114 HR 208 EAS: Recovery Improvements for Small Entities After Disaster Act of 2015
U.S. House of Representatives
2015-10-21
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
114th CONGRESS1st SessionH.R. 208In the Senate of the United States,October 21, 2015.Amendments:
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(1)On page 2, strike lines 1 through 5 and insert the following: 1.Short title; table of contents (a)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)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 IMPROVEMENTSSec. 1001. Short title.Sec. 1002. Findings.TITLE I—Disaster assistance improvements1101. 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 ENTITIESSec. 2001. Short title.TITLE I—Improvements of disaster response and loansSec. 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 mitigationSec. 2201. Business recovery centers.TITLE III—Other provisionsSec. 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. ASuperstorm Sandy Relief and Disaster Loan Program Improvements 1001.This division may be cited as the Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015
.
(2)On page 3, strike line 5 and insert the following: <enum>I</enum><header>Disaster assistance improvements</header> <section id="id4B53B7C5633D4E98A83B8BFA95BE3D38"><enum>1101.</enum><header>Revised disaster deadline</header></section>(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)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: 1103.Reducing delays on closing and disbursement of loansSection 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: 1104.Safeguarding taxpayer interests and increasing transparency in loan approvalsSection 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:
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:
BRecovery improvements for small entities
2001.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
.
<enum>I</enum><header>Improvements of disaster response and loans</header>
<section id="id2e6ed096-971d-4974-b2ff-b4fdb8506be5"><enum>2101.</enum><header>Additional awards to small business development centers, women's business centers, and SCORE for
disaster recovery</header><text display-inline="no-display-inline">Section 7(b) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(b)</external-xref>) is amended by inserting before the undesignated matter following paragraph (11), as added by section 1104 of this Act, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idaac95d38-4d07-4d7d-a37c-8145e701e293" reported-display-style="italic" style="OLC">
<paragraph id="id99803403-1bb2-4a72-b8df-e58cee98c697"><enum>(12)</enum><header>Additional awards to small business development centers, women's business centers, and SCORE for
disaster recovery</header>
<subparagraph id="idf785ec76-eb61-4427-bdc3-986bcdadd827"><enum>(A)</enum><header>In general</header><text>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.</text>
</subparagraph><subparagraph id="id8dbe3cdd-f476-49e9-8120-73f01c3a0ed1"><enum>(B)</enum><header>Form of financial assistance</header><text>Financial assistance provided under this paragraph shall be in the form of a grant, contract, or cooperative agreement.</text>
</subparagraph><subparagraph id="id528c70ca-bfc7-4a42-9c88-23b87a9c88ed"><enum>(C)</enum><header>No matching funds required</header><text>Matching funds shall not be required for any grant, contract, or cooperative agreement under this paragraph.</text>
</subparagraph><subparagraph id="id3ff18274-fba4-41cf-b9b3-da72f84bfd19"><enum>(D)</enum><header>Requirements</header><text>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.</text>
</subparagraph><subparagraph id="idda8e9135-b024-4d0c-b0f2-fb5c789d0227"><enum>(E)</enum><header>Performance</header>
<clause id="id079d8123-5da4-4245-a4b4-7b7953b47261"><enum>(i)</enum><header>In general</header><text>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.</text>
</clause><clause id="id678b40e7-6821-4a82-afaf-edfb2f5d5fbf"><enum>(ii)</enum><header>Use of estimates</header><text>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.</text>
</clause></subparagraph><subparagraph id="id8ee5d2e0-e76e-4987-b087-7b2ffa524a9d"><enum>(F)</enum><header>Term</header>
<clause id="id0b5cc7d6-123c-42df-a76a-7921a314ec97"><enum>(i)</enum><header>In general</header><text>The term of any grant, contract, or cooperative agreement under this paragraph shall be for not more than 2 years.</text>
</clause><clause id="id9bb42b8d-4407-49c6-a6e7-dcd14c592233"><enum>(ii)</enum><header>Extension</header><text>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.</text>
