[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1361 Engrossed in House (EH)]

110th CONGRESS
  1st Session
                                H. R. 1361

_______________________________________________________________________

                                 AN ACT


 
     To improve the disaster relief programs of the Small Business 
                Administration, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Relief for 
Entrepreneurs: Coordination of Objectives and Values for Effective 
Recovery Act of 2007'' or the ``RECOVER Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                           TITLE I--PLANNING

Sec. 101. Comprehensive disaster response plan.
Sec. 102. Annual disaster simulation exercise.
Sec. 103. Disaster reserve corps.
Sec. 104. Plans to secure additional office space.
Sec. 105. Coordination of disaster assistance programs with FEMA.
Sec. 106. Associate Administrator for Disaster Assistance.
                           TITLE II--LENDING

Sec. 201. Incidents of National Significance.
Sec. 202. Information tracking and follow-up system.
Sec. 203. Immediate Disaster Assistance program.
Sec. 204. Increased deferment period.
Sec. 205. Revised repayment terms.
Sec. 206. Revised disbursement process.
Sec. 207. Revised collateral requirements.
Sec. 208. Enhanced lending authority for private lenders.
Sec. 209. Disaster processing redundancy.
Sec. 210. Grant program.
Sec. 211. Hurricane Assistance Replacement Grant program.
Sec. 212. Increase legislative limit.
Sec. 213. Net earnings clauses prohibited.
Sec. 214. Economic injury disaster loans to nonprofits.
Sec. 215. Applicants that will constitute a major source of employment 
                            due to changed economic circumstances.
Sec. 216. Preliminary application process for assistance for small 
                            business concerns with essential employees 
                            ordered to serve on active duty in the 
                            Armed Forces.
Sec. 217. Economic injury disaster loans in cases of ice storms and 
                            blizzards.
Sec. 218. Report regarding lack of snow fall.
Sec. 219. Gulf Coast Disaster Loan Refinancing program.
                          TITLE III--OVERSIGHT

Sec. 301. Reports on disaster assistance.

                           TITLE I--PLANNING

SEC. 101. COMPREHENSIVE DISASTER RESPONSE PLAN.

    The Small Business Act is amended by redesignating section 37 as 
section 99 and by inserting after section 36 the following:

``SEC. 37. COMPREHENSIVE DISASTER RESPONSE PLAN.

    ``(a) Plan Required.--The Administrator shall develop, implement, 
and maintain a comprehensive written disaster response plan. The plan 
shall include the following:
            ``(1) For each region of the Administration, a description 
        of the disasters most likely to occur in that region.
            ``(2) For each disaster described under paragraph (1)--
                    ``(A) an assessment of the disaster;
                    ``(B) an assessment of the demand for 
                Administration assistance most likely to occur in 
                response to the disaster;
                    ``(C) an assessment of the needs of the 
                Administration, with respect to such resources as 
                information technology, telecommunications, human 
                resources, and office space, to meet the demand 
                referred to in subparagraph (B); and
                    ``(D) guidelines pursuant to which the 
                Administration will coordinate with other Federal 
                agencies and with State and local authorities to best 
                respond to the demand referred to in subparagraph (B) 
                and to best use the resources referred to in that 
                subparagraph.
    ``(b) Completion; Revision.--The first plan required by subsection 
(a) shall be completed not later than 180 days after the date of the 
enactment of this section. Thereafter, the Administrator shall update 
the plan on an annual basis and following any incident of national 
significance (as declared by the President or his designee).
    ``(c) Knowledge Required.--The Administrator shall carry out 
subsections (a) and (b) through an individual with substantial 
knowledge in the field of disaster readiness and emergency response.
    ``(d) Report.--The Administrator shall include a report on the plan 
whenever the Administrator submits the report required by section 
47(a).''.

SEC. 102. ANNUAL DISASTER SIMULATION EXERCISE.

    The Small Business Act is amended by inserting after section 37 (as 
added by section 101) the following:

``SEC. 38. ANNUAL DISASTER SIMULATION EXERCISE.

