1.Short title; table of contents
(a)This Act may be cited as the Small Business Disaster Response and Loan Improvements Act of 2006
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I—Private disaster loans
Sec. 101. Private disaster loans.
Sec. 102. Technical and conforming amendments.
TITLE II—Disaster relief and reconstruction
Sec. 201. Definition of disaster area.
Sec. 202. Disaster loans to nonprofits.
Sec. 203. Disaster loan amounts.
Sec. 204. Small business development center portability grants.
Sec. 205. Assistance to out-of-State businesses.
Sec. 206. Outreach programs.
Sec. 207. Small business bonding threshold.
Sec. 208. Contracting priority for local small businesses.
Sec. 209. Termination of program.
Sec. 210. Increasing collateral requirements.
TITLE III—Disaster response
Sec. 301. Definitions.
Sec. 302. Business expedited disaster assistance loan program.
Sec. 303. Catastrophic national disasters.
Sec. 304. Public awareness of disaster declaration and application periods.
Sec. 305. Consistency between Administration regulations and standard operating procedures.
Sec. 306. Processing disaster loans.
Sec. 307. Development and implementation of major disaster response plan.
Sec. 308. Congressional oversight.
TITLE IV—Energy emergencies
Sec. 401. Findings.
Sec. 402. Small business energy emergency disaster loan program.
Sec. 403. Agricultural producer emergency loans.
Sec. 404. Guidelines and rulemaking.
Sec. 405. Reports.
2.In this Act—
(1)the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively;
(2)the term small business concern has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632); and
(3)the term small business concern owned and controlled by socially and economically disadvantaged individuals has the same meaning as in section 8 of the Small Business Act (15 U.S.C. 637).
<enum>I</enum><header>Private disaster loans</header>
<section id="id8795EA0863AB4501BB122B28C255A18B"><enum>101.</enum><header>Private disaster loans</header>
<subsection id="id280BEEB40FD34D9D996E89CC28EF3B6F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 7 of the Small Business Act (15 U.S.C. 636) is amended—</text>
<paragraph id="id5A444AC8C8984D3D82DD4FD1B8121BA3"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and</text> </paragraph>
<paragraph id="idBC34882C46F04E11A913964D2D92F0CC"><enum>(2)</enum><text>by inserting after subsection (b) the following:</text>
<quoted-block display-inline="no-display-inline" id="id668406B506034FA09854C599FD0EFA50" style="OLC">
<subsection id="id54C11ED446F94B76AD685D461B38DD0A"><enum>(c)</enum><header>Private disaster loans</header>
<paragraph id="id3E315AA69EA34C0D9B62C57A08EC481E"><enum>(1)</enum><header>Definitions</header><text>In this subsection—</text>
<subparagraph id="id5F4F6D7A4E6E460D929073F59C939832"><enum>(A)</enum><text>the term <term>disaster area</term> means a county, parish, or similar unit of general local government in which a disaster was declared under subsection (b);</text> </subparagraph>
<subparagraph id="idCD5473989FE14EB2AD5A79002F117BA4"><enum>(B)</enum><text>the term <term>eligible small business concern</term> means a business concern that is—</text>
<clause id="id362F6F490AC04EE6870B1C7A4DC3776A"><enum>(i)</enum><text>a small business concern, as defined in this Act; or</text> </clause>
<clause id="id19AA4395460441AB8DFE860024BBD051"><enum>(ii)</enum><text>a small business concern, as defined in section 103 of the Small Business Investment Act of 1958; and</text> </clause></subparagraph>
<subparagraph id="idE3BC8BC6D919414CAA468E86B8966571"><enum>(C)</enum><text>the term <term>qualified private lender</term> means any privately-owned bank or other lending institution that the Administrator determines meets the criteria established under paragraph (9).</text> </subparagraph></paragraph>
<paragraph id="id856C3F51A2E74E0A86F6E0351EFAA2E0"><enum>(2)</enum><header>Authorization</header><text>The Administrator may guarantee timely payment of principal and interest, as scheduled on any loan issued by a qualified private lender to an eligible small business concern located in a disaster area.</text> </paragraph>
<paragraph id="id01029DAE01E4419AA62467343E937C01"><enum>(3)</enum><header>Use of loans</header><text>A loan guaranteed by the Administrator under this subsection may be used for any purpose authorized under subsection (a) or (b).</text> </paragraph>
<paragraph id="idC781DA364631481583D2D72C45DE856C"><enum>(4)</enum><header>Online applications</header>
<subparagraph id="idA8037C5E0C374E1390CA19306A72BEEB"><enum>(A)</enum><header>Establishment</header><text>The Administrator may establish, directly or through an agreement with another entity, an online application process for loans guaranteed under this subsection.</text> </subparagraph>
<subparagraph id="id23C1E32C0DEE4B3B8327D8E0308C4FDA"><enum>(B)</enum><header>Other Federal assistance</header><text>The Administrator may coordinate with the head of any other appropriate Federal agency so that any application submitted through an online application process established under this paragraph may be considered for any other Federal assistance program for disaster relief.</text> </subparagraph>
<subparagraph id="id1BD676D231EC43FE9A1E76230A787C8F"><enum>(C)</enum><header>Consultation</header><text>In establishing an online application process under this paragraph, the Administrator shall consult with appropriate persons from the public and private sectors, including private lenders.</text> </subparagraph></paragraph>
<paragraph id="id9EF6AE5ABC1449619357A551FA43F327"><enum>(5)</enum><header>Maximum amounts</header>
<subparagraph id="id2816E5B2162A4823B8B0E4DE75F9D20E"><enum>(A)</enum><header>Guarantee percentage</header><text>The Administrator may guarantee not more than 85 percent of a loan under this subsection.</text> </subparagraph>
<subparagraph id="id239051C7A538465098DD0E38A55AAA45"><enum>(B)</enum><header>Loan amounts</header><text>The maximum amount of a loan guaranteed under this subsection shall be $3,000,000.</text> </subparagraph></paragraph>
<paragraph id="id49056C67C14F40498B4063A67CD712B3"><enum>(6)</enum><header>Loan term</header><text>The longest term of a loan for a loan guaranteed under this subsection shall be—</text>
<subparagraph id="idCEB2914FFB48455785CF3182F3F9BF21"><enum>(A)</enum><text>15 years for any loan that is issued without collateral; and</text> </subparagraph>
<subparagraph id="id9B56FDE617524397A0039F4DB6A57FC1"><enum>(B)</enum><text>25 years for any loan that is issued with collateral.</text> </subparagraph></paragraph>
<paragraph id="idE63C43FCF8C74363BA057D36B00ED209"><enum>(7)</enum><header>Fees</header>
<subparagraph id="idCD966FA7C81A489EAADEB37F454FB41E"><enum>(A)</enum><header>In general</header><text>The Administrator may not collect a guarantee fee under this subsection.</text> </subparagraph>
<subparagraph id="idA60D75158252493F94FFDF46D1B3AFED"><enum>(B)</enum><header>Origination fee</header><text>The Administrator may pay a qualified private lender an origination fee for a loan guaranteed under this subsection in an amount agreed upon in advance between the qualified private lender and the Administrator.</text> </subparagraph></paragraph>
<paragraph id="id1103FA44CE0647F0965BD31791DC2683"><enum>(8)</enum><header>Documentation</header><text>A qualified private lender may use its own loan documentation for a loan guaranteed by the Administrator, to the extent authorized by the Administrator. The ability of a lender to use its own loan documentation for a loan offered under this subsection shall not be considered part of the criteria for becoming a qualified private lender under the regulations promulgated under paragraph (9).</text> </paragraph>
<paragraph id="id4C1DB0F251BA4DCA8EDE1DAC973AC260"><enum>(9)</enum><header>Implementation regulations</header>
<subparagraph id="id6D3EF02FB1714408B6D94C4A401A73ED"><enum>(A)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of the <short-title>Small Business Disaster Response and Loan Improvements Act of 2006</short-title>, the Administrator shall issue final regulations establishing permanent criteria for qualified private lenders.</text> </subparagraph>
<subparagraph id="idC69565B2B2C941BB99E592C982D0E0C0"><enum>(B)</enum><header>Report to Congress</header><text>Not later than 6 months after the date of enactment of the <short-title>Small Business Disaster Response and Loan Improvements Act of 2006</short-title>, the Administrator shall submit a report on the progress of the regulations required by subparagraph (A) to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives.</text> </subparagraph></paragraph>
<paragraph id="id4453F58543024DAA817E761D80C581EF"><enum>(10)</enum><header>Authorization of appropriations</header>
<subparagraph id="id6FFBA4B5322E4C9AB74E8752CA452346"><enum>(A)</enum><header>In general</header><text>Amounts necessary to carry out this subsection shall be made available from amounts appropriated to the Administration under subsection (b).</text> </subparagraph>
<subparagraph id="idDFEA9430DA7647DE8D21EB84B13C965F"><enum>(B)</enum><header>Authority to reduce interest rates</header><text>Funds appropriated to the Administration to carry out this subsection, may be used by the Administrator, to the extent available, to reduce the applicable rate of interest for a loan guaranteed under this subsection by not more than 3 percentage points.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="id7707EEFAA483424EA8789B57054927E8"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to disasters declared under section 7(b)(2) of the Small Business Act (631 U.S.C. 636(b)(2)) before, on, or after the date of enactment of this Act.</text> </subsection></section>