</clause></subparagraph><subparagraph id="id6c80d302-7dc2-41d3-8db8-74938d904462"><enum>(G)</enum><header>Exemption from other program requirements</header><text>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.</text>
</subparagraph><subparagraph id="id2ef60bed-90cb-4575-9e94-8ba9f5bf9e0e"><enum>(H)</enum><header>Competitive basis</header><text>The Administration shall award financial assistance under this paragraph on a competitive basis.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="idb69c4b5b-a66a-4eaa-a7d9-9ccb8c1550af"><enum>2102.</enum><header>Collateral requirements for disaster loans</header> <subsection id="idef7f550c-4774-4a42-981e-73f432f14762"><enum>(a)</enum><header>In general</header><text>Section 7(d)(6) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(d)(6)</external-xref>) is amended in the third proviso—</text>
<paragraph id="id928a5df9-3a9a-4c58-b2e0-d8de86cff1b7"><enum>(1)</enum><text>by striking <quote>$14,000</quote> and inserting <quote>$25,000</quote>; and</text> </paragraph><paragraph id="ida87ca480-fd55-4546-936e-cdb2ef1cfc42"><enum>(2)</enum><text>by striking <quote>major disaster</quote> and inserting <quote>disaster</quote>.</text>
</paragraph></subsection><subsection id="idf9346992-2aa8-4cee-86d0-3cd96dffa788"><enum>(b)</enum><header>Sunset</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(d)(6)</external-xref>) is amended in the third proviso—</text>
<paragraph id="id53bc869d-9242-483e-82bc-721194c9d5ca"><enum>(1)</enum><text>by striking <quote>$25,000</quote> and inserting <quote>$14,000</quote>; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idd2a136c6-a23f-4679-b21b-07985fbd7420"><enum>(2)</enum><text>by inserting <quote>major</quote> before <quote>disaster</quote>.</text>
</paragraph></subsection><subsection id="idd26b6e5e-9661-4439-b8a2-f38e3de7feb8"><enum>(c)</enum><header>Report</header><text>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—</text>
<paragraph id="idced387f7-7021-4e95-ae8f-f5631ec73a9a"><enum>(1)</enum><text>an assessment of the impact and benefits resulting from the amendments; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1ab69246-1783-4ca9-96ae-4e68f435fc1c"><enum>(2)</enum><text>a recommendation as to whether the amendments should be made permanent.</text>
</paragraph></subsection></section><section id="idc56c0503-c9e8-4961-918a-dce02c1ba5db"><enum>2103.</enum><header>Assistance to out-of-State business concerns to aid in disaster recovery</header>
<subsection id="id969db457-0719-4a70-b0ed-e3fb838b90f5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 21(b)(3) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/648">15 U.S.C. 648(b)(3)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id488f5a4f-35bb-4aaa-981f-9e60da655a65"><enum>(1)</enum><text>by striking <quote>(3) At the discretion</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0720582a-fb71-48ff-9af7-fa55f6d869e9" reported-display-style="italic" style="OLC">
<paragraph id="id57298520-4ee3-45ec-b235-e06004ce73da"><enum>(3)</enum><header>Assistance to
out-of-state small business concerns</header>
<subparagraph id="ideb185728-e864-493f-8a46-a8864089e952"><enum>(A)</enum><header>In
general</header><text>At the discretion</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="id62c3a951-af50-427d-a3ae-50ed52cd861c"><enum>(2)</enum><text>by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8474bce6-6527-4a1f-8cec-030f7948ac5a" reported-display-style="italic" style="OLC">
<subparagraph id="id679648d5-a5ec-4c5c-bfc0-eac326646eed"><enum>(B)</enum><header>Disaster
recovery assistance</header>
<clause id="ida13036c2-5f19-4dab-9ade-731b3cf35a82"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="id3ba001ad-f510-423f-95ca-8810391965ab"><enum>(ii)</enum><header>Term</header>
<subclause id="idf994bf0e-d6ef-4784-ae47-c0ef4defa8df"><enum>(I)</enum><header>In general</header><text>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.</text>
</subclause><subclause id="idbb4fa871-2bb1-4f14-a2f0-b93d930e77a9"><enum>(II)</enum><header>Extension</header><text>The Administrator may, at the discretion of the Administrator, extend the period described in subclause (I).</text>
</subclause></clause><clause id="id8772477a-9aac-4db2-9463-7ac506495cc1"><enum>(iii)</enum><header>Continuity
of services</header><text>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.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id2f297df3-5831-4841-8ffc-87b53667f930"><enum>(iv)</enum><header>Access to
disaster recovery facilities</header><text>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.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id93b06fd2-4173-4509-a22f-4871892795d3"><enum>(b)</enum><header>Sense of
