[Congressional Record (Bound Edition), Volume 155 (2009), Part 23]
[Senate]
[Pages 30945-30947]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. PRYOR:
  S. 2863. A bill to provide that an outbreak of infectious disease or 
act of terrorism may be a major disaster under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122 et seq.), 
and for other purposes; to the Committee on Homeland Security and 
Governmental Affairs.
  Mr. PRYOR. Mr. President, I rise today to introduce two pieces of 
legislation to address gaps in our preparedness and ability to respond 
to widespread infectious disease outbreaks and biological attacks.
  The H1N1 outbreak demonstrated to us how investments in pandemic 
preparedness activities, such as the creation of pandemic influenza 
strategies, can lessen the effects of a pandemic and improve our 
response. However, we have learned from the H1N1 pandemic that we still 
have gaps in our ability to prepare for and respond to these types of 
events and that state and local entities are uncertain in their 
abilities to respond to a more severe event.
  Apart from shortcomings in government coordination and planning, 
there is also a glaring deficiency in an important statute that 
underpins our nation's response to disasters. When a natural disaster 
such as flooding in Arkansas occurs, local and State government 
resources can be quickly overextended. When that occurs a governor can 
request and the President can issue a major disaster declaration, which 
triggers the maximum amount of resources from the Federal disaster 
response system.
  Sometimes the system works well and other times not as well, but we 
know for certain that without a disaster declaration and effective 
Federal intervention a natural disaster can have devastating effects on 
life, property, and our economy.

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  Unfortunately, due to a lack of clarification of the definition of a 
major disaster in the Stafford Act, there is no precedent for the 
President to issue a major disaster declaration when local medical 
resources are overwhelmed by the exponential spread of life-threatening 
diseases, or alternatively, a deliberate biological attack by 
terrorists. The bills that I am introducing today will help to address 
preparedness shortcomings as well as the deficiency in law.
  My first bill, S. 2863, entitled The Emergency Response Act, 
addresses this shortcoming in law. It will ensure the Federal 
Government can provide the maximum amount of support to State and local 
governments by allowing pandemics, acts of terrorism or other man-made 
disasters to be considered a major disaster under the Stafford Act. 
This clarification in law will permit the President to issue a major 
disaster declaration and allow Federal agencies to coordinate their 
efforts, give technical assistance, give advisory assistance, and work 
with local authorities and people in the private sector for events such 
as pandemics, biological attacks or chemical releases.
  The second bill, S. 2864, entitled The Defense Against Infectious 
Disease Act, requires the Federal government to periodically update the 
National Strategy for Pandemic Influenza and the National Pandemic 
Implementation plan with the assistance of State, Local and Tribal 
stakeholders in order to ensure our preparedness plans are up to date 
and incorporate the latest technologies, medical developments and 
logistical challenges.
  This bill addresses concerns raised by the U.S. Government 
Accountability Office about both the completeness of these emergency 
plans and the need for them to be updated. Most Americans may not even 
know that these emergency plans exist, but they do understand that 
strong planning is the foundation for effective action. An out-of-date 
plan is not a plan, and after watching the spread of H1N1 and the 
missteps in our government's response, Americans can easily imagine 
what it would be like in the event of an even more serious disease 
outbreak, and the importance of planning for such an emergency.
  This bill will also help address the situation I described previously 
in which a severe infectious disease outbreak can overwhelm our local 
medical facilities, many of which have limited resources to handle even 
their every day needs. To address situations which will over extend 
local resources, my bill also requires the Federal Government to 
identify alternative medical care facilities and other resources such 
as medical equipment, daily supplies and personnel to ensure we know 
what assets we have to help State and local communities.
  The idea here is preparation. We should make the best of the H1N1 
outbreak and learn from this experience. That is why I introduced the 
Emergency Response Act and the Defense Against Infectious Diseases Act. 
I ask that my colleagues support these bills to ensure that we are 
prepared for the next pandemic.
  Mr. President, I ask unanimous consent that a bill summary be printed 
in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                 Emergency Response Act of 2009 Summary

       The Emergency Response Act of 2009 is intended to improve 
     response to infectious disease outbreaks, acts of terrorism 
     and other disasters.
       Section 2 of the legislation amends the Robert T. Stafford 
     Disaster Relief and Emergency Assistant Act to provide that a 
     pandemic, act of terrorism or other manmade disaster be 
     considered a trigger to issue a ``major disaster'' 
     declaration under the Act. Section 3 creates a working group 
     under the auspices of the Secretary of Homeland Security to 
     prepare recommendations for facilitating the dissemination of 
     public health information to State fusion centers and the 
     greater homeland security community.

