[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 163 Reported in Senate (RS)]






                                                       Calendar No. 139
110th CONGRESS
  1st Session
                                 S. 163

                          [Report No. 110-64]

      To improve the disaster loan program of the Small Business 
                Administration, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 4, 2007

   Mr. Kerry (for himself, Ms. Snowe, Ms. Landrieu, and Mr. Vitter) 
introduced the following bill; which was read twice and referred to the 
            Committee on Small Business and Entrepreneurship

                              May 7, 2007

                Reported by Mr. Kerry, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
      To improve the disaster loan program 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,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Small 
Business Disaster Response and Loan Improvements Act of 
2007''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Definitions.
                <DELETED>TITLE I--PRIVATE DISASTER LOANS

<DELETED>Sec. 101. Private disaster loans.
<DELETED>Sec. 102. Technical and conforming amendments.
         <DELETED>TITLE II--DISASTER RELIEF AND RECONSTRUCTION

<DELETED>Sec. 201. Definition of disaster area.
<DELETED>Sec. 202. Disaster loans to nonprofits.
<DELETED>Sec. 203. Disaster loan amounts.
<DELETED>Sec. 204. Small business development center portability 
                            grants.
<DELETED>Sec. 205. Assistance to out-of-State businesses.
<DELETED>Sec. 206. Outreach programs.
<DELETED>Sec. 207. Small business bonding threshold.
<DELETED>Sec. 208. Contracting priority for local small businesses.
<DELETED>Sec. 209. Termination of program.
<DELETED>Sec. 210. Increasing collateral requirements.
                 <DELETED>TITLE III--DISASTER RESPONSE

<DELETED>Sec. 301. Definitions.
<DELETED>Sec. 302. Business expedited disaster assistance loan program.
<DELETED>Sec. 303. Catastrophic national disasters.
<DELETED>Sec. 304. Public awareness of disaster declaration and 
                            application periods.
<DELETED>Sec. 305. Consistency between Administration regulations and 
                            standard operating procedures.
<DELETED>Sec. 306. Processing disaster loans.
<DELETED>Sec. 307. Development and implementation of major disaster 
                            response plan.
<DELETED>Sec. 308. Congressional oversight.
                 <DELETED>TITLE IV--ENERGY EMERGENCIES

<DELETED>Sec. 401. Findings.
<DELETED>Sec. 402. Small business energy emergency disaster loan 
                            program.
<DELETED>Sec. 403. Agricultural producer emergency loans.
<DELETED>Sec. 404. Guidelines and rulemaking.
<DELETED>Sec. 405. Reports.

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    In this Act--</DELETED>
        <DELETED>    (1) the terms ``Administration'' and 
        ``Administrator'' mean the Small Business Administration and 
        the Administrator thereof, respectively;</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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).</DELETED>

           <DELETED>TITLE I--PRIVATE DISASTER LOANS</DELETED>

<DELETED>SEC. 101. PRIVATE DISASTER LOANS.</DELETED>

<DELETED>    (a) In General.--Section 7 of the Small Business Act (15 
U.S.C. 636) is amended--</DELETED>
        <DELETED>    (1) by redesignating subsections (c) and (d) as 
        subsections (d) and (e), respectively; and</DELETED>
        <DELETED>    (2) by inserting after subsection (b) the 
        following:</DELETED>
<DELETED>    ``(c) Private Disaster Loans.--</DELETED>
        <DELETED>    ``(1) Definitions.--In this subsection--</DELETED>
                <DELETED>    ``(A) the term `disaster area' means a 
                county, parish, or similar unit of general local 
                government in which a disaster was declared under 
                subsection (b);</DELETED>
                <DELETED>    ``(B) the term `eligible small business 
                concern' means a business concern that is--</DELETED>
                        <DELETED>    ``(i) a small business concern, as 
                        defined in this Act; or</DELETED>
                        <DELETED>    ``(ii) a small business concern, 
                        as defined in section 103 of the Small Business 
                        Investment Act of 1958; and</DELETED>
                <DELETED>    ``(C) the term `qualified private lender' 
                means any privately-owned bank or other lending 
                institution that the Administrator determines meets the 
                criteria established under paragraph (9).</DELETED>
        <DELETED>    ``(2) Authorization.--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.</DELETED>
        <DELETED>    ``(3) Use of loans.--A loan guaranteed by the 
        Administrator under this subsection may be used for any purpose 
        authorized under subsection (a) or (b).</DELETED>
        <DELETED>    ``(4) Online applications.--</DELETED>
                <DELETED>    ``(A) Establishment.--The Administrator 
                may establish, directly or through an agreement with 
                another entity, an online application process for loans 
                guaranteed under this subsection.</DELETED>
                <DELETED>    ``(B) Other federal assistance.--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.</DELETED>
                <DELETED>    ``(C) Consultation.--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.</DELETED>
        <DELETED>    ``(5) Maximum amounts.--</DELETED>
                <DELETED>    ``(A) Guarantee percentage.--The 
                Administrator may guarantee not more than 85 percent of 
                a loan under this subsection.</DELETED>
                <DELETED>    ``(B) Loan amounts.--The maximum amount of 
                a loan guaranteed under this subsection shall be 
                $3,000,000.</DELETED>
        <DELETED>    ``(6) Loan term.--The longest term of a loan for a 
        loan guaranteed under this subsection shall be--</DELETED>
                <DELETED>    ``(A) 15 years for any loan that is issued 
                without collateral; and</DELETED>
                <DELETED>    ``(B) 25 years for any loan that is issued 
                with collateral.</DELETED>
        <DELETED>    ``(7) Fees.--</DELETED>
                <DELETED>    ``(A) In general.--The Administrator may 
                not collect a guarantee fee under this 
                subsection.</DELETED>
                <DELETED>    ``(B) Origination fee.--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.</DELETED>
        <DELETED>    ``(8) Documentation.--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).</DELETED>
        <DELETED>    ``(9) Implementation regulations.--</DELETED>
                <DELETED>    ``(A) In general.--Not later than 1 year 
                after the date of enactment of the Small Business 
                Disaster Response and Loan Improvements Act of 2007, 
                the Administrator shall issue final regulations 
                establishing permanent criteria for qualified private 
                lenders.</DELETED>
                <DELETED>    ``(B) Report to congress.--Not later than 
                6 months after the date of enactment of the Small 
                Business Disaster Response and Loan Improvements Act of 
                2007, 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.</DELETED>
        <DELETED>    ``(10) Authorization of appropriations.--
        </DELETED>
                <DELETED>    ``(A) In general.--Amounts necessary to 
                carry out this subsection shall be made available from 
                amounts appropriated to the Administration under 
                subsection (b).</DELETED>
                <DELETED>    ``(B) Authority to reduce interest 
                rates.--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.''.</DELETED>
<DELETED>    (b) Effective Date.--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.</DELETED>

<DELETED>SEC. 102. TECHNICAL AND CONFORMING AMENDMENTS.</DELETED>

<DELETED>    The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--</DELETED>
        <DELETED>    (1) in section 4(c)--</DELETED>
                <DELETED>    (A) in paragraph (1), by striking 
                ``7(c)(2)'' and inserting ``7(d)(2)''; and</DELETED>
                <DELETED>    (B) in paragraph (2)--</DELETED>
                        <DELETED>    (i) by striking ``7(c)(2)'' and 
                        inserting ``7(d)(2)''; and</DELETED>
                        <DELETED>    (ii) by striking ``7(e),''; 
                        and</DELETED>
        <DELETED>    (2) in section 7(b), in the undesignated matter 
        following paragraph (3)--</DELETED>
                <DELETED>    (A) by striking ``That the provisions of 
                paragraph (1) of subsection (c)'' and inserting ``That 
                the provisions of paragraph (1) of subsection (d)''; 
                and</DELETED>
                <DELETED>    (B) by striking ``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),'' 
                and inserting ``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)''.</DELETED>

    <DELETED>TITLE II--DISASTER RELIEF AND RECONSTRUCTION</DELETED>

<DELETED>SEC. 201. DEFINITION OF DISASTER AREA.</DELETED>

<DELETED>    In this title, the term ``disaster area'' 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.</DELETED>

<DELETED>SEC. 202. DISASTER LOANS TO NONPROFITS.</DELETED>

<DELETED>    Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) 
is amended by inserting immediately after paragraph (3) the 
following:</DELETED>
        <DELETED>    ``(4) Loans to nonprofits.--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.''.</DELETED>