Congress</header><text display-inline="yes-display-inline">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).</text>
</subsection></section><section id="idf80deaa3-f26c-44df-baa7-8cb7c52bf647"><enum>2104.</enum><header>FAST program</header>
<subsection id="idfec1d278-7d2e-4b49-96e3-c2b906818d34"><enum>(a)</enum><header>Definitions</header><text>Section 34(a) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657d">15 U.S.C. 657d(a)</external-xref>) is amended—</text> <paragraph id="id146ba6eb-ff6a-4a2a-b38f-1649ba1c815f"><enum>(1)</enum><text>by redesignating paragraphs (3) through (9) as paragraphs (4) through (10), respectively; and</text>
</paragraph><paragraph id="idd1e4be44-0839-4f9f-a07b-f132511c3203"><enum>(2)</enum><text>by inserting after paragraph (2) the following:</text> <quoted-block act-name="" changed="added" id="ida10db1ba-1e1c-4292-8763-b3315e046a9c" reported-display-style="italic" style="OLC"> <paragraph id="id70257a15-62b6-476c-99f5-91a754620789"><enum>(3)</enum><header>Catastrophic incident</header><text>The term <term>catastrophic incident</term> 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.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ide6e190a0-baec-4b84-a7d2-4abd9a9bc957"><enum>(b)</enum><header>Priority</header><text>Section 34(c)(2) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657d">15 U.S.C. 657d(c)(2)</external-xref>) is amended—</text> <paragraph id="id656ea43b-f622-4f19-9935-5258f0a08576"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="id1379f606-c014-4eff-bc89-b6b2dfdddf38"><enum>(2)</enum><text>in subparagraph (B)(vi)(III), by striking the period at the end and inserting <quote>; and</quote>; and</text> </paragraph><paragraph id="id5be02a55-b63c-426a-8854-9bf3c1b6f119"><enum>(3)</enum><text>by adding at the end the following:</text>
<quoted-block act-name="" changed="added" id="idd3ff027d-f8cb-4670-a978-e6d0bf7601fd" reported-display-style="italic" style="OLC">
<subparagraph id="id13d0b93e-52e3-4c2a-9967-cd209efecc01"><enum>(C)</enum><text>shall give special consideration to an applicant that is located in an area affected by a catastrophic incident.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idac2b06ed-9038-490b-9b66-04b5d1755293"><enum>(c)</enum><header>Additional assistance</header><text>Section 34(c) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657d">15 U.S.C. 657d(c)</external-xref>) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id1c3a087c-5195-4a1e-a841-3884feaf1713" reported-display-style="italic" style="OLC">
<paragraph id="idf3d82f52-8dc8-4308-bab3-d61b24045404"><enum>(5)</enum><header>Additional assistance for catastrophic incidents</header><text>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—</text>
<subparagraph id="id85C27D0247DD470A831C584A6ECDACC4"><enum>(A)</enum><text>provide additional assistance to the applicant; and</text>
</subparagraph><subparagraph id="idC4261FB1E7984F9AB888D5CE7FE0EAF0"><enum>(B)</enum><text>waive the matching requirements under subsection (e)(2).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section id="iddd3d9628-ea85-459b-9d7b-758e9a42c37e"><enum>2105.</enum><header>Use of Federal surplus property in disaster areas</header><text display-inline="no-display-inline">Section 7(j)(13)(F) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(j)(13)(F)</external-xref>) is amended—</text>
<paragraph id="idaff505f8-f590-43d5-bf24-14b0f9a358c7"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(i)</quote> after <quote>(F)</quote>; and</text> </paragraph><paragraph id="id1e165748-b981-45ee-b83c-f3be9cb99477"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ida805ef48-85bd-4ab7-b2be-fdeab41a6bd6" reported-display-style="italic" style="OLC">
<clause id="id8afec677-066a-40ce-bef4-f8bc069cc877" indent="up1"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id972d15a9-db09-4cd7-9045-59f7997f1aea"><enum>(I)</enum><text>In this clause—</text> <item changed="added" id="ida50c6017-08fb-46c9-8ac8-ec6cca9a35d3" indent="up1" reported-display-style="italic"><enum>(aa)</enum><text>the term <term>covered period</term> means the 2-year period beginning on the date on which the President declared the applicable major disaster; and</text>
</item><item changed="added" id="id87519320-ac6e-43a7-880d-b43b2a4ffccc" indent="up1" reported-display-style="italic"><enum>(bb)</enum><text>the term <term>disaster area</term> means the area for which the President has declared a major disaster, during the covered period.</text> </item></subclause><subclause changed="added" id="ide7d4faad-60bc-4ef8-ab89-c69927245e8e" indent="up1" reported-display-style="italic"><enum>(II)</enum><text display-inline="yes-display-inline">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—</text>
