[Congressional Record Volume 153, Number 129 (Tuesday, September 4, 2007)]
[Senate]
[Pages S11066-S11071]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   SMALL BUSINESS DISASTER RESPONSE AND LOAN IMPROVEMENT ACT OF 2007

  On Friday, August 3, 2007, the Senate Passed S. 163, as amended, 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.
Sec. 3. Extension of program authority.

                TITLE I--DISASTER PLANNING AND RESPONSE

Sec. 101. Disaster loans to nonprofits.
Sec. 102. Disaster loan amounts.
Sec. 103. Small business development center portability grants.
Sec. 104. Assistance to out-of-State businesses.
Sec. 105. Outreach programs.
Sec. 106. Small business bonding threshold.
Sec. 107. Termination of program.
Sec. 108. Increasing collateral requirements.
Sec. 109. Public awareness of disaster declaration and application 
              periods.
Sec. 110. Consistency between Administration regulations and standard 
              operating procedures.
Sec. 111. Processing disaster loans.
Sec. 112. Development and implementation of major disaster response 
              plan.
Sec. 113. Disaster planning responsibilities.
Sec. 114. Additional authority for district offices of the 
              Administration.
Sec. 115. Assignment of employees of the Office of Disaster Assistance 
              and Disaster Cadre.

                       TITLE II--DISASTER LENDING

Sec. 201. Catastrophic national disaster declaration.
Sec. 202. Private disaster loans.
Sec. 203. Technical and conforming amendments.
Sec. 204. Expedited disaster assistance loan program.
Sec. 205. HUBZones.

                TITLE III--DISASTER ASSISTANCE OVERSIGHT

Sec. 301. Congressional oversight.

     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 ``catastrophic national disaster'' means a 
     catastrophic national disaster declared under section 
     7(b)(11) of the Small Business Act (15 U.S.C. 636(b)), as 
     added by this Act;
       (3) the term ``declared disaster'' means a major disaster 
     or a catastrophic national disaster;
       (4) 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;
       (5) 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));
       (6) 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;
       (7) the term ``major disaster'' has the meaning given that 
     term in section 102 of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5122);
       (8) the term ``small business concern'' has the same 
     meaning as in section 3 of the Small Business Act (15 U.S.C. 
     632); and
       (9) 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. 3. EXTENSION OF PROGRAM AUTHORITY.

       (a) In General.--Section 1 of the Act entitled ``An Act to 
     extend temporarily certain authorities of the Small Business 
     Administration'', approved October 10, 2006 (Public Law 109-
     316; 120 Stat. 1742), is amended by striking ``July 31, 
     2007'' each place it appears and inserting ``October 31, 
     2007''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on July 31, 2007.

                TITLE I--DISASTER PLANNING AND RESPONSE

     SEC. 101. 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 
     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. 102. 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 
     subparagraph (B), and notwithstanding any other provision of 
     law, the aggregate loan amount outstanding and committed to a 
     borrower under this subsection may not exceed $2,000,000.
       ``(B) Waiver authority.--The Administrator may, at the 
     discretion of the Administrator, increase the aggregate loan 
     amount under subparagraph (A) for loans relating to a 
     disaster to a level established by the Administrator, based 
     on appropriate economic indicators for the region in which 
     that disaster occurred.''.
       (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--

[[Page S11067]]

       (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.) (in this subsection referred to as a `major 
     disaster')''; 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. 103. 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. 104. 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. 105. 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 carry out 
     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. 106. 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, 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. 107. 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. 108. INCREASING COLLATERAL REQUIREMENTS.

       Section 7(c)(6) of the Small Business Act (15 U.S.C. 
     636(c)(6)) 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)(11))''.

     SEC. 109. 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 (5), as added by this Act, the following:
       ``(6) 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, 
     the Administrator, in consultation with the Administrator of 
     the Federal Emergency Management Agency, shall ensure, to the 
     maximum extent practicable, that all application periods for 
     disaster relief under this Act correspond with application 
     deadlines established under the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
     or as extended by the President.
       ``(B) Deadlines.--Notwithstanding any other provision of 
     law, not later than 10 days before the closing date of an 
     application period for a major disaster (including a 
     catastrophic national disaster), the Administrator, in 
     consultation with the Administrator of the Federal Emergency 
     Management Agency, 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 
     that includes--
       ``(i) the deadline for submitting applications for 
     assistance under this Act relating to that major disaster;
       ``(ii) information regarding the number of loan 
     applications and disbursements processed by the Administrator 
     relating to that major disaster for each day during the 
     period beginning on the date on which that major disaster was 
     declared and ending on the date of that report; and
       ``(iii) an estimate of the number of potential applicants 
     that have not submitted an application relating to that major 
     disaster.
       ``(7) 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, including links to websites providing 
     information regarding assistance available from the Federal 
     Emergency Management Agency;
       ``(F) information on eligibility criteria 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) 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) makes clear the services provided by the 
     Administration, 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 the 
     eligibility requirements 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. 110. 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 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. 111. 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 (7), as added by this Act, the following:
       ``(8) Authority for qualified private contractors.--