    ``(a) Exercise Required.--The Administrator shall conduct a 
disaster simulation exercise at least once each fiscal year. The 
exercise shall include the participation of, at a minimum, not less 
than half of the individuals in the disaster reserve corps and shall 
test, at maximum capacity, all of the information technology and 
telecommunications systems of the Administration that are vital to the 
activities of the Administration during such a disaster.
    ``(b) Report.--The Administrator shall include a report on the 
disaster simulation exercise whenever the Administration submits the 
report required by section 47(a).''.

SEC. 103. DISASTER RESERVE CORPS.

    The Small Business Act is amended by inserting after section 38 (as 
added by section 102) the following:

``SEC. 39. DISASTER RESERVE CORPS.

    ``(a) Corps Required.--The Administrator shall maintain within the 
Administration a disaster reserve corps, the purpose of which is to 
perform the functions of the Administration related to disaster 
response. The corps shall consist of at least 1,000 individuals, each 
of whom--
            ``(1) does not ordinarily have the duties of a full-time 
        officer or employee of the Administration; but
            ``(2) is able to assume duties related to disaster response 
        when the Administrator so requires.
    ``(b) Training.--The Administrator shall ensure that each 
individual in the corps receives training each year in one or more 
functions relating to disaster response. To the maximum extent 
practicable, the function in which an individual is trained in one year 
shall be different from the function in which the individual was 
trained in prior years.
    ``(c) Geographic Distribution.--The Administrator shall ensure that 
not more than 30 percent of the individuals in the corps reside in any 
one region of the Administration.
    ``(d) Report.--The Administrator shall include a report on the 
corps whenever the Administration submits the report required by 
section 47(a).''.

SEC. 104. PLANS TO SECURE ADDITIONAL OFFICE SPACE.

    The Small Business Act is amended by inserting after section 39 (as 
added by section 103) the following:

``SEC. 40. PLANS TO SECURE ADDITIONAL OFFICE SPACE.

    ``(a) Plans Required.--The Administrator shall develop long-term 
plans to secure additional office space to accommodate an expanded 
workforce in times of disaster.
    ``(b) Report.--The Administrator shall include a report on the 
plans whenever the Administration submits the report required by 
section 47(a).''.

SEC. 105. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.

    The Small Business Act is amended by inserting after section 40 (as 
added by section 104) the following:

``SEC. 41. COORDINATION OF DISASTER ASSISTANCE PROGRAMS WITH FEMA.

    ``(a) Coordination Required.--The Administrator shall ensure that 
the disaster assistance programs of the Administration are coordinated, 
to the maximum extent practicable, with the disaster assistance 
programs of the Federal Emergency Management Agency.
    ``(b) Regulations Required.--The Administrator, in consultation 
with the Director of the Federal Emergency Management Agency, shall 
establish regulations to ensure that each application for disaster 
assistance is submitted as quickly as practicable to the Administration 
or directed to the appropriate agency under the circumstances.
    ``(c) Completion; Revision.--The initial regulations shall be 
completed not later than 270 days after the date of the enactment of 
this section. Thereafter, the regulations shall be revised on an annual 
basis.
    ``(d) Report.--The Administrator shall include a report on the 
regulations whenever the Administration submits the report required by 
section 47(a).''.

SEC. 106. ASSOCIATE ADMINISTRATOR FOR DISASTER ASSISTANCE.

    The Small Business Act is amended by inserting after section 41 (as 
added by section 105) the following:

``SEC. 42. ASSOCIATE ADMINISTRATOR FOR DISASTER ASSISTANCE.