<item id="id7cd5315e-c2aa-4642-b423-dc093c9f80ff"><enum>(aa)</enum><text display-inline="yes-display-inline">the small business concern meets the requirements for such a transfer, without regard to whether the small business concern is a Program Participant; and</text>
</item><item id="id322b5478-f6d2-4f59-8496-3ff58160d84a"><enum>(bb)</enum><text display-inline="yes-display-inline">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.</text>
</item></subclause><subclause changed="added" id="iddde27bd1-29a3-4bc2-ac9b-d898e89de33b" indent="up1" reported-display-style="italic"><enum>(III)</enum><text display-inline="yes-display-inline">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.</text>
</subclause><subclause changed="added" id="idec741f75-10e8-4ab5-b791-7dfb84fdb87c" indent="up1" reported-display-style="italic"><enum>(IV)</enum><text display-inline="yes-display-inline">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.</text>
</subclause><subclause changed="added" id="idfc42b69c-a0ea-46cb-8e8f-e4e9f5234e24" indent="up1" reported-display-style="italic"><enum>(V)</enum><text display-inline="yes-display-inline">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.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id1a983e07-70b8-4505-a22a-ae1745a9e608"><enum>2106.</enum><header>Recovery opportunity loans</header><text display-inline="no-display-inline">Section 7(a)(31) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(a)(31)</external-xref>) is amended—</text> <paragraph id="idb6d99384-5595-4521-822f-75b7f3a584d2"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<subparagraph id="id36ebb2de-16a6-4cd6-b3c4-9bee14c58e22"><enum>(A)</enum><text>by redesignating clauses (i), (ii), and (iii) as clauses (ii), (iii), and (iv), respectively; and</text> </subparagraph><subparagraph id="id9c3878c4-8753-45c6-bc93-e58efc57025c"><enum>(B)</enum><text>by inserting before clause (ii), as so redesignated, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8408e63c-f44e-4304-99d8-4c4c8d3c139b" reported-display-style="italic" style="OLC">
<clause id="id367ecfca-03b9-4a4e-a68a-a8ebe9a885a9"><enum>(i)</enum><text>The term <term>disaster area</term> means the area for which the President has declared a major disaster, during the 5-year period beginning on the date of the declaration.</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id2fab7bd5-f550-4a11-b54b-74a55e197656"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text> <quoted-block changed="added" display-inline="no-display-inline" id="id277d1ba6-00b7-4d66-bd67-4e24c7a38dae" reported-display-style="italic" style="OLC"> <subparagraph id="id15db45f7-29b0-4fbc-a1d0-fbf78280ff99"><enum>(H)</enum><header>Recovery opportunity loans</header> <clause id="idb441bc4f-9782-4361-8956-6f37b23aed4d"><enum>(i)</enum><header>In general</header><text>The Administrator may guarantee an express loan to a small business concern located in a disaster area in accordance with this subparagraph.</text>
</clause><clause id="idda72d993-9581-4a75-8b8e-e73254124f9c"><enum>(ii)</enum><header>Maximums</header><text>For a loan guaranteed under clause (i)—</text> <subclause id="idec5d1ae8-58a8-41a1-911e-b55c21f7a4cb"><enum>(I)</enum><text>the maximum loan amount is $150,000; and</text>
</subclause><subclause id="idd9fd3f2e-3f08-42d4-9bfd-9b1afcb1012b"><enum>(II)</enum><text>the guarantee rate shall be not more than 85 percent.</text> </subclause></clause><clause id="id39d80f7d-75ab-452a-8b6a-01bf2ce3e1c4"><enum>(iii)</enum><header>Overall cap</header><text>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).</text>
</clause><clause id="id3f2a4885-36c1-4134-b0be-2b553af738f8"><enum>(iv)</enum><header>Operations</header><text>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.</text>
</clause><clause id="idc5abc8e6-913f-4603-a1af-c80bb6140586"><enum>(v)</enum><header>Repayment ability</header><text>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.</text>
</clause><clause id="idf54f6a0f-9c9b-4677-b7e7-f2e18aa10faf"><enum>(vi)</enum><header>Timing of payment of guarantees</header>
<subclause id="id3f21ce20-5b88-4d97-b2a5-b51ab3f0a567"><enum>(I)</enum><header>In general</header><text>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.</text>
</subclause><subclause id="id3236a26e-92da-4478-802c-1b1ccf87264f"><enum>(II)</enum><header>Recapture</header><text>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.</text>
</subclause></clause><clause id="idA34AE45691C9432788A48EB8B15842A8"><enum>(vii)</enum><header>Fees</header>