[[Page S11068]]

       ``(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 or a 
     catastrophic national disaster declared under paragraph (11), 
     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 or a catastrophic 
     national disaster declared under paragraph (11), 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.

     SEC. 112. DEVELOPMENT AND IMPLEMENTATION OF MAJOR DISASTER 
                   RESPONSE PLAN.

       (a) In General.--Not later than 3 months after the date of 
     enactment of this Act, 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
       (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 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 to Congress 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 Administration can 
     better coordinate its disaster response operations with the 
     operations of other Federal, State, and local entities;
       (7) any surge plan for the disaster loan program of the 
     Administration 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 consultation with 
     the Administrator 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 6 months after the date of 
     the submission of the report under subsection (a)(2), the 
     Administrator shall develop and execute simulation exercises 
     to demonstrate the effectiveness of the amended disaster 
     response plan required under this section.

     SEC. 113. DISASTER PLANNING RESPONSIBILITIES.

       (a) Assignment of Small Business Administration Disaster 
     Planning Responsibilities.--The Administrator shall 
     specifically assign the disaster planning responsibilities 
     described in subsection (b) to an employee of the 
     Administration who--
       (1) is not an employee of the Office of Disaster Assistance 
     of the Administration;
       (2) shall report directly to the Administrator; and
       (3) has a background and expertise demonstrating 
     significant experience in the area of disaster planning.
       (b) Responsibilities.--The responsibilities described in 
     this subsection are--
       (1) creating and maintaining the comprehensive disaster 
     response plan of the Administration;
       (2) ensuring in-service and pre-service training procedures 
     for the disaster response staff of the Administration;
       (3) coordinating and directing Administration training 
     exercises, including mock disaster responses, with other 
     Federal agencies; and
       (4) other responsibilities, as determined by the 
     Administrator.
       (c) Report.--Not later than 30 days after the date of 
     enactment of 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 containing--
       (1) a description of the actions of the Administrator to 
     assign an employee under subsection (a);
       (2) information detailing the background and expertise of 
     the employee assigned under subsection (a); and
       (3) information on the status of the implementation of the 
     responsibilities described in subsection (b).

     SEC. 114. ADDITIONAL AUTHORITY FOR DISTRICT OFFICES OF THE 
                   ADMINISTRATION.

       (a) In General.--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) Use of district offices.--In the event of a major 
     disaster, the Administrator may authorize a district office 
     of the Administration to process loans under paragraph (1) or 
     (2).''.
       (b) Designation.--
       (1) In general.--The Administrator may designate an 
     employee in each district office of the Administration to act 
     as a disaster loan liaison between the disaster processing 
     center and applicants under the disaster loan program of the 
     Administration.
       (2) Responsibilities.--Each employee designated under 
     paragraph (1) shall--
       (A) be responsible for coordinating and facilitating 
     communications between applicants under the disaster loan 
     program of the Administration and disaster loan processing 
     staff regarding documentation and information required for 
     completion of an application; and
       (B) provide information to applicants under the disaster 
     loan program of the Administration regarding additional 
     services and benefits that may be available to such 
     applicants to assist with recovery.
       (3) Outreach.--In providing outreach to disaster victims 
     following a declared disaster, the Administrator shall make 
     disaster victims aware of--
       (A) any relevant employee designated under paragraph (1); 
     and
       (B) how to contact that employee.

     SEC. 115. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF DISASTER 
                   ASSISTANCE AND DISASTER CADRE.