<section id="idB10FFC72124E45B89C647B819036758D"><enum>102.</enum><header>Technical and conforming amendments</header><text display-inline="no-display-inline">The Small Business Act (15 U.S.C. 631 et seq.) is amended—</text>
<paragraph id="id356543F19BF1496EBA6AACE52DE8707D"><enum>(1)</enum><text>in section 4(c)—</text>
<subparagraph id="id56DBCA3ED8194B0DAF01AD5299A59D65"><enum>(A)</enum><text>in paragraph (1), by striking <quote>7(c)(2)</quote> and inserting <quote>7(d)(2)</quote>; and</text> </subparagraph>
<subparagraph id="id5A5CC2A4A3E141B0B51DE3F8DC0BAD20"><enum>(B)</enum><text>in paragraph (2)—</text>
<clause id="idA200091627014B268CE7CCB6FAA335F1"><enum>(i)</enum><text>by striking <quote>7(c)(2)</quote> and inserting <quote>7(d)(2)</quote>; and</text> </clause>
<clause id="idFF128F8115C54FF2A33FF7E22242C2D8"><enum>(ii)</enum><text>by striking <quote>7(e),</quote>; and</text> </clause></subparagraph></paragraph>
<paragraph id="id0513C0D1D447416DADC369C0FFDAE533"><enum>(2)</enum><text>in section 7(b), in the undesignated matter following paragraph (3)—</text>
<subparagraph id="id9AEDD3F3568747F7B0146762461E0AA7"><enum>(A)</enum><text>by striking <quote>That the provisions of paragraph (1) of subsection (c)</quote> and inserting <quote>That the provisions of paragraph (1) of subsection (d)</quote>; and</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id83EA69CD4EFB4533BCBE3B545C7F0BDB"><enum>(B)</enum><text>by striking <quote>Notwithstanding the provisions of any other law the interest rate on the Administration's share of any loan made under subsection (b) except as provided in subsection (c),</quote> and inserting <quote>Notwithstanding any other provision of law, and except as provided in subsection (d), the interest rate on the Administration's share of any loan made under subsection (b)</quote>.</text> </subparagraph></paragraph></section>
<enum>II</enum><header>Disaster relief and reconstruction</header>
<section id="ID9F967EBE2C2840CD81712581D95B0D81"><enum>201.</enum><header>Definition of disaster area</header><text display-inline="no-display-inline">In this title, the term <term>disaster area</term> means an area affected by a natural or other disaster, as determined for purposes of paragraph (1) or (2) of section 7(b) of the Small Business Act (15 U.S.C. 636(b)), during the period of such declaration.</text> </section>
<section id="idF19CD0A023CB4AFAA58CD2AAACCAB717"><enum>202.</enum><header>Disaster loans to nonprofits</header><text display-inline="no-display-inline">Section 7(b) of the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 636(b)) is amended by inserting immediately after paragraph (3) the following:</text>
<quoted-block display-inline="no-display-inline" id="idFD78B5A97D8749A1BC47E359D4BAD511" style="OLC">
<paragraph id="idA8EFBF9684BB4B36856F4075A0ACA7F4"><enum>(4)</enum><header>Loans to nonprofits</header><text>In addition to any other loan authorized by this subsection, 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) as the Administrator determines appropriate to a nonprofit organization located or operating in an area affected by a natural or other disaster, as determined under paragraph (1) or (2), or providing services to persons who have evacuated from any such area.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section id="id5F944D8E71C748978EDBD83FCEC9BCF6"><enum>203.</enum><header>Disaster loan amounts</header>
<subsection id="id490F03CD89F9417ABB1989FFA30DEE9C"><enum>(a)</enum><header>Increased loan caps</header><text>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 title, the following:</text>
<quoted-block display-inline="no-display-inline" id="idA6BE56D98CC14B67AB07B76DD3915C6C" style="OLC">
<paragraph id="idD0C758E7597F4FE69DBBEDE3174AB7A2"><enum>(5)</enum><header>Increased loan caps</header>
<subparagraph id="idB6CECC08DCD5492F8425A6DFFEF2094B"><enum>(A)</enum><header>Aggregate loan amounts</header><text>Except as provided in clause (ii), and notwithstanding any other provision of law, the aggregate loan amount outstanding and committed to a borrower under this subsection may not exceed $5,000,000.</text> </subparagraph>
<subparagraph id="idC6A71643D21443F4873388E1068F65DD"><enum>(B)</enum><header>Waiver authority</header><text>The Administrator may, at the discretion of the Administrator, waive the aggregate loan amount established under clause (i).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="id8573E61AB4864CCD83FB0D12CF096B29"><enum>(b)</enum><header>Disaster mitigation</header>
<paragraph id="id11363B1C67884570A96766FC0C4DB7CA"><enum>(1)</enum><header>In general</header><text>Section 7(b)(1)(A) of the Small Business Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting <quote>of the aggregate costs of such damage or destruction (whether or not compensated for by insurance or otherwise)</quote> after <quote>20 per centum</quote>.</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H59C787AD633F40BE8058A209DD53FDF6"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) shall apply with respect to a loan or guarantee made after the date of enactment of this Act.</text> </paragraph></subsection>
<subsection id="H6A7E53BF8A32481E844036EDDC654857"><enum>(c)</enum><header>Technical amendments</header><text>Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended—</text>
<paragraph id="HD1D1198ADAED49BDB46B74F3C55EF0D3"><enum>(1)</enum><text>in the matter preceding paragraph (1), by striking <quote>the, Administration</quote> and inserting <quote>the Administration</quote>;</text> </paragraph>
<paragraph id="H6A65EA8A60824B68B18658BEE8C8AA26"><enum>(2)</enum><text>in paragraph (2)(A), by striking <quote>Disaster Relief and Emergency Assistance Act</quote> and inserting <quote>Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.)</quote>; and</text> </paragraph>
<paragraph id="ID50A58EAF5E794CF88C363DE72F45A06C"><enum>(3)</enum><text>in the undesignated matter at the end—</text>
<subparagraph id="IDBAE0B761FB7B4544A020D4FB5A57FEA1"><enum>(A)</enum><text>by striking <quote>, (2), and (4)</quote> and inserting <quote>and (2)</quote>; and</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="IDE8A2E2BF95A64CF8831929315D731D7A"><enum>(B)</enum><text>by striking <quote>, (2), or (4)</quote> and inserting <quote>(2)</quote>.</text> </subparagraph></paragraph></subsection></section>
<section id="ID7f0bf2342084419babbf4502fe2e96a6"><enum>204.</enum><header>Small business development center portability grants</header><text display-inline="no-display-inline">Section 21(a)(4)(C)(viii) of the Small Business Act (15 U.S.C. 648(a)(4)(C)(viii)) is amended—</text>
<paragraph id="id436D3A080800444E9004882763486164"><enum>(1)</enum><text display-inline="yes-display-inline">in the first sentence, by striking <quote>as a result of a business or government facility down sizing or closing, which has resulted in the loss of jobs or small business instability</quote> and inserting <quote>due to events that have resulted or will result in, business or government facility downsizing or closing</quote>; and</text> </paragraph>
<paragraph id="id5416901C7AE54C83947B336878E34409"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end <quote>At the discretion of the Administrator, the Administrator may make an award greater than $100,000 to a recipient to accommodate extraordinary occurrences having a catastrophic impact on the small business concerns in a community.</quote>.</text> </paragraph></section>
<section id="ID4da654d9192f493da41ddf5776036327"><enum>205.</enum><header>Assistance to out-of-State businesses</header><text display-inline="no-display-inline">Section 21(b)(3) of the Small Business Act (15 U.S.C. 648(b)(3)) is amended—</text>
<paragraph id="id7A5C95561EBE458EB78BD161DC2098AB"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>At the discretion</quote> and inserting the following: “<header-in-text level="paragraph" style="OLC">Small business development centers.—</header-in-text></text>
<quoted-block display-inline="no-display-inline" id="id55AF25E4990A4F69B1CDE31D09C1AF91" style="OLC">
<subparagraph id="id8B538E1D10B24517A98AA18652F5F207"><enum>(A)</enum><header>In general</header><text>At the discretion</text> </subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph>
<paragraph id="idD618E973C5CF485890E198A596A6285C"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id5D446BB690D949BF9F25D088492D4C0B" style="OLC">
<subparagraph id="idB126A383767B4D62A94458AE11A2E95E"><enum>(B)</enum><header>During disasters</header>
<clause id="id1079B511F91049FF9071CD6AE9878262"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">At the discretion of the Administrator, the Administrator may authorize a small business development center to provide such assistance to small business concerns located outside of the State, without regard to geographic proximity, if the small business concerns are located in a disaster area declared under section 7(b)(2)(A).</text> </clause>
<clause id="idC90D333E1B554A519B71CAFFF0DCF991"><enum>(ii)</enum><header>Continuity of services</header><text display-inline="yes-display-inline">A small business development center that provides counselors to an area described in clause (i) shall, to the maximum extent practicable, ensure continuity of services in any State in which such small business development center otherwise provides services.</text> </clause>
<clause id="ID716a667d908e41b2997361dce5e11f3b"><enum>(iii)</enum><header>Access to disaster recovery facilities</header><text>For purposes of providing disaster recovery assistance under this subparagraph, the Administrator shall, to the maximum extent practicable, permit small business development center personnel to use any site or facility designated by the Administrator for use to provide disaster recovery assistance.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section>
