[Congressional Record Volume 161, Number 154 (Wednesday, October 21, 2015)]
[Senate]
[Pages S7422-S7425]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2747. Mr. VITTER proposed an amendment to the bill H.R. 208, to
improve the disaster assistance programs of the Small Business
Administration; as follows:
On page 2, strike lines 1 through 5 and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Recovery
Improvements for Small Entities After Disaster Act of 2015''
or the ``RISE After Disaster Act of 2015''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
DIVISION A--SUPERSTORM SANDY RELIEF AND DISASTER LOAN PROGRAM
IMPROVEMENTS
Sec. 1001. Short title.
Sec. 1002. Findings.
TITLE I--DISASTER ASSISTANCE IMPROVEMENTS
1101. Revised disaster deadline.
1102. Use of physical damage disaster loans to construct safe rooms.
1103. Reducing delays on closing and disbursement of loans.
1104. Safeguarding taxpayer interests and increasing transparency in
loan approvals.
1105. Disaster plan improvements.
DIVISION B--RECOVERY IMPROVEMENTS FOR SMALL ENTITIES
Sec. 2001. Short title.
TITLE I--IMPROVEMENTS OF DISASTER RESPONSE AND LOANS
Sec. 2101. Additional awards to small business development centers,
women's business centers, and SCORE for disaster
recovery.
Sec. 2102. Collateral requirements for disaster loans.
Sec. 2103. Assistance to out-of-State business concerns to aid in
disaster recovery.
Sec. 2105. FAST program.
Sec. 2106. Use of Federal surplus property in disaster areas.
Sec. 2107. Recovery opportunity loans.
Sec. 2108. Contractor malfeasance.
Sec. 2109. Local contracting preferences and incentives.
Sec. 2110. Clarification of collateral requirements.
TITLE II--DISASTER PLANNING AND MITIGATION
Sec. 2201. Business recovery centers.
TITLE III--OTHER PROVISIONS
Sec. 2301. Increased oversight of economic injury disaster loans.
Sec. 2302. GAO report on paperwork reduction.
Sec. 2303. Report on web portal for disaster loan applicants.
DIVISION A--SUPERSTORM SANDY RELIEF AND DISASTER LOAN PROGRAM
IMPROVEMENTS
SEC. 1001. SHORT TITLE.
This division may be cited as the ``Superstorm Sandy Relief
and Disaster Loan Program Improvement Act of 2015''.
SEC. 1002. FINDINGS.
On page 3, strike line 5 and insert the following:
TITLE I--DISASTER ASSISTANCE IMPROVEMENTS
SEC. 1101. REVISED DISASTER DEADLINE.
On page 3, line 14, insert ``nonprofit entity,'' after
``homeowner,''.
On page 4, line 9, strike the quotation marks and the
second period and insert the following:
``(C) Inspector general review.--Not later than 6 months
after the date on which the Administrator begins carrying out
this authority, the Inspector General of the Administration
shall initiate a review of the controls for ensuring
applicant eligibility for loans made under this paragraph.''.
On page 4, line 10, strike ``sec. 4.'' and insert ``sec.
1102.''.
On page 4, line 24, insert ``, if such safe room or similar
storm shelter is constructed in accordance with applicable
standards issued by the Federal Emergency Management Agency''
after ``disasters''.
On page 5, strike lines 1 through 21 and insert the
following:
SEC. 1103. REDUCING DELAYS ON CLOSING AND DISBURSEMENT OF
LOANS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting before the undesignated matter
following paragraph (9) the following:
On page 5, line 22, strike ``(11)'' and insert ``(10)''.
On page 6, strike lines 5 through 8 and insert the
following:
SEC. 1104. SAFEGUARDING TAXPAYER INTERESTS AND INCREASING
TRANSPARENCY IN LOAN APPROVALS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting before the undesignated matter
following paragraph (10), as added by section 1103 of this
Act, the following:
On page 6, line 9, strike ``(12)'' and insert ``(11)''.
[[Page S7423]]
Beginning on page 6, strike line 14 and all that follows
through page 7, line 20, and insert the following:
SEC. 1105. DISASTER PLAN IMPROVEMENTS.
Beginning on page 8, strike line 6 and all that follows
through page 9, line 6, and insert the following:
DIVISION B--RECOVERY IMPROVEMENTS FOR SMALL ENTITIES
SECTION 2001. SHORT TITLE.
