1.This Act may be cited as the
Small Business Disaster Loan
Reauthorization and Improvements Act of 2006
.
2.Congress finds that—
(1)43 percent of businesses that close
following a natural disaster never reopen;
(2)an additional 29 percent of businesses
close down permanently within 2 years of a natural disaster;
(3)the plan of the Federal Government for
response and recovery with respect to large scale disasters does not meet the
needs of homeowners and small business concerns;
(4)on February 1, 2006, more than 5 months
after Hurricane Katrina struck the Gulf Coast, 48 percent of disaster loan
applications remained unprocessed, meaning that of the nearly 370,000 disaster
loan applications received by the Administration, nearly 178,000 remained
unprocessed;
(5)as of May 23, 2006, only 35 percent of
total disaster loan applications received by the Administration had been
approved;
(6)the Administration lacks the tools to
respond immediately and effectively to the needs of victims in the aftermath of
a large scale disaster, such as the terrorist attacks of September 11, 2001, or
the 2005 Gulf Coast hurricanes;
(7)during a major disaster, the Administration
should utilize private lenders to assist in processing loans, so that a back
log of this magnitude will not prevent disaster victims from accessing
capital;
(8)during 2004 and 2005, in the aftermath of
Hurricane Charlie, Hurricane Francis, Hurricane Ivan, Hurricane Jeanne,
Hurricane Dennis, and Hurricane Wilma, the State of Florida distributed
$49,304,902 in bridge loans to small business concerns, helping to save an
estimated 32,560 jobs statewide;
(9)there needs to exist a Federal standard for
providing bridge loans to disaster victims, to provide access to capital while
they wait for other types of assistance;
(10)there is a demonstrated need for counseling
in the small business community that is not being met by the Administration;
and
(11)there is a need for greater coordination
between responding agencies during disasters so that Federal Government can put
the needs of victims first.
3.In this Act—
(1)the terms Administration and
Administrator mean the Small Business Administration and the
Administrator thereof, respectively;
(2)the term applicable declared
disaster means the declared disaster for the disaster area in which the
person seeking assistance under section 11(c) is located;
(3)the term catastrophic national
disaster means a catastrophic national disaster declared under paragraph
(4) of section 7(b) of the Small Business Act (15 U.S.C. 636(b)), as added by
this Act;
(4)the term declared disaster
means a major disaster or a catastrophic national disaster;
(5)the term disaster area
means—
(A)in the case of a major disaster, the area
for which such disaster was declared, during the period of such declaration;
and
(B)in the case of a catastrophic national
disaster, the United States, during the period of such declaration;
(6)the term disaster assistance
means assistance under the disaster loan program of the Administration and
section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C.
1961(a));
(7)the term disaster loan program of the
Administration means the assistance under section 7(b) of the Small
Business Act (15 U.S.C. 636(b));
(8)the term disaster update
period means the period beginning on the date on which the President
declares a major disaster or a catastrophic national disaster and ending on the
date on which such declaration terminates;
(9)the term major disaster has
the same meaning as in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122);
(10)the term small business
concern has the same meaning as in section 3 of the Small Business Act
(15 U.S.C. 632); and
(11)the term small business development
center means a small business development center established under
section 21 of the Small Business Act (15 U.S.C. 648).
4.Disaster loan programs
reauthorization
(a)Section 20 of the
Small Business Act (15 U.S.C. note) is amended by inserting after subsection
(e) the following:
(f)Additional
authorizations for fiscal years 2007 through 2009There are authorized to be appropriated to
the Administration for each of fiscal years 2007 through 2009, such sums as may
be necessary to carry out the provisions of this Act not elsewhere provided
for, including administrative expenses and necessary loan capital for disaster
loans pursuant to section 7(b), and to carry out the Small Business Investment
Act of 1958, including salaries and expenses of the
Administration.
(b)Disaster
mitigation program
(1)Section 20(c) of the
Small Business Act (15 U.S.C. note) is amended by adding at the end the
following:
(3)$15,000,000 for fiscal year 2007.
(4)$15,000,000 for fiscal year 2008.
(5)$15,000,000 for fiscal year
2009.