        Defense Against Infectious Diseases Act of 2009 Summary

       The Defense Against Infectious Disease Act of 2009 is 
     intended to address gaps in preparedness in the event of a 
     significant outbreak of an infectious disease.
       Section 3 of the legislation directs that a consortium of 
     state, local, and tribal representatives be convened to 
     assess the adequacy of existing guidance and support in the 
     National Strategy for Pandemic Influenza and National 
     Strategy for Pandemic Influenza Implementation plans. Section 
     4 directs the Secretary of Health and Human Services in 
     coordination with the Secretary of Homeland Security to 
     identify alternative medical care facilities and resources 
     available to locate and distribute both medical and non-
     medical supplies to support communities over extended by an 
     infectious disease outbreak. Section 5 directs GAO to prepare 
     a report describing the roles and responsibilities, 
     capabilities and coordination of federal government assets in 
     place across various departments for responding to infectious 
     disease outbreaks and biological attacks.
                                 ______
                                 
      By Ms. LANDRIEU (for herself and Ms. Snowe):
  S. 2869. A bill to increase loan limits for small business concerns, 
to provide for low interest refinancing for small business concerns, 
and for other purposes.
  Ms. LANDRIEU. Mr. President, our Nation's small businesses have 
created 64 percent of all new jobs in the last 15 years, yet in the 
last year nearly 85 percent of the jobs lost have come from small 
businesses. To reverse this job loss trend and allow small businesses 
to be the engine of economic growth once again, we must make sure they 
have the access to capital they need to be successful and help grow our 
economy.
  That is exactly why I, along with the ranking member of the Small 
Business Committee, Olympia Snowe of Maine, am introducing the Small 
Business Job Creation and Access to Capital Act of 2009. This 
bipartisan legislation is a result of five hearings and roundtables in 
the Small Business Committee this year as well as numerous meetings 
with small business owners. It builds off of S. 1832, the Small 
Business Access to Capital Act of 2009, and S. 1615, the Next Step for 
Main Street Credit Availability Act of 2009, legislation Senator Snowe 
and I have previously introduced.
  This legislation enhances the ability of the SBA to support larger 
loans and provide more options to small businesses. As many other 
sources of capital have evaporated, loans guaranteed by the SBA, with 
support of funding through the Recovery Act, have been able to support 
$16.5 billion in loans to small businesses. Specifically, this act 
would: increase the loan limit on 7(a) loans from $2 million to $5 
million; increase the loan limit on 504 loans from $1.5 million to $5.5 
million; increase the loan limit on microloans from $35,000 to $50,000, 
as well as increase the loan limit to microloan intermediaries from 
$3.5 million to $5 million; allow the 504 loan program to refinance 
short-term commercial real estate debt into long-term, fixed rate 
loans; extend the authorization to provide 90 percent guarantees on 
7(a) loans and fee elimination for borrowers on 7(a) and 504 loans 
through December 31, 2010; and direct the SBA to create a website where 
small businesses can identify lenders in their communities.
  These provisions will have an immediate impact on increasing the 
availability of credit for small businesses and spurring job growth, 
with many of these provisions coming at little or no cost to the 
government. For example, the SBA estimates that the loan limit 
increases will be budget neutral, but will increase SBA lending by $5 
billion next year alone. The refinancing provisions could help save 
60,000 jobs next year by allowing small businesses to refinance short-
term commercial real estate debt into long-term fixed rate mortgages. 
To ensure that this program is budget neutral we have included a 
provision that would require any additional cost created by the program 
to be funded by the fees of the participants. Additionally, we have 
placed a number of safeguards on this program, such as requiring that 
the refinanced loan be current for at least one year, that the business 
owner invest a minimum of 20 percent equity and that the availability 
of funds be capped at $65,000 for every job retained.
  The extension of the 90 percent guarantees on 7(a) loan and the fee 
elimination for borrowers on traditional 504 and 7(a) loans extends 
critical provisions in the Recovery Act. This legislation does not 
include the appropriations for this funding, but does provide