    ``(a) In General.--There is established in the Administration an 
Associate Administrator for Disaster Assistance, appointed by the 
President by and with the advice and consent of the Senate, from among 
individuals who have--
            ``(1) proven management ability; and
            ``(2) substantial knowledge in the field of disaster 
        readiness and emergency response.
    ``(b) Director of Disaster Planning.--
            ``(1) Appointment.--There is established in the 
        Administration a Director for Disaster Planning, appointed by 
        the Administrator from among the personnel of the 
        Administration.
            ``(2) Duties.--Subject to the authority, direction, and 
        control of the Associate Administrator for Disaster Assistance, 
        the Director shall--
                    ``(A) develop and implement the Administration's 
                plans for responding to disasters; and
                    ``(B) direct the Administration's training 
                exercises with respect to disasters.
            ``(3) Coordination.--In carrying out the duties under 
        paragraph (2), the Director shall coordinate with--
                    ``(A) the Associate Administrator for the Office of 
                Disaster Assistance of the Administration;
                    ``(B) the Director of the Federal Emergency 
                Management Agency; and
                    ``(C) other Federal, State, and local disaster 
                planning offices, as necessary.
    ``(c) Director of Disaster Lending.--
            ``(1) Appointment.--There is established in the 
        Administration a Director for Disaster Lending, appointed by 
        the Administrator from among the personnel of the 
        Administration.
            ``(2) Duties.--Subject to the authority, direction, and 
        control of the Associate Administrator for Disaster Assistance, 
        the Director shall direct all aspects of the disaster lending 
        program under section 7(b).
    ``(d) Resources.--The Administrator shall ensure that the Associate 
Administrator for Disaster Assistance, the Director of Disaster 
Planning, and the Director of Disaster Lending have adequate resources 
to carry out the duties under this section.''.

                           TITLE II--LENDING

SEC. 201. INCIDENTS OF NATIONAL SIGNIFICANCE.

    (a) Disaster Loans to Private Nonprofit Organizations.--Section 
7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) is amended--
            (1) in subparagraph (D) by striking the period at the end 
        and inserting ``; or''; and
            (2) by inserting after subparagraph (D) the following:
                    ``(E) an incident of national significance, as 
                declared by the President or his designee, in which 
                case assistance under this paragraph may be provided, 
                subject to the other applicable requirements of this 
                paragraph, to a private nonprofit organization (as that 
                term is defined in section 29(a)(2)) that is located in 
                an area affected by the incident of national 
                significance.''.
    (b) Mitigation Loans to Small Business Concerns.--Section 7 of the 
Small Business Act (15 U.S.C. 636) is amended by inserting after 
subsection (d) the following:
    ``(e) Disaster Mitigation Loans.--
            ``(1) Authority.--The Administrator may make or guarantee a 
        mitigation loan to a small business concern that receives a 
        loan under section 7(b)(1)(A) for the damage or destruction, by 
        reason of an incident of national significance (as declared by 
        the President or his designee), of property owned by the small 
        business concern.
            ``(2) Amount of loan.--The amount of a loan under paragraph 
        (1) shall not exceed 20 percent of the total amount of the cost 
        of the damage or destruction referred to in paragraph (1). The 
        total amount shall be calculated without regard for any costs 
        for which the small business concern is reimbursed under any 
        insurance policy or otherwise.''.
    (c) Applicability for Fiscal Year 2006 to Hurricanes Katrina, Rita, 
and Wilma.--
            (1) In general.--For fiscal year 2006, the Administrator--
                    (A) may carry out subsection (e) of section 7 of 
                the Small Business Act (as added by subsection (b) of 
                this section) with respect to a private nonprofit 
                organization that was located, as of August 28, 2005, 
                in a hurricane-affected area; and
                    (B) may carry out such subsection (e) with respect 
                to a small business concern that was located, as of 
                August 28, 2005, in a hurricane-affected area, for 
                damage or destruction by reason of Hurricane Katrina, 
                Hurricane Rita, or Hurricane Wilma.
            (2) Hurricane-affected area defined.--In this section, the 
        term ``hurricane-affected area'' means a county or parish in 
        the State of Alabama, Florida, Mississippi, Louisiana, or 
        Texas, that has been designated by the Administrator of the 
        Small Business Administration as a disaster area by reason of 
        Hurricane Katrina, Hurricane Rita, or Hurricane Wilma under 
        disaster declaration 10176, 10177, 10178, 10179, 10180, 10181, 
        10203, 10204, 10205, 10206, 10222, or 10223.