<DELETED>SEC. 203. DISASTER LOAN AMOUNTS.</DELETED>

<DELETED>    (a) Increased Loan Caps.--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:</DELETED>
        <DELETED>    ``(5) Increased loan caps.--</DELETED>
                <DELETED>    ``(A) Aggregate loan amounts.--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.</DELETED>
                <DELETED>    ``(B) Waiver authority.--The Administrator 
                may, at the discretion of the Administrator, waive the 
                aggregate loan amount established under clause 
                (i).''.</DELETED>
<DELETED>    (b) Disaster Mitigation.--</DELETED>
        <DELETED>    (1) In general.--Section 7(b)(1)(A) of the Small 
        Business Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting 
        ``of the aggregate costs of such damage or destruction (whether 
        or not compensated for by insurance or otherwise)'' after ``20 
        per centum''.</DELETED>
        <DELETED>    (2) Effective date.--The amendment made by 
        paragraph (1) shall apply with respect to a loan or guarantee 
        made after the date of enactment of this Act.</DELETED>
<DELETED>    (c) Technical Amendments.--Section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)) is amended--</DELETED>
        <DELETED>    (1) in the matter preceding paragraph (1), by 
        striking ``the, Administration'' and inserting ``the 
        Administration'';</DELETED>
        <DELETED>    (2) in paragraph (2)(A), by striking ``Disaster 
        Relief and Emergency Assistance Act'' and inserting ``Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act (42 
        U.S.C. 5121 et seq.)''; and</DELETED>
        <DELETED>    (3) in the undesignated matter at the end--
        </DELETED>
                <DELETED>    (A) by striking ``, (2), and (4)'' and 
                inserting ``and (2)''; and</DELETED>
                <DELETED>    (B) by striking ``, (2), or (4)'' and 
                inserting ``(2)''.</DELETED>

<DELETED>SEC. 204. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY 
              GRANTS.</DELETED>

<DELETED>    Section 21(a)(4)(C)(viii) of the Small Business Act (15 
U.S.C. 648(a)(4)(C)(viii)) is amended--</DELETED>
        <DELETED>    (1) in the first sentence, by striking ``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'' and inserting ``due to events that have 
        resulted or will result in, business or government facility 
        downsizing or closing''; and</DELETED>
        <DELETED>    (2) by adding at the end ``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.''.</DELETED>

<DELETED>SEC. 205. ASSISTANCE TO OUT-OF-STATE BUSINESSES.</DELETED>

<DELETED>    Section 21(b)(3) of the Small Business Act (15 U.S.C. 
648(b)(3)) is amended--</DELETED>
        <DELETED>    (1) by striking ``At the discretion'' and 
        inserting the following: ``Small business development 
        centers.--</DELETED>
                <DELETED>    ``(A) In general.--At the discretion''; 
                and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
                <DELETED>    ``(B) During disasters.--</DELETED>
                        <DELETED>    ``(i) In general.--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).</DELETED>
                        <DELETED>    ``(ii) Continuity of services.--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.</DELETED>
                        <DELETED>    ``(iii) Access to disaster 
                        recovery facilities.--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.''.</DELETED>

<DELETED>SEC. 206. OUTREACH PROGRAMS.</DELETED>

<DELETED>    (a) In General.--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.</DELETED>
<DELETED>    (b) Administrator Action.--The Administrator may fulfill 
the requirement of subsection (a) by acting through--</DELETED>
        <DELETED>    (1) the Administration;</DELETED>
        <DELETED>    (2) the Federal agency small business officials 
        designated under section 15(k)(1) of the Small Business Act (15 
        U.S.C. 644(k)(1)); or</DELETED>
        <DELETED>    (3) 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.</DELETED>

<DELETED>SEC. 207. SMALL BUSINESS BONDING THRESHOLD.</DELETED>

<DELETED>    (a) In General.--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.</DELETED>
<DELETED>    (b) Increase of Amount.--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.</DELETED>

<DELETED>SEC. 208. CONTRACTING PRIORITY FOR LOCAL SMALL 
              BUSINESSES.</DELETED>

<DELETED>    Section 15(d) of the Small Business Act (15 U.S.C. 644(d)) 
is amended--</DELETED>
        <DELETED>    (1) by striking ``(d) For purposes'' and inserting 
        the following:</DELETED>
<DELETED>    ``(d) Contracting Priorities.--</DELETED>
        <DELETED>    ``(1) In general.--For purposes''; and</DELETED>
        <DELETED>    (2) by adding at the end the following:</DELETED>
        <DELETED>    ``(2) Disaster contracting priority in general.--
        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).</DELETED>
        <DELETED>    ``(3) Local small businesses.--</DELETED>
                <DELETED>    ``(A) In general.--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--</DELETED>
                        <DELETED>    ``(i) preferential factors in 
                        evaluations of contract bids and 
                        proposals;</DELETED>
                        <DELETED>    ``(ii) 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;</DELETED>
                        <DELETED>    ``(iii) requirements of preference 
                        for local small business concerns in 
                        subcontracting plans; and</DELETED>
                        <DELETED>    ``(iv) assessments of liquidated 
                        damages and other contractual penalties, 
                        including contract termination.</DELETED>
                <DELETED>    ``(B) Other disaster assistance.--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.</DELETED>
        <DELETED>    ``(4) Definitions.--In this subsection--</DELETED>
                <DELETED>    ``(A) the term `declared disaster' means a 
                disaster, as designated by the Administrator;</DELETED>
                <DELETED>    ``(B) the term `disaster area' means any 
                State or area affected by a declared disaster, as 
                determined by the Administrator;</DELETED>
                <DELETED>    ``(C) the term `executive agency' has the 
                same meaning as in section 105 of title 5, United 
                States Code; and</DELETED>
                <DELETED>    ``(D) the term `local small business 
                concern' means a small business concern that--
                </DELETED>
                        <DELETED>    ``(i) on the date immediately 
                        preceding the date on which a declared disaster 
                        occurred--</DELETED>
                                <DELETED>    ``(I) had a principal 
                                office in the disaster area for such 
                                declared disaster; and</DELETED>
                                <DELETED>    ``(II) employed a majority 
                                of the workforce of such small business 
                                concern in the disaster area for such 
                                declared disaster; and</DELETED>
                        <DELETED>    ``(ii) 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.''.</DELETED>

<DELETED>SEC. 209. TERMINATION OF PROGRAM.</DELETED>

<DELETED>    Section 711(c) of the Small Business Competitive 
Demonstration Program Act of 1988 (15 U.S.C. 644 note) is amended by 
inserting after ``January 1, 1989'' the following: ``, and shall 
terminate on the date of enactment of the Small Business Disaster 
Response and Loan Improvements Act of 2007''.</DELETED>

<DELETED>SEC. 210. INCREASING COLLATERAL REQUIREMENTS.</DELETED>

<DELETED>    Section 7(d)(6) of the Small Business Act (15 U.S.C. 636), 
as so designated by section 101, is amended by striking ``$10,000 or 
less'' and inserting ``$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))''.</DELETED>

            <DELETED>TITLE III--DISASTER RESPONSE</DELETED>

<DELETED>SEC. 301. DEFINITIONS.</DELETED>

<DELETED>    In this title--</DELETED>
        <DELETED>    (1) the term ``catastrophic national disaster'' 
        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;</DELETED>
        <DELETED>    (2) the term ``declared disaster'' means a major 
        disaster or a catastrophic national disaster;</DELETED>
        <DELETED>    (3) the term ``disaster loan program of the 
        Administration'' means assistance under section 7(b) of the 
        Small Business Act (15 U.S.C. 636(b));</DELETED>
        <DELETED>    (4) the term ``disaster update period'' means the 
        period beginning on the date on which the President declares a 
        major disaster or a catastrophic national disaster and ending 
        on the date on which such declaration terminates;</DELETED>
        <DELETED>    (5) the term ``major disaster'' 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</DELETED>
        <DELETED>    (6) the term ``State'' 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.</DELETED>