       (a) In General.--Section 7(b) of the Small Business Act (15 
     U.S.C. 636(b)) is amended by inserting immediately after 
     paragraph (9), as added by this Act, the following:
       ``(10) Disaster assistance employees.--
       ``(A) In general.--In carrying out this section, the 
     Administrator may, where practicable, ensure that the number 
     of full-time equivalent employees--
       ``(i) in the Office of the Disaster Assistance is not fewer 
     than 800; and
       ``(ii) in the Disaster Cadre of the Administration is not 
     fewer than 750.
       ``(B) Report.--In carrying out this subsection, if the 
     number of full-time employees for either the Office of 
     Disaster Assistance or the Disaster Cadre of the 
     Administration is below the level described in subparagraph 
     (A) for that office, not later than 21 days after the date on 
     which that staffing level decreased below the level described 
     in subparagraph (A), the Administrator shall submit to the 
     Committee on Appropriations and the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Appropriations and Committee on Small Business of the 
     House of Representatives, a report--
       ``(i) detailing staffing levels on that date;
       ``(ii) requesting, if practicable and determined 
     appropriate by the Administrator, additional funds for 
     additional employees; and
       ``(iii) containing such additional information, as 
     determined appropriate by the Administrator.''.

                       TITLE II--DISASTER LENDING

     SEC. 201. CATASTROPHIC NATIONAL DISASTER DECLARATION.

       Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) 
     is amended by inserting immediately after paragraph (10), as 
     added by this Act, the following:
       ``(11) Catastrophic national disasters.--
       ``(A) In general.--The President may make a catastrophic 
     national disaster declaration in accordance with this 
     paragraph.
       ``(B) Promulgation of rules.--
       ``(i) In general.--Not later than 6 months after the date 
     of enactment of this paragraph, the Administrator, with the 
     concurrence of the Secretary of Homeland Security

[[Page S11069]]

     and the Administrator of the Federal Emergency Management 
     Agency, shall promulgate regulations establishing a threshold 
     for a catastrophic national disaster declaration.
       ``(ii) Considerations.--In promulgating the regulations 
     required under clause (i), the Administrator shall establish 
     a threshold that--

       ``(I) is similar in size and scope to the events relating 
     to the terrorist attacks of September 11, 2001, and Hurricane 
     Katrina of 2005;
       ``(II) requires that the President declares a major 
     disaster before making a catastrophic national disaster 
     declaration under this paragraph;
       ``(III) requires consideration of--

       ``(aa) the dollar amount per capita of damage to the State, 
     its political subdivisions, or a region;
       ``(bb) the number of small business concerns damaged, 
     physically or economically, as a direct result of the event;
       ``(cc) the number of individuals and households displaced 
     from their predisaster residences by the event;
       ``(dd) the severity of the impact on employment rates in 
     the State, its political subdivisions, or a region;
       ``(ee) the anticipated length and difficulty of the 
     recovery process;
       ``(ff) whether the events leading to the relevant major 
     disaster declaration are of an unusually large and calamitous 
     nature that is orders of magnitude larger than for an average 
     major disaster; and
       ``(gg) any other factor determined relevant by the 
     Administrator.
       ``(C) Authorization.--If the President makes a catastrophic 
     national disaster declaration under this paragraph, 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 that catastrophic national disaster.
       ``(D) Loan terms.--A loan under this paragraph shall be 
     made on the same terms as a loan under paragraph (2).''.

     SEC. 202. 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 any area for which the 
     President declared 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)) that subsequently 
     results in the President making a catastrophic national 
     disaster declaration under subsection (b)(11);
       ``(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 (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 $2,000,000.
       ``(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 guaranteed 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 to carry out 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 rate of interest for any loan 
     guaranteed under this subsection by not more than 3 
     percentage points.
       ``(11) Purchase of loans.--The Administrator may enter into 
     an agreement with a qualified private lender to purchase any 
     loan issued under this subsection.''.
       (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. 203. 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)''.

     SEC. 204. 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 the President makes a catastrophic disaster 
     declaration under paragraph (11) of section 7(b) of the Small 
     Business Act (15 U.S.C. 636(b)), as added by this Act, 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).
       (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 paragraph (11) of section 7(b) of 
     the Small Business Act (15 U.S.C. 636(b)), as added by this 
     Act.
       (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 issue rules in 
     final form 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--

[[Page S11070]]

       (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 for not more than $150,000;
       (B) 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;
       (C) shall have an interest rate not to exceed 1 percentage 
     point above the prime rate of interest that a private lender 
     may charge;
       (D) shall have no prepayment penalty;
       (E) may only be made to a borrower that meets the 
     requirements for a loan under section 7(b) of the Small 
     Business Act (15 U.S.C. 636(b));
       (F) may be refinanced as part of any subsequent disaster 
     assistance provided under section 7(b) of the Small Business 
     Act;
       (G) may receive expedited loss verification and loan 
     processing, if the applicant is--
       (i) a major source of employment in the disaster area 
     (which shall be determined in the same manner as under 
     section 7(b)(3)(B) of the Small Business Act (15 U.S.C. 
     636(b)(3)(B))); or
       (ii) vital to recovery efforts in the region (including 
     providing debris removal services, manufactured housing, or 
     building materials); and
       (H) 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. 205. HUBZONES.