.
(2)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
.
(3)Section 7(b)(1)(C)
of the Small Business Act (15 U.S.C. 636(b)(1)(C)) is amended by striking
fiscal years 2000 through 2004
and inserting fiscal years
2007 through 2009
.
5.Catastrophic national
disastersSection 7(b) of the
Small Business Act (15 U.S.C. 636(b)) is amended by inserting immediately after
paragraph (3) the following:
(4)Catastrophic
national disasters
(A)In this paragraph the term
catastrophic national disaster means a disaster, natural or other,
that the President determines has caused significant adverse physical or
economic conditions outside of the geographic reach of the disaster.
(B)The Administrator may make such loans under
this paragraph (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 small business concerns
located anywhere in the United States that are economically adversely impacted
as a result of a catastrophic national disaster.
(C)A loan under this
paragraph shall be made on the same terms as a loan under paragraph
(2).
.
6.Public awareness of
disaster declaration and application periods
(a)Section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) is amended by inserting immediately after
paragraph (4), as added by this Act, the following:
(5)
(A)Notwithstanding any
other provision of law, for any disaster (including a catastrophic national
disaster) declared under this subsection or major disaster (as that term is
defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122)), the Administrator, in consultation with the
Director of the Federal Emergency Management Agency, shall ensure, to the
maximum extent practicable, that all application periods for disaster relief
under this Act and the Robert T. Stafford Disaster Relief and Emergency
Assistance Act begin on the same date and end on the same date.
(B)Notwithstanding
any other provision of law—
(i)not later than 7 days before the closing
date of an application period for disaster relief under this Act for any
disaster (including a catastrophic national disaster) declared under this
subsection, the Administrator, in consultation with the Director of the Federal
Emergency Management Agency, shall determine whether to extend such application
period; and
(ii)not later than 7 days before the closing
date of an application period for disaster relief under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act for any major disaster (as that
term is defined in section 102 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122)) for which the President has declared
a catastrophic national disaster under paragraph (4), the Director of the
Federal Emergency Management Agency, in consultation with the Administrator,
shall determine whether to extend such application period.
(6)Public
awareness of disastersIf a
disaster (including a catastrophic national disaster) is declared under this
subsection, the Administrator shall make every effort to communicate through
radio, television, print, and web-based outlets, all relevant information
needed by disaster loan applicants, including—
(A)the date of such declaration;
(B)cities and towns within the area of such
declaration;
(C)loan application deadlines related to such
disaster;
(D)all relevant contact information for victim
services available through the Administration (including links to small
business development center websites);
(E)links to relevant State disaster assistance
websites; and
(F)information on eligibility criteria for
Federal Emergency Management Agency disaster assistance applications, as well
as for Administration loan programs, including where such applications can be
found.
.
(b)Coordination of
agencies and outreachNot
later than 90 days after the date of enactment of this Act, the Administrator
and the Director of the Federal Emergency Management Agency shall enter into an
agreement that ensures adequate lodging and transportation for employees of the
Administration, contract employees, and volunteers during a major disaster, if
such staff are needed to assist businesses, homeowners, or renters in
recovery.
(c)Not later than 90
days after the date of enactment of this Act, the Administrator shall create a
marketing and outreach plan that—
(1)encourages a proactive approach to the
disaster relief efforts of the Administration;
(2)distinguishes between disaster services
provided by the Administration and disaster services provided by the Federal
Emergency Management Agency, including contact information, application
information, and timelines for submitting applications, the review of
applications, and the disbursement of funds;
(3)describes the different disaster loan
programs of the Administration, including how they are made available and what
eligibility requirements exist for each loan program;
(4)provides for regional marketing, focusing
on disasters occurring in each region before the date of enactment of this Act,
and likely scenarios for disasters in each such region; and
(5)ensures that the marketing plan is made
available at small business development centers and on the website of the
Administration.
7.Coordination of USDA
and Administration disaster loan programs
(a)Not later than 1 year
after the date of enactment of this Act, the Comptroller General of the United
States shall conduct a study and submit a report to the appropriate committees
of Congress regarding whether, and if so which, industries have difficulty
obtaining disaster assistance from the Administration or the Department of
Agriculture.