<DELETED>SEC. 302. BUSINESS EXPEDITED DISASTER ASSISTANCE LOAN 
              PROGRAM.</DELETED>

<DELETED>    (a) Definitions.--In this section--</DELETED>
        <DELETED>    (1) the term ``immediate disaster assistance'' 
        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</DELETED>
        <DELETED>    (2) the term ``program'' means the expedited 
        disaster assistance business loan program established under 
        subsection (b); and</DELETED>
<DELETED>    (b) Creation of Program.--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)).</DELETED>
<DELETED>    (c) Consultation Required.--In establishing the program, 
the Administrator shall consult with--</DELETED>
        <DELETED>    (1) appropriate personnel of the Administration 
        (including District Office personnel of the 
        Administration);</DELETED>
        <DELETED>    (2) appropriate technical assistance providers 
        (including small business development centers);</DELETED>
        <DELETED>    (3) appropriate lenders and credit 
        unions;</DELETED>
        <DELETED>    (4) the Committee on Small Business and 
        Entrepreneurship of the Senate; and</DELETED>
        <DELETED>    (5) the Committee on Small Business of the House 
        of Representatives.</DELETED>
<DELETED>    (d) Rules.--</DELETED>
        <DELETED>    (1) In general.--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.</DELETED>
        <DELETED>    (2) Contents.--The rules promulgated under 
        paragraph (1) shall--</DELETED>
                <DELETED>    (A) identify whether appropriate uses of 
                funds under the program may include--</DELETED>
                        <DELETED>    (i) paying employees;</DELETED>
                        <DELETED>    (ii) paying bills and other 
                        financial obligations;</DELETED>
                        <DELETED>    (iii) making repairs;</DELETED>
                        <DELETED>    (iv) purchasing 
                        inventory;</DELETED>
                        <DELETED>    (v) 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</DELETED>
                        <DELETED>    (vi) covering additional costs 
                        until the small business concern is able to 
                        obtain funding through insurance claims, 
                        Federal assistance programs, or other sources; 
                        and</DELETED>
                <DELETED>    (B) set the terms and conditions of any 
                loan made under the program, subject to paragraph 
                (3).</DELETED>
        <DELETED>    (3) Terms and conditions.--A loan made by the 
        Administration under this section--</DELETED>
                <DELETED>    (A) 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;</DELETED>
                <DELETED>    (B) shall have an interest rate not to 
                exceed 1 percentage point above the prime rate of 
                interest that a private lender may charge;</DELETED>
                <DELETED>    (C) shall have no prepayment 
                penalty;</DELETED>
                <DELETED>    (D) may be refinanced as part of any 
                subsequent disaster assistance provided under section 
                7(b) of the Small Business Act; and</DELETED>
                <DELETED>    (E) shall be subject to such additional 
                terms as the Administrator determines necessary or 
                appropriate.</DELETED>
<DELETED>    (e) Report to Congress.--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.</DELETED>
<DELETED>    (f) Authorization.--There are authorized to be 
appropriated to the Administrator such sums as are necessary to carry 
out this section.</DELETED>

<DELETED>SEC. 303. CATASTROPHIC NATIONAL DISASTERS.</DELETED>

<DELETED>    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:</DELETED>
        <DELETED>    ``(6) Catastrophic national disasters.--</DELETED>
                <DELETED>    ``(A) Definition.--In this paragraph the 
                term `catastrophic national disaster' means a disaster, 
                natural or other, that the President determines has 
                caused significant adverse economic conditions outside 
                of the geographic reach of the disaster.</DELETED>
                <DELETED>    ``(B) Authorization.--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.</DELETED>
                <DELETED>    ``(C) Loan terms.--A loan under this 
                paragraph shall be made on the same terms as a loan 
                under paragraph (2).''.</DELETED>

<DELETED>SEC. 304. PUBLIC AWARENESS OF DISASTER DECLARATION AND 
              APPLICATION PERIODS.</DELETED>

<DELETED>    (a) In General.--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:</DELETED>
        <DELETED>    ``(7) Coordination with fema.--</DELETED>
                <DELETED>    ``(A) In general.--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.</DELETED>
                <DELETED>    ``(B) Deadline extensions.--
                Notwithstanding any other provision of law--</DELETED>
                        <DELETED>    ``(i) 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</DELETED>
                        <DELETED>    ``(ii) 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.</DELETED>
        <DELETED>    ``(8) Public awareness of disasters.--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--</DELETED>
                <DELETED>    ``(A) the date of such 
                declaration;</DELETED>
                <DELETED>    ``(B) cities and towns within the area of 
                such declaration;</DELETED>
                <DELETED>    ``(C) loan application deadlines related 
                to such disaster;</DELETED>
                <DELETED>    ``(D) all relevant contact information for 
                victim services available through the Administration 
                (including links to small business development center 
                websites);</DELETED>
                <DELETED>    ``(E) links to relevant Federal and State 
                disaster assistance websites;</DELETED>
                <DELETED>    ``(F) information on eligibility criteria 
                for Federal Emergency Management Agency disaster 
                assistance applications, as well as for Administration 
                loan programs, including where such applications can be 
                found; and</DELETED>
                <DELETED>    ``(G) application materials that clearly 
                state the function of the Administration as the Federal 
                source of disaster loans for homeowners and 
                renters.''.</DELETED>
<DELETED>    (b) Coordination of Agencies and Outreach.--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.</DELETED>
<DELETED>    (c) Marketing and Outreach.--Not later than 90 days after 
the date of enactment of this Act, the Administrator shall create a 
marketing and outreach plan that--</DELETED>
        <DELETED>    (1) encourages a proactive approach to the 
        disaster relief efforts of the Administration;</DELETED>
        <DELETED>    (2) distinguishes between disaster services 
        provided by the Administration and disaster services provided 
        by the Federal Emergency Management Agency, including contact 
        information, application information, and timelines for 
        submitting applications, the review of applications, and the 
        disbursement of funds;</DELETED>
        <DELETED>    (3) describes the different disaster loan programs 
        of the Administration, including how they are made available 
        and what eligibility requirements exist for each loan 
        program;</DELETED>
        <DELETED>    (4) provides for regional marketing, focusing on 
        disasters occurring in each region before the date of enactment 
        of this Act, and likely scenarios for disasters in each such 
        region; and</DELETED>
        <DELETED>    (5) ensures that the marketing plan is made 
        available at small business development centers and on the 
        website of the Administration.</DELETED>

<DELETED>SEC. 305. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS AND 
              STANDARD OPERATING PROCEDURES.</DELETED>

<DELETED>    (a) In General.--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.</DELETED>
<DELETED>    (b) Report.--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).</DELETED>

<DELETED>SEC. 306. PROCESSING DISASTER LOANS.</DELETED>

<DELETED>    (a) Authority for Qualified Private Contractors To Process 
Disaster Loans.--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:</DELETED>
        <DELETED>    ``(9) Authority for qualified private 
        contractors.--</DELETED>
                <DELETED>    ``(A) Disaster loan processing.--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.</DELETED>
                <DELETED>    ``(B) Loan loss verification services.--
                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.''.</DELETED>
<DELETED>    (b) Coordination of Efforts Between the Administrator and 
the Internal Revenue Service To Expedite Loan Processing.--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.</DELETED>
<DELETED>    (c) Report on Loan Approval Rate.--</DELETED>
        <DELETED>    (1) In general.--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.</DELETED>
        <DELETED>    (2) Contents.--The report submitted under 
        paragraph (1) shall include--</DELETED>
                <DELETED>    (A) recommendations, if any, regarding--
                </DELETED>
                        <DELETED>    (i) staffing levels during a major 
                        disaster;</DELETED>
                        <DELETED>    (ii) how to improve the process 
                        for processing, approving, and disbursing loans 
                        under the disaster loan program of the 
                        Administration, to ensure that the maximum 
                        assistance is provided to victims in a timely 
                        manner;</DELETED>
                        <DELETED>    (iii) 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;</DELETED>
                        <DELETED>    (iv) 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);</DELETED>
                        <DELETED>    (v) legislative changes, if any, 
                        needed to implement findings from the 
                        Administration's Accelerated Disaster Response 
                        Initiative; and</DELETED>
                        <DELETED>    (vi) 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</DELETED>
                <DELETED>    (B) the plans of the Administrator for 
                implementing any recommendation made under subparagraph 
                (A).</DELETED>

<DELETED>SEC. 307. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER 
              RESPONSE PLAN.</DELETED>

<DELETED>    (a) In General.--Not later than March 15, 2007, the 
Administrator shall--</DELETED>
        <DELETED>    (1) by rule, amend the 2006 Atlantic hurricane 
        season disaster response plan of the Administration (in this 
        section referred to as the ``disaster response plan'') to apply 
        to major disasters and catastrophic national disasters, 
        consistent with this Act and the amendments made by this Act; 
        and</DELETED>
        <DELETED>    (2) 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.</DELETED>
<DELETED>    (b) Contents.--The amended report required under 
subsection (a)(2) shall include--</DELETED>
        <DELETED>    (1) any updates or modifications made to the 
        disaster response plan since the report regarding the disaster 
        response plan submitted on July 14, 2006;</DELETED>
        <DELETED>    (2) 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;</DELETED>
        <DELETED>    (3) a description of the disaster scalability 
        model of the Administration and on what basis or function the 
        plan is scaled;</DELETED>
        <DELETED>    (4) 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;</DELETED>
        <DELETED>    (5) 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;</DELETED>
        <DELETED>    (6) recommendations, if any, on how the 
        Administrator can better coordinate its disaster response 
        operations with the operations of other Federal, State, and 
        local entities;</DELETED>
        <DELETED>    (7) 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);</DELETED>
        <DELETED>    (8) the number of full-time equivalent employees 
        and job descriptions for the planning and disaster response 
        staff of the Administration;</DELETED>
        <DELETED>    (9) the in-service and preservice training 
        procedures for disaster response staff of the 
        Administration;</DELETED>
        <DELETED>    (10) 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;</DELETED>
        <DELETED>    (11) 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</DELETED>
        <DELETED>    (12) 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.</DELETED>
<DELETED>    (c) Exercises.--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.</DELETED>