<section id="id67704CE4B1964F2F94C475ECE378D0C6"><enum>206.</enum><header>Outreach programs</header>
<subsection id="idFA9CBD969A184BBFAA3E1D27657F9E8C"><enum>(a)</enum><header>In general</header><text>Not later than 30 days after the date of the declaration of a disaster area, the Administrator may 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, such disaster area.</text> </subsection>
<subsection id="id11D0E91FE6794143A70D0F0BF7542BEB"><enum>(b)</enum><header>Administrator action</header><text>The Administrator may fulfill the requirement of subsection (a) by acting through—</text>
<paragraph id="idFD092EEEF1484A49A345EEF6BB63AEA5"><enum>(1)</enum><text>the Administration;</text> </paragraph>
<paragraph id="IDcd095a3bf178418f9cbb1ad97ce0013a"><enum>(2)</enum><text>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</text> </paragraph>
<paragraph id="ID6f5e2ac971d64d2895073dc48eb79649"><enum>(3)</enum><text>any Federal, State, or local government entity, higher education institution, procurement technical assistance center, or private nonprofit organization that the Administrator may determine appropriate, upon conclusion of a memorandum of understanding or assistance agreement, as appropriate, with the Administrator.</text> </paragraph></subsection></section>
<section id="idD35BB932EFD84E42A1212A3372DB744B"><enum>207.</enum><header>Small business bonding threshold</header>
<subsection commented="no" display-inline="no-display-inline" id="id844423A61FC84692BF9958D39970E652"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in subsection (b), and notwithstanding any other provision of law, for any procurement related to a 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 may, upon such terms and conditions as the Administrator 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.</text> </subsection>
<subsection commented="no" display-inline="no-display-inline" id="idCE0E69718CD5405BA434C7CE5839D560"><enum>(b)</enum><header>Increase of amount</header><text display-inline="yes-display-inline">Upon request of the head of any Federal agency other than the Administration involved in reconstruction efforts in response to a major disaster, the Administrator may guarantee and enter into a commitment to guarantee any security against loss under subsection (a) on any total work order or contract amount at the time of bond execution that does not exceed $10,000,000.</text> </subsection></section>
<section commented="no" display-inline="no-display-inline" id="idF8D4529834644BE4BF1FC0C45D3FB3C2" section-type="subsequent-section"><enum>208.</enum><header>Contracting priority for local small businesses</header><text display-inline="no-display-inline">Section 15(d) of the Small Business Act (15 U.S.C. 644(d)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id79E12F47308B41749F0628C661B5E1C1"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>(d) For purposes</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id71113D8706ED4B1F8C0ED0F30BDE53BE" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id1FFA3F81C2AE42BE99E3E742782157BD"><enum>(d)</enum><header>Contracting priorities</header>
<paragraph commented="no" display-inline="no-display-inline" id="id98DEF95474C64D8E95FBBBF6B84D23D8"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="id15963BB2CD75433085374FB5FB0DA315"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idDEB7D989B16E45D28143AF34CF4F2ECA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id8111AB038E674C3BBF8FD9B346321108"><enum>(2)</enum><header>Disaster contracting priority in general</header><text display-inline="yes-display-inline">The Administrator shall designate any disaster area as an area of concentrated unemployment or underemployment, or a labor surplus area for purposes of paragraph (1).</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="ID9f7fe1c39dc24e59a1b2b37a15ee0513"><enum>(3)</enum><header>Local small businesses</header>
<subparagraph commented="no" display-inline="no-display-inline" id="IDb1c5a642adfb4272953f2bcdf7726a15"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The head of each executive agency shall give priority in the awarding of contracts and the placement of subcontracts for disaster relief to local small business concerns by using, as appropriate—</text>
<clause commented="no" display-inline="no-display-inline" id="ID5a5c53669b3246b488dc58276a159ed4"><enum>(i)</enum><text display-inline="yes-display-inline">preferential factors in evaluations of contract bids and proposals;</text> </clause>
<clause commented="no" display-inline="no-display-inline" id="IDd24fc80ac9f6412caf0e29ab672a8368"><enum>(ii)</enum><text display-inline="yes-display-inline">competitions restricted to local small business concerns, where there is a reasonable expectation of receiving competitive, reasonably priced bids or proposals from not fewer than 2 local small business concerns;</text> </clause>
<clause commented="no" display-inline="no-display-inline" id="IDc77b7032258942f59b5aff570a30ca32"><enum>(iii)</enum><text display-inline="yes-display-inline">requirements of preference for local small business concerns in subcontracting plans; and</text> </clause>
<clause commented="no" display-inline="no-display-inline" id="ID512b8072ef28423f88de82b44c2a2c60"><enum>(iv)</enum><text display-inline="yes-display-inline">assessments of liquidated damages and other contractual penalties, including contract termination.</text> </clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID241667e1a1a949d3a799daa46b67991d"><enum>(B)</enum><header>Other disaster assistance</header><text display-inline="yes-display-inline">Priority shall be given to local small business concerns in the awarding of contracts and the placement of subcontracts for disaster relief in any Federal procurement and any procurement by a State or local government made with Federal disaster assistance funds.</text> </subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="idE9212F5AC9474D28B3C430FD06FF5565"><enum>(4)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id5B11D37AD56D432EAA38DEB764C805BB"><enum>(A)</enum><text display-inline="yes-display-inline">the term <term>declared disaster</term> means a disaster, as designated by the Administrator;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id8F814B27047949369BB696E17B98763F"><enum>(B)</enum><text display-inline="yes-display-inline">the term <term>disaster area</term> means any State or area affected by a declared disaster, as determined by the Administrator;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id85E7FEC04DF24CA89B5727412A0B85BF"><enum>(C)</enum><text display-inline="yes-display-inline">the term <term>executive agency</term> has the same meaning as in section 105 of title 5, United States Code; and</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="idC009AC9A76B64C08A2FEBC51F9A28643"><enum>(D)</enum><text display-inline="yes-display-inline">the term <term>local small business concern</term> means a small business concern that—</text>
<clause commented="no" display-inline="no-display-inline" id="idCD57F213C4134BDD9457840E5B2275DF"><enum>(i)</enum><text display-inline="yes-display-inline">on the date immediately preceding the date on which a declared disaster occurred—</text>
<subclause commented="no" display-inline="no-display-inline" id="id75CDD3E2837A4B6BBA83DD886B400FCE"><enum>(I)</enum><text display-inline="yes-display-inline">had a principal office in the disaster area for such declared disaster; and</text> </subclause>
<subclause commented="no" display-inline="no-display-inline" id="id9AB2DF7437B24C8AA2D9C50EB2EEE176"><enum>(II)</enum><text display-inline="yes-display-inline">employed a majority of the workforce of such small business concern in the disaster area for such declared disaster; and</text> </subclause></clause>
<clause commented="no" display-inline="no-display-inline" id="idB191D5D1A8C341D5AE2657D1D6860529"><enum>(ii)</enum><text display-inline="yes-display-inline">is capable of performing a substantial proportion of any contract or subcontract for disaster relief within the disaster area for such declared disaster, as determined by the Administrator.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section>
<section id="id6D529AD4B139484FA1910C990E51265A" section-type="subsequent-section"><enum>209.</enum><header>Termination of program</header><text display-inline="no-display-inline">Section 711(c) of the Small Business Competitive Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended by inserting after <quote>January 1, 1989</quote> the following: <quote>, and shall terminate on the date of enactment of the <short-title>Small Business Disaster Response and Loan Improvements Act of 2006</short-title></quote>.</text> </section>
<section commented="no" display-inline="no-display-inline" id="id34C63B50D9304946BFBAF07776BB14B9" section-type="subsequent-section"><enum>210.</enum><header>Increasing collateral requirements</header><text display-inline="no-display-inline">Section 7(d)(6) of the Small Business Act (15 U.S.C. 636), as so designated by section 101, is amended by striking <quote>$10,000 or less</quote> and inserting <quote>$14,000 or less (or such higher amount as the Administrator determines appropriate in the event of a catastrophic national disaster declared under subsection (b)(6))</quote>.</text> </section>
<enum>III</enum><header>Disaster response</header>