SEC. 202. INFORMATION TRACKING AND FOLLOW-UP SYSTEM.

    The Small Business Act is amended by inserting after section 42 (as 
added by section 106) the following:

``SEC. 43. INFORMATION TRACKING AND FOLLOW-UP SYSTEM FOR DISASTER 
              ASSISTANCE.

    ``(a) System Required.--The Administrator shall develop, implement, 
and maintain a centralized information system to track communications 
between personnel of the Administration and applicants for disaster 
assistance. The system shall ensure that whenever an applicant for 
disaster assistance communicates with such personnel on a matter 
relating to the application, the following information is recorded:
            ``(1) The method of communication.
            ``(2) The date of communication.
            ``(3) The identity of the personnel.
            ``(4) A summary of the subject matter of the communication.
    ``(b) Follow-up Required.--The Administrator shall ensure that an 
applicant for disaster assistance receives, by telephone, mail, or 
electronic mail, follow-up communications from the Administration at 
all critical stages of the application process, including the 
following:
            ``(1) When the Administration determines that additional 
        information or documentation is required to process the 
        application.
            ``(2) When the Administration determines whether to approve 
        or deny the loan.
            ``(3) When the primary contact person managing the loan 
        application has changed.''.

SEC. 203. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

    The Small Business Act is amended by inserting after section 43 (as 
added by section 202) the following:

``SEC. 44. IMMEDIATE DISASTER ASSISTANCE PROGRAM.

    ``(a) Program Required.--The Administrator shall carry out a 
program, to be known as the Immediate Disaster Assistance program, 
under which the Administration participates on a deferred (guaranteed) 
basis in 85 percent of the balance of the financing outstanding at the 
time of disbursement of the loan if such balance is less than or equal 
to $25,000 for businesses affected by a disaster.
    ``(b) Eligibility Requirement.--To receive a loan guaranteed under 
subsection (a), the applicant must also apply for, and meet basic 
eligibility standards for, a loan under section 7(b).
    ``(c) Use of Proceeds.--A person who receives a loan under section 
7(b) must use the proceeds of that loan to repay all loans guaranteed 
under subsection (a), if any, before using the proceeds for any other 
purpose.
    ``(d) Approval or Disapproval.--The Administrator shall ensure that 
each applicant for a loan under the program receives a decision 
approving or disapproving of the application within 36 hours after the 
Administration receives the application.''.

SEC. 204. INCREASED DEFERMENT PERIOD.

    Section 7 of the Small Business Act (15 U.S.C. 636) is amended by 
inserting after subsection (e) (as added by section 201(b)) the 
following:
    ``(f) Additional Requirements for 7(b) Loans.--
            ``(1) Increased deferment authorized.--
                    ``(A) In general.--In making loans under section 
                7(b), the Administrator may provide, to the person 
                receiving the loan, an option to defer repayment on the 
                loan.
                    ``(B) Period.--A deferment under subparagraph (A) 
                may not exceed 4 years.''.

SEC. 205. REVISED REPAYMENT TERMS.

    Section 7 of the Small Business Act (15 U.S.C. 636) is amended in 
subsection (f) by adding after paragraph (1) (as added by section 204) 
the following:
            ``(2) Revised repayment terms.--In making loans under 
        section 7(b), the Administrator--
                    ``(A) shall not require repayment to be made until 
                12 months after the date on which the final 
                disbursement of approved amounts is made; and
                    ``(B) shall calculate the amount of repayment based 
                solely on the amounts disbursed.''.

SEC. 206. REVISED DISBURSEMENT PROCESS.

