[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 208 Engrossed in House (EH)]
114th CONGRESS
1st Session
H. R. 208
_______________________________________________________________________
AN ACT
To improve the disaster assistance programs of the Small Business
Administration.
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 ``Superstorm Sandy Relief and Disaster
Loan Program Improvement Act of 2015''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) In 2012, Superstorm Sandy caused substantial physical
and economic damage to the United States, and New York in
particular.
(2) For businesses and homeowners, the primary means of
obtaining long-term Federal financial assistance in the wake of
disasters such as Superstorm Sandy is through the Small
Business Administration's Disaster Loan Program.
(3) With regard to the Small Business Administration's
operation of the Disaster Loan Program after Superstorm Sandy,
the Government Accountability Office found that the
Administration did not meet its timeliness goals for processing
business loan applications.
(4) According to the Government Accountability Office, the
Small Business Administration stated that it was challenged by
an unexpectedly high volume of loan applications that it
received early in its response to Superstorm Sandy.
(5) As a result, many businesses and homeowners affected by
Superstorm Sandy were unable to apply for financing from the
Small Business Administration.
SEC. 3. REVISED DISASTER DEADLINE.
Section 7(d) of the Small Business Act (15 U.S.C. 636(d)) is
amended by adding at the end the following:
``(8) Disaster loans for superstorm sandy.--
``(A) In general.--Notwithstanding any other
provision of law, and subject to the same requirements
and procedures that are used to make loans pursuant to
subsection (b), a small business concern, homeowner, or
renter that was located within an area and during the
time period with respect to which a major disaster was
declared by the President under section 401 of the
Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) by reason of Superstorm
Sandy may apply to the Administrator--
``(i) for a loan to repair, rehabilitate,
or replace property damaged or destroyed by
reason of Superstorm Sandy; or
``(ii) if such a small business concern has
suffered substantial economic injury by reason
of Superstorm Sandy, for a loan to assist such
a small business concern.
``(B) Timing.--The Administrator shall select loan
recipients and make available loans for a period of not
less than 1 year after the date on which the
Administrator carries out this authority.''.
SEC. 4. USE OF PHYSICAL DAMAGE DISASTER LOANS TO CONSTRUCT SAFE ROOMS.
Section 7(b)(1)(A) of the Small Business Act (15 U.S.C.
636(b)(1)(A)) is amended by striking ``mitigating measures'' and all
that follows through ``modifying structures'' and inserting the
following: ``mitigating measures, including--
``(i) construction of retaining walls and sea
walls;
``(ii) grading and contouring land; and
``(iii) relocating utilities and modifying
structures, including construction of a safe room or
similar storm shelter designed to protect property and
occupants from tornadoes or other natural disasters''.
SEC. 5. COLLATERAL REQUIREMENTS FOR SMALL BUSINESS CONCERNS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting after paragraph (9) the following:
``(10) Collateral requirements for small businesses.--In
the case of a loan made pursuant to this subsection in an
amount not greater than $250,000, the Administrator may not
require a borrower to pledge his or her primary residence as
collateral if--
``(A) other collateral exists, including assets
related to the operation of a business; and
``(B) such an option does not delay the
Administrator's processing of disaster applications for
a disaster.''.
SEC. 6. REDUCING DELAYS ON CLOSING AND DISBURSEMENT OF LOANS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
further amended by inserting after paragraph (10) (as added by section
5) the following:
``(11) Reducing closing and disbursement delays.--The
Administrator shall provide a clear and concise notification on
all application materials for loans made under this subsection
and on relevant websites notifying an applicant that the
applicant may submit all documentation necessary for the
approval of the loan at the time of application and that
failure to submit all documentation could delay the approval
and disbursement of the loan.''.
SEC. 7. INCREASING TRANSPARENCY IN LOAN APPROVALS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
further amended by inserting after paragraph (11) (as added by section
6) the following:
``(12) Increasing transparency in loan approvals.--The
Administrator shall establish and implement clear, written
policies and procedures for analyzing the ability of a loan
applicant to repay a loan made under this subsection.''.
SEC. 8. SAFEGUARDING TAXPAYERS' INTERESTS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
further amended by inserting after paragraph (12) (as added by section
7) the following:
``(13) Ensuring accountability in loan approvals.--The
Administrator shall establish requirements for the approval of
economic injury disaster loan assistance made available
pursuant to paragraph (2), which shall include the review of
applicant eligibility and shall require that all supporting
documentation is submitted prior to loan approval. The
Administrator shall require that personnel involved in the
approval of such loans be trained on such procedures.''.
SEC. 9. DISASTER PERFORMANCE MEASURES.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
further amended by inserting after paragraph (13) (as added by section
8) the following:
``(14) Reporting on disaster performance measures.--The
Administrator shall report the average processing time for all
other disaster loan applications, including disaggregated data
on disaster loan applications that were declined by the
Administration's automated disaster processing system and
applications in which the Administrator performed loss
verification. For each disaster described in paragraph (2), the
Administrator shall report such average processing times on its
website and to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate.''.
SEC. 10. DISASTER PLAN IMPROVEMENTS.
The Administrator of the Small Business Administration shall
revise the comprehensive written disaster response plan required in
section 40 of the Small Business Act (15 U.S.C. 657l), or any successor
thereto, to incorporate the Administration's response to a situation in
which an extreme volume of applications are received during the period
of time immediately after a disaster, which shall include a plan to
ensure that sufficient human and technological resources are made
available and a plan to prevent delays in loan processing.
SEC. 11. REPORT TO CONGRESS ON IMPLEMENTATION OF CERTAIN PROGRAMS.
(a) Initial Report.--The Administrator of the Small Business
Administration shall report to Congress not later than 30 days after
the date of enactment of this Act on the implementation and status of
the private disaster loan program established in section 7(c) of the
Small Business Act (15 U.S.C. 636(c)), the Immediate Disaster
Assistance program established in section 42 of such Act (15 U.S.C.
657n), and the expedited disaster assistance business loan program
established in section 12085 of the Small Business Disaster Response
and Loan Improvements Act of 2008 (15 U.S.C. 636j).
(b) Required Consultation With Depository Institutions and Credit
Unions.--The Administrator shall require the Associate Administrator
for the Office of Disaster Assistance to consult with depository
institutions (as defined in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813)) and credit unions regarding their potential
participation in any of the programs described in subsection (a).
(c) Report on Consultation.--Not later than 6 months after date of
enactment of this Act, the Administrator shall report to Congress on
the consultation required under subsection (b).
Passed the House of Representatives July 13, 2015.
Attest:
Clerk.
114th CONGRESS
1st Session
H. R. 208
_______________________________________________________________________
AN ACT
To improve the disaster assistance programs of the Small Business
Administration.