<section id="id98B4C47AE146416B84796A783EB5529F"><enum>301.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idFEE8FD5B5CF947C9B6F23CEDA418C08E"><enum>(1)</enum><text>the term <term>catastrophic national disaster</term> has the meaning given the term in section 7(b)(6) of the Small Business Act (15 U.S.C. 636(b)), as added by this Act;</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="idC1CC68B382BA402DAF13533BB30B7A6F"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>declared disaster</term> means a major disaster or a catastrophic national disaster;</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="id28D1D733B8784A3BA8B57053709344F9"><enum>(3)</enum><text display-inline="yes-display-inline">the term <term>disaster loan program of the Administration</term> means assistance under section 7(b) of the Small Business Act (15 U.S.C. 636(b));</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="id0BC9EAD339114118A7BF7A8619667D28"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>disaster update period</term> 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;</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="id7ED513C246A94CD2973E5BE39226BC53"><enum>(5)</enum><text>the term <term>major disaster</term> has the meaning given the term in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122); and</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="id90F6D00FA2B04F34A94C5E1E093F8905"><enum>(6)</enum><text>the term <term>State</term> means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and any territory or possession of the United States.</text> </paragraph></section>
<section id="id9CF490A86CD640B6BF2F8BCD4364D966"><enum>302.</enum><header>Business expedited disaster assistance loan program</header>
<subsection id="ID1229a9073c52439cbb5771877aab4706"><enum>(a)</enum><header>Definitions</header><text>In this section—</text>
<paragraph id="id76487428CF174FC78F050209FFE6CD3A"><enum>(1)</enum><text>the term <term>immediate disaster assistance</term> means assistance provided during the period beginning on the date on which a disaster declaration is made and ending on the date that an impacted small business concern is able to secure funding through insurance claims, Federal assistance programs, or other sources; and</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="idC9FC04BB646749519765AC6BAFAD410E"><enum>(2)</enum><text>the term <term>program</term> means the expedited disaster assistance business loan program established under subsection (b); and</text> </paragraph></subsection>
<subsection id="ID5da3b555d1ff40ac802126ac231f4eae"><enum>(b)</enum><header>Creation of program</header><text>The Administrator shall take such administrative action as is necessary to establish and implement an expedited disaster assistance business loan program to provide small business concerns with immediate disaster assistance under section 7(b) of the Small Business Act (15 U.S.C. 636(b)).</text> </subsection>
<subsection id="ID01b33ede94734808a045162256ac4f87"><enum>(c)</enum><header>Consultation required</header><text>In establishing the program, the Administrator shall consult with—</text>
<paragraph id="ID42dc3781391a4f6eb6ff301fd1b77fda"><enum>(1)</enum><text>appropriate personnel of the Administration (including District Office personnel of the Administration);</text> </paragraph>
<paragraph id="IDdeaa72e893e649929ae0ee8d6f520fe1"><enum>(2)</enum><text>appropriate technical assistance providers (including small business development centers);</text> </paragraph>
<paragraph id="ID84b3c1bcdc3540419ce775c69b49c599"><enum>(3)</enum><text>appropriate lenders and credit unions;</text> </paragraph>
<paragraph id="IDe6c90298a5a840c7b42d7958803af202"><enum>(4)</enum><text>the Committee on Small Business and Entrepreneurship of the Senate; and</text> </paragraph>
<paragraph id="ID81e818ba092543fbb0d3b8e4f03fccfb"><enum>(5)</enum><text>the Committee on Small Business of the House of Representatives.</text> </paragraph></subsection>
<subsection id="ID10969d1efcd445d2b0f9c21ef2759ecd"><enum>(d)</enum><header>Rules</header>
<paragraph id="ID592f63cf86e04023bfb359eb6851554c"><enum>(1)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this Act, the Administrator shall promulgate rules establishing and implementing the program in accordance with this section. Such rules shall apply as provided for in this section, beginning 90 days after their issuance in final form.</text> </paragraph>
<paragraph id="ID5f43ab2c6a634994a1c1d11b0afb6727"><enum>(2)</enum><header>Contents</header><text>The rules promulgated under paragraph (1) shall—</text>
<subparagraph id="ID6a3246f97a7e4d44a628606fd6b99b6c"><enum>(A)</enum><text>identify whether appropriate uses of funds under the program may include—</text>
<clause id="ID9b3c4cc02eb749e79cd7e1de6b1a5ca8"><enum>(i)</enum><text>paying employees;</text> </clause>
<clause id="IDa0fc31a575b14584a570c0dcd3aacd81"><enum>(ii)</enum><text>paying bills and other financial obligations;</text> </clause>
<clause id="ID74de8f5a9eb141c8b3b599741a4eb665"><enum>(iii)</enum><text>making repairs;</text> </clause>
<clause id="IDcdd025e300184368a8ac79b1fa1f51ad"><enum>(iv)</enum><text>purchasing inventory;</text> </clause>
<clause id="IDf4e6a4a4a7fc4eef8ff5e665b577b717"><enum>(v)</enum><text>restarting or operating a small business concern in the community in which it was conducting operations prior to the declared disaster, or to a neighboring area, county, or parish in the disaster area; or</text> </clause>
<clause id="ID15be043d6ba24d2d992f025f409d8f48"><enum>(vi)</enum><text>covering additional costs until the small business concern is able to obtain funding through insurance claims, Federal assistance programs, or other sources; and</text> </clause></subparagraph>
<subparagraph id="IDef0d0e03271c4f688ab82b03019fd6f8"><enum>(B)</enum><text>set the terms and conditions of any loan made under the program, subject to paragraph (3).</text> </subparagraph></paragraph>
<paragraph id="ID9afa890c1f91481193e0ab2e904efcc3"><enum>(3)</enum><header>Terms and conditions</header><text>A loan made by the Administration under this section—</text>
<subparagraph id="ID92752a56e9d143e4a27fbf9a145b72ad"><enum>(A)</enum><text>shall be a short-term loan, not to exceed 180 days, except that the Administrator may extend such term as the Administrator determines necessary or appropriate on a case-by-case basis;</text> </subparagraph>
<subparagraph id="IDb0f8baf371664555834b0eec7bb7c2ad"><enum>(B)</enum><text>shall have an interest rate not to exceed 1 percentage point above the prime rate of interest that a private lender may charge;</text> </subparagraph>
<subparagraph id="ID1a6f0c79857b42e691ed10e63ea7f7d9"><enum>(C)</enum><text>shall have no prepayment penalty;</text> </subparagraph>
<subparagraph id="IDa0e9980ec0fc42bf93bf96f4a950f92e"><enum>(D)</enum><text>may be refinanced as part of any subsequent disaster assistance provided under section 7(b) of the Small Business Act; and</text> </subparagraph>
<subparagraph commented="no" id="IDe85ef8dc6d20476ab6c6586338e159f1"><enum>(E)</enum><text>shall be subject to such additional terms as the Administrator determines necessary or appropriate.</text> </subparagraph></paragraph></subsection>
<subsection id="ID5b48f237c7a3447f8bf7a7fd0e5466db"><enum>(e)</enum><header>Report to congress</header><text>Not later than 5 months after the date of enactment of this Act, the Administrator shall 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 progress of the Administrator in establishing the program.</text> </subsection>
<subsection id="IDa2a2703c63ea4eb688ee9f6e2e5edb9f"><enum>(f)</enum><header>Authorization</header><text>There are authorized to be appropriated to the Administrator such sums as are necessary to carry out this section.</text> </subsection></section>
<section id="idBBFF89A9D8F642F4BD4EA3FF104869E8"><enum>303.</enum><header>Catastrophic national disasters</header><text display-inline="no-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="id174658301DF44EFF808098FBCC7AC9D4" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id6B2F36462F3045AC8D8EB1885D3E894C"><enum>(6)</enum><header>Catastrophic national disasters</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idE883816FC65A48DD96ECD4DC68776F87"><enum>(A)</enum><header>Definition</header><text display-inline="yes-display-inline">In this paragraph the term <term>catastrophic national disaster</term> means a disaster, natural or other, that the President determines has caused significant adverse economic conditions outside of the geographic reach of the disaster.</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id9EF48DD52E0C4E8CB05900BC537FCA20"><enum>(B)</enum><header>Authorization</header><text display-inline="yes-display-inline">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.</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id149CCF2E20DC4ACFAAD2504544EE12DE"><enum>(C)</enum><header>Loan terms</header><text display-inline="yes-display-inline">A loan under this paragraph shall be made on the same terms as a loan under paragraph (2).</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section>
<section commented="no" display-inline="no-display-inline" id="idA297336FDBCB42129015C7604FF983A3" section-type="subsequent-section"><enum>304.</enum><header>Public awareness of disaster declaration and application periods</header>
<subsection commented="no" display-inline="no-display-inline" id="idDECBE2296E5A449C8E7EB9642D13D007"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 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:</text>