    Section 7 of the Small Business Act (15 U.S.C. 636) is amended in 
subsection (f) by adding after paragraph (2) (as added by section 205) 
the following:
            ``(3) Revised disbursement process.--In making loans under 
        section 7(b), the Administrator shall disburse the loan amounts 
        in stages as follows:
                    ``(A) Loans up to $150,000.--If the total amount 
                approved is less than or equal to $150,000--
                            ``(i) the first disbursement shall consist 
                        of 40 percent of the total loan amount, or a 
                        lesser percentage of the total loan amount if 
                        the Administrator and the borrower agree on 
                        such a lesser percentage;
                            ``(ii) the second disbursement shall 
                        consist of 50 percent of the amounts that 
                        remain after the first disbursement, and shall 
                        be made when the borrower has produced 
                        satisfactory receipts to demonstrate the proper 
                        use of the first half of the first 
                        disbursement; and
                            ``(iii) the third disbursement shall 
                        consist of the amounts that remain after the 
                        preceding disbursements, and shall be made when 
                        the borrower has produced satisfactory receipts 
                        to demonstrate the proper use of the first 
                        disbursement and the first half of the second 
                        disbursement.
                    ``(B) Loans from $150,000 to $500,000.--If the 
                total amount approved is more than $150,000 but less 
                than or equal to $500,000--
                            ``(i) the first disbursement shall consist 
                        of 20 percent of the total loan amount, or a 
                        lesser percentage if the Administrator and the 
                        borrower agree on such a lesser percentage;
                            ``(ii) the second disbursement shall 
                        consist of 30 percent of the total loan amount 
                        remaining after the first disbursement, and 
                        shall be made when the borrower has produced 
                        satisfactory receipts to demonstrate the proper 
                        use of the first half of the first 
                        disbursement;
                            ``(iii) the third disbursement shall 
                        consist of 25 percent of the total loan amount 
                        remaining after the first and second 
                        disbursements, and shall be made when the 
                        borrower has produced satisfactory receipts to 
                        demonstrate the proper use of the first 
                        disbursement and the first half of the second 
                        disbursement; and
                            ``(iv) the fourth disbursement shall 
                        consist of the amounts that remain after the 
                        preceding disbursements, and shall be made when 
                        the borrower has produced satisfactory receipts 
                        to demonstrate the proper use of the first and 
                        second disbursements and the first half of the 
                        third disbursement.
                    ``(C) Loans greater than $500,000.--If the total 
                amount approved is more than $500,000--
                            ``(i) the first disbursement shall consist 
                        of at least $100,000, or a lesser amount if the 
                        Administrator and the borrower agree on such a 
                        lesser amount; and
                            ``(ii) the number of disbursements after 
                        the first, and the amount of each such 
                        disbursement, shall be in the discretion of the 
                        Administrator, but the amount of each such 
                        disbursement shall be not less than 
                        $100,000.''.

SEC. 207. REVISED COLLATERAL REQUIREMENTS.

    Section 7 of the Small Business Act is amended in subsection (f) by 
adding after paragraph (3) (as added by section 206) the following:
            ``(4) Revised collateral requirements.--In making a 
        business loan under section 7(b), the total approved amount of 
        which is less than or equal to $100,000, the Administrator 
        shall not require the borrower to use the borrower's home as 
        collateral.''.

SEC. 208. ENHANCED LENDING AUTHORITY FOR PRIVATE LENDERS.

    The Small Business Act is amended by inserting after section 44 (as 
added by section 203) the following:

``SEC. 45. ENHANCED LENDING AUTHORITY FOR PRIVATE LENDERS.

    ``(a) Program Authorized.--The Administrator may, and during a 
period specified in subsection (b) shall, carry out a program under 
which the Administrator permits banks and other financial institutions 
to process, approve, close, and service disaster loans under section 
7(b) for a fee not to exceed 2 percent of the total loan amount.
    ``(b) Periods During Which Program Is Required.--The program under 
subsection (a) is required to be carried out during the following 
periods:
            ``(1) Any period of an incident of national significance 
        (as declared by the President or his designee).
            ``(2) Any period during which the average time for the 
        Administration to approve disaster loans in response to any 
        single disaster is 30 days or more.
    ``(c) Exclusion of Lenders.--If the number or rate of defaults on 
loans processed, approved, and closed by a lender under the program 
under subsection (a) are inordinate, as determined by the 
Administrator, the Administrator may do any one or more of the 
following:
            ``(1) Exclude the lender from participating in the program 
        under subsection (a).
            ``(2) Exclude the lender from participating in the 
        Preferred Lenders Program under section 7(a)(2)(C)(ii).
    ``(d) Factor in Preferred Lenders Program.--In determining whether 
a lender is to be certified or recertified to participate in the 
Preferred Lenders Program under section 7(a)(2)(C)(ii), the 
Administrator may consider as a factor the following:
            ``(1) The loans processed, approved, and closed by the 
        lender under the program under subsection (a).
            ``(2) The participation or non-participation of the lender 
        in the program under subsection (a).''.