This division may be cited as the ``Recovery Improvements
for Small Entities After Disaster Act of 2015'' or the ``RISE
After Disaster Act of 2015''.
TITLE I--IMPROVEMENTS OF DISASTER RESPONSE AND LOANS
SEC. 2101. ADDITIONAL AWARDS TO SMALL BUSINESS DEVELOPMENT
CENTERS, WOMEN'S BUSINESS CENTERS, AND SCORE
FOR DISASTER RECOVERY.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting before the undesignated matter
following paragraph (11), as added by section 1104 of this
Act, the following:
``(12) Additional awards to small business development
centers, women's business centers, and score for disaster
recovery.--
``(A) In general.--The Administration may provide financial
assistance to a small business development center, a women's
business center described in section 29, the Service Corps of
Retired Executives, or any proposed consortium of such
individuals or entities to spur disaster recovery and growth
of small business concerns located in an area for which the
President has declared a major disaster.
``(B) Form of financial assistance.--Financial assistance
provided under this paragraph shall be in the form of a
grant, contract, or cooperative agreement.
``(C) No matching funds required.--Matching funds shall not
be required for any grant, contract, or cooperative agreement
under this paragraph.
``(D) Requirements.--A recipient of financial assistance
under this paragraph shall provide counseling, training, and
other related services, such as promoting long-term
resiliency, to small business concerns and entrepreneurs
impacted by a major disaster.
``(E) Performance.--
``(i) In general.--The Administrator, in cooperation with
the recipients of financial assistance under this paragraph,
shall establish metrics and goals for performance of grants,
contracts, and cooperative agreements under this paragraph,
which shall include recovery of sales, recovery of
employment, reestablishment of business premises, and
establishment of new small business concerns.
``(ii) Use of estimates.--The Administrator shall base the
goals and metrics for performance established under clause
(i), in part, on the estimates of disaster impact prepared by
the Office of Disaster Assistance for purposes of estimating
loan-making requirements.
``(F) Term.--
``(i) In general.--The term of any grant, contract, or
cooperative agreement under this paragraph shall be for not
more than 2 years.
``(ii) Extension.--The Administrator may make 1 extension
of a grant, contract, or cooperative agreement under this
paragraph for a period of not more than 1 year, upon a
showing of good cause and need for the extension.
``(G) Exemption from other program requirements.--Financial
assistance provided under this paragraph is in addition to,
and wholly separate from, any other form of assistance
provided by the Administrator under this Act.
``(H) Competitive basis.--The Administration shall award
financial assistance under this paragraph on a competitive
basis.''.
SEC. 2102. COLLATERAL REQUIREMENTS FOR DISASTER LOANS.
(a) In General.--Section 7(d)(6) of the Small Business Act
(15 U.S.C. 636(d)(6)) is amended in the third proviso--
(1) by striking ``$14,000'' and inserting ``$25,000''; and
(2) by striking ``major disaster'' and inserting
``disaster''.
(b) Sunset.--Effective on the date that is 3 years after
the date of enactment of this Act, section 7(d)(6) of the
Small Business Act (15 U.S.C. 636(d)(6)) is amended in the
third proviso--
(1) by striking ``$25,000'' and inserting ``$14,000''; and
(2) by inserting ``major'' before ``disaster''.
(c) Report.--Not later than 180 days before the date on
which the amendments made by subsection (b) are to take
effect, the Administrator of the Small Business
Administration shall submit to Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report on the
effects of the amendments made by subsection (a), which shall
include--
(1) an assessment of the impact and benefits resulting from
the amendments; and
(2) a recommendation as to whether the amendments should be
made permanent.
SEC. 2103. ASSISTANCE TO OUT-OF-STATE BUSINESS CONCERNS TO
AID IN DISASTER RECOVERY.
(a) In General.--Section 21(b)(3) of the Small Business Act
(15 U.S.C. 648(b)(3)) is amended--
(1) by striking ``(3) At the discretion'' and inserting the
following:
``(3) Assistance to out-of-state small business concerns.--
``(A) In general.--At the discretion''; and
(2) by adding at the end the following:
``(B) Disaster recovery assistance.--
``(i) In general.--At the discretion of the Administrator,
the Administrator may authorize a small business development
center to provide advice, information, and assistance, as
described in subsection (c), to a small business concern
located outside of the State, without regard to geographic
proximity to the small business development center, if the
small business concern is located in an area for which the
President has declared a major disaster.