<quoted-block display-inline="no-display-inline" id="id4BB9400260E0495E9B371CA4A9D63F44" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID85904c49851d4a88b0641d3eaaf9e512"><enum>(7)</enum><header>Coordination with FEMA</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id4FF498C3926A4AD1A4EB7625249588EF"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">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 (42 U.S.C. 5121 et seq.) begin on the same date and end on the same date.</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id8F8712690E8D4A2982FE7D74E5628E7F"><enum>(B)</enum><header>Deadline extensions</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law—</text>
<clause commented="no" display-inline="no-display-inline" id="id1EFCF578A13E4339B6FD73C9144BB761"><enum>(i)</enum><text display-inline="yes-display-inline">not later than 10 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 notify the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives as to whether the Administrator intends to extend such application period; and</text> </clause>
<clause commented="no" display-inline="no-display-inline" id="id2874079E696A46F5AF5E798941C3F536"><enum>(ii)</enum><text display-inline="yes-display-inline">not later than 10 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 (6), the Director of the Federal Emergency Management Agency, in consultation with the Administrator, shall notify the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives as to whether the Director intends to extend such application period.</text> </clause></subparagraph></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="id87B909B16AB64BCEA1BDE5B42F6DF1D0"><enum>(8)</enum><header>Public awareness of disasters</header><text display-inline="yes-display-inline">If 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—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id33F6334E7EE94F55AFF12ED671ACDFF2"><enum>(A)</enum><text display-inline="yes-display-inline">the date of such declaration;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id17AD55A9000C462CAFD358F8D86D405D"><enum>(B)</enum><text display-inline="yes-display-inline">cities and towns within the area of such declaration;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id08D45C5457D5431A9662813B749A8938"><enum>(C)</enum><text display-inline="yes-display-inline">loan application deadlines related to such disaster;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id278A9E965A964B1A8491952E27EB9437"><enum>(D)</enum><text display-inline="yes-display-inline">all relevant contact information for victim services available through the Administration (including links to small business development center websites);</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id65F31B349B7147569EEC9BE79C0BB187"><enum>(E)</enum><text display-inline="yes-display-inline">links to relevant Federal and State disaster assistance websites;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="idB549EE76C8BC4595996B9F093EEA40F1"><enum>(F)</enum><text display-inline="yes-display-inline">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; and</text> </subparagraph>
<subparagraph id="IDe45e39ebc0544333904c0d8dea4aea68"><enum>(G)</enum><text>application materials that clearly state the function of the Administration as the Federal source of disaster loans for homeowners and renters.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection commented="no" display-inline="no-display-inline" id="id6DC1EBD513B04D19879EA1FA1918B062"><enum>(b)</enum><header>Coordination of agencies and outreach</header><text display-inline="yes-display-inline">Not 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 a memorandum of understanding that ensures, to the maximum extent practicable, 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.</text> </subsection>
<subsection commented="no" display-inline="no-display-inline" id="id3D1823F1B94446BC84DB7FD3FC7CF9DD"><enum>(c)</enum><header>Marketing and outreach</header><text display-inline="yes-display-inline">Not later than 90 days after the date of enactment of this Act, the Administrator shall create a marketing and outreach plan that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDc266213935dd46b5b0194a9c2a3724cf"><enum>(1)</enum><text display-inline="yes-display-inline">encourages a proactive approach to the disaster relief efforts of the Administration;</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="ID22c59c609d7a4528a39f9cee66d82807"><enum>(2)</enum><text display-inline="yes-display-inline">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;</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="ID78c595fb8c7547ddaa169c4040424daf"><enum>(3)</enum><text display-inline="yes-display-inline">describes the different disaster loan programs of the Administration, including how they are made available and what eligibility requirements exist for each loan program;</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="ID428bac8af56349b088c572d508730dc0"><enum>(4)</enum><text display-inline="yes-display-inline">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</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="IDfd08bec58f744e27993839cb9178abf8"><enum>(5)</enum><text display-inline="yes-display-inline">ensures that the marketing plan is made available at small business development centers and on the website of the Administration.</text> </paragraph></subsection></section>
<section commented="no" display-inline="no-display-inline" id="id40E59A30FD004D22AC9C066B5683AB82" section-type="subsequent-section"><enum>305.</enum><header>Consistency between Administration regulations and standard operating procedures</header>
<subsection id="IDcf2d3caa6040439b8c3810346216aafd"><enum>(a)</enum><header>In general</header><text>The Administrator shall, promptly following the date of enactment of this Act, conduct a study of whether the standard operating procedures of the Administration for loans offered under section 7(b) of the Small Business Act (15 U.S.C. 636(b)) are consistent with the regulations of the Administration for administering the disaster loan program.</text> </subsection>
<subsection id="ID227ab547c6a244aca1627871a00de0e4"><enum>(b)</enum><header>Report</header><text>Not later than 180 days after the date of enactment of this Act, the Administration shall submit to Congress a report containing all findings and recommendations of the study conducted under subsection (a).</text> </subsection></section>
<section id="ID75455ffc6f3b40fbb32cf97828166e42"><enum>306.</enum><header>Processing disaster loans</header>
<subsection id="IDa5a2dd054f014ea68f4ecd558d66dbc2"><enum>(a)</enum><header>Authority for qualified private contractors To process disaster loans</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="id00E2E34AE6384B9D9BDB6F97DA6314EB" style="OLC">
<paragraph id="ID338fae2be63849cb916af7c24f90f1c7"><enum>(9)</enum><header>Authority for qualified private contractors</header>
<subparagraph id="id902AF1A944884C4485DBA7B6370852E6"><enum>(A)</enum><header>Disaster loan processing</header><text>The 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 (6), under which the Administrator shall pay the contractor a fee for each loan processed.</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID7171ab21b39642f1a4654e107f029b0c"><enum>(B)</enum><header>Loan loss verification services</header><text display-inline="yes-display-inline">The Administrator may enter into an agreement with a qualified lender or loss verification professional, as determined by the Administrator, to verify losses for 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 (6), under which the Administrator shall pay the lender or verification professional a fee for each loan for which such lender or verification professional verifies losses.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="ID9692a7cf58314ed6923744b307ca48e3"><enum>(b)</enum><header>Coordination of efforts between the administrator and the internal revenue service To expedite loan processing</header><text>The 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.</text> </subsection>
<subsection id="IDc0504a0e96f444d6a85d6539e9d67dde"><enum>(c)</enum><header>Report on loan approval rate</header>
<paragraph id="ID983ceef290d649d7b466c763b2140f14"><enum>(1)</enum><header>In general</header><text>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.</text> </paragraph>
<paragraph id="ID6b2013b0b99c49c19ec3aed04c5c935f"><enum>(2)</enum><header>Contents</header><text>The report submitted under paragraph (1) shall include—</text>
<subparagraph id="IDaee5f4e0f1dd4bab97e88942c9851109"><enum>(A)</enum><text>recommendations, if any, regarding—</text>
<clause id="ID6b0da066f9ea40bb802b2ce6132753f7"><enum>(i)</enum><text>staffing levels during a major disaster;</text> </clause>
<clause id="ID5ac488f665534e41a613df9e8fee0105"><enum>(ii)</enum><text>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;</text> </clause>
<clause id="ID48ea7a1f92854d69b69cc99f1a8a799f"><enum>(iii)</enum><text>the viability of using alternative methods for assessing the ability of an applicant to repay a loan, including 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;</text> </clause>
<clause id="ID73633ca2583a43f4a02d3859714aadb9"><enum>(iv)</enum><text>methods, if any, for the Administration to expedite loss verification and loan processing of disaster loans during a major disaster for businesses affected by, and located in the area for which the President declared, the major disaster that are a major source of employment in the area or are vital to recovery efforts in the region (including providing debris removal services, manufactured housing, or building materials);</text> </clause>
<clause id="idF56A4AC3595C4B34A5A9DCB1CD762214"><enum>(v)</enum><text>legislative changes, if any, needed to implement findings from the Administration's Accelerated Disaster Response Initiative; and</text> </clause>
