[Congressional Record Volume 153, Number 1 (Thursday, January 4, 2007)]
[Senate]
[Pages S151-S157]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. KERRY (for himself, Ms. Snowe, Ms. Landrieu, and Mr.
Vitter):
S. 163. A bill to improve the disaster loan program at the Small
Business Administration, and for other purposes; to the Committee on
Small Business and Entrepreneurship.
Mr. KERRY. Mr. President, 16 months after Hurricane Katrina struck
the Gulf Coast, small business owners in New Orleans and across
Louisiana are still struggling to keep their doors open and their
employees working. In those 16 months, I have worked with Senators
Snowe, Landrieu, and Vitter to produce a comprehensive package to
reform the SBA's Disaster Assistance program. The SBA's failed response
in a time of unmatched need demonstrated to everyone that this program
is broken and needs fixing.
Immediately after Hurricane Katrina hit, I introduced an amendment
with Senator Landrieu to the fiscal year 2006 Commerce, Justice and
Science appropriations bill to address the needs of Gulf Region small
business and homeowners. The amendment was adapted with input from
Chair Snowe, and a subsequent bipartisan amendment passed the Senate
with a vote of 96-0. Although the entire Senate supported the
amendment, it was stripped out of the bill in conference.
On September 30, 2005, I again worked with Chair Snowe and Senators
Landrieu and Vitter to introduce a bipartisan proposal, the Small
Business Hurricane Relief and Reconstruction Act of 2006 S. 1807. This
proposal was opposed by the administration. In June, I introduced the
Small Business Disaster Loan Reauthorization and Improvements Act of
2006, S. 3487 which once again attempted to comprehensively address the
shortcomings of the SBA's Disaster Assistance program. Again, the
administration opposed this effort. In August, the Small Business
Committee unanimously reported S. 3778, the Small Business
Reauthorization and Improvements Act of 2006, which again put forward a
bipartisan, comprehensive fix for this program. Finally, in December,
just prior to the adjournment of the 109th Congress, yet another
attempt was made at reaching a bipartisan consensus with the
introduction of S. 4097, the Small Business Disaster Response and Loan
Improvements Act of 2006. The administration maintained its opposition
to the fixes proposed in this bill.
Now, on the first day of this new Congress, I am introducing the
Small Business Disaster Response and Loan Improvements Act of 2007.
Once again, this bill enjoys bipartisan support by the chair and the
ranking minority member of the Small Business Committee, as well as by
the Democratic and Republican Senators of Louisiana, whose constituents
continue to wait for their Government to respond appropriately. I am
introducing this bill on the first day of the 110th Congress because as
the incoming chair of the Small Business Committee, improving the
Disaster Assistance program at the SBA is among my top priorities.
This bill includes directives for the SBA to create a private
disaster loan program, to allow for lenders to issue disaster loans. To
ensure that these loans are borrower-friendly, we provide authorization
for appropriations so that the agency can subsidize the interest rates.
In addition, the administrator is authorized to enter into agreements
with private contractors in order to expedite loan application
processing for direct disaster loans.
The bill also includes language directing SBA to create an expedited
disaster assistance loan program to provide businesses with short-term
loans so that they may keep their doors open until they receive
alternative forms of assistance. The days immediately following a
disaster are crucial for business owners--statistics show that once
they close their doors, they likely will not open them again. These
short-term loans should help prevent those doors from closing.
A presidential declaration of Catastrophic National Disaster will
allow the administrator to offer economic injury disaster loans to
adversely affected business owners beyond the geographic reach of the
disaster area. In the event of a large-scale disaster, businesses
located far from the physical reach of the disaster can be affected by
the magnitude of a localized destruction. We saw this when the
terrorist attacks of September 11, 2001 affected businesses from coast
to coast, and we saw it again with the 2005 Gulf Coast hurricanes.
Should another catastrophic disaster strike, the President should have
the authority to provide businesses across the country with access to
the same low-interest economic injury loans available to businesses
within the declared disaster area.
Non-profit entities working to provide services to victims should be
rewarded and given access to the capital they require to continue their
services. To this end, the administrator is authorized to make disaster
loans to non-profit entities, including religious organizations.
Construction and rebuilding contracts being awarded are likely to be
larger than the current $2 million threshold currently applied to the
SBA Surety Bond Program, which helps small construction firms gain
access to contracts. This bill increases the guarantee against loss for
small business contracts up to $5 million and allows the administrator
to increase that level to $10 million, if deemed necessary.
The bill also provides for Small Business Development Centers to
offer business counseling in disaster areas, and to travel beyond
traditional geographic boundaries to provide services during declared
disasters. To encourage Small Business Development Centers located in
disaster areas to keep their doors open, the maximum grant amount of
$100,000 is waived.
So that Congress may remain better aware of the status of the
administration's disaster loan program, this bill directs the
administration to report to the Committee on Small Business and
Entrepreneurship of the Senate and to the Committee on Small Business
of the House of Representatives regularly on the fiscal status of the
disaster loan program as well as the need for supplemental funding. The
adiministration is also directed to report on the number of Federal
contracts awarded to small businesses, minority-owned small businesses,
women-owned businesses, and local businesses during a disaster
declaration.