(b)The report submitted under subsection (a)
shall—
(1)consider relevant disasters declared under
section 7(b) of the Small Business Act and relevant disasters declared under
section 321 of the Consolidated Farm and Rural Development Act;
(2)evaluate the provisions of law referred to
in paragraph (1) and the regulations promulgated thereunder, as well as the
division of responsibilities and any memoranda of understanding between the
Department of Agriculture and the Administration, to ensure consistency in
providing disaster assistance;
(3)determine whether there are industries that
are not covered under section 7(b) of the Small Business Act or section 321 of
the Consolidated Farm and Rural Development Act; and
(4)make recommendations, if any, regarding how
the needs of industries can be better met during a disaster described in
paragraph (1).
(c)As used in this section, the term
appropriate committees of Congress means—
(1)the Committee on Agriculture, Nutrition,
and Forestry and the Committee on Small Business and Entrepreneurship of the
Senate; and
(2)the Committee on Agriculture and the
Committee on Small Business of the House of Representatives.
8.Consistency between
Administration regulations and standard operating proceduresThe Administrator shall, promptly following
the date of enactment of this Act, revise the standard operating procedures of
the Administration so that such procedures are consistent with Administration
regulations for administering the disaster loan program of the
Administration.
9.Study and report on
FEMA review process for referrals during disaster assistance application
process
(a)The Comptroller General of the United
States shall evaluate the disaster assistance application and referral
processes of the Federal Emergency Management Agency and their impact on the
disaster loan assistance process at the Administration.
(b)Not later than 1 year after the date of
enactment of this Act, the Comptroller General shall submit a report to the
Committee on Small Business and Entrepreneurship and the Committee on Homeland
Security and Governmental Affairs of the Senate, and the Committee on Small
Business and the Committee on Homeland Security of the House of Representatives
on its findings under subsection (a), together with recommendations on the
effectiveness and efficiency of the Federal Emergency Management Agency
disaster assistance application process in directing eligible applicants to the
Administration, and any recommendations for legislative action.
10.Development and
implementation of major disaster response plan
(a)Not later than
January 31, 2007, the Administrator shall, by rule, amend the 2006 Atlantic
hurricane season disaster response plan of the Administration to apply to major
disasters and catastrophic national disasters, consistent with this Act and the
amendments made by this Act.
(b)In carrying out this section, the
Administrator shall develop and execute, not later than May 31, 2007,
simulation exercises to demonstrate the effectiveness of the amended Hurricane
Response Plan.
11.
(a)Authority for
qualified private contractors to process disaster loansSection 7(b) of the
Small Business Act (15 U.S.C. 636(b))
is amended by inserting immediately after paragraph (6), as added by this Act,
the following:
(7)Authority for
qualified private contractors to process disaster loansThe Administrator may enter into an
agreement with a qualified private contractor, as determined by the
Administrator, to process loans under this subsection in the event of a major
disaster (as defined in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122)) or a catastrophic national
disaster declared under paragraph (4), under which the Administrator shall pay
the contractor a fee for each loan
processed.
.
(b)State bridge
loan program
(1)Notwithstanding any other provision of law,
a State may use funds made available under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) to make bridge grants and
loans to any person located in a disaster area in such State who was negatively
impacted by the applicable declared disaster, to assist such person in covering
costs until the person is able to obtain loans through Administration
assistance programs or other sources.
(2)
(A)Funds designated
under paragraph (1) shall be used by a State to provide bridge grants and
loans, which may be made to any person located in a disaster area in such State
who was negatively impacted by the applicable declared disaster
(B)A State may use the funds authorized under
paragraph (1) as reimbursement for any State funds used to provide bridge
grants or loans to any person located in a disaster area in such State who was
negatively impacted by the applicable declared disaster, before the date on
which the funds authorized under paragraph (1) are made available.
(C)Notwithstanding any other provision of law,
in making bridge grants and loans under paragraph (1), 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 Federal
Government.
(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 in such State; 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.
(c)Section 7(b) of
the Small Business Act (15 U.S.C.