SEC. 209. DISASTER PROCESSING REDUNDANCY.

    The Small Business Act is amended by inserting after section 45 (as 
added by section 208) the following:

``SEC. 46. DISASTER PROCESSING REDUNDANCY.

    ``(a) In General.--The Administrator shall ensure that the 
Administration has in place a facility for disaster loan processing 
that, whenever the Administration's primary facility for disaster loan 
processing becomes unavailable, is able to take over all disaster loan 
processing from that primary facility within 2 days.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be 
necessary.''.

SEC. 210. GRANT PROGRAM.

    Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (3) the following:
            ``(4) Grants to disaster-affected small businesses.--
                    ``(A) In general.--The Administrator may make a 
                grant of up to $100,000 to a small business concern 
                that--
                            ``(i) was located in a designated disaster 
                        area affected by disaster declaration 10176, 
                        10177, 10178, 10179, 10180, 10181, 10203, 
                        10204, 10205, 10206, 10222, or 10233, and was 
                        located in a county or parish that, as a result 
                        of Hurricanes Katrina, Rita, or Wilma of 2005, 
                        experienced a loss of at least 100 housing 
                        units, experienced a loss of at least 1 percent 
                        of available housing stock, and required 
                        Federal infrastructure assistance of a least 
                        $200,000;
                            ``(ii) submits to the Administrator a 
                        certification by the owner of the concern of 
                        intent to reestablish the concern in the same 
                        county or parish in which the business was 
                        originally located, or in any other county or 
                        parish described in clause (i);
                            ``(iii) has applied for, and was rejected 
                        for, a conventional disaster assistance loan 
                        under section 7(b); and
                            ``(iv) was in existence for at least 2 
                        years before the date on which the applicable 
                        disaster declaration was made.
                    ``(B) Priority.--In making grants under this 
                paragraph, the Administrator shall give priority to a 
                small business concern that the Administrator 
                determines is economically viable but unable to meet 
                short-term financial obligations.
                    ``(C) Definition.--In this paragraph, the term 
                `disaster-affected area' means an area that has been 
                designated by the Administrator as a disaster area.
                    ``(D) Authorization of appropriations.--There are 
                authorized to be appropriated for grants under this 
                paragraph such funds as may be necessary.''.

SEC. 211. HURRICANE ASSISTANCE REPLACEMENT GRANT PROGRAM.

    (a) Program Established.--The Administrator may carry out a program 
under which the Administrator may, in the Administrator's discretion, 
make grants to individuals who--
            (1) are victims of a disaster under disaster declaration 
        10176, 10177, 10178, 10179, 10180, 10181, 10203, 10204, 10205, 
        10206, 10222, or 10223; and
            (2) receive (whether before, on, or after the date of the 
        enactment of this Act) 7(b) disaster assistance because of that 
        disaster.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.
    (c) Eligibility.--An individual is eligible to receive a grant 
under this section only if the individual--
            (1) receives benefits (other than the 7(b) disaster 
        assistance) because of the disaster; and
            (2) is required to remit those benefits to the Small 
        Business Administration because of a duplication of benefits.
    (d) Amount.--The amount of a grant under this section to an 
individual shall not exceed the amount of the benefits required to be 
remitted by the individual, as described in subsection (c).
    (e) Time.--The Administrator shall ensure that, to the maximum 
extent practicable, a grant made under this section is made--
            (1) concurrent with the Administration's receipt of the 
        remittance, if the remittance is made after the date of the 
        enactment of this Act; and
            (2) as soon as possible after the Administration's receipt 
        of the remittance, in all other cases.
    (f) Treatment of Grants.--Grants made under this section shall not 
be considered a duplication of benefits by the Administrator.
    (g) Definitions.--In this section:
            (1) The term ``Administrator'' means the Administrator of 
        the Small Business Administration.
            (2) The term ``7(b) disaster assistance'' means assistance 
        under paragraph (1) or (2) of section 7(b)(2) of the Small 
        Business Act (15 U.S.C. 636(b)).