<DELETED>SEC. 308. CONGRESSIONAL OVERSIGHT.</DELETED>

<DELETED>    (a) Monthly Accounting Report to Congress.--</DELETED>
        <DELETED>    (1) Definition.--In this subsection the term 
        ``applicable period'' 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.</DELETED>
        <DELETED>    (2) Reporting requirements.--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 Small 
        Business Act (15 U.S.C. 636) for such disaster during the 
        preceding month.</DELETED>
        <DELETED>    (3) Contents.--Each report under paragraph (2) 
        shall include--</DELETED>
                <DELETED>    (A) the daily average lending volume, in 
                number of loans and dollars, and the percent by which 
                each category has increased or decreased since the 
                previous report under paragraph (2);</DELETED>
                <DELETED>    (B) the weekly average lending volume, in 
                number of loans and dollars, and the percent by which 
                each category has increased or decreased since the 
                previous report under paragraph (2);</DELETED>
                <DELETED>    (C) the amount of funding spent over the 
                month for loans, both in appropriations and program 
                level, and the percent by which each category has 
                increased or decreased since the previous report under 
                paragraph (2);</DELETED>
                <DELETED>    (D) the amount of funding available for 
                loans, both in appropriations and program level, and 
                the percent by which each category has increased or 
                decreased, noting the source of any additional 
                funding;</DELETED>
                <DELETED>    (E) an estimate of how long the available 
                funding for such loans will last, based on the spending 
                rate;</DELETED>
                <DELETED>    (F) the amount of funding spent over the 
                month for staff, along with the number of staff, and 
                the percent by which each category has increased or 
                decreased since the previous report under paragraph 
                (2);</DELETED>
                <DELETED>    (G) 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);</DELETED>
                <DELETED>    (H) 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</DELETED>
                <DELETED>    (I) an estimate of how long the available 
                funding for salaries and expenses will last, based on 
                the spending rate.</DELETED>
<DELETED>    (b) Daily Disaster Updates to Congress for Presidentially 
Declared Disasters.--</DELETED>
        <DELETED>    (1) In general.--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.</DELETED>
        <DELETED>    (2) Contents.--Each report under paragraph (1) 
        shall include--</DELETED>
                <DELETED>    (A) 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;</DELETED>
                <DELETED>    (B) the daily number of applications 
                received from applicants in the relevant area, as well 
                as a breakdown of such figures by State;</DELETED>
                <DELETED>    (C) the daily number of applications 
                pending application entry from applicants in the 
                relevant area, as well as a breakdown of such figures 
                by State;</DELETED>
                <DELETED>    (D) the daily number of applications 
                withdrawn by applicants in the relevant area, as well 
                as a breakdown of such figures by State;</DELETED>
                <DELETED>    (E) 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;</DELETED>
                <DELETED>    (F) 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;</DELETED>
                <DELETED>    (G) the daily number of applications in 
                process from applicants in the relevant area, as well 
                as a breakdown of such figures by State;</DELETED>
                <DELETED>    (H) 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;</DELETED>
                <DELETED>    (I) 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;</DELETED>
                <DELETED>    (J) 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;</DELETED>
                <DELETED>    (K) 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;</DELETED>
                <DELETED>    (L) the number of applications approved, 
                including dollar amount approved, as well as 
                applications partially and fully dispersed, including 
                dollar amounts, since the last report under paragraph 
                (1); and</DELETED>
                <DELETED>    (M) the declaration date, physical damage 
                closing date, economic injury closing date, and number 
                of counties included in the declaration of a major 
                disaster.</DELETED>
<DELETED>    (c) Notice of the Need for Supplemental Funds.--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.</DELETED>
<DELETED>    (d) Report on Contracting.--</DELETED>
        <DELETED>    (1) In general.--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.</DELETED>
        <DELETED>    (2) Contents.--Each report submitted under 
        paragraph (1) shall include--</DELETED>
                <DELETED>    (A) the total number of contracts awarded 
                as a result of the declared disaster;</DELETED>
                <DELETED>    (B) the total number of contracts awarded 
                to small business concerns as a result of the declared 
                disaster;</DELETED>
                <DELETED>    (C) the total number of contracts awarded 
                to women and minority-owned businesses as a result of 
                the declared disaster; and</DELETED>
                <DELETED>    (D) the total number of contracts awarded 
                to local businesses as a result of the declared 
                disaster.</DELETED>

            <DELETED>TITLE IV--ENERGY EMERGENCIES</DELETED>

<DELETED>SEC. 401. FINDINGS.</DELETED>

<DELETED>    Congress finds that--</DELETED>
        <DELETED>    (1) 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;</DELETED>
        <DELETED>    (2) 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</DELETED>
        <DELETED>    (3) significant increases in the price of heating 
        oil, natural gas, propane, or kerosene--</DELETED>
                <DELETED>    (A) 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;</DELETED>
                <DELETED>    (B) can negatively affect the national 
                economy and regional economies;</DELETED>
                <DELETED>    (C) 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</DELETED>
                <DELETED>    (D) 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.</DELETED>

<DELETED>SEC. 402. SMALL BUSINESS ENERGY EMERGENCY DISASTER LOAN 
              PROGRAM.</DELETED>

<DELETED>    (a) In General.--Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended by inserting after paragraph (9), as 
added by this Act, the following:</DELETED>
        <DELETED>    ``(10) Energy emergencies.--</DELETED>
                <DELETED>    ``(A) Definitions.--In this paragraph--
                </DELETED>
                        <DELETED>    ``(i) the term `base price index' 
                        means the moving average of the closing unit 
                        price on the New York Mercantile Exchange for 
                        heating oil, natural gas, 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);</DELETED>
                        <DELETED>    ``(ii) the term `current price 
                        index' means the moving average of the closing 
                        unit price on the New York Mercantile Exchange, 
                        for the 10 most recent trading days, for 
                        contracts to purchase heating oil, natural gas, 
                        or propane during the subsequent calendar 
                        month, commonly known as the `front 
                        month';</DELETED>
                        <DELETED>    ``(iii) the term `heating fuel' 
                        means heating oil, natural gas, propane, or 
                        kerosene; and</DELETED>
                        <DELETED>    ``(iv) the term `significant 
                        increase' means--</DELETED>
                                <DELETED>    ``(I) 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</DELETED>
                                <DELETED>    ``(II) with respect to the 
                                price of kerosene, any increase which 
                                the Administrator, in consultation with 
                                the Secretary of Energy, determines to 
                                be significant.</DELETED>
                <DELETED>    ``(B) Authorization.--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.</DELETED>
                <DELETED>    ``(C) Interest rate.--Any loan or 
                guarantee extended under this paragraph shall be made 
                at the same interest rate as economic injury loans 
                under paragraph (2).</DELETED>
                <DELETED>    ``(D) Maximum amount.--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.</DELETED>
                <DELETED>    ``(E) Declarations.--For purposes of 
                assistance under this paragraph--</DELETED>
                        <DELETED>    ``(i) a declaration of a disaster 
                        area based on conditions specified in this 
                        paragraph shall be required, and shall be made 
                        by the President or the Administrator; 
                        or</DELETED>
                        <DELETED>    ``(ii) 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.</DELETED>
                <DELETED>    ``(F) Use of funds.--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.''.</DELETED>
<DELETED>    (b) Conforming Amendments Relating to Heating Fuel.--
Section 3(k) of the Small Business Act (15 U.S.C. 632(k)) is amended--
</DELETED>
        <DELETED>    (1) by inserting ``, significant increase in the 
        price of heating fuel'' after ``civil disorders''; 
        and</DELETED>
        <DELETED>    (2) by inserting ``other'' before 
        ``economic''.</DELETED>
<DELETED>    (c) Effective Period.--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.</DELETED>