``(ii) Term.--
``(I) In general.--A small business development center may
provide advice, information, and assistance to a small
business concern under clause (i) for a period of not more
than 2 years after the date on which the President declared a
major disaster for the area in which the small business
concern is located.
``(II) Extension.--The Administrator may, at the discretion
of the Administrator, extend the period described in
subclause (I).
``(iii) Continuity of services.--A small business
development center that provides counselors to an area
described in clause (i) shall, to the maximum extent
practicable, ensure continuity of services in any State in
which the small business development center otherwise
provides services.
``(iv) Access to disaster recovery facilities.--For
purposes of this subparagraph, the Administrator shall, to
the maximum extent practicable, permit the personnel of a
small business development center to use any site or facility
designated by the Administrator for use to provide disaster
recovery assistance.''.
(b) Sense of Congress.--It is the sense of Congress that,
subject to the availability of funds, the Administrator of
the Small Business Administration should, to the extent
practicable, ensure that a small business development center
is appropriately reimbursed for any legitimate expenses
incurred in carrying out activities under section 21(b)(3)(B)
of the Small Business Act, as added by subsection (a).
SEC. 2105. FAST PROGRAM.
(a) Definitions.--Section 34(a) of the Small Business Act
(15 U.S.C. 657d(a)) is amended--
(1) by redesignating paragraphs (3) through (9) as
paragraphs (4) through (10), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Catastrophic incident.--The term `catastrophic
incident' means a major disaster that is comparable to the
description of a catastrophic incident in the National
Response Plan of the Administration, or any successor
thereto.''.
(b) Priority.--Section 34(c)(2) of the Small Business Act
(15 U.S.C. 657d(c)(2)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B)(vi)(III), by striking the period at
the end and inserting ``; and''; and
(3) by adding at the end the following:
``(C) shall give special consideration to an applicant that
is located in an area affected by a catastrophic incident.''.
(c) Additional Assistance.--Section 34(c) of the Small
Business Act (15 U.S.C. 657d(c)) is amended by adding at the
end the following:
``(5) Additional assistance for catastrophic incidents.--
Upon application by an applicant that receives an award or
has in effect a cooperative agreement under this section and
that is located in an area affected by a catastrophic
incident, the Administrator may--
``(A) provide additional assistance to the applicant; and
``(B) waive the matching requirements under subsection
(e)(2).''.
SEC. 2106. USE OF FEDERAL SURPLUS PROPERTY IN DISASTER AREAS.
Section 7(j)(13)(F) of the Small Business Act (15 U.S.C.
636(j)(13)(F)) is amended--
(1) by inserting ``(i)'' after ``(F)''; and
(2) by adding at the end the following:
``(ii)(I) In this clause--
``(aa) the term `covered period' means the 2-year period
beginning on the date on which the President declared the
applicable major disaster; and
``(bb) the term `disaster area' means the area for which
the President has declared a major disaster, during the
covered period.
``(II) The Administrator may transfer technology or surplus
property under clause (i) on a priority basis to a small
business concern located in a disaster area if--
``(aa) the small business concern meets the requirements
for such a transfer, without regard to whether the small
business concern is a Program Participant; and
``(bb) for a small business concern that is a Program
Participant, on and after the date on which the President
declared the applicable major disaster, the small business
concern has not received property under this subparagraph on
the basis of the status of the small business concern as a
Program Participant.
``(III) For any transfer of property under this clause to a
small business concern, the terms and conditions shall be the
same as a transfer to a Program Participant, except that the
small business concern shall agree not to sell or transfer
the property to any party other than the Federal Government
during the covered period.
[[Page S7424]]
``(IV) A small business concern that receives a transfer of
property under this clause may not receive a transfer of
property under clause (i) during the covered period.
``(V) If a small business concern sells or transfers
property in violation of the agreement described in subclause
(III), the Administrator may initiate proceedings to prohibit
the small business concern from receiving a transfer of
property under this clause or clause (i), in addition to any
other remedy available to the Administrator.''.
SEC. 2107. RECOVERY OPPORTUNITY LOANS.
Section 7(a)(31) of the Small Business Act (15 U.S.C.
636(a)(31)) is amended--
(1) in subparagraph (A)--
(A) by redesignating clauses (i), (ii), and (iii) as
clauses (ii), (iii), and (iv), respectively; and
(B) by inserting before clause (ii), as so redesignated,
the following:
``(i) The term `disaster area' means the area for which the
President has declared a major disaster, during the 5-year
period beginning on the date of the declaration.''; and
(2) by adding at the end the following:
``(H) Recovery opportunity loans.--
``(i) In general.--The Administrator may guarantee an
express loan to a small business concern located in a
disaster area in accordance with this subparagraph.