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an extension of its authorization should appropriations be made 
available. It is estimated that if an additional $479 million were to 
be appropriated for these programs, the SBA would be able to support 
$18.5 billion in lending to small businesses. Alternately, we are 
starting to see the impact of this funding not being available. In the 
first full week of lending since the SBA had to create a waiting list 
for the final Recovery Act funding, 7(a) loan volume fell from $985 
million in the last week of the full funding being available, to $71 
million. This $71 million in loan volume is lower than the average 
weekly volume we were experiencing before the Recovery Act was 
approved. We also know that as of today there are more than 700 small 
businesses in the SBA waiting list approved for $350 million in loans 
if we made more funding available.
  It is clear that now is the time to act. Our Nation's small 
businesses need access to capital and this bill helps facilitate this 
crucial need.
  Ms. SNOWE. Mr. President, we all know the statistics are bleak. 
Unemployment is at 10 percent, more than 7 million Americans have lost 
their jobs since the start of this current recession, and the National 
Federation of Independent Businesses' Optimism Index, a compilation of 
10 survey indicators, is at 88.3, a number the NFIB calls ``stuck at 
recession levels.'' These statistics, and the stories they represent 
present Congress with myriad challenges including: What will we do to 
lower unemployment, create jobs, and help our small businesses to grow 
again?
  The legislation Chair Landrieu and I are introducing today, the Small 
Business Job Creation and Access to Capital Act of 2009, aims to meet 
this challenge and takes the best ideas from Republicans and Democrats, 
to help put American small businesses back to work. I would especially 
like to thank the Chair for working with me in such an open manner in 
developing this bill. Creating jobs and helping small businesses should 
not be a partisan issue and the Chair has been extremely open to my 
suggestions, incorporating many of the provisions I originally 
introduced in the Small Business Lending Improvement Act, the 10 Steps 
for a Main Street Economic Recovery Act, and the Next Step for a Main 
Street Economic Recovery Act into this legislation.
  In the past year, one cornerstone of small business recovery has been 
Small Business Administration, SBA, backed lending. Last year, to help 
address the chronic shortage of capital for small business borrowers, I 
introduced the 10 Steps for a Main Street Economic Recovery Act. Many 
of the provisions in this legislation were included in the American 
Recovery and Reinvestment Act and some have been credited with helping 
to increase SBA loan volume 79 percent.
  One provision which has been extremely popular has been fee 
reductions for 7(a) and 504 loans. In fact, at a round table on 
reauthorizing the SBA's access to capital programs the Senate Committee 
on Small Business and Entrepreneurship heard from Mr. Michael Heath, 
the owner of Ramunto's Brick Oven Pizza in St. Johnsbury, Vermont. Mr. 
Heath told the Committee that the funds he saved in SBA fee reductions 
helped him buy his pizzeria. The bill we are introducing today would 
extend the fee reductions I originally proposed in 10 Steps to December 
31st, 2010. This critical step ensures that we can continue to help 
entrepreneurs like Mike open businesses on Main Streets across America.
  Another vital provision contained in this legislation expands the 
number of businesses eligible for SBA-backed loans and expands the size 
of those loans. I originally proposed this idea in the Small Business 
Lending Improvement Act which calls for an alternative size standard 
that would help more small businesses meet the SBA's requirements to 
access SBA-backed loans, and also included it in the Next Step for Main 
Street Credit Availability Act, which includes provisions allowing 
borrowers to take out larger 7(a) loans, microloans, and 504 loans. 
President Obama has also recognized the need for larger loan sizes and 
has advocated for this position as a way to create jobs and help small 
businesses.
  Underscoring the inadequate size of SBA loans, I heard testimony 
earlier this year at a field hearing Senator Shaheen and I held in 
Portland, Maine from Mr. Richard Pfeffer, a local business owner, on 
how small SBA loan sizes have directly impacted his business. Mr. 
Pfeffer testified that his two businesses, Aroostook Starch and Gritty 
McDuff's, a restaurant and pub regarded by many as a Portland landmark, 
were close to bankruptcy not because of the economic downturn, but 
rather because of his inability to access larger SBA loans. Mr. Pfeffer 
is still in business today, and Gritty's is now serving its famous 
Christmas Ale, but his inability to access capital still looms and it 
is costing him the opportunity to expand his business and hire more 
workers. The increased loan limits in this bill would help Mr. Pfeffer 
and others like him to put the American economy back on track.
  This bill also includes another provision I proposed in March and 
introduced in my Next Steps legislation that would allow SBA borrowers 
to shop and compare SBA loan rates online, offering borrowers the 
opportunity to make an informed choice and save time and money.
  Finally, the Small Business Job Creation and Access to Capital Act of 
2009 would allow borrowers of 504 loans to refinance their debt. This 
provision will give borrowers critical working capital that they can 
use to grow and expand their businesses.
  These targeted reforms will help put Americans back to work, ease the 
capital crunch for small businesses, and help bring SBA lending into 
the future. I urge my colleagues to support this critical legislation 
to improve America's economy and increase small business lending.

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