<DELETED>SEC. 403. AGRICULTURAL PRODUCER EMERGENCY LOANS.</DELETED>

<DELETED>    (a) In General.--Section 321(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1961(a)) is amended--</DELETED>
        <DELETED>    (1) in the first sentence--</DELETED>
                <DELETED>    (A) by striking ``operations have'' and 
                inserting ``operations (i) have''; and</DELETED>
                <DELETED>    (B) by inserting before ``: Provided,'' 
                the following: ``, or (ii)(I) are owned or operated by 
                such an applicant that is also a small business concern 
                (as defined in section 3 of the Small Business Act (15 
                U.S.C. 632)), and (II) have suffered or are likely to 
                suffer substantial economic injury on or after 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'';</DELETED>
        <DELETED>    (2) in the third sentence, by inserting before the 
        period at the end the following: ``or by an energy emergency 
        declared by the President or the Secretary''; and</DELETED>
        <DELETED>    (3) in the fourth sentence--</DELETED>
                <DELETED>    (A) by inserting ``or energy emergency'' 
                after ``natural disaster'' each place that term 
                appears; and</DELETED>
                <DELETED>    (B) by inserting ``or declaration'' after 
                ``emergency designation''.</DELETED>
<DELETED>    (b) Funding.--Funds available on the date of enactment of 
this Act for emergency loans under subtitle C of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1961 et seq.) shall be available to 
carry out the amendments made by subsection (a) to meet the needs 
resulting from energy emergencies.</DELETED>
<DELETED>    (c) Effective Period.--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.</DELETED>

<DELETED>SEC. 404. GUIDELINES AND RULEMAKING.</DELETED>

<DELETED>    (a) Guidelines.--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.</DELETED>
<DELETED>    (b) Rulemaking.--Not later than 30 days after the date of 
enactment of this Act, the Administrator, after consultation with the 
Secretary of Energy, shall promulgate regulations specifying the method 
for determining a significant increase in the price of kerosene under 
section 7(b)(10)(A)(iv)(II) of the Small Business Act, as added by this 
Act.</DELETED>

<DELETED>SEC. 405. REPORTS.</DELETED>

<DELETED>    (a) Small Business Administration.--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 Small Business Act, as added by 
this Act, including--</DELETED>
        <DELETED>    (1) the number of small business concerns that 
        applied for a loan under such section and the number of those 
        that received such loans;</DELETED>
        <DELETED>    (2) the dollar value of those loans;</DELETED>
        <DELETED>    (3) the States in which the small business 
        concerns that received such loans are located;</DELETED>
        <DELETED>    (4) the type of heating fuel or energy that caused 
        the significant increase in the cost for the participating 
        small business concerns; and</DELETED>
        <DELETED>    (5) recommendations for ways to improve the 
        assistance provided under such section 7(b)(10), if 
        any.</DELETED>
<DELETED>    (b) Department of Agriculture.--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--</DELETED>
        <DELETED>    (1) 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</DELETED>
        <DELETED>    (2) contains recommendations for ways to improve 
        the assistance provided under such section 321(a), if 
        any.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Disaster Response and Loan Improvements Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                TITLE I--DISASTER PLANNING AND RESPONSE

Sec. 101. Disaster loans to nonprofits.
Sec. 102. Disaster loan amounts.
Sec. 103. Small business development center portability grants.
Sec. 104. Assistance to out-of-State businesses.
Sec. 105. Outreach programs.
Sec. 106. Small business bonding threshold.
Sec. 107. Termination of program.
Sec. 108. Increasing collateral requirements.
Sec. 109. Public awareness of disaster declaration and application 
                            periods.
Sec. 110. Consistency between Administration regulations and standard 
                            operating procedures.
Sec. 111. Processing disaster loans.
Sec. 112. Development and implementation of major disaster response 
                            plan.
Sec. 113. Full-time disaster planning staff.
Sec. 114. Additional authority for district offices of the 
                            Administration.
Sec. 115. Assignment of employees of the Office of Disaster Assistance 
                            and Disaster Cadre.
Sec. 116. Report regarding lack of snow fall.

                       TITLE II--DISASTER LENDING

Sec. 201. Catastrophic national disaster declaration.
Sec. 202. Private disaster loans.
Sec. 203. Technical and conforming amendments.
Sec. 204. Business expedited disaster assistance loan program.

                TITLE III--DISASTER ASSISTANCE OVERSIGHT

Sec. 301. 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.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``catastrophic national disaster'' means a 
        catastrophic national disaster declared under section 7(b)(11) 
        of the Small Business Act (15 U.S.C. 636(b)), as added by this 
        Act;
            (3) the term ``declared disaster'' means a major disaster 
        or a catastrophic national disaster;
            (4) the term ``disaster area'' 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;
            (5) the term ``disaster loan program of the 
        Administration'' means assistance under section 7(b) of the 
        Small Business Act (15 U.S.C. 636(b));
            (6) the term ``disaster update period'' means the period 
        beginning on the date on which the President declares a major 
        disaster or a catastrophic national disaster and ending on the 
        date on which such declaration terminates;
            (7) the term ``major disaster'' has the meaning given that 
        term in section 102 of the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5122);
            (8) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 U.S.C. 
        632); and
            (9) the term ``State'' 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.

                TITLE I--DISASTER PLANNING AND RESPONSE

SEC. 101. DISASTER LOANS TO NONPROFITS.

    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) Loans to nonprofits.--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.''.

SEC. 102. DISASTER LOAN AMOUNTS.

    (a) Increased Loan Caps.--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:
            ``(5) Increased loan caps.--
                    ``(A) Aggregate loan amounts.--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 $2,000,000.
                    ``(B) Waiver authority.--The Administrator may, at 
                the discretion of the Administrator, increase the 
                aggregate loan amount under subparagraph (A) for loans 
                relating to a disaster to a level established by the 
                Administrator, based on appropriate economic indicators 
                for the region in which that disaster occurred.''.
    (b) Disaster Mitigation.--
            (1) In general.--Section 7(b)(1)(A) of the Small Business 
        Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ``of the 
        aggregate costs of such damage or destruction (whether or not 
        compensated for by insurance or otherwise)'' after ``20 per 
        centum''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to a loan or guarantee made after the 
        date of enactment of this Act.
    (c) Technical Amendments.--Section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``the, Administration'' and inserting ``the Administration'';
            (2) in paragraph (2)(A), by striking ``Disaster Relief and 
        Emergency Assistance Act'' and inserting ``Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
        seq.) (in this subsection referred to as a `major disaster'''; 
        and
            (3) in the undesignated matter at the end--
                    (A) by striking ``, (2), and (4)'' and inserting 
                ``and (2)''; and
                    (B) by striking ``, (2), or (4)'' and inserting 
                ``(2)''.

SEC. 103. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY GRANTS.

    Section 21(a)(4)(C)(viii) of the Small Business Act (15 U.S.C. 
648(a)(4)(C)(viii)) is amended--
            (1) in the first sentence, by striking ``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'' and inserting ``due to events that have resulted 
        or will result in, business or government facility downsizing 
        or closing''; and
            (2) by adding at the end ``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.''.

SEC. 104. ASSISTANCE TO OUT-OF-STATE BUSINESSES.

    Section 21(b)(3) of the Small Business Act (15 U.S.C. 648(b)(3)) is 
amended--
            (1) by striking ``At the discretion'' and inserting the 
        following: ``Small business development centers.--
                    ``(A) In general.--At the discretion''; and
            (2) by adding at the end the following:
                    ``(B) During disasters.--
                            ``(i) In general.--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).
                            ``(ii) Continuity of services.--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.
                            ``(iii) Access to disaster recovery 
                        facilities.--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.''.

SEC. 105. OUTREACH PROGRAMS.

    (a) In General.--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.
    (b) Administrator Action.--The Administrator may carry out 
subsection (a) by acting through--
            (1) the Administration;
            (2) the Federal agency small business officials designated 
        under section 15(k)(1) of the Small Business Act (15 U.S.C. 
        644(k)(1)); or
            (3) any Federal, State, or local government entity, higher 
        education institution, 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.

SEC. 106. SMALL BUSINESS BONDING THRESHOLD.

    (a) In General.--Except as provided in subsection (b), and 
notwithstanding any other provision of law, for any procurement related 
to a major disaster, 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.
    (b) Increase of Amount.--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.

SEC. 107. TERMINATION OF PROGRAM.

    Section 711(c) of the Small Business Competitive Demonstration 
Program Act of 1988 (15 U.S.C. 644 note) is amended by inserting after 
``January 1, 1989'' the following: ``, and shall terminate on the date 
of enactment of the Small Business Disaster Response and Loan 
Improvements Act of 2007''.

SEC. 108. INCREASING COLLATERAL REQUIREMENTS.

    Section 7(c)(6) of the Small Business Act (15 U.S.C. 636(c)(6)) is 
amended by striking ``$10,000 or less'' and inserting ``$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)(11))''.