SEC. 212. INCREASE LEGISLATIVE LIMIT.

    Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 
636(b)(3)(E)) is amended by striking ``$1,500,000'' and inserting 
``$3,000,000'' both places such term appears.

SEC. 213. NET EARNINGS CLAUSES PROHIBITED.

    Section 7 of the Small Business Act is amended in subsection (f) by 
adding after paragraph (4) (as added by section 207) the following:
            ``(5) Net earnings clauses prohibited.--In making loans 
        under section 7(b), the Administrator shall not require the 
        borrower to pay any non-amortized amount for the first 5 years 
        after repayment begins.''.

SEC. 214. ECONOMIC INJURY DISASTER LOANS TO NONPROFITS.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 
636) is amended in subsection (b)(2)--
            (1) in the matter preceding subparagraph (A)--
                    (A) by inserting after ``small business concern'' 
                the following: ``, private nonprofit organization,''; 
                and
                    (B) by inserting after ``the concern'' the 
                following: ``, organization,''; and
            (2) in subparagraph (D) by inserting after ``small business 
        concerns'' the following: ``, private nonprofit 
        organizations,''.
    (b) Conforming Amendment.--Such section is further amended in 
subsection (c)(5)(C) by inserting after ``business'' the following: ``, 
organization,''.

SEC. 215. APPLICANTS THAT WILL CONSTITUTE A MAJOR SOURCE OF EMPLOYMENT 
              DUE TO CHANGED ECONOMIC CIRCUMSTANCES.

    Section 7(b)(3)(E) of the Small Business Act (15 U.S.C. 
636(b)(3)(E)) is amended by inserting after ``constitutes'' the 
following: ``, or will due to changed economic circumstances 
constitute,''.

SEC. 216. PRELIMINARY APPLICATION PROCESS FOR ASSISTANCE FOR SMALL 
              BUSINESS CONCERNS WITH ESSENTIAL EMPLOYEES ORDERED TO 
              SERVE ON ACTIVE DUTY IN THE ARMED FORCES.

    Section 7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) is 
amended--
            (1) in subparagraph (C)--
                    (A) by striking ``90 days'' and inserting ``1 
                year''; and
                    (B) by adding at the end the following: ``The 
                Administrator may, when appropriate (as determined by 
                the Administrator), waive the ending date specified in 
                the preceding sentence and provide a later ending 
                date.''; and
            (2) by adding at the end the following new subparagraph:
            ``(G) The Administrator shall establish a process under 
        which a small business concern described in subparagraph (B) 
        may file a preliminary application for assistance under this 
        paragraph, accompanied by supporting documentation, before the 
        date on which the essential employee is ordered to active duty. 
        The Administrator may not actively consider such an application 
        or provide assistance to the small business concern based on 
        such an application until the date on which the essential 
        employee is ordered to active duty.''.

SEC. 217. ECONOMIC INJURY DISASTER LOANS IN CASES OF ICE STORMS AND 
              BLIZZARDS.

    Section 3(k)(2) of the Small Business Act (15 U.S.C. 632(k)(2)) is 
amended--
            (1) in subparagraph (A) by striking ``and'';
            (2) in subparagraph (B) by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(C) ice storms and blizzards.''.

SEC. 218. REPORT REGARDING LACK OF SNOW FALL.

