[Congressional Record (Bound Edition), Volume 153 (2007), Part 7]
[House]
[Pages 9228-9231]
[From the U.S. Government Publishing Office, www.gpo.gov]




  PROVIDING FOR CONSIDERATION OF H.R. 1361, RELIEF FOR ENTREPRENEURS: 
  COORDINATION OF OBJECTIVES AND VALUES FOR EFFECTIVE RECOVERY ACT OF 
                                  2007

  Mr. HASTINGS of Florida. Mr. Speaker, by direction of the Committee 
on Rules, I call up House Resolution 302 and ask for its immediate 
consideration.
  The Clerk read the resolution, as follows:

                              H. Res. 302

       Resolved,  That at any time after the adoption of this 
     resolution the Speaker may, pursuant to clause 2(b) of rule 
     XVIII, declare the House resolved into the Committee of the 
     Whole House on the state of the Union for consideration of 
     the bill (H.R. 1361) to improve the disaster relief programs 
     of the Small Business Administration, and for other purposes. 
     The first reading of the bill shall be dispensed with. All 
     points of order against consideration of the bill are waived 
     except those arising under clause 9 or 10 of rule XXI. 
     General debate shall be confined to the bill and shall not 
     exceed one hour equally divided and controlled by the 
     chairman and ranking minority member of the Committee on 
     Small Business. After general debate the bill shall be 
     considered for amendment under the five-minute rule. The 
     amendment in the nature of a substitute recommended by the 
     Committee on Small Business now printed in the bill, modified 
     by the amendment printed in part A of the report of the 
     Committee on Rules accompanying this resolution, shall be 
     considered as adopted in the House and in the Committee of 
     the Whole. The bill, as amended, shall be considered as the 
     original bill for the purpose of further amendment under the 
     five-minute rule and shall be considered as read. All points 
     of order against provisions in the bill, as amended, are 
     waived. Notwithstanding clause 11 of rule XVIII, no further 
     amendment to the bill, as amended, shall be in order except 
     those printed in part B of the report of the Committee on 
     Rules. Each such further amendment may be offered only in the 
     order printed in the report, may be offered only by a Member 
     designated in the report, shall be considered as read, shall 
     be debatable for the time specified in the report equally 
     divided and controlled by the proponent and an opponent, 
     shall not be subject to amendment, and shall not be subject 
     to a demand for division of the question in the House or in 
     the Committee of the Whole. All points of order against such 
     further amendments are waived except those arising under 
     clause 9 or 10 of rule XXI. At the conclusion of 
     consideration of the bill for amendment the Committee shall 
     rise and report the bill, as amended, to the House with such 
     further amendments as may have been adopted. The previous 
     question shall be considered as ordered on the bill and 
     amendments thereto to

[[Page 9229]]

     final passage without intervening motion except one motion to 
     recommit with or without instructions.
       Sec. 2. During consideration in the House of H.R. 1361 
     pursuant to this resolution, notwithstanding the operation of 
     the previous question, the Chair may postpone further 
     consideration of the bill to such time as may be designated 
     by the Speaker.

  The SPEAKER pro tempore. The gentleman from Florida (Mr. Hastings) is 
recognized for 1 hour.
  Mr. HASTINGS of Florida. Mr. Speaker, for purposes of debate only, I 
yield the customary 30 minutes to the gentleman from Florida, my friend 
and cochair of Florida's congressional delegation, Representative 
Lincoln Diaz-Balart. All time yielded during consideration of the rule 
is for debate only.
  Mr. Speaker, I yield myself as much time as I may consume.