Finally, gas prices continue to fluctuate, and fuel-dependent small
businesses are struggling with the cost of energy. This bill provides
relief to small business owners during times of above average energy
price increases, authorizing energy disaster loans through the Small
Business Administration and the United States Department of Agriculture
to companies that are dependent on fuel.
In the 16 months since Katrina struck, I have visited New Orleans
three times. I have met with the lifeblood of that city--its small
business owners--the shopowners on Bourbon Street and on Magazine
Street who make that city unique. The people of New Orleans are
resilient, and they remain hopeful; they are keeping their
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businesses open despite tourism that has been slow to return and
despite a government response that was painfully slow to arrive.
Sixteen months is too long a time to wait to reform and improve a
program that could have breathed relief into this city's economy during
a time of desperation. As this new Congress begins, I call on my
colleagues to support this legislation, a bipartisan labor of more than
a year's worth of negotiations. The tools offered within this bill will
go a long way toward heading off another Katrina-like response to any
future catastrophic disaster.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 163
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Small
Business Disaster Response and Loan Improvements Act of
2007''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--PRIVATE DISASTER LOANS
Sec. 101. Private disaster loans.
Sec. 102. Technical and conforming amendments.
TITLE II--DISASTER RELIEF AND RECONSTRUCTION
Sec. 201. Definition of disaster area.
Sec. 202. Disaster loans to nonprofits.
Sec. 203. Disaster loan amounts.
Sec. 204. Small business development center portability grants.
Sec. 205. Assistance to out-of-State businesses.
Sec. 206. Outreach programs.
Sec. 207. Small business bonding threshold.
Sec. 208. Contracting priority for local small businesses.
Sec. 209. Termination of program.
Sec. 210. Increasing collateral requirements.
TITLE III--DISASTER RESPONSE
Sec. 301. Definitions.
Sec. 302. Business expedited disaster assistance loan program.
Sec. 303. Catastrophic national disasters.
Sec. 304. Public awareness of disaster declaration and application
periods.
Sec. 305. Consistency between Administration regulations and standard
operating procedures.
Sec. 306. Processing disaster loans.
Sec. 307. Development and implementation of major disaster response
plan.
Sec. 308. Congressional oversight.
TITLE IV--ENERGY EMERGENCIES
Sec. 401. Findings.
Sec. 402. Small business energy emergency disaster loan program.
Sec. 403. Agricultural producer emergency loans.
Sec. 404. Guidelines and rulemaking.
Sec. 405. Reports.
SEC. 2. DEFINITIONS.
In this Act--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15 U.S.C.
632); and
(3) the term ``small business concern owned and controlled
by socially and economically disadvantaged individuals'' has
the same meaning as in section 8 of the Small Business Act
(15 U.S.C. 637).
TITLE I--PRIVATE DISASTER LOANS
SEC. 101. PRIVATE DISASTER LOANS.
(a) In General.--Section 7 of the Small Business Act (15
U.S.C. 636) is amended--
(1) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Private Disaster Loans.--
``(1) Definitions.--In this subsection--
``(A) the term `disaster area' means a county, parish, or
similar unit of general local government in which a disaster
was declared under subsection (b);
``(B) the term `eligible small business concern' means a
business concern that is--
``(i) a small business concern, as defined in this Act; or
``(ii) a small business concern, as defined in section 103
of the Small Business Investment Act of 1958; and
``(C) the term `qualified private lender' means any
privately-owned bank or other lending institution that the
Administrator determines meets the criteria established under
paragraph (9).
``(2) Authorization.--The Administrator may guarantee
timely payment of principal and interest, as scheduled on any
loan issued by a qualified private lender to an eligible
small business concern located in a disaster area.
``(3) Use of loans.--A loan guaranteed by the Administrator
under this subsection may be used for any purpose authorized
under subsection (a) or (b).
``(4) Online applications.--
``(A) Establishment.--The Administrator may establish,
directly or through an agreement with another entity, an
online application process for loans guaranteed under this
subsection.
``(B) Other federal assistance.--The Administrator may
coordinate with the head of any other appropriate Federal
agency so that any application submitted through an online
application process established under this paragraph may be
considered for any other Federal assistance program for
disaster relief.
``(C) Consultation.--In establishing an online application
process under this paragraph, the Administrator shall consult
with appropriate persons from the public and private sectors,
including private lenders.
``(5) Maximum amounts.--
``(A) Guarantee percentage.--The Administrator may
guarantee not more than 85 percent of a loan under this
subsection.
``(B) Loan amounts.--The maximum amount of a loan
guaranteed under this subsection shall be $3,000,000.
``(6) Loan term.--The longest term of a loan for a loan
guaranteed under this subsection shall be--
``(A) 15 years for any loan that is issued without
collateral; and
``(B) 25 years for any loan that is issued with collateral.