<clause id="idD50EC4A5E5A840AE90BD89666D571B6D"><enum>(vi)</enum><text>a description of how the Administration plans to integrate and coordinate the response to a major disaster with the technical assistance programs of the Administration; and</text> </clause></subparagraph>
<subparagraph id="ID6b145b5f28da4e3b904549dafe537aa8"><enum>(B)</enum><text>the plans of the Administrator for implementing any recommendation made under subparagraph (A).</text> </subparagraph></paragraph></subsection></section>
<section id="IDc680ee85f3d541d38ca74ac1b66c9afe"><enum>307.</enum><header>Development and implementation of major disaster response plan</header>
<subsection id="IDdce9e01f5d7a4cf4a79fc9345fce8c35"><enum>(a)</enum><header>In general</header><text>Not later than March 15, 2007, the Administrator shall—</text>
<paragraph id="id662C0DA87F7E4A16AEF8BEAA66FA5B7B"><enum>(1)</enum><text>by rule, amend the 2006 Atlantic hurricane season disaster response plan of the Administration (in this section referred to as the <quote>disaster response plan</quote>) to apply to major disasters and catastrophic national disasters, consistent with this Act and the amendments made by this Act; and</text> </paragraph>
<paragraph id="id912DEA22FEA94EF6B59DB0D7540537AE"><enum>(2)</enum><text>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 the amendments to the disaster response plan.</text> </paragraph></subsection>
<subsection id="ID9bf0ce9049ec4f3cab56c4b5f7effb44"><enum>(b)</enum><header>Contents</header><text>The amended report required under subsection (a)(2) shall include—</text>
<paragraph id="ID7063d8d87e5240f694b55edfc10bc7d5"><enum>(1)</enum><text>any updates or modifications made to the disaster response plan since the report regarding the disaster response plan submitted on July 14, 2006;</text> </paragraph>
<paragraph id="ID0ebeeb076e6d43089931fc5b2cf69795"><enum>(2)</enum><text>a description of how the Administrator plans to utilize and integrate District Office personnel of the Administration in the response to a major disaster, including information on the utilization of personnel for loan processing and loan disbursement;</text> </paragraph>
<paragraph id="IDe1e1dbafc99d4cf19f613f7a6a1b5487"><enum>(3)</enum><text>a description of the disaster scalability model of the Administration and on what basis or function the plan is scaled;</text> </paragraph>
<paragraph id="ID7f9d594778134d73878778dad771a818"><enum>(4)</enum><text>a description of how the agency-wide Disaster Oversight Council is structured, which offices comprise its membership, and whether the Associate Deputy Administrator for Entrepreneurial Development of the Administration is a member;</text> </paragraph>
<paragraph id="IDe1b2dcd16c0b4d118fc67fee27409ceb"><enum>(5)</enum><text>a description of how the Administrator plans to coordinate the disaster efforts of the Administration with State and local government officials, including recommendations on how to better incorporate State initiatives or programs, such as State-administered bridge loan programs, into the disaster response of the Administration;</text> </paragraph>
<paragraph id="ID27abfbb9bade4d4fbd508ddecc69fec3"><enum>(6)</enum><text>recommendations, if any, on how the Administrator can better coordinate its disaster response operations with the operations of other Federal, State, and local entities;</text> </paragraph>
<paragraph commented="no" id="ID084d1fcb1ccd4607b136766f7c1a7e35"><enum>(7)</enum><text>any surge plan for the system in effect on or after August 29, 2005 (including surge plans for loss verification, loan processing, mailroom, customer service or call center operations, and a continuity of operations plan);</text> </paragraph>
<paragraph commented="no" id="ID081368d461e9471ebdeb9174c46ac7ae"><enum>(8)</enum><text>the number of full-time equivalent employees and job descriptions for the planning and disaster response staff of the Administration;</text> </paragraph>
<paragraph commented="no" id="ID7f418367cb734d76a07b20df8515fb43"><enum>(9)</enum><text>the in-service and preservice training procedures for disaster response staff of the Administration;</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="IDd34550a7fde64a72b0ffc993642d57ad"><enum>(10)</enum><text>information on the logistical support plans of the Administration (including equipment and staffing needs, and detailed information on how such plans will be scalable depending on the size and scope of the major disaster;</text> </paragraph>
<paragraph id="IDab04d39964454df5b1c3ea03b7b9f18f"><enum>(11)</enum><text>a description of the findings and recommendations of the Administrator, if any, based on a review of the response of the Administration to Hurricane Katrina of 2005, Hurricane Rita of 2005, and Hurricane Wilma of 2005; and</text> </paragraph>
<paragraph id="ID9b2938904e75436587ddb8e38a286d59"><enum>(12)</enum><text>a plan for how the Administrator, in cooperation with the Director of the Federal Emergency Management Agency, will coordinate the provision of accommodations and necessary resources for disaster assistance personnel to effectively perform their responsibilities in the aftermath of a major disaster.</text> </paragraph></subsection>
<subsection id="IDf4f689d4c1644b88af1afbf6ae7972a6"><enum>(c)</enum><header>Exercises</header><text>Not later than May 31, 2007, the Administrator shall develop and execute simulation exercises to demonstrate the effectiveness of the amended disaster response plan required under this section.</text> </subsection></section>
<section commented="no" display-inline="no-display-inline" id="id7B6ABC0F11794BD4943DD0DB2863EBB3" section-type="subsequent-section"><enum>308.</enum><header>Congressional oversight</header>
<subsection commented="no" display-inline="no-display-inline" id="ID926df4967703463e93f087334582d23e"><enum>(a)</enum><header>Monthly accounting report to congress</header>
<paragraph commented="no" id="idD8AA39B1097749AE80A4C7CDB38DFCC8"><enum>(1)</enum><header>Definition</header><text>In this subsection the term <term>applicable period</term> means the period beginning on the date on which the President declares a major disaster and ending on the date that is 30 days after the later of the closing date for applications for physical disaster loans for such disaster and the closing date for applications for economic injury disaster loans for such disaster.</text> </paragraph>
<paragraph commented="no" id="IDC136036E2F774BEE8389377FC7004566"><enum>(2)</enum><header>Reporting requirements</header><text>Not later than the fifth business day of each month during the applicable period for a major disaster, the Administrator shall provide to the Committee on Small Business and Entrepreneurship and the Committee on Appropriations of the Senate and to the Committee on Small Business and the Committee on Appropriations of the House of Representatives a report on the operation of the disaster loan program authorized under section 7 of the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 636) for such disaster during the preceding month.</text> </paragraph>
<paragraph commented="no" id="ID36AEAC13406E44378AF952F5DB47AD17"><enum>(3)</enum><header>Contents</header><text>Each report under paragraph (2) shall include—</text>
<subparagraph commented="no" id="ID5E0D3B458C9D4DFA84119CEE0DB2DB47"><enum>(A)</enum><text>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 (2);</text> </subparagraph>
<subparagraph commented="no" id="ID1226D2FDD7E8450FBA598ED38D81508B"><enum>(B)</enum><text>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 (2);</text> </subparagraph>
<subparagraph commented="no" id="IDD2D6184DF31047CCB4660B66E56BEEB3"><enum>(C)</enum><text>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 (2);</text> </subparagraph>
<subparagraph commented="no" id="ID673A951F462E4259987250E6C173CF99"><enum>(D)</enum><text>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;</text> </subparagraph>
<subparagraph commented="no" id="ID1A741FA62E5D42FEAC98D1EA68F7CC43"><enum>(E)</enum><text>an estimate of how long the available funding for such loans will last, based on the spending rate;</text> </subparagraph>
<subparagraph commented="no" id="IDB5845C3E6FDF45638A85FE43F571D94E"><enum>(F)</enum><text>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 (2);</text> </subparagraph>
<subparagraph commented="no" id="ID234A4534A8A540A3AB370CF0CD2E912C"><enum>(G)</enum><text>the amount of funding spent over the month for administrative costs, and the percent by which such spending has increased or decreased since the previous report under paragraph (2);</text> </subparagraph>
<subparagraph commented="no" id="ID8E6849BF7C754FACBEB9E4481982E376"><enum>(H)</enum><text>the amount of funding available for salaries and expenses combined, and the percent by which such funding has increased or decreased, noting the source of any additional funding; and</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID8C79623E99C141B0907E08E1C2727850"><enum>(I)</enum><text>an estimate of how long the available funding for salaries and expenses will last, based on the spending rate.</text> </subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="IDb55c4df83f3b4fc6b72838f4f09dae4f"><enum>(b)</enum><header>Daily disaster updates to congress for presidentially declared disasters</header>
<paragraph commented="no" display-inline="no-display-inline" id="id2E6D658B895A4800B4BE5FB52279EB9B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Each day during a disaster update period, excluding Federal holidays and weekends, the Administration 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.</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="idB6D473FBB674405097A97CCCB31BAED2"><enum>(2)</enum><header>Contents</header><text display-inline="yes-display-inline">Each report under paragraph (1) shall include—</text>