``(ii) Maximums.--For a loan guaranteed under clause (i)--
``(I) the maximum loan amount is $150,000; and
``(II) the guarantee rate shall be not more than 85
percent.
``(iii) Overall cap.--A loan guaranteed under clause (i)
shall not be counted in determining the amount of loans made
to a borrower for purposes of subparagraph (D).
``(iv) Operations.--A small business concern receiving a
loan guaranteed under clause (i) shall certify that the small
business concern was in operation on the date on which the
applicable major disaster occurred as a condition of
receiving the loan.
``(v) Repayment ability.--A loan guaranteed under clause
(i) may only be made to a small business concern that
demonstrates, to the satisfaction of the Administrator,
sufficient capacity to repay the loan.
``(vi) Timing of payment of guarantees.--
``(I) In general.--Not later than 90 days after the date on
which a request for purchase is filed with the Administrator,
the Administrator shall determine whether to pay the
guaranteed portion of the loan.
``(II) Recapture.--Notwithstanding any other provision of
law, unless there is a subsequent finding of fraud by a court
of competent jurisdiction relating to a loan guaranteed under
clause (i), on and after the date that is 6 months after the
date on which the Administrator determines to pay the
guaranteed portion of the loan, the Administrator may not
attempt to recapture the paid guarantee.
``(vii) Fees.--
``(I) In general.--Unless the Administrator has waived the
guarantee fee that would otherwise be collected by the
Administrator under paragraph (18) for a loan guaranteed
under clause (i), and except as provided in subclause (II),
the guarantee fee for the loan shall be equal to the
guarantee fee that the Administrator would collect if the
guarantee rate for the loan was 50 percent.
``(II) Exception.--Subclause (I) shall not apply if the
cost of carrying out the program under this subsection in a
fiscal year is more than zero and such cost is directly
attributable to the cost of guaranteeing loans under clause
(i).
``(viii) Rules.--Not later than 270 days after the date of
enactment of this subparagraph, the Administrator shall
promulgate rules to carry out this subparagraph.''.
SEC. 2108. CONTRACTOR MALFEASANCE.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting before the undesignated matter
following paragraph (12), as added by section 2101 of this
Act, the following:
``(13) Supplemental assistance for contractor
malfeasance.--
``(A) In general.--If a contractor or other person engages
in malfeasance in connection with repairs to, rehabilitation
of, or replacement of real or personal property relating to
which a loan was made under this subsection and the
malfeasance results in substantial economic damage to the
recipient of the loan or substantial risks to health or
safety, upon receiving documentation of the substantial
economic damage or the substantial risk to health and safety
from an independent loss verifier, and subject to
subparagraph (B), the Administrator may increase the amount
of the loan under this subsection, as necessary for the cost
of repairs, rehabilitation, or replacement needed to address
the cause of the economic damage or health or safety risk.
``(B) Requirements.--The Administrator may only increase
the amount of a loan under subparagraph (A) upon receiving an
appropriate certification from the borrower and person
performing the mitigation attesting to the reasonableness of
the mitigation costs and an assignment of any proceeds
received from the person engaging in the malfeasance. The
assignment of proceeds recovered from the person engaging in
the malfeasance shall be equal to the amount of the loan
under this section. Any mitigation activities shall be
subject to audit and independent verification of completeness
and cost reasonableness.''.
SEC. 2109. LOCAL CONTRACTING PREFERENCES AND INCENTIVES.
Section 15 of the Small Business Act (15 U.S.C. 644) is
amended by inserting after subsection (e) the following:
``(f) Contracting Preference for Small Business Concerns in
a Major Disaster Area.--
``(1) Definition.--In this subsection, the term `disaster
area' means the area for which the President has declared a
major disaster, during the period of the declaration.
``(2) Contracting preference.--An agency shall provide a
contracting preference for a small business concern located
in a disaster area if the small business concern will perform
the work required under the contract in the disaster area.
``(3) Credit for meeting contracting goals.--If an agency
awards a contract to a small business concern under the
circumstances described in paragraph (2), the value of the
contract shall be doubled for purposes of determining
compliance with the goals for procurement contracts under
subsection (g)(1)(A).''.
SEC. 2110. CLARIFICATION OF COLLATERAL REQUIREMENTS.