``(7) Fees.--
``(A) In general.--The Administrator may not collect a
guarantee fee under this subsection.
``(B) Origination fee.--The Administrator may pay a
qualified private lender an origination fee for a loan
guaranteed under this subsection in an amount agreed upon in
advance between the qualified private lender and the
Administrator.
``(8) Documentation.--A qualified private lender may use
its own loan documentation for a loan guaranteed by the
Administrator, to the extent authorized by the Administrator.
The ability of a lender to use its own loan documentation for
a loan offered under this subsection shall not be considered
part of the criteria for becoming a qualified private lender
under the regulations promulgated under paragraph (9).
``(9) Implementation regulations.--
``(A) In general.--Not later than 1 year after the date of
enactment of the Small Business Disaster Response and Loan
Improvements Act of 2007, the Administrator shall issue final
regulations establishing permanent criteria for qualified
private lenders.
``(B) Report to congress.--Not later than 6 months after
the date of enactment of the Small Business Disaster Response
and Loan Improvements Act of 2007, the Administrator shall
submit a report on the progress of the regulations required
by subparagraph (A) to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives.
``(10) Authorization of appropriations.--
``(A) In general.--Amounts necessary to carry out this
subsection shall be made available from amounts appropriated
to the Administration under subsection (b).
``(B) Authority to reduce interest rates.--Funds
appropriated to the Administration to carry out this
subsection, may be used by the Administrator, to the extent
available, to reduce the applicable rate of interest for a
loan guaranteed under this subsection by not more than 3
percentage points.''.
(b) Effective Date.--The amendments made by this section
shall apply to disasters declared under section 7(b)(2) of
the Small Business Act (631 U.S.C. 636(b)(2)) before, on, or
after the date of enactment of this Act.
SEC. 102. TECHNICAL AND CONFORMING AMENDMENTS.
The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) in section 4(c)--
(A) in paragraph (1), by striking ``7(c)(2)'' and inserting
``7(d)(2)''; and
(B) in paragraph (2)--
(i) by striking ``7(c)(2)'' and inserting ``7(d)(2)''; and
(ii) by striking ``7(e),''; and
(2) in section 7(b), in the undesignated matter following
paragraph (3)--
(A) by striking ``That the provisions of paragraph (1) of
subsection (c)'' and inserting ``That the provisions of
paragraph (1) of subsection (d)''; and
(B) by striking ``Notwithstanding the provisions of any
other law the interest rate on the Administration's share of
any loan made under subsection (b) except as provided in
subsection (c),'' and inserting ``Notwithstanding any other
provision of law, and except as provided in subsection (d),
the interest rate on the Administration's share of any loan
made under subsection (b)''.
TITLE II--DISASTER RELIEF AND RECONSTRUCTION
SEC. 201. DEFINITION OF DISASTER AREA.
In this title, the term ``disaster area'' means an area
affected by a natural or other disaster, as determined for
purposes of paragraph (1) or (2) of section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), during the period of such
declaration.
SEC. 202. DISASTER LOANS TO NONPROFITS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting immediately after paragraph (3) the
following:
``(4) Loans to nonprofits.--In addition to any other loan
authorized by this subsection, the Administrator may make
such loans (either directly or in cooperation with banks or
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other lending institutions through agreements to participate
on an immediate or deferred basis) as the Administrator
determines appropriate to a nonprofit organization located or
operating in an area affected by a natural or other disaster,
as determined under paragraph (1) or (2), or providing
services to persons who have evacuated from any such area.''.
SEC. 203. DISASTER LOAN AMOUNTS.
(a) Increased Loan Caps.--Section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) is amended by inserting
immediately after paragraph (4), as added by this title, the
following:
``(5) Increased loan caps.--
``(A) Aggregate loan amounts.--Except as provided in clause
(ii), and notwithstanding any other provision of law, the
aggregate loan amount outstanding and committed to a borrower
under this subsection may not exceed $5,000,000.
``(B) Waiver authority.--The Administrator may, at the
discretion of the Administrator, waive the aggregate loan
amount established under clause (i).''.
(b) Disaster Mitigation.--
(1) In general.--Section 7(b)(1)(A) of the Small Business
Act (15 U.S.C. 636(b)(1)(A)) is amended by inserting ``of the
aggregate costs of such damage or destruction (whether or not
compensated for by insurance or otherwise)'' after ``20 per
centum''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to a loan or guarantee made after
the date of enactment of this Act.
(c) Technical Amendments.--Section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) is amended--
(1) in the matter preceding paragraph (1), by striking
``the, Administration'' and inserting ``the Administration'';
(2) in paragraph (2)(A), by striking ``Disaster Relief and
Emergency Assistance Act'' and inserting ``Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121
et seq.)''; and
(3) in the undesignated matter at the end--
(A) by striking ``, (2), and (4)'' and inserting ``and
(2)''; and
(B) by striking ``, (2), or (4)'' and inserting ``(2)''.
SEC. 204. SMALL BUSINESS DEVELOPMENT CENTER PORTABILITY
GRANTS.