                              {time}  1320


                             General Leave

  Mr. HASTINGS of Florida. Mr. Speaker, I ask unanimous consent that 
all Members be given 5 legislative days in which to revise and extend 
their remarks on House Resolution 302.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. HASTINGS of Florida. Mr. Speaker, as the Clerk just read, this 
rule provides for consideration of H.R. 1361, the Relief for 
Entrepreneurs: Coordination of Objectives and Values for Effective 
Recovery, or RECOVER Act of 2007 under a structured rule.
  Continuing our ongoing efforts to provide the minority with 
opportunities to amend and improve legislation on the House floor, the 
rule also makes in order all three Republican amendments that were 
submitted to the Rules Committee.
  Mr. Speaker, as someone who represents a district which has been 
victim to countless natural disasters, I have known about the Small 
Business Administration's disaster loan program for quite some time.
  Businesses in the district I am privileged to serve and the district 
of my good friend Mr. Diaz-Balart and throughout South Florida have 
relied on this program to sustain themselves during the difficult days, 
weeks and months following natural disasters. Loans provided under 
SBA's disaster loan assistance program have, at times, literally kept 
Florida's economy going.
  While I have seen the greatness of this program, Mr. Speaker, I and 
my constituents have also seen its shortcomings. Indeed, the problems 
addressed in the underlying legislation, and I commend the Chair's 
recommendations and their efforts in that regard, but the problems are 
not new, and they certainly were not created by Hurricanes Katrina, 
Rita or Wilma. On the contrary, they have manifested for quite some 
time and have been raised by me and many of my colleagues in Florida 
over the years.
  In Florida, we saw SBA's limitations during the 2004 hurricane 
season. By no fault of its own, SBA was inundated with loan 
applications and overwhelmed by the situation. Long delays in 
application processing and slow disbursements of approved loans led 
many in my part of the country to question why Congress didn't do 
anything at the time to increase the Small Business Administration's 
capacity during disasters.
  Although it took the largest disaster of our time for us to open up 
our eyes, I am pleased that this Congress under this leadership is 
giving the SBA the tools that it needs to keep America's small 
businesses in business after a disaster.
  The RECOVER Act enhances the SBA's capacity to provide assistance 
during and after natural disasters. The legislation mandates that the 
SBA establish and maintain a comprehensive disaster plan which will be 
overseen by a new associate administrator for disaster assistance.
  Using FEMA's citizen volunteer program as its model, the underlying 
legislation establishes a disaster reserve corps capable of providing 
the people-power necessary to respond to an influx of SBA loan 
applications.
  The RECOVER Act improves SBA's customer service operation and 
increases the limit of SBA disaster loans from $1.5 million to $3 
million. It also expands the scope of organizations which can qualify 
for such loans and makes it easier for businesses to pay back their 
loans.
  The bill also requires improved disaster response coordination 
between the SBA and FEMA. This is a critical, yet unfortunate, 
requirement of the bill. Critical because coordination during disasters 
across agency lines is desperately needed; unfortunate, notwithstanding 
of the fact that these things are going to occur, I am dumbfounded that 
our agencies aren't already coordinating to the maximum extent possible 
during disasters.
  I have participated in the conversations, sat in the meetings where 
coordination between agencies is nonexistent during disasters. Turf 
battles supersede logic, and coordination is a distant memory of the 
past.
  I ask: Why does it take an act of Congress to get Federal agencies to 
coordinate their efforts when authorization for such coordination 
already exists? The only turf that matters and should matter during 
disasters is the turf of the American people.
  We have to be in the business of providing our citizens with every 
available resource to respond to and recover from disasters. The 
underlying legislation does just that.
  I am proud to support this rule and the underlying legislation, and I 
urge my colleagues to do the same.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, I would like to 
thank my good friend, the gentleman from Florida (Mr. Hastings), the 
co-chairman of the Florida congressional delegation, for the time, and 
I yield myself such time as I may consume.
  Small business, Mr. Speaker, is the engine that drives our economic 
strength. Small businesses employ over half of all private sector 
workers and pay approximately 45 percent of U.S. private payroll.
  Over the last decade, small businesses have generated 60 to 80 
percent of new jobs. We must not take the amazing performance of small 
businesses for granted, however, Mr. Speaker. They often don't have the 
financial structure and support to help them quickly recover from major 
natural disasters. If small businesses fail in the aftermath of a 
natural disaster, it only slows the recovery of the area.
  Storms have often punished the community that I am honored to 
represent. In 1992, Hurricane Andrew, a category 5 storm, devastated 
much of South Florida. Until 2005, Hurricane Andrew was the costliest 
natural disaster in our history, causing over $26 billion of damage to 
South Florida. Entire communities were totally destroyed. Especially 
hard hit were many of the small businesses that make up a major part of 
the South Florida economy. Fifteen years later, the effects of that 
storm can still be felt.
  The SBA was one of the many Federal agencies that suffered a 
breakdown in operations during the rebuilding efforts after the 2005 
hurricane season. The disaster loan program of the SBA is the Federal 
Government's main source of natural disaster rebuilding assistance and 
has come under fire for problems and delays in granting loans to 
homeowners, renters and businesses affected by the hurricanes.
  I think we need to do all that we can to ensure that the backbone of 
our country, small businesses, are not crippled in a storm's aftermath 
and that those small businesses can play a leading role in the recovery 
of affected areas.
  This underlying legislation better prepares the SBA to handle future 
disasters by requiring, among other reforms, that the agency develop a 
comprehensive disaster response plan, improve training, streamline 
information tracking systems, follow-up processes and more efficiently 
distribute disaster loans by partnering with private lenders.
  There is at least one point of contention in the underlying 
legislation. Section 211 modifies the subsidy rate assigned to SBA 
disaster loans by providing for double compensation under

