[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 208 Engrossed Amendment Senate (EAS)]
<DOC>
In the Senate of the United States,
October 21, 2015.
Resolved, That the bill from the House of Representatives (H.R.
208) entitled ``An Act to improve the disaster assistance programs of
the Small Business Administration.'', do pass with the following
AMENDMENTS:
(1)On page 2, strike lines 1 through 5 and insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Recovery
Improvements for Small Entities After Disaster Act of 2015'' or the
``RISE After Disaster Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
DIVISION A--SUPERSTORM SANDY RELIEF AND DISASTER LOAN PROGRAM
IMPROVEMENTS
Sec. 1001. Short title.
Sec. 1002. Findings.
TITLE I--DISASTER ASSISTANCE IMPROVEMENTS
1101. Revised disaster deadline.
1102. Use of physical damage disaster loans to construct safe rooms.
1103. Reducing delays on closing and disbursement of loans.
1104. Safeguarding taxpayer interests and increasing transparency in
loan approvals.
1105. Disaster plan improvements.
DIVISION B--RECOVERY IMPROVEMENTS FOR SMALL ENTITIES
Sec. 2001. Short title.
TITLE I--IMPROVEMENTS OF DISASTER RESPONSE AND LOANS
Sec. 2101. Additional awards to small business development centers,
women's business centers, and SCORE for
disaster recovery.
Sec. 2102. Collateral requirements for disaster loans.
Sec. 2103. Assistance to out-of-State business concerns to aid in
disaster recovery.
Sec. 2104. FAST program.
Sec. 2105. Use of Federal surplus property in disaster areas.
Sec. 2106. Recovery opportunity loans.
Sec. 2107. Contractor malfeasance.
Sec. 2108. Local contracting preferences and incentives.
Sec. 2109. Clarification of collateral requirements.
TITLE II--DISASTER PLANNING AND MITIGATION
Sec. 2201. Business recovery centers.
TITLE III--OTHER PROVISIONS
Sec. 2301. Increased oversight of economic injury disaster loans.
Sec. 2302. GAO report on paperwork reduction.
Sec. 2303. Report on web portal for disaster loan applicants.
DIVISION A--SUPERSTORM SANDY RELIEF AND DISASTER LOAN PROGRAM
IMPROVEMENTS
SEC. 1001. SHORT TITLE.
This division may be cited as the ``Superstorm Sandy Relief and
Disaster Loan Program Improvement Act of 2015''.
SEC. 1002. FINDINGS.
(2)On page 3, strike line 5 and insert the following:
TITLE I--DISASTER ASSISTANCE IMPROVEMENTS
SEC. 1101. REVISED DISASTER DEADLINE.
(3)On page 3, line 14, insert ``nonprofit entity,'' after
``homeowner,''.
(4)On page 4, line 9, strike the quotation marks and the second period
and insert the following:
``(C) Inspector general review.--Not later than 6
months after the date on which the Administrator begins
carrying out this authority, the Inspector General of
the Administration shall initiate a review of the
controls for ensuring applicant eligibility for loans
made under this paragraph.''.
(5)On page 4, line 10, strike ``sec. 4.'' and insert ``sec. 1102.''.
(6)On page 4, line 24, insert ``, if such safe room or similar storm
shelter is constructed in accordance with applicable standards issued
by the Federal Emergency Management Agency'' after ``disasters''.
(7)On page 5, strike lines 1 through 21 and insert the following:
SEC. 1103. REDUCING DELAYS ON CLOSING AND DISBURSEMENT OF LOANS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(9) the following:
(8)On page 5, line 22, strike ``(11)'' and insert ``(10)''.
(9)On page 6, strike lines 5 through 8 and insert the following:
SEC. 1104. SAFEGUARDING TAXPAYER INTERESTS AND INCREASING TRANSPARENCY
IN LOAN APPROVALS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(10), as added by section 1103 of this Act, the following:
(10)On page 6, line 9, strike ``(12)'' and insert ``(11)''.
(11)Beginning on page 6, strike line 14 and all that follows through
page 7, line 20, and insert the following:
SEC. 1105. DISASTER PLAN IMPROVEMENTS.
(12)Beginning on page 8, strike line 6 and all that follows through
page 9, line 6, and insert the following:
DIVISION B--RECOVERY IMPROVEMENTS FOR SMALL ENTITIES
SECTION 2001. SHORT TITLE.