636(b)) is amended by inserting immediately after paragraph (7), as added by
this Act, the following:
(8)Disaster loans
to nonprofits
(A)In this paragraph—
(i)the term applicable date means
the day before the date on which a major disaster or a catastrophic national
disaster occurred, as the case may be;
(ii)the term disaster area
means—
(I)in the case of a major disaster, the area
for which such disaster was declared; and
(II)in the case of a catastrophic national
disaster under paragraph (4), the United States; and
(iii)the term major disaster has
the same meaning as in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122).
(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, including a religious organization, that—
(i)was—
(I)located in a disaster area on the
applicable date for such disaster area; and
(II)negatively impacted by the major disaster
or the catastrophic national disaster declared under paragraph (4), as the case
may be; or
(ii)is providing services to persons who were
negatively impacted by a major disaster or a catastrophic national disaster
declared under paragraph
(4).
.
(d)Section 7(b) of the
Small Business Act (15 U.S.C. 636(b))
is amended by inserting immediately after paragraph (8), as added by this Act,
the following:
(9)
(A)Notwithstanding any
other provision of law, and except as provided in subparagraph (B), the
aggregate loan amount outstanding and committed to a borrower under this
subsection made as a result of a major disaster (as defined in section 102 of
the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5122)) or a catastrophic national disaster declared under paragraph (4) may not
exceed $10,000,000.
(B)The Administrator
may, at the discretion of the Administrator, waive the aggregate loan amount
established under subparagraph
(A).
.
(e)Coordination of
efforts between the Administrator and the Internal Revenue Service to expedite
loan processingThe
Administrator and the Commissioner of Internal Revenue shall, to the maximum
extent practicable, ensure that all relevant and allowable tax records for loan
approval are shared with loan processors in an expedited manner, upon request
by the Administrator.
(f)Use of
predisaster credit scoreSection 7(b) of the
Small Business Act (15 U.S.C. 636(b))
is amended by inserting immediately after paragraph (9), as added by this Act,
the following:
(10)Notwithstanding any
other provision of law, in making a loan under this subsection, the
Administrator shall assess the risk of default by the applicant based on the
credit score of the applicant on the day before the date on which the disaster
for which the applicant is seeking assistance was
declared.
.
(g)Report on loan
approval rate
(1)Not later than 6
months after the date of enactment of this Act, the Administrator shall 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 detailing
how the Administration can improve the processing of applications under the
disaster loan program of the Administration.
(2)The report submitted under paragraph (1)
shall include—
(A)recommendations, if any, regarding—
(i)staffing levels during a major disaster;
and
(ii)how to improve the process for processing,
approving, and disbursing loans under the disaster loan program of the
Administration, to ensure that the maximum assistance is provided to victims in
a timely manner; and
(B)the plans of the Administrator for
implementing any recommendation made under subparagraph (A).
(h)Supplemental
emergency loans after disasters
(1)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 disasters
(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 a catastrophic national disaster declared under subsection (b)(4),
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 a catastrophic national
disaster; 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 the
catastrophic national disaster; and
(II)not later than 6 months after the date of
enactment of this paragraph, and every 6 months thereafter, 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.
(C)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 a
loan made under this paragraph.
(D)The Office of Lender
Oversight of the Administration shall evaluate the portfolio of loans for a
lender under this paragraph separately from the rest of the loans made under
this subsection by such lender.
(33)Notwithstanding any
other provision of law, the guarantee fee under paragraph (18)(A) for a
guarantee under this subsection of a loan made because of a catastrophic
national disaster declared under subsection (b)(4), shall be as follows:
(A)A guarantee fee equal to 1 percent of the
deferred participation share of a total loan amount that is not more than
$150,000.
(B)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.
(C)A guarantee fee equal to 3.5 percent of the
deferred participation share of a total loan amount that is more than
$700,000.
.
(2)Separate
treatment for supplemental emergency loansOnly for purposes of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661 et seq.), loans made or approved under section
7(a)(32) of the Small Business Act, as added by this subsection, shall be
treated as a separate program of the Small Business Administration.