[[Page 9230]]

the provision that a disaster victim could receive both a grant and a 
loan for the same damage. This provision requires a direct 
appropriation. As such, it violates PAYGO rules.
  The manager's amendment by the distinguished chairman, Ms. Velazquez, 
does correct the PAYGO problem by making the section subject to 
available appropriations. It still does not address the underlying 
issue in contention, however, Mr. Speaker, which is, why should someone 
be compensated twice for the same injury? It is a legitimate point of 
contention which obviously merits debate.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  1330

  Mr. HASTINGS of Florida. Mr. Speaker, I am very pleased at this time 
to yield 3 minutes to the distinguished gentlewoman from Florida, our 
colleague on the Rules Committee, Ms. Castor.
  Ms. CASTOR. Mr. Speaker, I thank my distinguished colleague from the 
Rules Committee.
  Mr. Speaker, I rise in strong support of the RECOVER Act and this 
rule which charts a new direction for emergency and hurricane planning, 
because the Federal Government simply must be ready to respond in a 
crisis.
  Small Business Committee Chair Nydia Velazquez and her committee 
deserve credit for understanding the expectations of the American 
people, who have insisted upon better disaster relief planning.
  My colleagues from Florida, and indeed, our neighbors and citizens 
across the gulf coast, begin to feel a bit apprehensive this time of 
year because hurricane season is only a few weeks away. Yes, we are all 
worried about the potential landfall of a hurricane, but we are also 
just as concerned about the administration's ability to deal with the 
aftermath.
  Following the Bush administration's poor response to the 2005 gulf 
coast hurricanes, the new Congress has pledged to strengthen disaster 
planning and response, and we are following through here today. The 
RECOVER Act will improve the Small Business Administration's disaster 
response plans and assess its technology, telecommunications and 
personnel in advance.
  In the event of another hurricane or natural disaster, small business 
owners will face costs of starting up again, so this act increases the 
funds available for disaster loans from $1.5 to $3 million. And 
importantly for the hardworking folks like those in my district in the 
Tampa Bay area, small business owners will no longer be required to 
pledge their homes as collateral for business loans less than $100,000.
  The act also requires the SBA to improve coordination with State and 
local authorities and establishes a disaster relief corps of 1,000 
trained individuals.
  So, Mr. Speaker, I strongly urge approval of this rule and the 
RECOVER Act so that our country is better prepared for hurricane season 
and the swift recovery of our communities and small businesses.
  Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, it is my privilege 
to yield 4 minutes to my good friend, the gentleman from Georgia, Dr. 
Gingrey.
  Mr. GINGREY. Mr. Speaker, I can certainly understand my former 
colleagues on the Rules Committee, the gentleman from Florida (Mr. 
Hastings), the gentleman from Florida (Mr. Diaz-Balart), the gentlelady 
from Florida (Ms. Castor) being in favor of this rule and this 
underlying bill.
  But I rise, Mr. Speaker, in strong opposition to the underlying 
legislation, H.R. 1361, the RECOVER Act. This legislation is bad fiscal 
policy. It increases the cost to America's taxpayers of providing 
disaster assistance, while increasing the probability that the Federal 
Government will lose money to default losses.
  It was Huey Long, the long-time Governor and Senator from Louisiana, 
the gulf coast, the Kingfish, as he was known, who said, ``I can 
frighten or buy 99 out of every 100 men.''
  Mr. Speaker, I am not suggesting that my Democratic colleagues are 
trying to buy votes with this bill. But I do know that we need to 
closely examine the money our government spends to ensure that it is 
spent responsibly.
  We have worked hard to fund the redevelopment of the gulf coast, 
committing more than $110 billion of Federal resources. That includes 
$4.7 billion to FEMA to remove debris and repair and rebuild public 
infrastructure and buildings; $17 billion from HUD for Community 