This division may be cited as the ``Recovery Improvements for Small
Entities After Disaster Act of 2015'' or the ``RISE After Disaster Act
of 2015''.
TITLE I--IMPROVEMENTS OF DISASTER RESPONSE AND LOANS
SEC. 2101. ADDITIONAL AWARDS TO SMALL BUSINESS DEVELOPMENT CENTERS,
WOMEN'S BUSINESS CENTERS, AND SCORE FOR DISASTER
RECOVERY.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(11), as added by section 1104 of this Act, the following:
``(12) Additional awards to small business development
centers, women's business centers, and score for disaster
recovery.--
``(A) In general.--The Administration may provide
financial assistance to a small business development
center, a women's business center described in section
29, the Service Corps of Retired Executives, or any
proposed consortium of such individuals or entities to
spur disaster recovery and growth of small business
concerns located in an area for which the President has
declared a major disaster.
``(B) Form of financial assistance.--Financial
assistance provided under this paragraph shall be in
the form of a grant, contract, or cooperative
agreement.
``(C) No matching funds required.--Matching funds
shall not be required for any grant, contract, or
cooperative agreement under this paragraph.
``(D) Requirements.--A recipient of financial
assistance under this paragraph shall provide
counseling, training, and other related services, such
as promoting long-term resiliency, to small business
concerns and entrepreneurs impacted by a major
disaster.
``(E) Performance.--
``(i) In general.--The Administrator, in
cooperation with the recipients of financial
assistance under this paragraph, shall
establish metrics and goals for performance of
grants, contracts, and cooperative agreements
under this paragraph, which shall include
recovery of sales, recovery of employment,
reestablishment of business premises, and
establishment of new small business concerns.
``(ii) Use of estimates.--The Administrator
shall base the goals and metrics for
performance established under clause (i), in
part, on the estimates of disaster impact
prepared by the Office of Disaster Assistance
for purposes of estimating loan-making
requirements.
``(F) Term.--
``(i) In general.--The term of any grant,
contract, or cooperative agreement under this
paragraph shall be for not more than 2 years.
``(ii) Extension.--The Administrator may
make 1 extension of a grant, contract, or
cooperative agreement under this paragraph for
a period of not more than 1 year, upon a
showing of good cause and need for the
extension.
``(G) Exemption from other program requirements.--
Financial assistance provided under this paragraph is
in addition to, and wholly separate from, any other
form of assistance provided by the Administrator under
this Act.
``(H) Competitive basis.--The Administration shall
award financial assistance under this paragraph on a
competitive basis.''.
SEC. 2102. COLLATERAL REQUIREMENTS FOR DISASTER LOANS.
(a) In General.--Section 7(d)(6) of the Small Business Act (15
U.S.C. 636(d)(6)) is amended in the third proviso--
(1) by striking ``$14,000'' and inserting ``$25,000''; and
(2) by striking ``major disaster'' and inserting
``disaster''.
(b) Sunset.--Effective on the date that is 3 years after the date
of enactment of this Act, section 7(d)(6) of the Small Business Act (15
U.S.C. 636(d)(6)) is amended in the third proviso--
(1) by striking ``$25,000'' and inserting ``$14,000''; and
(2) by inserting ``major'' before ``disaster''.
(c) Report.--Not later than 180 days before the date on which the
amendments made by subsection (b) are to take effect, the Administrator
of the Small Business Administration shall submit to Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report on the effects of the
amendments made by subsection (a), which shall include--
(1) an assessment of the impact and benefits resulting from
the amendments; and
(2) a recommendation as to whether the amendments should be
made permanent.
SEC. 2103. ASSISTANCE TO OUT-OF-STATE BUSINESS CONCERNS TO AID IN
DISASTER RECOVERY.
(a) In General.--Section 21(b)(3) of the Small Business Act (15
U.S.C. 648(b)(3)) is amended--
(1) by striking ``(3) At the discretion'' and inserting the
following:
``(3) Assistance to out-of-state small business concerns.--
``(A) In general.--At the discretion''; and
(2) by adding at the end the following:
``(B) Disaster recovery assistance.--
``(i) In general.--At the discretion of the
Administrator, the Administrator may authorize
a small business development center to provide
advice, information, and assistance, as
described in subsection (c), to a small
business concern located outside of the State,
without regard to geographic proximity to the
small business development center, if the small
business concern is located in an area for
which the President has declared a major
disaster.