Section 21(a)(4)(C)(viii) of the Small Business Act (15
U.S.C. 648(a)(4)(C)(viii)) is amended--
(1) in the first sentence, by striking ``as a result of a
business or government facility down sizing or closing, which
has resulted in the loss of jobs or small business
instability'' and inserting ``due to events that have
resulted or will result in, business or government facility
downsizing or closing''; and
(2) by adding at the end ``At the discretion of the
Administrator, the Administrator may make an award greater
than $100,000 to a recipient to accommodate extraordinary
occurrences having a catastrophic impact on the small
business concerns in a community.''.
SEC. 205. ASSISTANCE TO OUT-OF-STATE BUSINESSES.
Section 21(b)(3) of the Small Business Act (15 U.S.C.
648(b)(3)) is amended--
(1) by striking ``At the discretion'' and inserting the
following: ``Small business development centers.--
``(A) In general.--At the discretion''; and
(2) by adding at the end the following:
``(B) During disasters.--
``(i) In general.--At the discretion of the Administrator,
the Administrator may authorize a small business development
center to provide such assistance to small business concerns
located outside of the State, without regard to geographic
proximity, if the small business concerns are located in a
disaster area declared under section 7(b)(2)(A).
``(ii) 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 such small business development center otherwise
provides services.
``(iii) Access to disaster recovery facilities.--For
purposes of providing disaster recovery assistance under this
subparagraph, the Administrator shall, to the maximum extent
practicable, permit small business development center
personnel to use any site or facility designated by the
Administrator for use to provide disaster recovery
assistance.''.
SEC. 206. OUTREACH PROGRAMS.
(a) In General.--Not later than 30 days after the date of
the declaration of a disaster area, the Administrator may
establish a contracting outreach and technical assistance
program for small business concerns which have had a primary
place of business in, or other significant presence in, such
disaster area.
(b) Administrator Action.--The Administrator may fulfill
the requirement of subsection (a) by acting through--
(1) the Administration;
(2) the Federal agency small business officials designated
under section 15(k)(1) of the Small Business Act (15 U.S.C.
644(k)(1)); or
(3) any Federal, State, or local government entity, higher
education institution, procurement technical assistance
center, or private nonprofit organization that the
Administrator may determine appropriate, upon conclusion of a
memorandum of understanding or assistance agreement, as
appropriate, with the Administrator.
SEC. 207. SMALL BUSINESS BONDING THRESHOLD.
(a) In General.--Except as provided in subsection (b), and
notwithstanding any other provision of law, for any
procurement related to a major disaster (as that term is
defined in section 102 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5122)), the
Administrator may, upon such terms and conditions as the
Administrator may prescribe, guarantee and enter into
commitments to guarantee any surety against loss resulting
from a breach of the terms of a bid bond, payment bond,
performance bond, or bonds ancillary thereto, by a principal
on any total work order or contract amount at the time of
bond execution that does not exceed $5,000,000.
(b) Increase of Amount.--Upon request of the head of any
Federal agency other than the Administration involved in
reconstruction efforts in response to a major disaster, the
Administrator may guarantee and enter into a commitment to
guarantee any security against loss under subsection (a) on
any total work order or contract amount at the time of bond
execution that does not exceed $10,000,000.
SEC. 208. CONTRACTING PRIORITY FOR LOCAL SMALL BUSINESSES.
Section 15(d) of the Small Business Act (15 U.S.C. 644(d))
is amended--
(1) by striking ``(d) For purposes'' and inserting the
following:
``(d) Contracting Priorities.--
``(1) In general.--For purposes''; and
(2) by adding at the end the following:
``(2) Disaster contracting priority in general.--The
Administrator shall designate any disaster area as an area of
concentrated unemployment or underemployment, or a labor
surplus area for purposes of paragraph (1).
``(3) Local small businesses.--
``(A) In general.--The head of each executive agency shall
give priority in the awarding of contracts and the placement
of subcontracts for disaster relief to local small business
concerns by using, as appropriate--
``(i) preferential factors in evaluations of contract bids
and proposals;
``(ii) competitions restricted to local small business
concerns, where there is a reasonable expectation of
receiving competitive, reasonably priced bids or proposals
from not fewer than 2 local small business concerns;
``(iii) requirements of preference for local small business
concerns in subcontracting plans; and
``(iv) assessments of liquidated damages and other
contractual penalties, including contract termination.
``(B) Other disaster assistance.--Priority shall be given
to local small business concerns in the awarding of contracts
and the placement of subcontracts for disaster relief in any
Federal procurement and any procurement by a State or local
government made with Federal disaster assistance funds.
``(4) Definitions.--In this subsection--
``(A) the term `declared disaster' means a disaster, as
designated by the Administrator;
``(B) the term `disaster area' means any State or area
affected by a declared disaster, as determined by the
Administrator;
``(C) the term `executive agency' has the same meaning as
in section 105 of title 5, United States Code; and
``(D) the term `local small business concern' means a small
business concern that--
``(i) on the date immediately preceding the date on which a
declared disaster occurred--
``(I) had a principal office in the disaster area for such
declared disaster; and
``(II) employed a majority of the workforce of such small
business concern in the disaster area for such declared
disaster; and
``(ii) is capable of performing a substantial proportion of
any contract or subcontract for disaster relief within the
disaster area for such declared disaster, as determined by
the Administrator.''.