<subparagraph id="IDa4cd62af58de4fff91f087d919d864b6"><enum>(A)</enum><text>the number of Administration staff performing loan processing, field inspection, and other duties for the declared disaster, and the allocations of such staff in the disaster field offices, disaster recovery centers, workshops, and other Administration offices nationwide;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID79dee878afea43ac85e45cc0a1db8aae"><enum>(B)</enum><text display-inline="yes-display-inline">the daily number of applications received from applicants in the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID6f4c8fb3132c4c2cbab5b7aa6b0e5c38"><enum>(C)</enum><text display-inline="yes-display-inline">the daily number of applications pending application entry from applicants in the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="IDdf8319209519442a9542cd027d59c6fe"><enum>(D)</enum><text display-inline="yes-display-inline">the daily number of applications withdrawn by applicants in the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="IDd779f8eec5544391a2ad13ab016c9e5a"><enum>(E)</enum><text display-inline="yes-display-inline">the daily number of applications summarily declined by the Administration from applicants in the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID89039e9eb03e41c583161e8319a843df"><enum>(F)</enum><text display-inline="yes-display-inline">the daily number of applications declined by the Administration from applicants in the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID7a8718fc1923477d9fa8741e81e28139"><enum>(G)</enum><text display-inline="yes-display-inline">the daily number of applications in process from applicants in the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID84519beeb60b4200bfeb937b39448dfc"><enum>(H)</enum><text display-inline="yes-display-inline">the daily number of applications approved by the Administration from applicants in the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID47ff3e48c5374560a60dd9aa4e7e6171"><enum>(I)</enum><text display-inline="yes-display-inline">the daily dollar amount of applications approved by the Administration from applicants in the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="IDd5a8a015acb9466fb074197f4b4a9b17"><enum>(J)</enum><text display-inline="yes-display-inline">the daily amount of loans dispersed, both partially and fully, by the Administration to applicants in the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID06b45104104e4ccba5bb88366f7ffb3b"><enum>(K)</enum><text display-inline="yes-display-inline">the daily dollar amount of loans dispersed, both partially and fully, from the relevant area, as well as a breakdown of such figures by State;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="ID7fd7861d2c62488e86b3dac587af52a7"><enum>(L)</enum><text display-inline="yes-display-inline">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</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="IDc636679be13a4471b208830ade97dedd"><enum>(M)</enum><text display-inline="yes-display-inline">the declaration date, physical damage closing date, economic injury closing date, and number of counties included in the declaration of a major disaster.</text> </subparagraph></paragraph></subsection>
<subsection commented="no" display-inline="no-display-inline" id="idA64B5F393D2644E3A459B9DFBD2432E5"><enum>(c)</enum><header>Notice of the need for supplemental funds</header><text display-inline="yes-display-inline">On the same date that the Administrator notifies any committee of the Senate or the House of Representatives that supplemental funding is necessary for the disaster loan program of the Administration in any fiscal year, the Administrator shall notify in writing 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.</text> </subsection>
<subsection commented="no" display-inline="no-display-inline" id="ID6b1513c030584387a7415398f310fde6"><enum>(d)</enum><header>Report on contracting</header>
<paragraph commented="no" display-inline="no-display-inline" id="idA87F12FFB95C4410B56A2F57D0E27E0A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 6 months after the date on which the President declares a declared disaster, 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.</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="id624DDE5AEDCD4A999A8CC67C32E383A8"><enum>(2)</enum><header>Contents</header><text display-inline="yes-display-inline">Each report submitted under paragraph (1) shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD1F1238A8F84449D82AE5D37A2F0F7CE"><enum>(A)</enum><text display-inline="yes-display-inline">the total number of contracts awarded as a result of the declared disaster;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id56F8D4C6368D45209DF3C616E5DF73AC"><enum>(B)</enum><text display-inline="yes-display-inline">the total number of contracts awarded to small business concerns as a result of the declared disaster;</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id7C60C5D4190A41AFB618FF66DBCB446B"><enum>(C)</enum><text display-inline="yes-display-inline">the total number of contracts awarded to women and minority-owned businesses as a result of the declared disaster; and</text> </subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="id6B6B4633D17C4DE1998C75343F79E20D"><enum>(D)</enum><text display-inline="yes-display-inline">the total number of contracts awarded to local businesses as a result of the declared disaster.</text> </subparagraph></paragraph></subsection></section>
<enum>IV</enum><header>Energy emergencies</header>
<section changed="not-changed" id="ID87202B0A81514214BD953DFA38EFBB93"><enum>401.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds that—</text>
<paragraph changed="not-changed" id="ID3838B21210F448FABEEE00455E53D290"><enum>(1)</enum><text>a significant number of small business concerns in the United States, nonfarm as well as agricultural producers, use heating oil, natural gas, propane, or kerosene to heat their facilities and for other purposes;</text> </paragraph>
<paragraph changed="not-changed" id="ID488768F7205741959100E6A72600C3FB"><enum>(2)</enum><text>a significant number of small business concerns in the United States sell, distribute, market, or otherwise engage in commerce directly related to heating oil, natural gas, propane, and kerosene; and</text> </paragraph>
<paragraph changed="not-changed" id="ID8048473CCC0741A9959D5362704F1134"><enum>(3)</enum><text>significant increases in the price of heating oil, natural gas, propane, or kerosene—</text>
<subparagraph changed="not-changed" id="ID1189A6FC439141B8A3CFF89BF9A75FC6"><enum>(A)</enum><text>disproportionately harm small business concerns dependent on those fuels or that use, sell, or distribute those fuels in the ordinary course of their business, and can cause them substantial economic injury;</text> </subparagraph>
<subparagraph changed="not-changed" id="ID1D155F234B6D4DAEA3743B1CA7506502"><enum>(B)</enum><text>can negatively affect the national economy and regional economies;</text> </subparagraph>
<subparagraph changed="not-changed" id="ID3312B4FDE7124E0697FB6661D4EAFE03"><enum>(C)</enum><text>have occurred in the winters of 1983 to 1984, 1988 to 1989, 1996 to 1997, 1999 to 2000, 2000 to 2001, and 2004 to 2005; and</text> </subparagraph>
<subparagraph changed="not-changed" id="ID919280FB08CA47F6A406B26F6F1087A8"><enum>(D)</enum><text>can be caused by a host of factors, including international conflicts, global or regional supply difficulties, weather conditions, insufficient inventories, refinery capacity, transportation, and competitive structures in the markets, causes that are often unforeseeable to, and beyond the control of, those who own and operate small business concerns.</text> </subparagraph></paragraph></section>
<section changed="not-changed" id="ID21EC21D4F3EB41BF9F6D1E1E681FE2D7"><enum>402.</enum><header>Small business energy emergency disaster loan program</header>
<subsection changed="not-changed" id="IDB17A4620452C4AB8AD4FA16500EAD434"><enum>(a)</enum><header>In general</header><text>Section 7(b) of the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 636(b)) is amended by inserting after paragraph (9), as added by this Act, the following:</text>
<quoted-block act-name="Small Business Act" id="ID1819F087637C455C9F795197CF1B58ED">
<paragraph id="ID3D1E12F4ED014E7B00EE436D39598567"><enum>(10)</enum><header>Energy emergencies</header>
<subparagraph id="idFB77B9DF74FA4598BBD10C9FE4566E43"><enum>(A)</enum><header>Definitions</header><text>In this paragraph—</text>
<clause id="ID27F15FDAB6E745EFACE3C4E644115937"><enum>(i)</enum><text>the term <term>base price index</term> means the moving average of the closing unit price on the New York Mercantile Exchange for heating oil, natural gas, 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);</text> </clause>
<clause id="id1C7499253EBF413C9268EC025E705CBB"><enum>(ii)</enum><text>the term <term>current price index</term> 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, or propane during the subsequent calendar month, commonly known as the <quote>front month</quote>;</text> </clause>
<clause id="id97DA11AEAE9D45A7A2F9377A1AD1A10E"><enum>(iii)</enum><text>the term <term>heating fuel</term> means heating oil, natural gas, propane, or kerosene; and</text> </clause>
<clause id="ID591A33DC89A944A5B4272E28122CA188"><enum>(iv)</enum><text>the term <term>significant increase</term> means—</text>
<subclause id="id34564254B52240B385AAA96DD7A1BBEC"><enum>(I)</enum><text>with respect to the price of heating oil, natural gas, or propane, any time the current price index exceeds the base price index by not less than 40 percent; and</text> </subclause>