Development Block Grants, the largest housing recovery program in 
United States history; $6 billion for the Corps of Engineers to rebuild 
and restore levees so that we can rebuild below sea level; $16.1 
billion paid out in national flood insurance claims, $1 billion for 
Health and Human Services to cover all of Louisiana's health care 
costs. And the list, Mr. Speaker, goes on and on.
  There are right ways and wrong ways to fund redevelopment. This 
Congress has delivered $14 billion in incentives to spur private 
business investment and economic development to create jobs, another 
$600 million in Gulf Opportunity Zone tax credits to the region, with 
an additional $400 million expected to be awarded this fall to 
encourage more business investment. But today we are debating a bill 
which would harm small business across the Nation by giving away money 
that will never, and I repeat, that will never get repaid.
  Mr. Speaker, provisions in title II of this bill would allow gulf 
businesses whose application for a disaster loan has been denied, to 
then receive $100,000 in grant money. And if a business has already 
received a loan, this bill will make sure that same business can also 
get a grant, and in the process, they will make certain that the grant 
money is not used to repay the loan.
  So, yes, Mr. Speaker, you heard right. If the SBA decides your 
business is not viable enough for a loan, Congress is going to come in 
and just give you the money. What is more, now you can get paid twice 
for the same disaster.
  Mr. Speaker, the sad fact is, this bill will hurt small businesses 
across the country. When the SBA makes a loan and that loan is repaid, 
the SBA loans that money to another business, and the cycle repeats 
itself. But by removing the repayment part of this cycle and requiring 
the SBA to send a $100,000 grant to those businesses who do not qualify 
for a disaster loan in the first place, we are diluting the resources 
of the SBA and hindering its ability to extend loans to businesses in 
other parts of the country, businesses fully capable of repaying them.
  Mr. Speaker, my Democratic colleagues are ignoring any semblance of 
restraint by treating our Treasury as a bottomless pit. In raising the 
risk of unrecoverable default losses, by giving away free money, it 
would certainly seem they are doing their level best to prove Huey 
Long's words to be true.
  I urge my colleagues, vote against the rule and vote against the 
underlying bill.
  Mr. HASTINGS of Florida. Mr. Speaker, I would like to inquire of the 
gentleman from Florida, Mr. Speaker, if he has any remaining speakers. 
I am the last speaker for this side.
  Mr. LINCOLN DIAZ-BALART of Florida. I have no more speakers.
  Mr. HASTINGS of Florida. Then I will reserve my time until the 
gentleman has closed for his side and yielded back his time.
  Mr. LINCOLN DIAZ-BALART of Florida. Mr. Speaker, we have no further 
speakers and yield back.
  Mr. HASTINGS of Florida. Mr. Speaker, disasters in this country are 
not limited to hurricanes or the Southeast. As I was saying yesterday 
in the Rules Committee, the chairwoman had storms in her district 
earlier this week, and there is massive drought going on in parts of 
this country. All of these are disasters and all of these have major 
SBA implications.
  I have lived, and continue to live, in disaster-prone areas, like so 
many others in Congress and in this country. If our failures of the 
past have taught us anything, it is that we can no longer be response 
oriented when it comes to disasters.

[[Page 9231]]

  Mitigation and planning saves money, saves time, and most 
importantly, saves lives.
  The RECOVER Act creates a comprehensive and universal plan at the SBA 
for disaster response. It is the first step on this important path to 
improving the Federal Government's response to disasters.
  I urge a ``yes'' vote on the rule, the previous question, and the 
underlying legislation.
  Mr. Speaker, I yield back the balance of my time and move the 
previous question on the resolution.
  The previous question was ordered.
  The SPEAKER pro tempore. The question is on adoption of the 
resolution.
  The resolution was agreed to.
  A motion to reconsider was laid on the table.

                          ____________________