SEC. 209. TERMINATION OF PROGRAM.
Section 711(c) of the Small Business Competitive
Demonstration Program Act of 1988 (15 U.S.C. 644 note) is
amended by inserting after ``January 1, 1989'' the following:
``, and shall terminate on the date of enactment of the Small
Business Disaster Response and Loan Improvements Act of
2007''.
SEC. 210. INCREASING COLLATERAL REQUIREMENTS.
Section 7(d)(6) of the Small Business Act (15 U.S.C. 636),
as so designated by section 101, is amended by striking
``$10,000 or less'' and inserting ``$14,000 or less (or such
higher amount as the Administrator determines appropriate in
the event of a catastrophic national disaster declared under
subsection (b)(6))''.
TITLE III--DISASTER RESPONSE
SEC. 301. DEFINITIONS.
In this title--
(1) the term ``catastrophic national disaster'' has the
meaning given the term in section 7(b)(6) of the Small
Business Act (15 U.S.C. 636(b)), as added by this Act;
(2) the term ``declared disaster'' means a major disaster
or a catastrophic national 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 or a catastrophic national disaster and ending on
the date on which such declaration terminates;
(5) the term ``major disaster'' has the meaning given the
term in section 102 of the
[[Page S154]]
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122); and
(6) 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.
SEC. 302. BUSINESS EXPEDITED DISASTER ASSISTANCE LOAN
PROGRAM.
(a) Definitions.--In this section--
(1) the term ``immediate disaster assistance'' means
assistance provided during the period beginning on the date
on which a disaster declaration is made and ending on the
date that an impacted small business concern is able to
secure funding through insurance claims, Federal assistance
programs, or other sources; and
(2) the term ``program'' means the expedited disaster
assistance business loan program established under subsection
(b); and
(b) Creation of Program.--The Administrator shall take such
administrative action as is necessary to establish and
implement an expedited disaster assistance business loan
program to provide small business concerns with immediate
disaster assistance under section 7(b) of the Small Business
Act (15 U.S.C. 636(b)).
(c) Consultation Required.--In establishing the program,
the Administrator shall consult with--
(1) appropriate personnel of the Administration (including
District Office personnel of the Administration);
(2) appropriate technical assistance providers (including
small business development centers);
(3) appropriate lenders and credit unions;
(4) the Committee on Small Business and Entrepreneurship of
the Senate; and
(5) the Committee on Small Business of the House of
Representatives.
(d) Rules.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall promulgate
rules establishing and implementing the program in accordance
with this section. Such rules shall apply as provided for in
this section, beginning 90 days after their issuance in final
form.
(2) Contents.--The rules promulgated under paragraph (1)
shall--
(A) identify whether appropriate uses of funds under the
program may include--
(i) paying employees;
(ii) paying bills and other financial obligations;
(iii) making repairs;
(iv) purchasing inventory;
(v) restarting or operating a small business concern in the
community in which it was conducting operations prior to the
declared disaster, or to a neighboring area, county, or
parish in the disaster area; or
(vi) covering additional costs until the small business
concern is able to obtain funding through insurance claims,
Federal assistance programs, or other sources; and
(B) set the terms and conditions of any loan made under the
program, subject to paragraph (3).
(3) Terms and conditions.--A loan made by the
Administration under this section--
(A) shall be a short-term loan, not to exceed 180 days,
except that the Administrator may extend such term as the
Administrator determines necessary or appropriate on a case-
by-case basis;
(B) shall have an interest rate not to exceed 1 percentage
point above the prime rate of interest that a private lender
may charge;
(C) shall have no prepayment penalty;
(D) may be refinanced as part of any subsequent disaster
assistance provided under section 7(b) of the Small Business
Act; and
(E) shall be subject to such additional terms as the
Administrator determines necessary or appropriate.
(e) Report to Congress.--Not later than 5 months after the
date of enactment of this Act, the Administrator shall report
to the Committee on Small Business and Entrepreneurship of
the Senate and the Committee on Small Business of the House
of Representatives on the progress of the Administrator in
establishing the program.
(f) Authorization.--There are authorized to be appropriated
to the Administrator such sums as are necessary to carry out
this section.
SEC. 303. CATASTROPHIC NATIONAL DISASTERS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting immediately after paragraph (5), as
added by this Act, the following:
``(6) Catastrophic national disasters.--
``(A) Definition.--In this paragraph the term `catastrophic
national disaster' means a disaster, natural or other, that
the President determines has caused significant adverse
economic conditions outside of the geographic reach of the
disaster.
``(B) Authorization.--The Administrator may make such loans
under this paragraph (either directly or in cooperation with
banks or other lending institutions through agreements to
participate on an immediate or deferred basis) as the
Administrator determines appropriate to small business
concerns located anywhere in the United States that are
economically adversely impacted as a result of a catastrophic
national disaster.