<subclause id="id930E602CD3CD40549FA675BF6A544DE4"><enum>(II)</enum><text>with respect to the price of kerosene, any increase which the Administrator, in consultation with the Secretary of Energy, determines to be significant.</text> </subclause></clause></subparagraph>
<subparagraph id="ID46422D61C129486793018F9B2B2900A0"><enum>(B)</enum><header>Authorization</header><text>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 as the result of a significant increase in the price of heating fuel occurring on or after October 1, 2004.</text> </subparagraph>
<subparagraph id="ID16FEE0D8869B4B92A7F06F323EEE3642"><enum>(C)</enum><header>Interest rate</header><text>Any loan or guarantee extended under this paragraph shall be made at the same interest rate as economic injury loans under paragraph (2).</text> </subparagraph>
<subparagraph id="IDD18F2B2D81F4445C8EEFCF1CC84CFDAF"><enum>(D)</enum><header>Maximum amount</header><text>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 the discretion of the Administrator, may waive the $1,500,000 limitation.</text> </subparagraph>
<subparagraph id="IDEDF99E8E99B5455CBD2241D79DE8F0B4"><enum>(E)</enum><header>Declarations</header><text>For purposes of assistance under this paragraph—</text>
<clause id="ID31F79B8927B149EAAEC14485567CD02C"><enum>(i)</enum><text>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</text> </clause>
<clause id="ID69B3AE1CF2D946D5AC12EAF252BEC273"><enum>(ii)</enum><text>if no declaration has been made under clause (i), the Governor of a State in which a significant increase in the price of heating fuel 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.</text> </clause></subparagraph>
<subparagraph id="ID07C949A8A7B545E1BBE11638D7819C7E"><enum>(F)</enum><header>Use of funds</header><text>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 fuel to a renewable or alternative energy source, including agriculture and urban waste, geothermal energy, cogeneration, solar energy, wind energy, or fuel cells.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection changed="not-changed" id="ID904FBA342C5A428BBCF003BDAEE54263"><enum>(b)</enum><header>Conforming amendments relating to heating fuel</header><text>Section 3(k) of the <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 632(k)) is amended—</text>
<paragraph changed="not-changed" id="ID285A5EB000224A16BE1552030305DE5D"><enum>(1)</enum><text>by inserting <quote>, significant increase in the price of heating fuel</quote> after <quote>civil disorders</quote>; and</text> </paragraph>
<paragraph changed="not-changed" id="ID420113903249421AB89B42371B462E23"><enum>(2)</enum><text>by inserting <quote>other</quote> before <quote>economic</quote>.</text> </paragraph></subsection>
<subsection changed="not-changed" id="ID67C116926F76436E875229BF4E808BA3"><enum>(c)</enum><header>Effective period</header><text>The amendments made by this section shall apply during the 4-year period beginning on the date on which guidelines are published by the Administrator under section 404.</text> </subsection></section>
<section changed="not-changed" id="IDFB568CCEDAEF408893C6C4D06D666D5E"><enum>403.</enum><header>Agricultural producer emergency loans</header>
<subsection changed="not-changed" id="ID893E8F57A74E4C008038906F37BFF7B8"><enum>(a)</enum><header>In general</header><text>Section 321(a) of the <act-name parsable-cite="CFRDA">Consolidated Farm and Rural Development Act</act-name> (7 U.S.C. 1961(a)) is amended—</text>
<paragraph changed="not-changed" id="IDFFAD940B8A3041259E6500757D6DD172"><enum>(1)</enum><text>in the first sentence—</text>
<subparagraph changed="not-changed" id="IDBF1470998AE348E9A795AB006C4397AA"><enum>(A)</enum><text>by striking <quote>operations have</quote> and inserting <quote>operations (i) have</quote>; and</text> </subparagraph>
<subparagraph changed="not-changed" id="ID63FF9BAA0FD948E7006541542EC655EC"><enum>(B)</enum><text>by inserting before <quote>: <italic>Provided,</italic></quote> the following: <quote>, 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 <act-name parsable-cite="SBA">Small Business Act</act-name> (15 U.S.C. 632)), and (II) have suffered or are likely to suffer substantial economic injury on or after October 1, 2004, as the result of a significant increase in energy costs or input costs from energy sources occurring on or after October 1, 2004, in connection with an energy emergency declared by the President or the Secretary</quote>;</text> </subparagraph></paragraph>
<paragraph changed="not-changed" id="ID7073D59B9BA5440F80C940EB189EAE64"><enum>(2)</enum><text>in the third sentence, by inserting before the period at the end the following: <quote>or by an energy emergency declared by the President or the Secretary</quote>; and</text> </paragraph>
<paragraph changed="not-changed" id="ID102C6A21D5794ED4BE59C0945D0047D5"><enum>(3)</enum><text>in the fourth sentence—</text>
<subparagraph changed="not-changed" id="IDE8394C115960403CBE8D24D7AD1BEE46"><enum>(A)</enum><text>by inserting <quote>or energy emergency</quote> after <quote>natural disaster</quote> each place that term appears; and</text> </subparagraph>
<subparagraph changed="not-changed" id="IDD3E2882687C7486DA65013F1D3C47CEC"><enum>(B)</enum><text>by inserting <quote>or declaration</quote> after <quote>emergency designation</quote>.</text> </subparagraph></paragraph></subsection>
<subsection changed="not-changed" id="ID55B83055B4494297A7B5E99147617441"><enum>(b)</enum><header>Funding</header><text>Funds available on the date of enactment of this Act for emergency loans under subtitle C of the <act-name parsable-cite="CFRDA">Consolidated Farm and Rural Development Act</act-name> (7 U.S.C. 1961 et seq.) shall be available to carry out the amendments made by subsection (a) to meet the needs resulting from energy emergencies.</text> </subsection>
<subsection changed="not-changed" commented="no" display-inline="no-display-inline" id="IDA2F26C819F4D4AAFA289F17145D0F4EA"><enum>(c)</enum><header>Effective period</header><text>The amendments made by this section shall apply during the 4-year period beginning on the date on which guidelines are published by the Secretary of Agriculture under section 404.</text> </subsection></section>
<section changed="not-changed" id="ID07E78611EB2D40F3B704527F1F6FD656"><enum>404.</enum><header>Guidelines and rulemaking</header>
<subsection changed="not-changed" id="id7751F2FDEF1043A9BD45479F5186E7DB"><enum>(a)</enum><header>Guidelines</header><text display-inline="yes-display-inline">Not later than 30 days after the date of enactment of this Act, the Administrator and the Secretary of Agriculture shall each issue such guidelines as the Administrator or the Secretary, as applicable, determines to be necessary to carry out this title and the amendments made by this title.</text> </subsection>
<subsection changed="not-changed" id="id9D09E5DE8DF54B678BA99E0E37042034"><enum>(b)</enum><header>Rulemaking</header><text>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)(10)(A)(iv)(II) of the Small Business Act, as added by this Act.</text> </subsection></section>
<section changed="not-changed" id="IDC5244C10300C4E95BE010200DD1CFD53"><enum>405.</enum><header>Reports</header>
<subsection changed="not-changed" id="ID114E51DB35A04B238D894752A848CFB3"><enum>(a)</enum><header>Small business administration</header><text>Not later than 12 months after the date on which the Administrator issues guidelines under section 404, and annually thereafter until the date that is 12 months after the end of the effective period of section 7(b)(10) of the Small Business Act, as added by this Act, 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)(10) of the <act-name parsable-cite="SBA">Small Business Act</act-name>, as added by this Act, including—</text>
<paragraph changed="not-changed" id="ID0FC00D1F5AFF4B76B562C12F740030BC"><enum>(1)</enum><text>the number of small business concerns that applied for a loan under such section and the number of those that received such loans;</text> </paragraph>
<paragraph changed="not-changed" id="IDD93CEF2C6A444391A7FDACC6C7DBF81B"><enum>(2)</enum><text>the dollar value of those loans;</text> </paragraph>
<paragraph changed="not-changed" id="IDDA6521BA0511413CA301E8379980E7D3"><enum>(3)</enum><text>the States in which the small business concerns that received such loans are located;</text> </paragraph>
<paragraph changed="not-changed" id="ID1F14F36318624389873C06961EE8F6AA"><enum>(4)</enum><text>the type of heating fuel or energy that caused the significant increase in the cost for the participating small business concerns; and</text> </paragraph>
<paragraph changed="not-changed" id="ID0E03662C562A44D2BB172487978CE4B1"><enum>(5)</enum><text>recommendations for ways to improve the assistance provided under such section 7(b)(10), if any.</text> </paragraph></subsection>
<subsection changed="not-changed" id="ID9498EAC264784D17893F551F1CBE4F48"><enum>(b)</enum><header>Department of agriculture</header><text>Not later than 12 months after the date on which the Secretary of Agriculture issues guidelines under section 404, 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 title, the Secretary shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Small Business and the Committee on Agriculture of the House of Representatives, a report that—</text>
<paragraph changed="not-changed" id="idE8CED266255D40DB809482926003EB09"><enum>(1)</enum><text>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)); and</text> </paragraph>
<paragraph changed="not-changed" id="idA1C915DCAA0B48388720D367768988EF"><enum>(2)</enum><text>contains recommendations for ways to improve the assistance provided under such section 321(a), if any.</text> </paragraph></subsection></section>