SEC. 109. PUBLIC AWARENESS OF DISASTER DECLARATION AND APPLICATION 
              PERIODS.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after paragraph (5), as 
added by this Act, the following:
            ``(6) Coordination with fema.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, for any disaster (including a 
                catastrophic national disaster) declared under this 
                subsection or major disaster, the Administrator, in 
                consultation with the Administrator of the Federal 
                Emergency Management Agency, shall ensure, to the 
                maximum extent practicable, that all application 
                periods for disaster relief under this Act correspond 
                with application deadlines established under the Robert 
                T. Stafford Disaster Relief and Emergency Assistance 
                Act (42 U.S.C. 5121 et seq.).
                    ``(B) Deadlines.--Notwithstanding any other 
                provision of law, not later than 10 days before the 
                closing date of an application period for a major 
                disaster (including a catastrophic national disaster), 
                the Administrator, in consultation with the 
                Administrator of the Federal Emergency Management 
                Agency, 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 
                that includes--
                            ``(i) the deadline for submitting 
                        applications for assistance relating to that 
                        major disaster;
                            ``(ii) information regarding the number of 
                        loan applications and disbursements processed 
                        by the Administrator relating to that major 
                        disaster for each day during the period 
                        beginning on the date on which that major 
                        disaster was declared and ending on the date of 
                        that report; and
                            ``(iii) an estimate of the number of 
                        potential applicants that have not submitted an 
                        application relating to that major disaster.
            ``(7) Public awareness of disasters.--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--
                    ``(A) the date of such declaration;
                    ``(B) cities and towns within the area of such 
                declaration;
                    ``(C) loan application deadlines related to such 
                disaster;
                    ``(D) all relevant contact information for victim 
                services available through the Administration 
                (including links to small business development center 
                websites);
                    ``(E) links to relevant Federal and State disaster 
                assistance websites, including links to websites 
                providing information regarding assistance available 
                from the Federal Emergency Management Agency;
                    ``(F) information on eligibility criteria for 
                Administration loan programs, including where such 
                applications can be found; and
                    ``(G) application materials that clearly state the 
                function of the Administration as the Federal source of 
                disaster loans for homeowners and renters.''.
    (b) Coordination of Agencies and Outreach.--Not later than 90 days 
after the date of enactment of this Act, the Administrator and the 
Administrator 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 and contract employees during a major disaster, if such 
staff are needed to assist businesses, homeowners, or renters in 
recovery.
    (c) Marketing and Outreach.--Not later than 90 days after the date 
of enactment of this Act, the Administrator shall create a marketing 
and outreach plan that--
            (1) encourages a proactive approach to the disaster relief 
        efforts of the Administration;
            (2) makes clear the services provided by the 
        Administration, including contact information, application 
        information, and timelines for submitting applications, the 
        review of applications, and the disbursement of funds;
            (3) describes the different disaster loan programs of the 
        Administration, including how they are made available and the 
        eligibility requirements for each loan program;
            (4) provides for regional marketing, focusing on disasters 
        occurring in each region before the date of enactment of this 
        Act, and likely scenarios for disasters in each such region; 
        and
            (5) ensures that the marketing plan is made available at 
        small business development centers and on the website of the 
        Administration.

SEC. 110. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS AND STANDARD 
              OPERATING PROCEDURES.

    (a) In General.--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.
    (b) Report.--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).

SEC. 111. PROCESSING DISASTER LOANS.

    (a) Authority for Qualified Private Contractors To Process Disaster 
Loans.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (7), as added by this 
Act, the following:
            ``(8) Authority for qualified private contractors.--
                    ``(A) Disaster loan processing.--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 or a catastrophic national disaster 
                declared under paragraph (11), under which the 
                Administrator shall pay the contractor a fee for each 
                loan processed.
                    ``(B) Loan loss verification services.--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 or a catastrophic national disaster declared 
                under paragraph (11), 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.''.
    (b) Coordination of Efforts Between the Administrator and the 
Internal Revenue Service To Expedite Loan Processing.--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.

SEC. 112. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER RESPONSE 
              PLAN.

    (a) In General.--Not later than 3 months after the date of 
enactment of this Act, the Administrator shall--
            (1) by rule, amend the 2006 Atlantic hurricane season 
        disaster response plan of the Administration (in this section 
        referred to as the ``disaster response plan'') to apply to 
        major disasters; and
            (2) 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.
    (b) Contents.--The report required under subsection (a)(2) shall 
include--
            (1) any updates or modifications made to the disaster 
        response plan since the report regarding the disaster response 
        plan submitted to Congress on July 14, 2006;
            (2) 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;
            (3) a description of the disaster scalability model of the 
        Administration and on what basis or function the plan is 
        scaled;
            (4) 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;
            (5) 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;
            (6) recommendations, if any, on how the Administration can 
        better coordinate its disaster response operations with the 
        operations of other Federal, State, and local entities;
            (7) any surge plan for the disaster loan program of the 
        Administration 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);
            (8) the number of full-time equivalent employees and job 
        descriptions for the planning and disaster response staff of 
        the Administration;
            (9) the in-service and preservice training procedures for 
        disaster response staff of the Administration;
            (10) 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);
            (11) 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
            (12) a plan for how the Administrator, in cooperation with 
        the Administrator 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.
    (c) Exercises.--Not later than 6 months after the date of the 
submission of the report under subsection (a)(2), the Administrator 
shall develop and execute simulation exercises to demonstrate the 
effectiveness of the amended disaster response plan required under this 
section.

SEC. 113. FULL-TIME DISASTER PLANNING STAFF.

    (a) Increase in Small Business Administration Full-Time Disaster 
Planning Staff.--The Administrator shall hire a full-time disaster 
planning specialist in the Office of Disaster Assistance of the 
Administration.
    (b) Responsibilities.--The disaster planning specialist hired under 
subsection (a) shall be responsible for--
            (1) creating and maintaining the comprehensive disaster 
        response plan of the Administration;
            (2) ensuring in-service and pre-service training procedures 
        for the disaster response staff of the Administration;
            (3) coordinating and directing Administration training 
        exercises, including mock disaster responses, with other 
        Federal agencies; and
            (4) other responsibilities, as determined by the 
        Administrator.
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Administration such sums as are necessary to carry out this 
        section.
            (2) Availability of funds.--Amounts made available under 
        this section shall remain available until expended.

SEC. 114. ADDITIONAL AUTHORITY FOR DISTRICT OFFICES OF THE 
              ADMINISTRATION.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after paragraph (8), as 
added by this Act, the following:
            ``(9) Use of district offices.--In the event of a major 
        disaster, the Administrator may authorize a district office of 
        the Administration to process loans under paragraph (1) or 
        (2).''.
    (b) Designation.--
            (1) In general.--The Administrator shall designate an 
        employee in each district office of the Administration to act 
        as a disaster loan liaison between the disaster processing 
        center and applicants under the disaster loan program of the 
        Administration.
            (2) Responsibilities.--Each employee designated under 
        paragraph (1) shall--
                    (A) respond to inquiries from applicants under the 
                disaster loan program of the Administration regarding 
                paperwork requirements and assist disaster loan 
                processing staff in coordinating and communicating with 
                applicants regarding the documents that are required to 
                complete an application; and
                    (B) provide information to applicants under the 
                disaster loan program of the Administration regarding 
                additional services and benefits that may be available 
                to such applicants to assist with recovery.
            (3) Outreach.--In providing outreach to disaster victims 
        following a declared disaster, the Administrator shall make 
        disaster victims aware of--
                    (A) any relevant employee designated under 
                paragraph (1); and
                    (B) how to contact that employee.

SEC. 115. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER ASSISTANCE 
              AND DISASTER CADRE.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after paragraph (9), as 
added by this Act, the following:
            ``(10) Disaster assistance employees.--
                    ``(A) In general.--In carrying out this section, 
                the Administrator shall, where practicable, ensure that 
                the number of full-time equivalent employees--
                            ``(i) in the Office of the Disaster 
                        Assistance is not fewer than 800; and
                            ``(ii) in the Disaster Cadre of the 
                        Administration is not fewer than 750.
                    ``(B) Report.--In carrying out this subsection, if 
                the number of full-time employees for either the Office 
                of Disaster Assistance or the Disaster Cadre of the 
                Administration is below the level described in 
                subparagraph (A) for that office, the Administrator 
                shall, not later than 14 days after the date on which 
                that staffing level decreased below the level described 
                in subparagraph (A), submit a report to the Committee 
                on Small Business and Entrepreneurship and the 
                Committee on Appropriations of the Senate and the 
                Committee on Small Business and the Committee on 
                Appropriations of the House of Representatives--
                            ``(i) detailing the staffing levels on that 
                        date; and
                            ``(ii) if determined appropriate by the 
                        Administrator, including a request for 
                        additional funds for additional employees.''.

SEC. 116. REPORT REGARDING LACK OF SNOW FALL.

    Not later than 6 months after the date of enactment of this Act, 
the Administrator 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 that 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.

                       TITLE II--DISASTER LENDING

SEC. 201. CATASTROPHIC NATIONAL DISASTER DECLARATION.

    Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 
amended by inserting immediately after paragraph (10), as added by this 
Act, the following:
            ``(11) Catastrophic national disasters.--
                    ``(A) Promulgation of rules.--Not later than 6 
                months after the date of enactment of this paragraph, 
                the Administrator, in consultation with the Secretary 
                of Homeland Security and the Administrator of the 
                Federal Emergency Management Agency, shall promulgate 
                regulations establishing a threshold for a catastrophic 
                national disaster declaration, which shall consider--
                            ``(i) the dollar amount per capita of 
                        damage to the State, its political 
                        subdivisions, or a region;
                            ``(ii) the number of small business 
                        concerns damaged, physically or economically, 
                        as a direct result of the event;
                            ``(iii) the number of individuals and 
                        households displaced from their predisaster 
                        residences by the event;
                            ``(iv) the severity of the impact on 
                        employment rates in the State, its political 
                        subdivisions, or a region;
                            ``(v) the anticipated length and difficulty 
                        of the recovery process; and
                            ``(vi) other factors determined relevant by 
                        the Administrator.
                    ``(B) Authorization.--Following a declaration of a 
                major disaster, if a damage assessment performed by the 
                Administrator indicates that the damage caused by the 
                event qualify as a catastrophic national disaster under 
                subsection (a), 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 that catastrophic national disaster.
                    ``(C) Loan terms.--A loan under this paragraph 
                shall be made on the same terms as a loan under 
                paragraph (2).''.

SEC. 202. PRIVATE DISASTER LOANS.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 
636) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Private Disaster Loans.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `disaster area' means a county, 
                parish, or similar unit of general local government in 
                which a disaster was declared under subsection (b);
                    ``(B) the term `eligible small business concern' 
                means a business concern that is--
                            ``(i) a small business concern, as defined 
                        in this Act; or
                            ``(ii) a small business concern, as defined 
                        in section 103 of the Small Business Investment 
                        Act of 1958; and
                    ``(C) the term `qualified private lender' means any 
                privately-owned bank or other lending institution that 
                the Administrator determines meets the criteria 
                established under paragraph (9).
            ``(2) Authorization.--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.
            ``(3) Use of loans.--A loan guaranteed by the Administrator 
        under this subsection may be used for any purpose authorized 
        under subsection (b).
            ``(4) Online applications.--
                    ``(A) Establishment.--The Administrator may 
                establish, directly or through an agreement with 
                another entity, an online application process for loans 
                guaranteed under this subsection.
                    ``(B) Other federal assistance.--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.
                    ``(C) Consultation.--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.
            ``(5) Maximum amounts.--
                    ``(A) Guarantee percentage.--The Administrator may 
                guarantee not more than 85 percent of a loan under this 
                subsection.
                    ``(B) Loan amounts.--The maximum amount of a loan 
                guaranteed under this subsection shall be $2,000,000.
            ``(6) Loan term.--The longest term of a loan for a loan 
        guaranteed under this subsection shall be--
                    ``(A) 15 years for any loan that is issued without 
                collateral; and
                    ``(B) 25 years for any loan that is issued with 
                collateral.
            ``(7) Fees.--
                    ``(A) In general.--The Administrator may not 
                collect a guarantee fee under this subsection.
                    ``(B) Origination fee.--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.
            ``(8) Documentation.--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 guaranteed under this subsection shall not be considered 
        part of the criteria for becoming a qualified private lender 
        under the regulations promulgated under paragraph (9).
            ``(9) Implementation regulations.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of the Small Business Disaster 
                Response and Loan Improvements Act of 2007, the 
                Administrator shall issue final regulations 
                establishing permanent criteria for qualified private 
                lenders.
                    ``(B) Report to congress.--Not later than 6 months 
                after the date of enactment of the Small Business 
                Disaster Response and Loan Improvements Act of 2007, 
                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.
            ``(10) Authorization of appropriations.--
                    ``(A) In general.--Amounts necessary to carry out 
                this subsection shall be made available from amounts 
                appropriated to the Administration to carry out 
                subsection (b).
                    ``(B) Authority to reduce interest rates.--Funds 
                appropriated to the Administration to carry out this 
                subsection, may be used by the Administrator, to the 
                extent available, to reduce the rate of interest for 
                any loan guaranteed under this subsection by not more 
                than 3 percentage points.
            ``(11) Purchase of loans.--The Administrator may enter into 
        an agreement with a qualified private lender to purchase any 
        loan issued under this subsection.''.
    (b) Effective Date.--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.

SEC. 203. TECHNICAL AND CONFORMING AMENDMENTS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) in section 4(c)--
                    (A) in paragraph (1), by striking ``7(c)(2)'' and 
                inserting ``7(d)(2)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``7(c)(2)'' and inserting 
                        ``7(d)(2)''; and
                            (ii) by striking ``7(e),''; and
            (2) in section 7(b), in the undesignated matter following 
        paragraph (3)--
                    (A) by striking ``That the provisions of paragraph 
                (1) of subsection (c)'' and inserting ``That the 
                provisions of paragraph (1) of subsection (d)''; and
                    (B) by striking ``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),'' and inserting 
                ``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)''.

SEC. 204. BUSINESS EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``immediate disaster assistance'' 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
            (2) the term ``program'' means the expedited disaster 
        assistance business loan program established under subsection 
        (b).
    (b) Creation of Program.--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)).
    (c) Consultation Required.--In establishing the program, the 
Administrator shall consult with--
            (1) appropriate personnel of the Administration (including 
        District Office personnel of the Administration);
            (2) appropriate technical assistance providers (including 
        small business development centers);
            (3) appropriate lenders and credit unions;
            (4) the Committee on Small Business and Entrepreneurship of 
        the Senate; and
            (5) the Committee on Small Business of the House of 
        Representatives.
    (d) Rules.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall issue rules in 
        final form 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.
            (2) Contents.--The rules promulgated under paragraph (1) 
        shall--
                    (A) identify whether appropriate uses of funds 
                under the program may include--
                            (i) paying employees;
                            (ii) paying bills and other financial 
                        obligations;
                            (iii) making repairs;
                            (iv) purchasing inventory;
                            (v) 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
                            (vi) covering additional costs until the 
                        small business concern is able to obtain 
                        funding through insurance claims, Federal 
                        assistance programs, or other sources; and
                    (B) set the terms and conditions of any loan made 
                under the program, subject to paragraph (3).
            (3) Terms and conditions.--A loan made by the 
        Administration under this section--
                    (A) 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;
                    (B) shall have an interest rate not to exceed 1 
                percentage point above the prime rate of interest that 
                a private lender may charge;
                    (C) shall have no prepayment penalty;
                    (D) may only be made to a borrower that meets the 
                requirements for a loan under section 7(b) of the Small 
                Business Act (15 U.S.C. 636(b));
                    (E) may be refinanced as part of any subsequent 
                disaster assistance provided under section 7(b) of the 
                Small Business Act; and
                    (F) shall be subject to such additional terms as 
                the Administrator determines necessary or appropriate.
    (e) Report to Congress.--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.
    (f) Authorization.--There are authorized to be appropriated to the 
Administrator such sums as are necessary to carry out this section.

                TITLE III--DISASTER ASSISTANCE OVERSIGHT

SEC. 301. CONGRESSIONAL OVERSIGHT.