``(C) Loan terms.--A loan under this paragraph shall be
made on the same terms as a loan under paragraph (2).''.
SEC. 304. PUBLIC AWARENESS OF DISASTER DECLARATION AND
APPLICATION PERIODS.
(a) In General.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting immediately after
paragraph (6), as added by this Act, the following:
``(7) Coordination with fema.--
``(A) In general.--Notwithstanding any other provision of
law, for any disaster (including a catastrophic national
disaster) declared under this subsection or major disaster
(as that term is defined in section 102 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5122)), the Administrator, in consultation with the
Director of the Federal Emergency Management Agency, shall
ensure, to the maximum extent practicable, that all
application periods for disaster relief under this Act and
the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) begin on the same
date and end on the same date.
``(B) Deadline extensions.--Notwithstanding any other
provision of law--
``(i) not later than 10 days before the closing date of an
application period for disaster relief under this Act for any
disaster (including a catastrophic national disaster)
declared under this subsection, the Administrator, in
consultation with the Director of the Federal Emergency
Management Agency, shall notify the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business of the House of Representatives as to
whether the Administrator intends to extend such application
period; and
``(ii) not later than 10 days before the closing date of an
application period for disaster relief under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act for any
major disaster (as that term is defined in section 102 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122)) for which the President has declared a
catastrophic national disaster under paragraph (6), the
Director of the Federal Emergency Management Agency, in
consultation with the Administrator, shall notify the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of
Representatives as to whether the Director intends to extend
such application period.
``(8) Public awareness of disasters.--If a disaster
(including a catastrophic national disaster) is declared
under this subsection, the Administrator shall make every
effort to communicate through radio, television, print, and
web-based outlets, all relevant information needed by
disaster loan applicants, including--
``(A) the date of such declaration;
``(B) cities and towns within the area of such declaration;
``(C) loan application deadlines related to such disaster;
``(D) all relevant contact information for victim services
available through the Administration (including links to
small business development center websites);
``(E) links to relevant Federal and State disaster
assistance websites;
``(F) information on eligibility criteria for Federal
Emergency Management Agency disaster assistance applications,
as well as for Administration loan programs, including where
such applications can be found; and
``(G) application materials that clearly state the function
of the Administration as the Federal source of disaster loans
for homeowners and renters.''.
(b) Coordination of Agencies and Outreach.--Not later than
90 days after the date of enactment of this Act, the
Administrator and the Director of the Federal Emergency
Management Agency shall enter into a memorandum of
understanding that ensures, to the maximum extent
practicable, adequate lodging and transportation for
employees of the Administration, contract employees, and
volunteers during a major disaster, if such staff are needed
to assist businesses, homeowners, or renters in recovery.
(c) Marketing and Outreach.--Not later than 90 days after
the date of enactment of this Act, the Administrator shall
create a marketing and outreach plan that--
(1) encourages a proactive approach to the disaster relief
efforts of the Administration;
(2) distinguishes between disaster services provided by the
Administration and disaster services provided by the Federal
Emergency Management Agency, including contact information,
application information, and timelines for submitting
applications, the review of applications, and the
disbursement of funds;
(3) describes the different disaster loan programs of the
Administration, including how they are made available and
what eligibility requirements exist for each loan program;
(4) provides for regional marketing, focusing on disasters
occurring in each region before the date of enactment of this
Act, and likely scenarios for disasters in each such region;
and
(5) ensures that the marketing plan is made available at
small business development centers and on the website of the
Administration.
SEC. 305. CONSISTENCY BETWEEN ADMINISTRATION REGULATIONS AND
STANDARD OPERATING PROCEDURES.
(a) In General.--The Administrator shall, promptly
following the date of enactment of this Act, conduct a study
of whether the standard operating procedures of the
Administration for loans offered under section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) are consistent with the
regulations of the
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Administration for administering the disaster loan program.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Administration shall submit to
Congress a report containing all findings and recommendations
of the study conducted under subsection (a).
SEC. 306. PROCESSING DISASTER LOANS.
(a) Authority for Qualified Private Contractors to Process
Disaster Loans.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting immediately after
paragraph (8), as added by this Act, the following:
``(9) Authority for qualified private contractors.--
``(A) Disaster loan processing.--The Administrator may
enter into an agreement with a qualified private contractor,
as determined by the Administrator, to process loans under
this subsection in the event of a major disaster (as defined
in section 102 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122)) or a catastrophic
national disaster declared under paragraph (6), under which
the Administrator shall pay the contractor a fee for each
loan processed.
``(B) Loan loss verification services.--The Administrator
may enter into an agreement with a qualified lender or loss
verification professional, as determined by the
Administrator, to verify losses for loans under this
subsection in the event of a major disaster (as defined in
section 102 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122)) or a catastrophic
national disaster declared under paragraph (6), under which
the Administrator shall pay the lender or verification
professional a fee for each loan for which such lender or
verification professional verifies losses.''.