<subclause id="id16C98439E56E4312A4A44E492C99A82B"><enum>(I)</enum><header>In general</header><text>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.</text>
</subclause><subclause id="id76053FA221F540C398C1002151D95E18"><enum>(II)</enum><header>Exception</header><text>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).</text>
</subclause></clause><clause id="idCA33A8830DFF4B688E7A157ADC215E92"><enum>(viii)</enum><header>Rules</header><text>Not later than 270 days after the date of enactment of this subparagraph, the Administrator shall promulgate rules to carry out this subparagraph.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="idc099c6f7-a5a8-4988-847c-19df7a6f6d06"><enum>2107.</enum><header>Contractor malfeasance</header><text display-inline="no-display-inline">Section 7(b) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(b)</external-xref>) is amended by inserting before the undesignated matter following paragraph (12), as added by section 2101 of this Act, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4b4eeaf5-c869-4dae-8ef4-fc103691fc3d" reported-display-style="italic" style="OLC">
<paragraph id="id3dc96f13-533f-41a2-a7fa-a2e1f3f9f65f"><enum>(13)</enum><header>Supplemental assistance for contractor malfeasance</header>
<subparagraph id="id24a82342-4f0d-4639-9e04-ef32d9203a54"><enum>(A)</enum><header>In general</header><text>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.</text>
</subparagraph><subparagraph id="id2586cc8a-f73f-4b09-a316-2fce849130ef"><enum>(B)</enum><header>Requirements</header><text>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.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idf82227a1-39f6-491e-bfbe-e6439b8b86e6"><enum>2108.</enum><header>Local contracting preferences and incentives</header><text display-inline="no-display-inline">Section 15 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/644">15 U.S.C. 644</external-xref>) is amended by inserting after subsection (e) the following:</text>
<quoted-block act-name="" changed="added" id="id6caac61d-36f9-4c6e-b5f6-4082ef3485e2" reported-display-style="italic" style="OLC">
<subsection id="id1e65c35e-9187-4064-8f94-a0b9110d5387"><enum>(f)</enum><header>Contracting preference for small business concerns in a major disaster area</header>
<paragraph id="idd8dd31fe-9293-4abf-8b0d-2fef342a4906"><enum>(1)</enum><header>Definition</header><text>In this subsection, the term <term>disaster area</term> means the area for which the President has declared a major disaster, during the period of the declaration.</text>
</paragraph><paragraph id="id1ed1c96d-4992-4f04-ada1-8433ea77e32e"><enum>(2)</enum><header>Contracting preference</header><text>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.</text>
</paragraph><paragraph id="id6bb80214-d51b-4b34-b0e1-f54c68da8b06"><enum>(3)</enum><header>Credit for meeting contracting goals</header><text>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).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idD8AF6235A5F64B0E95ABD406D177C58C"><enum>2109.</enum><header>Clarification of
collateral requirements</header><text display-inline="no-display-inline">Section 7(d)(6) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(d)(6)</external-xref>) is amended by inserting after <quote>which are made under paragraph (1) of subsection (b)</quote> the following: <quote>: <proviso><italic>Provided further</italic></proviso>, 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: <proviso><italic>Provided further</italic></proviso>, 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</quote>.</text>
</section><enum>II</enum><header>Disaster planning and mitigation</header>
<section id="idd40cc09b-9e75-4a61-a693-6cfb91cd7766"><enum>2201.</enum><header>Business recovery centers</header><text display-inline="no-display-inline">Section 7(b) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(b)</external-xref>) is amended by inserting before the undesignated matter following paragraph (13), as added by section 2108 of this Act, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idacc85469-fdc5-402e-ba55-f927157cd42d" reported-display-style="italic" style="OLC">
<paragraph id="id561e5c88-68d1-4b2e-995b-f11d3df70184"><enum>(14)</enum><header>Business recovery centers</header>
<subparagraph id="id8e8e682b-bee4-4a5f-97fd-405102d27e6c"><enum>(A)</enum><header>In general</header><text>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.</text>
</subparagraph><subparagraph id="id40d80b0e-c94f-4b7d-99ca-4f6372a5b42e"><enum>(B)</enum><header>Requirements for identification</header><text>Each district office of the Administration shall—</text> <clause id="id6a961864-81ff-489e-bb26-c431b4fdff48"><enum>(i)</enum><text>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</text>