Section 7(d)(6) of the Small Business Act (15 U.S.C.
636(d)(6)) is amended by inserting after ``which are made
under paragraph (1) of subsection (b)'' the following: ``:
Provided further, That the Administrator, in obtaining the
best available collateral for a loan of not more than
$200,000 under paragraph (1) or (2) of subsection (b)
relating to damage to or destruction of the property of, or
economic injury to, a small business concern, shall not
require the owner of the small business concern to use the
primary residence of the owner as collateral if the
Administrator determines that the owner has other assets of
equal quality and with a value equal to or greater than the
amount of the loan that could be used as collateral for the
loan: Provided further, That nothing in the preceding proviso
may be construed to reduce the amount of collateral required
by the Administrator in connection with a loan described in
the preceding proviso or to modify the standards used to
evaluate the quality (rather than the type) of such
collateral''.
TITLE II--DISASTER PLANNING AND MITIGATION
SEC. 2201. BUSINESS RECOVERY CENTERS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b))
is amended by inserting before the undesignated matter
following paragraph (13), as added by section 2108 of this
Act, the following:
``(14) Business recovery centers.--
``(A) In general.--The Administrator, acting through the
district offices of the Administration, shall identify
locations that may be used as recovery centers by the
Administration in the event of a disaster declared under this
subsection or a major disaster.
``(B) Requirements for identification.--Each district
office of the Administration shall--
``(i) identify a location described in subparagraph (A) in
each county, parish, or similar unit of general local
government in the area served by the district office; and
``(ii) ensure that the locations identified under
subparagraph (A) may be used as a recovery center without
cost to the Government, to the extent practicable.''.
TITLE III--OTHER PROVISIONS
SEC. 2301. INCREASED OVERSIGHT OF ECONOMIC INJURY DISASTER
LOANS.
(a) In General.--Section 7(b) of the Small Business Act (15
U.S.C. 636(b)) is amended by inserting before the
undesignated matter following paragraph (14), as added by
section 2201 of this Act, the following:
``(15) Increased oversight of economic injury disaster
loans.--The Administrator shall increase oversight of
entities receiving loans under paragraph (2), and may
consider--
``(A) scheduled site visits to ensure borrower eligibility
and compliance with requirements established by the
Administrator; and
``(B) reviews of the use of the loan proceeds by an entity
described in paragraph (2) to ensure compliance with
requirements established by the Administrator.''.
(b) Sense of Congress Relating To Using Existing Funds.--It
is the sense of Congress that no additional Federal funds
should be made available to carry out the amendments made by
this section.
SEC. 2302. GAO REPORT ON PAPERWORK REDUCTION.
Not later than 1 year after the date of enactment of this
Act, the Comptroller General of the United States shall
submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report evaluating
steps that the Small Business Administration has taken, with
respect to the application for disaster assistance under
section 7(b) of the Small Business Act (15 U.S.C. 636(b)), to
comply with subchapter I of chapter 35 of title 44, United
States Code (commonly known as the ``Paperwork Reduction
Act'') and related guidance.
SEC. 2303. REPORT ON WEB PORTAL FOR DISASTER LOAN APPLICANTS.
Section 38 of the Small Business Act (15 U.S.C. 657j) is
amended by adding at the end the following:
``(c) Report on Web Portal for Disaster Loan Application
Status.--
``(1) In general.--Not later than 90 days after the date of
enactment of this subsection, the Administrator shall submit
to the Committee on Small Business and Entrepreneurship of
the Senate and the Committee on Small Business of the House
of
[[Page S7425]]
Representatives a report relating to the creation of a web
portal to the track the status of applications for disaster
assistance under section 7(b).
``(2) Contents.--The report under paragraph (1) shall
include--
``(A) information on the progress of the Administration in
implementing the information system under subsection (a);
``(B) recommendations from the Administration relating to
the creation of a web portal for applicants to check the
status of an application for disaster assistance under
section 7(b), including a review of best practices and web
portal models from the private sector;
``(C) information on any related costs or staffing needed
to implement such a web portal;
``(D) information on whether such a web portal can maintain
high standards for data privacy and data security;
``(E) information on whether such a web portal will
minimize redundancy among Administration disaster programs,
improve management of the number of inquiries made by
disaster applicants to employees located in the area affected
by the disaster and to call centers, and reduce paperwork
burdens on disaster victims; and
``(F) such additional information as is determined
necessary by the Administrator.''.
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