II 110th CONGRESS 1st Session S. 598 IN THE SENATE OF THE UNITED STATES February 14, 2007 Mr. Kerry (for himself, Ms. Snowe, Ms. Landrieu, Mr. Vitter, and Mr. Lieberman) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To require reporting regarding the disaster loan program of the Small Business Administration, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Disaster Loan Reporting Act of 2007.

2.

Definitions

In this Act— (1)the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; (2)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 that disaster and the closing date for applications for economic injury disaster loans for that disaster; (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)); (4)the term disaster update period means the period beginning on the date on which the President declares a major disaster and ending on the date on which that declaration terminates; (5)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); (6)the term small business concern has the meaning given that term in section 3 of the Small Business Act (15 U.S.C. 632); and (7)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.

3.

Development and implementation of major disaster response plan

(a)

In general

Not later than May 1, 2007, 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 amended 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 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 Administrator 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 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.

4.

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 to 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 Administration's Accelerated Disaster Response Initiative; 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).