(b) Coordination of Efforts Between the Administrator and
the Internal Revenue Service To Expedite Loan Processing.--
The Administrator and the Commissioner of Internal Revenue
shall, to the maximum extent practicable, ensure that all
relevant and allowable tax records for loan approval are
shared with loan processors in an expedited manner, upon
request by the Administrator.
(c) 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).
SEC. 307. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER
RESPONSE PLAN.
(a) In General.--Not later than March 15, 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 catastrophic national disasters,
consistent with this Act and the amendments made by this Act;
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 system 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 Director 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.
SEC. 308. CONGRESSIONAL OVERSIGHT.
(a) Monthly Accounting Report to Congress.--
(1) Definition.--In this subsection 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 such disaster
and the closing date for applications for economic injury
disaster loans for such disaster.
(2) 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 such
disaster during the preceding month.
(3) Contents.--Each report under paragraph (2) 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 (2);
(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 (2);
(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 (2);
(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, 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 (2);
(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 (2);
(H) the amount of funding available for salaries and
expenses combined, and the percent by which such funding has
increased or decreased, 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.--
[[Page S156]]
(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
or a catastrophic national disaster, as the case may be.
(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 dispersed, 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
dispersed, 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 such loan program.
(d) Report on Contracting.--
(1) In general.--Not later than 6 months after the date on
which the President declares a declared disaster, and every 6
months thereafter until the date that is 18 months after the
date on which the declared 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 the
declared disaster.
(2) Contents.--Each report submitted under paragraph (1)
shall include--
(A) the total number of contracts awarded as a result of
the declared disaster;
(B) the total number of contracts awarded to small business
concerns as a result of the declared disaster;
(C) the total number of contracts awarded to women and
minority-owned businesses as a result of the declared
disaster; and
(D) the total number of contracts awarded to local
businesses as a result of the declared disaster.
TITLE IV--ENERGY EMERGENCIES
SEC. 401. FINDINGS.
Congress finds that--
(1) a significant number of small business concerns in the
United States, nonfarm as well as agricultural producers, use
heating oil, natural gas, propane, or kerosene to heat their
facilities and for other purposes;
(2) a significant number of small business concerns in the
United States sell, distribute, market, or otherwise engage
in commerce directly related to heating oil, natural gas,
propane, and kerosene; and
(3) significant increases in the price of heating oil,
natural gas, propane, or kerosene--
(A) disproportionately harm small business concerns
dependent on those fuels or that use, sell, or distribute
those fuels in the ordinary course of their business, and can
cause them substantial economic injury;
(B) can negatively affect the national economy and regional
economies;
(C) have occurred in the winters of 1983 to 1984, 1988 to
1989, 1996 to 1997, 1999 to 2000, 2000 to 2001, and 2004 to
2005; and
(D) can be caused by a host of factors, including
international conflicts, global or regional supply
difficulties, weather conditions, insufficient inventories,
refinery capacity, transportation, and competitive structures
in the markets, causes that are often unforeseeable to, and
beyond the control of, those who own and operate small
business concerns.
SEC. 402. SMALL BUSINESS ENERGY EMERGENCY DISASTER LOAN
PROGRAM.
(a) In General.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting after paragraph (9),
as added by this Act, the following:
``(10) Energy emergencies.--
``(A) Definitions.--In this paragraph--
``(i) the term `base price index' means the moving average
of the closing unit price on the New York Mercantile Exchange
for heating oil, natural gas, or propane for the 10 days, in
each of the most recent 2 preceding years, which correspond
to the trading days described in clause (ii);
``(ii) the term `current price index' means the moving
average of the closing unit price on the New York Mercantile
Exchange, for the 10 most recent trading days, for contracts
to purchase heating oil, natural gas, or propane during the
subsequent calendar month, commonly known as the `front
month';
``(iii) the term `heating fuel' means heating oil, natural
gas, propane, or kerosene; and
``(iv) the term `significant increase' means--
``(I) with respect to the price of heating oil, natural
gas, or propane, any time the current price index exceeds the
base price index by not less than 40 percent; and
``(II) with respect to the price of kerosene, any increase
which the Administrator, in consultation with the Secretary
of Energy, determines to be significant.
``(B) Authorization.--The Administration may make such
loans, either directly or in cooperation with banks or other
lending institutions through agreements to participate on an
immediate or deferred basis, to assist a small business
concern that has suffered or that is likely to suffer
substantial economic injury as the result of a significant
increase in the price of heating fuel occurring on or after
October 1, 2004.
``(C) Interest rate.--Any loan or guarantee extended under
this paragraph shall be made at the same interest rate as
economic injury loans under paragraph (2).
``(D) Maximum amount.--No loan may be made under this
paragraph, either directly or in cooperation with banks or
other lending institutions through agreements to participate
on an immediate or deferred basis, if the total amount
outstanding and committed to the borrower under this
subsection would exceed $1,500,000, unless such borrower
constitutes a major source of employment in its surrounding
area, as determined by the Administrator, in which case the
Administrator, in the discretion of the Administrator, may
waive the $1,500,000 limitation.