``(ii) Term.--
``(I) In general.--A small business
development center may provide advice,
information, and assistance to a small
business concern under clause (i) for a
period of not more than 2 years after
the date on which the President
declared a major disaster for the area
in which the small business concern is
located.
``(II) Extension.--The
Administrator may, at the discretion of
the Administrator, extend the period
described in subclause (I).
``(iii) 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 the small business development center
otherwise provides services.
``(iv) Access to disaster recovery
facilities.--For purposes of this subparagraph,
the Administrator shall, to the maximum extent
practicable, permit the personnel of a small
business development center to use any site or
facility designated by the Administrator for
use to provide disaster recovery assistance.''.
(b) Sense of Congress.--It is the sense of Congress that, subject
to the availability of funds, the Administrator of the Small Business
Administration should, to the extent practicable, ensure that a small
business development center is appropriately reimbursed for any
legitimate expenses incurred in carrying out activities under section
21(b)(3)(B) of the Small Business Act, as added by subsection (a).
SEC. 2104. FAST PROGRAM.
(a) Definitions.--Section 34(a) of the Small Business Act (15
U.S.C. 657d(a)) is amended--
(1) by redesignating paragraphs (3) through (9) as
paragraphs (4) through (10), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Catastrophic incident.--The term `catastrophic
incident' means a major disaster that is comparable to the
description of a catastrophic incident in the National Response
Plan of the Administration, or any successor thereto.''.
(b) Priority.--Section 34(c)(2) of the Small Business Act (15
U.S.C. 657d(c)(2)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B)(vi)(III), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(C) shall give special consideration to an
applicant that is located in an area affected by a
catastrophic incident.''.
(c) Additional Assistance.--Section 34(c) of the Small Business Act
(15 U.S.C. 657d(c)) is amended by adding at the end the following:
``(5) Additional assistance for catastrophic incidents.--
Upon application by an applicant that receives an award or has
in effect a cooperative agreement under this section and that
is located in an area affected by a catastrophic incident, the
Administrator may--
``(A) provide additional assistance to the
applicant; and
``(B) waive the matching requirements under
subsection (e)(2).''.
SEC. 2105. USE OF FEDERAL SURPLUS PROPERTY IN DISASTER AREAS.
Section 7(j)(13)(F) of the Small Business Act (15 U.S.C.
636(j)(13)(F)) is amended--
(1) by inserting ``(i)'' after ``(F)''; and
(2) by adding at the end the following:
``(ii)(I) In this clause--
``(aa) the term `covered period' means the
2-year period beginning on the date on which
the President declared the applicable major
disaster; and
``(bb) the term `disaster area' means the
area for which the President has declared a
major disaster, during the covered period.
``(II) The Administrator may transfer technology or
surplus property under clause (i) on a priority basis
to a small business concern located in a disaster area
if--
``(aa) the small business concern meets the
requirements for such a transfer, without
regard to whether the small business concern is
a Program Participant; and
``(bb) for a small business concern that is
a Program Participant, on and after the date on
which the President declared the applicable
major disaster, the small business concern has
not received property under this subparagraph
on the basis of the status of the small
business concern as a Program Participant.
``(III) For any transfer of property under this
clause to a small business concern, the terms and
conditions shall be the same as a transfer to a Program
Participant, except that the small business concern
shall agree not to sell or transfer the property to any
party other than the Federal Government during the
covered period.
``(IV) A small business concern that receives a
transfer of property under this clause may not receive
a transfer of property under clause (i) during the
covered period.
``(V) If a small business concern sells or
transfers property in violation of the agreement
described in subclause (III), the Administrator may
initiate proceedings to prohibit the small business
concern from receiving a transfer of property under
this clause or clause (i), in addition to any other
remedy available to the Administrator.''.
SEC. 2106. RECOVERY OPPORTUNITY LOANS.
Section 7(a)(31) of the Small Business Act (15 U.S.C. 636(a)(31))
is amended--
(1) in subparagraph (A)--
(A) by redesignating clauses (i), (ii), and (iii)
as clauses (ii), (iii), and (iv), respectively; and
(B) by inserting before clause (ii), as so
redesignated, the following:
``(i) The term `disaster area' means the
area for which the President has declared a
major disaster, during the 5-year period
beginning on the date of the declaration.'';
and
(2) by adding at the end the following:
``(H) Recovery opportunity loans.--
``(i) In general.--The Administrator may
guarantee an express loan to a small business
concern located in a disaster area in
accordance with this subparagraph.