</clause><clause id="id66d29cbb-ffde-4f2e-9684-c3c5c4c43443"><enum>(ii)</enum><text>ensure that the locations identified under subparagraph (A) may be used as a recovery center without cost to the Government, to the extent practicable.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>III</enum><header>Other provisions</header>
<section id="idc07b41a4-d958-4a72-88b8-701d3c8b33d0"><enum>2301.</enum><header>Increased oversight of
economic injury disaster loans</header>
<subsection id="idd3e4bb26-5a2d-48f9-b992-5b90d8b5d92e"><enum>(a)</enum><header>In
general</header><text>Section 7(b) of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(b)</external-xref>) is amended by inserting before the undesignated matter following paragraph (14), as added by section 2201 of this Act, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8296b521-5a6b-4c38-bc94-21589511141a" reported-display-style="italic" style="OLC">
<paragraph id="id85d4a2a6-e27e-44f2-b16c-53906f5b28f6"><enum>(15)</enum><header>Increased oversight of
economic injury disaster loans</header><text>The Administrator shall increase oversight of entities receiving loans under paragraph (2), and may consider—</text>
<subparagraph id="id461623ac-e8ff-43a5-a83d-89298b1763d3"><enum>(A)</enum><text>scheduled site visits to ensure borrower eligibility and compliance with requirements established by the Administrator; and</text>
</subparagraph><subparagraph id="id61ef9547-6968-449d-977a-344bea82b264"><enum>(B)</enum><text>reviews of the use of the loan proceeds by an entity described in paragraph (2) to ensure compliance with requirements established by the Administrator.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id344dd43c-7bc3-485d-84cf-fb87279c86fd"><enum>(b)</enum><header>Sense of Congress
relating To using existing funds</header><text>It is the sense of Congress that no additional Federal funds should be made available to carry out the amendments made by this section.</text>
</subsection></section><section commented="no" id="idD73E6FE790D44FCBB94438BC4A8FE87F"><enum>2302.</enum><header>GAO report on paperwork reduction</header><text display-inline="no-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/15/636">15 U.S.C. 636(b)</external-xref>), to comply with subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/44/35">chapter 35</external-xref> of title 44, United States Code (commonly known as the <quote>Paperwork Reduction Act</quote>) and related guidance.</text>
</section><section id="id27795323-b687-4ac7-8d81-034af1351f89"><enum>2303.</enum><header>Report on web portal for
disaster loan applicants</header><text display-inline="no-display-inline">Section 38 of the Small Business Act (<external-xref legal-doc="usc" parsable-cite="usc/15/657j">15 U.S.C. 657j</external-xref>) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="ida59badd7-3518-40fa-a944-e432a6f10b8a" reported-display-style="italic" style="OLC">
<subsection id="id6c621bcc-47c3-4cd8-98f2-21a8b3247c02"><enum>(c)</enum><header>Report on web portal
for disaster loan application status</header>
<paragraph id="id2f7cb408-1c23-4c27-9425-ce742bec678e"><enum>(1)</enum><header>In
general</header><text>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).</text>
</paragraph><paragraph id="id1abb2bec-c904-459d-90a5-e811a54bafe4"><enum>(2)</enum><header>Contents</header><text>The report under paragraph (1) shall include—</text>
<subparagraph id="id2f90d116-316a-4371-840d-6fa3e3567c83"><enum>(A)</enum><text>information on the progress of the Administration in implementing the information system under subsection (a);</text>
</subparagraph><subparagraph id="ida9a5606d-58a1-4ad5-af87-9679aac81aa3"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="id6be314a3-64a1-44f2-9c84-562ec07cf7f4"><enum>(C)</enum><text>information on any related costs or staffing needed to implement such a web portal;</text>
</subparagraph><subparagraph id="id2a2da399-67fb-4b12-b405-8539ece1a6a2"><enum>(D)</enum><text>information on whether such a web portal can maintain high standards for data privacy and data security;</text>
</subparagraph><subparagraph id="idffeeae62-5801-4a33-890c-4ffb5ce5a6b8"><enum>(E)</enum><text>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</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id22a10685-2f55-41bd-aedf-4e3d6f5093c4"><enum>(F)</enum><text>such additional information as is determined necessary by the Administrator.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>Secretary