(3)Authorization
of appropriations
(A)There are authorized
to be appropriated to the Administration for each of fiscal years 2007 through
2009, such sums as may be necessary to carry out section 7(a)(32) of the Small
Business Act, as added by this subsection, including administrative expenses
and necessary loan capital.
(B)Assistance under section
7(a)(32) of the Small Business Act, as added by this subsection, shall be
available only to the extent that funds are made available in advance in
appropriations Acts to offset the cost (as such term is defined in section 502
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of providing such
assistance.
(i)Development
company debentures
(1)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 a catastrophic national disaster
(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
on which a catastrophic national disaster was declared to a qualified borrower
directly adversely affected by such catastrophic national disaster, 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 on
which a catastrophic national disaster was declared to a qualified borrower
directly adversely affected by such catastrophic national disaster, 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 for a catastrophic national
disaster shall terminate 1 year after the date on which such catastrophic
national disaster was declared.
(3)In this subsection, the following
definitions shall apply:
(A)Catastrophic
national disasterThe term
catastrophic national disaster means a catastrophic national
disaster declared under section 7(b)(4) of the Small Business Act.
(B)The term
qualified borrower means a small business concern located anywhere
in the United States that has been directly adversely affected by a
catastrophic national disaster, based on such criteria as the Administrator may
set by rule, regulation, or
order.
.
(2)Only for purposes
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), debentures
guaranteed under section 503(j) of the Small Business Investment Act of 1958,
as added by this subsection, shall be treated as a separate program of the
Small Business Administration.
(3)Authorization
of appropriationsThere are
authorized to be appropriated such sums as may be necessary to carry out
section 503(j) of the Small Business Investment Act of 1958, as added by this
subsection.
12.Removing barriers to
bonding for small businesses
(a)Notwithstanding any other provision of law,
for any procurement related to a declared disaster that has been set aside for
small business concerns, the Administrator shall negotiate with the head of the
Federal agency making such procurement an agreement to permit contracting
officers to submit requisitions on a biweekly basis.
(b)
(1)The Administrator
shall waive any increase in guarantee fees for a surety located in a disaster
area providing guarantees related to contracts for disaster relief, recovery,
or reconstruction related to the aftermath of a declared disaster under the
Surety Bond Guarantee Program under part B of title IV of the Small Business
Investment Act of 1958 (15 U.S.C. 694a et seq.) during the 2-year period
beginning on the date on which the declared disaster was declared.
(2)For any contract for
relief, recovery, or reconstruction related to the aftermath of a declared
disaster, the Administrator may permit a surety participating in the Preferred
Surety Bond Guarantee Program under section 411(a)(3) of the Small Business
Investment Act of 1958 (15 U.S.C. 694b(a)(3)) to use rates approved by the
insurance commissioner in the State in which such contract will be
performed.
(3)Not later than 180 days after the date of
enactment of this Act and annually thereafter, the Administrator shall 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 on the
availability of bonds to small business concerns performing contracts for
disaster relief, recovery, or reconstruction related to the aftermath of a
declared disaster.
(c)Small business
bonding thresholdNotwithstanding any other provision of law,
for all procurements related to a declared disaster, 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.Use of local firms
and individuals
(a)Section 307 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5150) is amended to read as follows:
307.Use of local firms
and individualsIn the
expenditure of Federal funds for debris clearance, distribution of supplies,
reconstruction, and other major disaster or emergency assistance activities
which may be carried out by contract or agreement with private organizations,
firms, or individuals, preference shall be given, to the maximum extent
practicable, to those organizations, firms, and individuals residing or doing
business primarily in the area affected by such disaster or emergency. The
Federal Government shall establish a goal to award not less than 10 percent of
such contracts to firms within or in close proximity of the area in which the
President has declared a major disaster during the term of such designation.
This section shall not be considered to restrict the use of Department of
Defense resources in the provision of major disaster assistance under this Act
or any other provision of
law.
.
