[Congressional Record Volume 161, Number 169 (Tuesday, November 17, 2015)]
[Extensions of Remarks]
[Page E1633]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





 SUPERSTORM SANDY RELIEF AND DISASTER LOAN PROGRAM IMPROVEMENT ACT OF 
                                  2015

                                 ______
                                 

                               speech of

                             HON. TOM COLE

                              of oklahoma

                    in the house of representatives

                       Monday, November 16, 2015

  Mr. COLE. Mr. Speaker, I rise today in support of H.R. 208. Again, I 
want to again thank and recognize the support and assistance of both 
Chairman Chabot and Ranking Member Velazquez for including back in July 
my legislation, H.R. 2397, the Tornado Family Safety Act of 2015 as 
part of this legislation.
  The Small Business Administration is currently afforded the authority 
to issue physical disaster loans for 120 percent of the value of 
property destroyed but not covered by insurance. The purpose of the 
additional 20 percent is so that individuals and business can modify 
structures to reduce damage from future disasters. In Oklahoma, the 
threat of tornadoes is ongoing, and we are always in between tornadoes. 
Planning is essential in order to mitigate against damage and loss of 
life. This is why the legislation I introduced, The Tornado Family 
Safety Act of 2015, was included in the House bill in July.
  This section would allow those affected by disasters to use SBA 
disaster loans to build safe rooms as a mitigating measure against 
future similar disasters. It reinforces the intent of Congress that 
already exists in statue--The SBA should already be including the 
construction of safe rooms as a use for physical disaster loans because 
it is mitigating measure. The SBA's existing interpretation of existing 
language in the Small Business Act is incorrect.
  Because of misinterpretation of this section previously, the SBA 
should now understand that physical disaster loans can also be used for 
other types of storm shelters as well, including, but not limited to 
structures that protect occupants from not only tornadoes, but from 
other natural disasters such as hurricanes, floods and wildfires.
  The Senate Amendment makes modifications to the House-passed bill. 
Specifically, it requires safe rooms or similar storm shelters eligible 
for disaster loans under the bill to be constructed according to 
applicable standards issued by the Federal Emergency Management Agency.
  It is important to note that loans may not be used to upgrade homes 
or make additions unless as required by local building codes and 
secondary or vacation homes are not eligible for these loans. The SBA 
does not duplicate insurance claim payments. Generally, loans are made 
over 30 years and interest rates are not more than 4 percent for those 
cannot obtain credit elsewhere and for those that can obtain 
alternative credit, the rate does not exceed 8 percent for the loan.
  While local and state governments have an obligation to meet the 
increase in shelter demand, the construction of the shelters is 
expensive. Under guidelines from the Federal Emergency Management 
Agency (FEMA) and the International Code Council (ICC), a safe room 
should withstand 250 mph winds and the impact of a 15-pound plank 
hitting a wall at 100 mph, according to the Insurance Institute for 
Business and Home Safety.
  Safe rooms designed to the FEMA and ICC standards are recommended for 
both tornadoes and hurricanes. For individual homes, a safe room could 
range anywhere from $3,000 to $12,000.
  For anyone who has experienced Mother Nature's most indiscriminate 
and unpredictable tenors, you can truly understand the extent to which 
they devastate lives and property.
  Again, Mr. Speaker, I support the Senate amendment which makes minor 
modifications to language in the House-passed bill and adds provisions 
of S. 1470, the Recovery Improvements for Small Entities (RISE) After 
Disaster Act of 2015, to the House-passed version.
  As I have stated before on the floor of the House, I hope every 
Member reflects on the situation of our fellow Americans during a time 
of crisis or disaster. While we may hope that our communities remain 
peaceful and safe from crisis; we certainly must support those that do 
not escape such natural and man-made calamities.

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