       (a) In General.--Section 3(p) of the Small Business Act (15 
     U.S.C. 632(p)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (D), by striking ``or'';
       (B) in subparagraph (E), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(F) areas in which the President has declared 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)) as a result of Hurricane Katrina of 
     August 2005 or Hurricane Rita of September 2005, during the 
     time period described in paragraph (8); or
       ``(G) catastrophic national disaster areas.'';
       (2) in paragraph (4), by adding at the end the following:
       ``(E) Catastrophic national disaster area.--
       ``(i) In general.--The term `catastrophic national disaster 
     area' means an area--

       ``(I) affected by a catastrophic national disaster declared 
     under section 7(b)(11), during the time period described in 
     clause (ii); and
       ``(II) for which the Administrator determines that 
     designation as a HUBZone would substantially contribute to 
     the reconstruction and recovery effort in that area.

       ``(ii) Time period.--The time period for the purposes of 
     clause (i)--

       ``(I) shall be the 2-year period beginning on the date that 
     the applicable catastrophic national disaster was declared 
     under section 7(b)(11); and
       ``(II) may, at the discretion of the Administrator, be 
     extended to be the 3-year period beginning on the date 
     described in subclause (I).''; and

       (3) by adding at the end the following:
       ``(8) Time period.--The time period for the purposes of 
     paragraph (1)(F)--
       ``(A) shall be the 2-year period beginning on the later of 
     the date of enactment of this paragraph and August 29, 2007; 
     and
       ``(B) may, at the discretion of the Administrator, be 
     extended to be the 3-year period beginning on the later of 
     the date of enactment of this paragraph and August 29, 
     2007.''.
       (b) Tolling of Graduation.--Section 7(j)(10)(C) of the 
     Small Business Act (15 U.S.C. 636(j)(10)(C)) is amended by 
     adding at the end the following:
       ``(iii)(I) For purposes of this subparagraph, if the 
     Administrator designates an area as a HUBZone under section 
     3(p)(4)(E)(i)(II), the Administrator shall not count the time 
     period described in subclause (II) of this clause for any 
     small business concern--
       ``(aa) that is participating in any program, activity, or 
     contract under section 8(a); and
       ``(bb) the principal place of business of which is located 
     in that area.
       ``(II) The time period for purposes of subclause (I)--
       ``(aa) shall be the 2-year period beginning on the date 
     that the applicable catastrophic national disaster was 
     declared under section 7(b)(11); and
       ``(bb) may, at the discretion of the Administrator, be 
     extended to be the 3-year period beginning on the date 
     described in item (aa).''.
       (c) Study of HUBZone Disaster Areas.--Not later than 1 year 
     after the date of enactment of this Act, the Comptroller 
     General of the United States 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 evaluating the designation by the 
     Administrator of catastrophic national disaster areas, as 
     that term is defined in section 3(p)(4)(E) of the Small 
     Business Act (as added by this Act), as HUBZones.

                TITLE III--DISASTER ASSISTANCE OVERSIGHT

     SEC. 301. CONGRESSIONAL OVERSIGHT.

       (a) Monthly Accounting Report to Congress.--
       (1) 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 that 
     major disaster during the preceding month.
       (2) Contents.--Each report under paragraph (1) 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 (1);
       (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 (1);
       (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 (1);
       (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 since the previous 
     report under paragraph (1), 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 (1);
       (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 (1);
       (H) the amount of funding available for salaries and 
     expenses combined, and the percent by which such funding has 
     increased or decreased since the previous report under 
     paragraph (1), 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.--
       (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.
       (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;

[[Page S11071]]

       (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 disbursed, 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 
     disbursed, 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 the Committee on Small 
     Business of the House of Representatives regarding the need 
     for supplemental funds for that loan program.
       (d) Report on Contracting.--
       (1) In general.--Not later than 6 months after the date on 
     which the President declares a major disaster, and every 6 
     months thereafter until the date that is 18 months after the 
     date on which the major 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 that major 
     disaster.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include--
       (A) the total number of contracts awarded as a result of 
     that major disaster;
       (B) the total number of contracts awarded to small business 
     concerns as a result of that major disaster;
       (C) the total number of contracts awarded to women and 
     minority-owned businesses as a result of that major disaster; 
     and
       (D) the total number of contracts awarded to local 
     businesses as a result of that major disaster.
       (e) 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 Accelerated Disaster Response Initiative of 
     the Administration; 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).

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