(b)Nondiscrimination
in disaster assistanceSection 308(b) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5151(b)) is amended by
adding at the end the following: The requirements of this subsection
shall also apply to the awarding of contracts for debris clearance,
distribution of supplies, reconstruction, and other major disaster or emergency
assistance activities and shall require governmental bodies to fully consider
the utilization of expedited procurement tools for small business concerns,
small business concerns owned and controlled by service-disabled veterans, and
HUBZone small business concerns, as such terms are defined in section 3 of the
Small Business Act (15 U.S.C. 632) and for small business concerns owned and
controlled by socially and economically disadvantaged individuals, as such term
is defined in section 8 of the Small Business Act (15 U.S.C.
637).
.
14.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)The Administrator shall waive the maximum
amount of $100,000 for a grant under subparagraph (C)(viii) to a small business
development center to provide assistance to small business concerns adversely
affected by a major disaster (as defined in section 102 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)) or a
catastrophic national disaster declared under section
7(b)(4).
.
15.Waiver of geographic
restrictions on SBDC counselorsSection 21(b) of the Small Business Act (15
U.S.C. 648(b)) is amended by adding at the end the following:
(4)Waiver of geographic restrictions
on SBDC counselors
(A)The Administrator 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 in which the President declared a major
disaster (as defined in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122)), during the period of such
declaration.
(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.
(C)Access to disaster recovery
facilitiesFor purposes of
providing recovery assistance under this paragraph, the Administrator shall
permit small business development center personnel to use any site or facility
designated by the Administration for use for such
purpose.
.
16.
(a)Monthly
accounting report to congress
(1)On the first Monday
of each month, the Administrator shall provide to the Committee on Small
Business and Entrepreneurship of the Senate and to the Committee on Small
Business of the House of Representatives a report on the disaster loan program
of the Administration for the preceding month.
(2)Each report under paragraph (1) shall
include—
(A)the daily average lending volume, in number
of loans and dollars, and the percent by which each category has increased or
decreased since the previous report under paragraph (1);
(B)the weekly average lending volume, in
number of loans and dollars, and the percent by which each category has
increased or decreased since the previous report under paragraph (1);
(C)the amount of funding spent over the month
for loans, both in appropriations and program level, and the percent by which
each category has increased or decreased since the previous report under
paragraph (1);
(D)the amount of funding available for loans,
both in appropriations and program level, and the percent by which each
category has increased or decreased, noting the source of any additional
funding;
(E)an estimate of how long the available
funding for such loans will last, based on the spending rate;
(F)the amount of funding spent over the month
for staff, along with the number of staff, and the percent by which each
category has increased or decreased since the previous report under paragraph
(1);
(G)the amount of funding spent over the month
for administrative costs, and the percent by which spending has increased or
decreased since the previous report under paragraph (1);
(H)the amount of funding available for
salaries and expenses combined, and the percent by which funding has increased
or decreased, noting the source of any additional funding; and
(I)an estimate of how long the available
funding for salaries and expenses will last, based on the spending rate.
(b)Daily disaster
updates to congress for presidentially declared disasters
(1)Each day during a
disaster update period, excluding Federal holidays and weekends, the
Administrator shall provide to the Committee on Small Business and
Entrepreneurship of the Senate and to the Committee on Small Business of the
House of Representatives a report on the operation of the disaster loan program
of the Administration for the area in which the President declared a major
disaster or a catastrophic national disaster, as the case may be.
(2)Each report under paragraph (1) shall
include—
(A)the allocations of loan processing, loss
verification, and additional field staff at Administration offices nationwide,
as well as the allocations of such staff at the various disaster field offices,
disaster recovery centers, and workshops in each State in the relevant
area;
(B)the daily number of applications received
from applicants in the relevant area, as well as a breakdown of such figures by
State;
(C)the daily number of applications pending
application entry from applicants in the relevant area, as well as a breakdown
of such figures by State;
(D)the daily number of applications withdrawn
by applicants in the relevant area, as well as a breakdown of such figures by
State;
(E)the daily number of applications summarily
declined by the Administrator from applicants in the relevant area, as well as
a breakdown of such figures by State;
(F)the daily number of applications declined
by the Administrator from applicants in the relevant area, as well as a
breakdown of such figures by State;
(G)the daily number of applications in process
from applicants in the relevant area, as well as a breakdown of such figures by
State;
(H)the daily number of applications approved
by the Administrator from applicants in the relevant area, as well as a
breakdown of such figures by State;
(I)the daily dollar amount of applications
approved by the Administrator from applicants in the relevant area, as well as
a breakdown of such figures by State;
(J)the daily amount of loans dispersed, both
partially and fully, by the Administrator to applicants in the relevant area,
as well as a breakdown of such figures by State;
(K)the daily dollar amount of loans dispersed,
both partially and fully, from the Disaster Area, as well as a breakdown of
such figures by State;
(L)the number of applications approved,
including dollar amount approved, as well as applications partially and fully
dispersed, including dollar amounts, since the last report under paragraph (1);
and
(M)the declaration date, physical damage
closing date, economic injury closing date, and number of counties included in
the declaration of a major disaster.