``(E) Declarations.--For purposes of assistance under this
paragraph--
``(i) a declaration of a disaster area based on conditions
specified in this paragraph shall be required, and shall be
made by the President or the Administrator; or
``(ii) if no declaration has been made under clause (i),
the Governor of a State in which a significant increase in
the price of heating fuel has occurred may certify to the
Administration that small business concerns have suffered
economic injury as a result of such increase and are in need
of financial assistance which is not otherwise available on
reasonable terms in that State, and upon receipt of such
certification, the Administration may make such loans as
would have been available under this paragraph if a disaster
declaration had been issued.
``(F) Use of funds.--Notwithstanding any other provision of
law, loans made under this paragraph may be used by a small
business concern described in subparagraph (B) to convert
from the use of heating fuel to a renewable or alternative
energy source, including agriculture and urban waste,
geothermal energy, cogeneration, solar energy, wind energy,
or fuel cells.''.
(b) Conforming Amendments Relating to Heating Fuel.--
Section 3(k) of the Small Business Act (15 U.S.C. 632(k)) is
amended--
(1) by inserting ``, significant increase in the price of
heating fuel'' after ``civil disorders''; and
(2) by inserting ``other'' before ``economic''.
(c) Effective Period.--The amendments made by this section
shall apply during the 4-year period beginning on the date on
which guidelines are published by the Administrator under
section 404.
SEC. 403. AGRICULTURAL PRODUCER EMERGENCY LOANS.
(a) In General.--Section 321(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961(a)) is amended--
(1) in the first sentence--
(A) by striking ``operations have'' and inserting
``operations (i) have''; and
(B) by inserting before ``: Provided,'' the following: ``,
or (ii)(I) are owned or operated by such an applicant that is
also a small business concern (as defined in section 3 of the
Small Business Act (15 U.S.C. 632)), and (II) have suffered
or are likely to suffer substantial economic injury on or
after October 1, 2004, as the result of a significant
increase
[[Page S157]]
in energy costs or input costs from energy sources occurring
on or after October 1, 2004, in connection with an energy
emergency declared by the President or the Secretary'';
(2) in the third sentence, by inserting before the period
at the end the following: ``or by an energy emergency
declared by the President or the Secretary''; and
(3) in the fourth sentence--
(A) by inserting ``or energy emergency'' after ``natural
disaster'' each place that term appears; and
(B) by inserting ``or declaration'' after ``emergency
designation''.
(b) Funding.--Funds available on the date of enactment of
this Act for emergency loans under subtitle C of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et
seq.) shall be available to carry out the amendments made by
subsection (a) to meet the needs resulting from energy
emergencies.
(c) Effective Period.--The amendments made by this section
shall apply during the 4-year period beginning on the date on
which guidelines are published by the Secretary of
Agriculture under section 404.
SEC. 404. GUIDELINES AND RULEMAKING.
(a) Guidelines.--Not later than 30 days after the date of
enactment of this Act, the Administrator and the Secretary of
Agriculture shall each issue such guidelines as the
Administrator or the Secretary, as applicable, determines to
be necessary to carry out this title and the amendments made
by this title.
(b) Rulemaking.--Not later than 30 days after the date of
enactment of this Act, the Administrator, after consultation
with the Secretary of Energy, shall promulgate regulations
specifying the method for determining a significant increase
in the price of kerosene under section 7(b)(10)(A)(iv)(II) of
the Small Business Act, as added by this Act.
SEC. 405. REPORTS.
(a) Small Business Administration.--Not later than 12
months after the date on which the Administrator issues
guidelines under section 404, and annually thereafter until
the date that is 12 months after the end of the effective
period of section 7(b)(10) of the Small Business Act, as
added by this Act, 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 on the effectiveness of the
assistance made available under section 7(b)(10) of the Small
Business Act, as added by this Act, including--
(1) the number of small business concerns that applied for
a loan under such section and the number of those that
received such loans;
(2) the dollar value of those loans;
(3) the States in which the small business concerns that
received such loans are located;
(4) the type of heating fuel or energy that caused the
significant increase in the cost for the participating small
business concerns; and
(5) recommendations for ways to improve the assistance
provided under such section 7(b)(10), if any.
(b) Department of Agriculture.--Not later than 12 months
after the date on which the Secretary of Agriculture issues
guidelines under section 404, and annually thereafter until
the date that is 12 months after the end of the effective
period of the amendments made to section 321(a) of the
Consolidated Farm and Rural Development Act (7 U.S.C.
1961(a)) by this title, the Secretary shall submit to the
Committee on Small Business and Entrepreneurship and the
Committee on Agriculture, Nutrition, and Forestry of the
Senate and the Committee on Small Business and the Committee
on Agriculture of the House of Representatives, a report
that--
(1) describes the effectiveness of the assistance made
available under section 321(a) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1961(a)); and
(2) contains recommendations for ways to improve the
assistance provided under such section 321(a), if any.
______