[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6296 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6296

   To amend the Small Business Act to provide the interest rate for 
        certain disaster related loans, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 2012

     Mr. Barletta (for himself, Ms. Hahn, Mr. Holden, and Ms. Chu) 
 introduced the following bill; which was referred to the Committee on 
                             Small Business

_______________________________________________________________________

                                 A BILL


 
   To amend the Small Business Act to provide the interest rate for 
        certain disaster related loans, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Loan Fairness Act of 
2012''.

SEC. 2. INTEREST RATE FOR CERTAIN DISASTER RELATED LOANS.

    Section 7(d) of the Small Business Act is amended by adding at the 
end the following:
    ``(8)(A) Upon application, the Administration shall grant an 
interest rate determined under this paragraph with respect to any 
qualifying disaster loan.
    ``(B) For the purposes of this paragraph a qualifying disaster loan 
is the Administration's share of a loan--
            ``(i) for which the interest rate would be set pursuant to 
        paragraph (5) but for the operation of this paragraph;
            ``(ii) which is or was made with respect to activity in an 
        area when the President has declared a major disaster in that 
        area under section 401 of the Stafford Act; and
            ``(iii) which is or was made during the period beginning 
        January 1, 2011, and ending on the date that is 4 years after 
        the date of the enactment of the Disaster Loan Fairness Act of 
        2012.
    ``(C) The Administrator shall determine the interest rate for each 
calendar year to be the lesser of--
            ``(i) 4 percent; and
            ``(ii) a rate equivalent to \1/2\ the rate prevailing in 
        the private market for similar loans for those unable to attain 
        credit elsewhere and \\ \3/4\ of that prevailing rate for those 
        able to attain credit elsewhere.
    ``(D) The Administrator shall refund excess interest payments to 
borrowers whose interest rate on already made loans is lowered by 
reason of the operation of the paragraph.
    ``(E) Not later than one year after the date of the enactment of 
the Disaster Loan Fairness Act of 2012, the Administrator shall report 
to Congress as part of the annual report under Section 10(a) on whether 
the interest rate provided by this paragraph has resulted in any or all 
of the following:
            ``(i) A greater number of applications for disaster related 
        loans.
            ``(ii) A greater number of approvals of disaster related 
        loans.
            ``(iii) A decreased default rate on disaster related 
        loans.''.
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