    (a) Monthly Accounting Report to Congress.--
            (1) Reporting requirements.--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 Small 
        Business Act (15 U.S.C. 636) for that major disaster during the 
        preceding month.
            (2) Contents.--Each report under paragraph (1) shall 
        include--
                    (A) the daily average lending volume, in number of 
                loans and dollars, and the percent by which each 
                category has increased or decreased since the previous 
                report under paragraph (1);
                    (B) the weekly average lending volume, in number of 
                loans and dollars, and the percent by which each 
                category has increased or decreased since the previous 
                report under paragraph (1);
                    (C) the amount of funding spent over the month for 
                loans, both in appropriations and program level, and 
                the percent by which each category has increased or 
                decreased since the previous report under paragraph 
                (1);
                    (D) the amount of funding available for loans, both 
                in appropriations and program level, and the percent by 
                which each category has increased or decreased since 
                the previous report under paragraph (1), noting the 
                source of any additional funding;
                    (E) an estimate of how long the available funding 
                for such loans will last, based on the spending rate;
                    (F) the amount of funding spent over the month for 
                staff, along with the number of staff, and the percent 
                by which each category has increased or decreased since 
                the previous report under paragraph (1);
                    (G) the amount of funding spent over the month for 
                administrative costs, and the percent by which such 
                spending has increased or decreased since the previous 
                report under paragraph (1);
                    (H) the amount of funding available for salaries 
                and expenses combined, and the percent by which such 
                funding has increased or decreased since the previous 
                report under paragraph (1), noting the source of any 
                additional funding; and
                    (I) an estimate of how long the available funding 
                for salaries and expenses will last, based on the 
                spending rate.
    (b) Daily Disaster Updates to Congress for Presidentially Declared 
Disasters.--
            (1) In general.--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.
            (2) Contents.--Each report under paragraph (1) shall 
        include--
                    (A) 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;
                    (B) the daily number of applications received from 
                applicants in the relevant area, as well as a breakdown 
                of such figures by State;
                    (C) the daily number of applications pending 
                application entry from applicants in the relevant area, 
                as well as a breakdown of such figures by State;
                    (D) the daily number of applications withdrawn by 
                applicants in the relevant area, as well as a breakdown 
                of such figures by State;
                    (E) the daily number of applications summarily 
                declined by the Administration from applicants in the 
                relevant area, as well as a breakdown of such figures 
                by State;
                    (F) the daily number of applications declined by 
                the Administration from applicants in the relevant 
                area, as well as a breakdown of such figures by State;
                    (G) the daily number of applications in process 
                from applicants in the relevant area, as well as a 
                breakdown of such figures by State;
                    (H) the daily number of applications approved by 
                the Administration from applicants in the relevant 
                area, as well as a breakdown of such figures by State;
                    (I) the daily dollar amount of applications 
                approved by the Administration from applicants in the 
                relevant area, as well as a breakdown of such figures 
                by State;
                    (J) the daily amount of loans dispersed, both 
                partially and fully, by the Administration to 
                applicants in the relevant area, as well as a breakdown 
                of such figures by State;
                    (K) the daily dollar amount of loans disbursed, 
                both partially and fully, from the relevant area, as 
                well as a breakdown of such figures by State;
                    (L) the number of applications approved, including 
                dollar amount approved, as well as applications 
                partially and fully disbursed, including dollar 
                amounts, since the last report under paragraph (1); and
                    (M) the declaration date, physical damage closing 
                date, economic injury closing date, and number of 
                counties included in the declaration of a major 
                disaster.
    (c) Notice of the Need for Supplemental Funds.--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 the Committee on Small Business 
of the House of Representatives regarding the need for supplemental 
funds for that loan program.
    (d) Report on Contracting.--
            (1) In general.--Not later than 6 months after the date on 
        which the President declares a major disaster, and every 6 
        months thereafter until the date that is 18 months after the 
        date on which the major 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 that major 
        disaster.
            (2) Contents.--Each report submitted under paragraph (1) 
        shall include--
                    (A) the total number of contracts awarded as a 
                result of that major disaster;
                    (B) the total number of contracts awarded to small 
                business concerns as a result of that major disaster;
                    (C) the total number of contracts awarded to women 
                and minority-owned businesses as a result of that major 
                disaster; and
                    (D) the total number of contracts awarded to local 
                businesses as a result of that major disaster.
    (e) Report on Loan Approval Rate.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, the Administrator shall submit a report 
        to the Committee on Small Business and Entrepreneurship of the 
        Senate and the Committee on Small Business of the House of 
        Representatives detailing how the Administration can improve 
        the processing of applications under the disaster loan program 
        of the Administration.
            (2) Contents.--The report submitted under paragraph (1) 
        shall include--
                    (A) recommendations, if any, regarding--
                            (i) staffing levels during a major 
                        disaster;
                            (ii) how to improve the process for 
                        processing, approving, and disbursing loans 
                        under the disaster loan program of the 
                        Administration, to ensure that the maximum 
                        assistance is provided to victims in a timely 
                        manner;
                            (iii) 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;
                            (iv) 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);
                            (v) legislative changes, if any, needed to 
                        implement findings from the Accelerated 
                        Disaster Response Initiative of the 
                        Administration; and
                            (vi) 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
                    (B) the plans of the Administrator for implementing 
                any recommendation made under subparagraph (A).

                      TITLE IV--ENERGY EMERGENCIES

SEC. 401. FINDINGS.

    Congress finds that--
            (1) 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;
            (2) 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
            (3) significant increases in the price of heating oil, 
        natural gas, propane, or kerosene--
                    (A) 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;
                    (B) can negatively affect the national economy and 
                regional economies;
                    (C) 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
                    (D) 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.

SEC. 402. SMALL BUSINESS ENERGY EMERGENCY DISASTER LOAN PROGRAM.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting after paragraph (11), as added by this 
Act, the following:
            ``(12) Energy emergencies.--
                    ``(A) Definitions.--In this paragraph--
                            ``(i) the term `base price index' means the 
                        moving average of the closing unit price on the 
                        New York Mercantile Exchange for heating oil, 
                        natural gas, or propane for the 10 days, in 
                        each of the most recent 2 preceding years, 
                        which correspond to the trading days described 
                        in clause (ii);
                            ``(ii) the term `current price index' means 
                        the moving average of the closing unit price on 
                        the New York Mercantile Exchange, for the 10 
                        most recent trading days, for contracts to 
                        purchase heating oil, natural gas, or propane 
                        during the subsequent calendar month, commonly 
                        known as the `front month';
                            ``(iii) the term `heating fuel' means 
                        heating oil, natural gas, propane, or kerosene; 
                        and
                            ``(iv) the term `significant increase' 
                        means--
                                    ``(I) 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
                                    ``(II) with respect to the price of 
                                kerosene, any increase which the 
                                Administrator, in consultation with the 
                                Secretary of Energy, determines to be 
                                significant.
                    ``(B) Authorization.--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.
                    ``(C) Interest rate.--Any loan or guarantee 
                extended under this paragraph shall be made at the same 
                interest rate as economic injury loans under paragraph 
                (2).
                    ``(D) Maximum amount.--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.
                    ``(E) Declarations.--For purposes of assistance 
                under this paragraph--
                            ``(i) a declaration of a disaster area 
                        based on conditions specified in this paragraph 
                        shall be required, and shall be made by the 
                        President or the Administrator; or
                            ``(ii) if no declaration has been made 
                        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.
                    ``(F) Use of funds.--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.''.
    (b) Conforming Amendments Relating to Heating Fuel.--Section 3(k) 
of the Small Business Act (15 U.S.C. 632(k)) is amended--
            (1) by inserting ``, significant increase in the price of 
        heating fuel'' after ``civil disorders''; and
            (2) by inserting ``other'' before ``economic''.
    (c) Effective Period.--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.

SEC. 403. AGRICULTURAL PRODUCER EMERGENCY LOANS.

    (a) In General.--Section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)) is amended--
            (1) in the first sentence--
                    (A) by striking ``operations have'' and inserting 
                ``operations (i) have''; and
                    (B) by inserting before ``: Provided,'' the 
                following: ``, or (ii)(I) are owned or operated by such 
                an applicant that is also a small business concern (as 
                defined in section 3 of the Small Business Act (15 
                U.S.C. 632)), and (II) have suffered or are likely to 
                suffer substantial economic injury on or after 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'';
            (2) in the third sentence, by inserting before the period 
        at the end the following: ``or by an energy emergency declared 
        by the President or the Secretary''; and
            (3) in the fourth sentence--
                    (A) by inserting ``or energy emergency'' after 
                ``natural disaster'' each place that term appears; and
                    (B) by inserting ``or declaration'' after 
                ``emergency designation''.
    (b) Funding.--Funds available on the date of enactment of this Act 
for emergency loans under subtitle C of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961 et seq.) shall be available to carry out 
the amendments made by subsection (a) to meet the needs resulting from 
energy emergencies.
    (c) Effective Period.--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.

SEC. 404. GUIDELINES AND RULEMAKING.

    (a) Guidelines.--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.
    (b) Rulemaking.--Not later than 30 days after the date of enactment 
of this Act, the Administrator, after consultation with the Secretary 
of Energy, shall promulgate regulations specifying the method for 
determining a significant increase in the price of kerosene under 
section 7(b)(12)(A)(iv)(II) of the Small Business Act, as added by this 
Act.

SEC. 405. REPORTS.

    (a) Small Business Administration.--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)(12) 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)(12) of the Small Business Act, as added by this Act, including--
            (1) the number of small business concerns that applied for 
        a loan under such section and the number of those that received 
        such loans;
            (2) the dollar value of those loans;
            (3) the States in which the small business concerns that 
        received such loans are located;
            (4) the type of heating fuel or energy that caused the 
        significant increase in the cost for the participating small 
        business concerns; and
            (5) recommendations for ways to improve the assistance 
        provided under such section 7(b)(12), if any.
    (b) Department of Agriculture.--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--
            (1) 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
            (2) contains recommendations for ways to improve the 
        assistance provided under such section 321(a), if any.
                                                       Calendar No. 139

110th CONGRESS

  1st Session

                                 S. 163

                          [Report No. 110-64]

_______________________________________________________________________

                                 A BILL

      To improve the disaster loan program of the Small Business 
                Administration, and for other purposes.

_______________________________________________________________________

                              May 7, 2007

                       Reported with an amendment