(c)Report on need
for supplemental fundsNot
later than 3 months before the date on which the Administrator estimates
funding will no longer be available for the disaster loan program of the
Administration in any fiscal year, the Administrator shall submit a report to
the Committee on Small Business and Entrepreneurship of the Senate and to the
Committee on Small Business of the House of Representatives regarding the need
for supplemental funds for such loan program, including the amount needed to
sustain such loan program at current funding rates through the end of the
fiscal year in which the Administrator submits such report.
(d)
(1)Not later than 6
months after the date on which a declared disaster is declared, and every 6
months thereafter until the date that is 18 months after the date on which the
declared disaster was declared, the Administrator shall submit a report to the
Committee on Small Business and Entrepreneurship of the Senate and to the
Committee on Small Business of the House of Representatives regarding Federal
contracts awarded as a result of the declared disaster.
(2)Each report submitted under
paragraph (1) shall include—
(A)the total number of contracts awarded as a
result of the declared disaster;
(B)the total number of contracts awarded to
small business concerns as a result of the declared disaster;
(C)the total number of contracts awarded to
women and minority-owned businesses as a result of the declared disaster;
and
(D)the total number of contracts awarded to
local businesses as a result of the declared disaster.
17.Grant assistance for
military reservists' small business concerns
(a)Section 7(b)(3)(B)
of the Small Business Act (15 U.S.C. 636(b)(3)(B)) is amended by inserting
or grants
after or deferred basis)
.
(b)Section
7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) is amended by inserting
after subparagraph (F) the following:
(G)Grants made under subparagraph (B)—
(i)may be awarded in addition to any loan made
under subparagraph (B);
(ii)shall not exceed $25,000; and
(iii)shall be made only to a small business
concern—
(I)that provides a business plan demonstrating
viability for not less than 3 future years;
(II)with 10 or fewer employees;
(III)that has not received another grant under
subparagraph (B) in the previous 2
years.
.
(c)Authorization
of appropriationsSection
20(e)(2) of the Small Business Act (15 U.S.C. 631 note) is amended by inserting
after subparagraph (B) the following:
(C)Grant
assistance for military reservists' small businessesThere are authorized to be appropriated for
grants under section 7(b)(3)(B)—
(i)$5,000,000 for the first fiscal year
beginning after the date of enactment of this subparagraph; and
(ii)$5,000,000 for each of the 2 fiscal years
following the fiscal year described in clause
(i).
.
18.
(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 (10), as added by this Act,
the following:
(11)
(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
; and
(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.
(B)
(i)The Administrator 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 described in clause (ii).
(ii)A small business concern described in this
clause is a small business concern that—
(I)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; and
(II)if engaged in the heating oil business,
sells not more than 10,000,000 gallons of heating oil per year.
(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 Administrator 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)(11) 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 that section 7(b)(11), including—
(A)the number of small business concerns that
applied for a loan under that section 7(b)(11) 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)(11), 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)(11) 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 energy
emergencies.
(3)Not later than 12 months after the date on
which the Secretary of Agriculture issues guidelines under subsection (c)(1),
and annually thereafter until the date that is 12 months after the end of the
effective period of the amendments made to section 321(a) of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1961(a)) by this subsection, 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 that section 321(a) ; and
(B)contains recommendations for ways to
improve the assistance provided under that 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)(11)(A)(iii)(II) of the Small Business
Act, as added by this Act.