``(ii) Maximums.--For a loan guaranteed
under clause (i)--
``(I) the maximum loan amount is
$150,000; and
``(II) the guarantee rate shall be
not more than 85 percent.
``(iii) Overall cap.--A loan guaranteed
under clause (i) shall not be counted in
determining the amount of loans made to a
borrower for purposes of subparagraph (D).
``(iv) Operations.--A small business
concern receiving a loan guaranteed under
clause (i) shall certify that the small
business concern was in operation on the date
on which the applicable major disaster occurred
as a condition of receiving the loan.
``(v) Repayment ability.--A loan guaranteed
under clause (i) may only be made to a small
business concern that demonstrates, to the
satisfaction of the Administrator, sufficient
capacity to repay the loan.
``(vi) Timing of payment of guarantees.--
``(I) In general.--Not later than
90 days after the date on which a
request for purchase is filed with the
Administrator, the Administrator shall
determine whether to pay the guaranteed
portion of the loan.
``(II) Recapture.--Notwithstanding
any other provision of law, unless
there is a subsequent finding of fraud
by a court of competent jurisdiction
relating to a loan guaranteed under
clause (i), on and after the date that
is 6 months after the date on which the
Administrator determines to pay the
guaranteed portion of the loan, the
Administrator may not attempt to
recapture the paid guarantee.
``(vii) Fees.--
``(I) In general.--Unless the
Administrator has waived the guarantee
fee that would otherwise be collected
by the Administrator under paragraph
(18) for a loan guaranteed under clause
(i), and except as provided in
subclause (II), the guarantee fee for
the loan shall be equal to the
guarantee fee that the Administrator
would collect if the guarantee rate for
the loan was 50 percent.
``(II) Exception.--Subclause (I)
shall not apply if the cost of carrying
out the program under this subsection
in a fiscal year is more than zero and
such cost is directly attributable to
the cost of guaranteeing loans under
clause (i).
``(viii) Rules.--Not later than 270 days
after the date of enactment of this
subparagraph, the Administrator shall
promulgate rules to carry out this
subparagraph.''.
SEC. 2107. CONTRACTOR MALFEASANCE.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(12), as added by section 2101 of this Act, the following:
``(13) Supplemental assistance for contractor
malfeasance.--
``(A) In general.--If a contractor or other person
engages in malfeasance in connection with repairs to,
rehabilitation of, or replacement of real or personal
property relating to which a loan was made under this
subsection and the malfeasance results in substantial
economic damage to the recipient of the loan or
substantial risks to health or safety, upon receiving
documentation of the substantial economic damage or the
substantial risk to health and safety from an
independent loss verifier, and subject to subparagraph
(B), the Administrator may increase the amount of the
loan under this subsection, as necessary for the cost
of repairs, rehabilitation, or replacement needed to
address the cause of the economic damage or health or
safety risk.
``(B) Requirements.--The Administrator may only
increase the amount of a loan under subparagraph (A)
upon receiving an appropriate certification from the
borrower and person performing the mitigation attesting
to the reasonableness of the mitigation costs and an
assignment of any proceeds received from the person
engaging in the malfeasance. The assignment of proceeds
recovered from the person engaging in the malfeasance
shall be equal to the amount of the loan under this
section. Any mitigation activities shall be subject to
audit and independent verification of completeness and
cost reasonableness.''.
SEC. 2108. LOCAL CONTRACTING PREFERENCES AND INCENTIVES.
Section 15 of the Small Business Act (15 U.S.C. 644) is amended by
inserting after subsection (e) the following:
``(f) Contracting Preference for Small Business Concerns in a Major
Disaster Area.--
``(1) Definition.--In this subsection, the term `disaster
area' means the area for which the President has declared a
major disaster, during the period of the declaration.
``(2) Contracting preference.--An agency shall provide a
contracting preference for a small business concern located in
a disaster area if the small business concern will perform the
work required under the contract in the disaster area.
``(3) Credit for meeting contracting goals.--If an agency
awards a contract to a small business concern under the
circumstances described in paragraph (2), the value of the
contract shall be doubled for purposes of determining
compliance with the goals for procurement contracts under
subsection (g)(1)(A).''.
