States under this 
                subsection.

SEC. 8. BUSINESS COUNSELING.

    In addition to any other amounts authorized for any fiscal year, 
there are authorized to be 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, not less than $15,000,000 of which shall be 
        non-matching funds and used to aid and assist small business 
        concerns affected by Hurricane Katrina or Hurricane Rita;
            (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, not 
        less than $1,000,000 of which shall be used to aid and assist 
        small business concerns affected by Hurricane Katrina or 
        Hurricane Rita;
            (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, not less than $2,500,000 of which shall be non-
        matching funds used to aid and assist small business concerns 
        affected by Hurricane Katrina or Hurricane Rita, 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, not less than $750,000 of which shall be 
        used to aid and assist small business concerns affected by 
        Hurricane Katrina or Hurricane Rita; 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 or 
        Hurricane Rita.

SEC. 9. SMALL BUSINESS DEVELOPMENT CENTERS.

    (a) Waiver of Maximum Amount.--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 subparagraph 
        (C)(viii), and such grants shall be made available for small 
        business development centers assisting small business concerns 
        adversely affected by Hurricane Katrina or Hurricane Rita.''.
    (b) Assistance After Hurricane Katrina and Hurricane Rita.--Section 
21(b) of the Small Business Act (15 U.S.C. 648(b)) is amended by adding 
at the end the following:
    ``(4) Assistance after hurricane katrina and hurricane rita.--
            ``(A) In general.--The Administration shall authorize any 
        small business development center, regardless of location, to 
        provide advice, information, and assistance, as described in 
        subsection (c), to a small business concern located in an area 
        which the President has designated as a disaster area as a 
        result of Hurricane Katrina of August 2005 or Hurricane Rita of 
        September 2005.
            ``(B) Continuity of services.--A small business development 
        center that provides counselors to an area described in 
        subparagraph (A) shall, to the maximum extent practicable, 
        ensure continuity of services in the State it currently 
        serves.''.

SEC. 10. 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 at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(F) an area which the President has designated as 
                a disaster area as a result of Hurricane Katrina of 
                August 2005 or Hurricane Rita of September 2005.''.

SEC. 11. OUTREACH PROGRAMS.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Administrator 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 a 
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 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)); or
            (3) any Federal, State, or local government entity, higher 
        education institution, or private nonprofit organization that 
        the Administrator may deem appropriate, upon conclusion of a 
        memorandum of understanding or assistance agreement, as 
        appropriate, with the Administrator.

SEC. 12. SMALL BUSINESS BONDING THRESHOLD.

    Notwithstanding any other provision of law, for all procurements 
related to Hurricane Katrina or Hurricane Rita, 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 
$5,000,000, except that the Administrator may increase such amount to 
$10,000,000, at the discretion of the Administrator.

SEC. 13. 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 and Hurricane Rita, the Administrator and the 
head of any Federal agency making procurements related to the aftermath 
of Hurricane Katrina or Hurricane Rita, 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 by such agency related to the aftermath of Hurricane 
Katrina or Hurricane Rita, respectively.

SEC. 14. MICROPURCHASES.

    (a) In General.--Section 101 of the Second Emergency Supplemental 
Appropriations Act to Meet Immediate Needs Arising From the 
Consequences of Hurricane Katrina, 2005 (Public Law 109-62; 119 Stat. 
1990) is repealed.
    (b) Authority.--The authority provided in subsection 32A of the 
Office of Federal Procurement Policy Act (41 U.S.C. 428a) may be used 
with respect to any procurement for property or services determined by 
the head of an Executive agency to be necessary for support of 
Hurricane Katrina or Hurricane Rita rescue and relief operations.
    (c) Expiration.--The authority provided by subsection (b) shall 
expire on the date that is 180 days after the date of enactment of this 
Act.

SEC. 15. LOAN DEFAULTS.

    Notwithstanding any other provision of law, no loan made before 
August 24, 2005, under subsection (a) or (m) of section 7 of the Small 
Business Act or title III or section 503 of the Small Business 
Investment Act of 1958 for which the borrower goes into default because 
of Hurricane Katrina or Hurricane Rita shall be considered a cost, as 
that term is defined in section 502 of the Federal Credit Reform Act of 
1990, to the Administration for purposes of calculating the subsidy 
rate for loans under subsection (a) or (m) of section 7 of the Small 
Business Act or title III or section 503 of the Small Business 
Investment Act of 1958, respectively.

SEC. 16. 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, 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 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 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. 17. EMERGENCY PROCUREMENT AUTHORITY.

    (a) Small Business Reservation Offset.--Section 15(j) of the Small 
Business Act (15 U.S.C. 644(j)) is amended by adding at the end the 
following:
    ``(4) For any contracts involving the use of the special emergency 
procurement authority under section 32A(c) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 428a(c)), the dollar ceiling of the 
small business reservation established in paragraph (1) shall be 
adjusted to match the applicable amount of the simplified acquisition 
threshold.''.
    (b) Retention of Small Business Subcontracting.--Section 8(d)(4)(D) 
of the Small Business Act (15 U.S.C. 637(d)(4)(D)) is amended--
            (1) by striking ``(D) No contract'' and inserting the 
        following:
            ``(D) Small business participation.--
                    ``(i) In general.--No contract''; and
            (2) by adding at the end the following:
                    ``(ii) Emergency procurements.--
                            ``(I) In general.--For any contract which 
                        otherwise meets the requirements of this 
                        subsection, and which involves the use of 
                        special emergency procurement authority under 
                        section 32A(c) of the Office of Federal 
                        Procurement Policy Act (41 U.S.C. 428a(c)), the 
                        subcontracting plan required under this 
                        subsection shall be negotiated as soon as is 
                        practicable, but not later than 30 days after 
                        the date on which the contract is awarded.
                            ``(II) Payment.--Not greater than 50 
                        percent of the amounts due under any contract 
                        described in subclause (I) may be paid, unless 
                        a subcontracting plan compliant with this 
                        subsection is negotiated by the contractor.''.
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