1.Short
title; table of contents
(a)This Act may be cited
as the Small Business Hurricane Relief
and Reconstruction Act of 2005
.
(b)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.
2.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.
3.Disaster loans
after Hurricane Katrina and Hurricane Rita
(a)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)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)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)
(i)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)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)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)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.
(E)Refinancing
disaster loans after Hurricane Katrina and Hurricane Rita
(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 a 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, 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)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 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 loan under this subsection made as a result of Hurricane
Katrina or Hurricane Rita may be
sold.
.
(b)Nationwide
disaster loansSection 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 RitaIn 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)
(1)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)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)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 amountsIn 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.
4.
(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 immediately after paragraph (5), as added by this Act,
the following:
(6)
(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 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)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 Administrator, in
which case the Administrator, 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 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)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)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)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)(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)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)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.
5.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 and hurricane rita
(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, 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)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)
(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 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)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 appropriationsThere 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.
6.Development
company debentures
(a)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)
(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 to a qualified
borrower.
(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 qualified borrower located in a Disaster 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
qualified borrower located in a Disaster 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 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)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 appropriationsThere 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.
7.Small business
emergency relief
(a)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)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)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)
(A)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)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)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)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)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.
8.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.
9.Small business
development centers
(a)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
2006For 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 ritaSection 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)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)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.
.
10.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.
.
11.
(a)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)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.
12.Small business
bonding thresholdNotwithstanding 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.
13.Small business
participationIn 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.
14.
(a)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)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)The
authority provided by subsection (b) shall expire on the date that is 180 days
after the date of enactment of this Act.
15.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.
16.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, 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)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.
17.Emergency
procurement authority
(a)Small Business
Reservation OffsetSection 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 SubcontractingSection 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)No
contract
;
and
(2)by adding at the
end the following:
(ii)
(I)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)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.
.