SEC. 2109. CLARIFICATION OF COLLATERAL REQUIREMENTS.
Section 7(d)(6) of the Small Business Act (15 U.S.C. 636(d)(6)) is
amended by inserting after ``which are made under paragraph (1) of
subsection (b)'' the following: ``: Provided further, That the
Administrator, in obtaining the best available collateral for a loan of
not more than $200,000 under paragraph (1) or (2) of subsection (b)
relating to damage to or destruction of the property of, or economic
injury to, a small business concern, shall not require the owner of the
small business concern to use the primary residence of the owner as
collateral if the Administrator determines that the owner has other
assets of equal quality and with a value equal to or greater than the
amount of the loan that could be used as collateral for the loan:
Provided further, That nothing in the preceding proviso may be
construed to reduce the amount of collateral required by the
Administrator in connection with a loan described in the preceding
proviso or to modify the standards used to evaluate the quality (rather
than the type) of such collateral''.
TITLE II--DISASTER PLANNING AND MITIGATION
SEC. 2201. BUSINESS RECOVERY CENTERS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(13), as added by section 2108 of this Act, the following:
``(14) Business recovery centers.--
``(A) In general.--The Administrator, acting
through the district offices of the Administration,
shall identify locations that may be used as recovery
centers by the Administration in the event of a
disaster declared under this subsection or a major
disaster.
``(B) Requirements for identification.--Each
district office of the Administration shall--
``(i) identify a location described in
subparagraph (A) in each county, parish, or
similar unit of general local government in the
area served by the district office; and
``(ii) ensure that the locations identified
under subparagraph (A) may be used as a
recovery center without cost to the Government,
to the extent practicable.''.
TITLE III--OTHER PROVISIONS
SEC. 2301. INCREASED OVERSIGHT OF ECONOMIC INJURY DISASTER LOANS.
(a) In General.--Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended by inserting before the undesignated matter
following paragraph (14), as added by section 2201 of this Act, the
following:
``(15) Increased oversight of economic injury disaster
loans.--The Administrator shall increase oversight of entities
receiving loans under paragraph (2), and may consider--
``(A) scheduled site visits to ensure borrower
eligibility and compliance with requirements
established by the Administrator; and
``(B) reviews of the use of the loan proceeds by an
entity described in paragraph (2) to ensure compliance
with requirements established by the Administrator.''.
(b) Sense of Congress Relating To Using Existing Funds.--It is the
sense of Congress that no additional Federal funds should be made
available to carry out the amendments made by this section.
SEC. 2302. GAO REPORT ON PAPERWORK REDUCTION.
Not later than 1 year after the date of enactment of this Act, the
Comptroller General of the United States 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 evaluating
steps that the Small Business Administration has taken, with respect to
the application for disaster assistance under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), to comply with subchapter I of chapter
35 of title 44, United States Code (commonly known as the ``Paperwork
Reduction Act'') and related guidance.
SEC. 2303. REPORT ON WEB PORTAL FOR DISASTER LOAN APPLICANTS.
Section 38 of the Small Business Act (15 U.S.C. 657j) is amended by
adding at the end the following:
``(c) Report on Web Portal for Disaster Loan Application Status.--
``(1) In general.--Not later than 90 days after the date of
enactment of this subsection, 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 relating to the creation of a web
portal to the track the status of applications for disaster
assistance under section 7(b).
``(2) Contents.--The report under paragraph (1) shall
include--
``(A) information on the progress of the
Administration in implementing the information system
under subsection (a);
``(B) recommendations from the Administration
relating to the creation of a web portal for applicants
to check the status of an application for disaster
assistance under section 7(b), including a review of
best practices and web portal models from the private
sector;
``(C) information on any related costs or staffing
needed to implement such a web portal;
``(D) information on whether such a web portal can
maintain high standards for data privacy and data
security;
``(E) information on whether such a web portal will
minimize redundancy among Administration disaster
programs, improve management of the number of inquiries
made by disaster applicants to employees located in the
area affected by the disaster and to call centers, and
reduce paperwork burdens on disaster victims; and
``(F) such additional information as is determined
necessary by the Administrator.''.
Attest:
Secretary.
114th CONGRESS
1st Session
H.R. 208
_______________________________________________________________________
AMENDMENTS