    Not later that 6 months after the date of enactment of this Act, 
the Administrator of the Small Business Administration shall conduct a 
study of, and submit a report to the Committee on Small Business of the 
House of Representatives and the Committee on Small Business and 
Entrepreneurship of the Senate that describes--
            (1) the ability of the Administrator to provide loans under 
        section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) 
        to small business concerns that depend on high snow fall 
        amounts and sustain economic injury (as described under that 
        section) due to a lack of snow fall;
            (2) the criteria the Administrator would use to determine 
        whether to provide a loan under section 7(b)(2) of the Small 
        Business Act (15 U.S.C. 636(b)(2)) to a small business concern 
        that has been adversely affected by a lack of snow fall;
            (3) other Federal assistance (including loans) available to 
        small business concerns that are adversely affected by a lack 
        of snow fall; and
            (4) the history relating to providing loans under section 
        7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) to 
        small business concerns that have been adversely affected by a 
        lack of snow fall.

SEC. 219. GULF COAST DISASTER LOAN REFINANCING PROGRAM.

    (a) In General.--The Administrator of the Small Business 
Administration may carry out a program to refinance Gulf Coast disaster 
loans.
    (b) Terms.--The terms of a Gulf Coast disaster loan refinanced 
under the program shall be identical to the terms of the original loan, 
except that the Administrator may provide an option to defer repayment 
on the loan. Such a deferment may not exceed 4 years after the date on 
which the initial disbursement under the original loan was made.
    (c) Amount.--The amount of a Gulf Coast disaster loan refinanced 
under the program shall not exceed the amount of the original loan.
    (d) Disclosure of Accrued Interest.--Whenever the Administrator 
provides an option to defer repayment under subsection (b), the 
Administrator shall disclose the accrued interest that must be paid 
under the option.
    (e) Definition.--In this section, the term ``Gulf Coast disaster 
loan'' means a loan--
            (1) made under section 7(b) of the Small Business Act;
            (2) in response to Hurricane Katrina, Hurricane Rita, or 
        Hurricane Wilma of 2005; and
            (3) for a small business located in a county or parish 
        designated by the Administrator as a disaster area by reason of 
        such Hurricane Katrina, Hurricane Rita, or Hurricane Wilma 
        under disaster declaration 10176, 10177, 10178, 10179, 10180, 
        10181, 10203, 10204, 10205, 10206, 10222, or 10223.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.

                          TITLE III--OVERSIGHT

SEC. 301. REPORTS ON DISASTER ASSISTANCE.

    The Small Business Act is amended by inserting after section 46 (as 
added by section 209) the following:

``SEC. 47. REPORTS ON DISASTER ASSISTANCE.

    ``(a) Annual Report Required.--Not later than 45 days after the end 
of a fiscal year, the Administrator shall submit to the Committee on 
Small Business of the Senate and the Committee on Small Business of the 
House of Representatives a report on the disaster assistance operations 
of the Administration for that fiscal year. The report shall--
            ``(1) specify the number of Administration personnel 
        involved in such operations;
            ``(2) describe any material changes to those operations, 
        such as changes to technologies used or to personnel 
        responsibilities;
            ``(3) describe and assess the effectiveness of the 
        Administration in responding to disasters during that fiscal 
        year, including a description of the number and amounts of 
        loans made for damage and for economic injury; and
            ``(4) describe the plans of the Administration for 
        preparing to respond to disasters during the next fiscal year.
    ``(b) Incidents of National Significance.--During the period of an 
incident of national significance (as declared by the President or his 
designee), the Administrator shall, on a monthly basis, submit to the 
committees specified in subsection (a) a report on the disaster 
assistance operations of the Administration with respect to that 
incident of national significance. The report shall specify--
            ``(1) the number of applications distributed;
            ``(2) the number of applications received;
            ``(3) the average time for the Administration to approve or 
        disapprove an application;
            ``(4) the amount of disaster loans approved;
            ``(5) the average time for initial disbursement of loan 
        proceeds; and
            ``(6) the amount of disaster loan proceeds disbursed.''.

            Passed the House of Representatives April 18, 2007.

            Attest:

                                                                 Clerk.
110th CONGRESS

  1st Session

                               H. R. 1361

_______________________________________________________________________

                                 AN ACT

     To improve the disaster relief programs of the Small Business 
                Administration, and for other purposes.