[Congressional Record (Bound Edition), Volume 161 (2015), Part 13]
[House]
[Pages 18175-18180]
[From the U.S. Government Publishing Office, www.gpo.gov]




 SUPERSTORM SANDY RELIEF AND DISASTER LOAN PROGRAM IMPROVEMENT ACT OF 
                                  2015

  Mr. CHABOT. Mr. Speaker, I move to suspend the rules and concur in 
the Senate amendments to the bill (H.R. 208) to improve the disaster 
assistance programs of the Small Business Administration.
  The Clerk read the title of the bill.
  The text of the Senate amendments is as follows:
  Senate amendments:

     (1)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. 2104. FAST program.
Sec. 2105. Use of Federal surplus property in disaster areas.
Sec. 2106. Recovery opportunity loans.
Sec. 2107. Contractor malfeasance.
Sec. 2108. Local contracting preferences and incentives.
Sec. 2109. 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''.

[[Page 18176]]



     SEC. 1002. FINDINGS.

     (2)On page 3, strike line 5 and insert the following:

               TITLE I--DISASTER ASSISTANCE IMPROVEMENTS

     SEC. 1101. REVISED DISASTER DEADLINE.

     (3)On page 3, line 14, insert ``nonprofit entity,'' after 
     ``homeowner,''.
     (4)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.''.
     (5)On page 4, line 10, strike ``sec. 4.'' and insert ``sec. 
     1102.''.
     (6)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''.
     (7)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:
     (8)On page 5, line 22, strike ``(11)'' and insert ``(10)''.
     (9)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:
     (10)On page 6, line 9, strike ``(12)'' and insert ``(11)''.
     (11)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.

     (12)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. 2104. 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

[[Page 18177]]

       ``(B) waive the matching requirements under subsection 
     (e)(2).''.

     SEC. 2105. 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.
       ``(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. 2106. 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. 2107. 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. 2108. 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. 2109. 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

[[Page 18178]]

       ``(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 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.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Ohio (Mr. Chabot) and the gentlewoman from New York (Ms. Velazquez) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Ohio.


                             General Leave

  Mr. CHABOT. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise and extend their remarks and include 
extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Ohio?
  There was no objection.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, on July 13, this Chamber overwhelmingly passed H.R. 208, 
which was a corrective measure for those who suffered twice: first, by 
a disaster and, second, by the SBA's inability to provide disaster 
assistance. Since that time, we have experienced more natural 
disasters, with the President issuing major disaster declarations for 
the wildfires in California and across the country in South Carolina 
for the severe storms and flooding that recently occurred.
  As we know too well, a major natural disaster can happen anywhere, at 
any time, and to anyone in this great Nation. A natural disaster 
exposes us to the worst nature has to offer, yet it oftentimes brings 
out the best in people. Communities band together, neighbors help 
neighbors, and volunteers donate their time and energy, all in an 
effort to rebuild.
  Over the last decade, America has faced some of its worst natural 
disasters, with Hurricane Katrina in 2005 and, more recently, Hurricane 
Sandy in 2012.
  In the aftermath of any disaster, it is imperative that Federal 
Government programs operate efficiently and effectively so victims are 
able to rebuild and return their lives to normal as soon as possible.
  Following both Hurricane Katrina and Hurricane Sandy, there have been 
startling reports regarding the Small Business Administration's 
inability to properly administer the disaster loan program. The bill 
before us today, as amended by the Senate, has the great fortune of 
being authored by two individuals who have seen firsthand how 
challenging the SBA disaster loan process is in the aftermath of these 
catastrophic storms.
  The amendment we seek to concur in today comes from Senator Vitter, 
the chairman of the Senate Committee on Small Business and 
Entrepreneurship, who, as we all know, represents the great State of 
Louisiana, which was devastated by Hurricane Katrina. Senator Vitter's 
amendment strengthens the already strong underlying bill, which was 
authored by our committee's ranking member, Ms. Velazquez, whose 
district in New York City was ravaged by Superstorm Sandy.
  I would like to thank them both for their leadership and hard work on 
these issues and for working together to craft legislation which takes 
into account the needs of disaster victims and taxpayers.

                              {time}  2015

  This amendment further ensures that the SBA will be able to respond 
quickly to the needs of disaster victims. It makes commonsense 
improvements to the program, such as allowing SBA's resource partners 
who already have a presence in the disaster area to engage with small 
businesses as soon as the area is declared a disaster, meaning small 
businesses can resume operating faster and getting people back to work.
  It also recognizes that sometimes those resource partners will have 
been affected by the disaster and allows small-business development 
centers, SBDCs, from other States to go into affected areas temporarily 
and to aid victims. I know in my home district, Ohio's First District, 
having Kentucky so close, this would be essential if either State's 
SBDC suffered due to a natural disaster.
  Further, the amendment builds on the underlying bill's concerns 
regarding the SBA's struggle with electronic disaster loan applications 
following Superstorm Sandy. This amendment ensures that Congress will 
be informed of the status of the electronic application web portal so 
that we can provide oversight and prevent failures that happened in 
previous disasters from recurring. These changes, among others, will 
ensure that the SBA is fully capable of responding to the next 
disaster.
  Again, I want to offer a special thanks to our committee's ranking 
member, Ms. Velazquez, for her insight and leadership on this issue and 
for working in a bipartisan, bicameral manner, as she does.
  I have seen that as chair of the Small Business Committee that I 
chair now, but I have also been the ranking member under her when she 
was chair, and it was always bipartisan. We have worked together in a 
very collegial manner, and I thank her for that.
  I want to thank her for this bill and developing it. It will help to 
ensure those affected by disasters can rebuild quickly and that the 
interests of the taxpayers are protected. This legislation, as amended 
and passed by the Senate, has broad bipartisan support.
  I urge my colleagues to support and concur on H.R. 208, as amended by 
the Senate.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, when Hurricane Sandy made landfall in 2012, New York 
City was one of the hardest hit areas. Thousands of homes suffered 
damage, infrastructure was disrupted, and our city's small businesses 
were impacted physically and economically.
  After a disaster like this, it is not uncommon for as many as 40 
percent of impacted small businesses to fail, depressing commerce and 
slowing the community's recovery.
  The Small Business Administration's disaster lending functions are 
meant to provide quick credit to small businesses and homeowners that 
have been impacted by catastrophes.

[[Page 18179]]

  With entrepreneurs' and homeowners' livelihoods at stake, it is vital 
that the SBA's disaster programs operate effectively. That is why in 
2008, after Katrina, Congress passed reforms meant to improve SBA's 
disaster response.
  It became evident following Hurricane Sandy that there is still much 
work to be done. The Government Accountability Office, the inspector 
general, and Small Business Committee Democrats have all documented 
shortcomings in SBA's administration of the disaster loan program.
  Our committee found, for instance, that small businesses waited 46 
days to get their application processed by SBA, a threefold increase 
over previous Atlantic storms. The IG found the agency lacked clear 
guidance which resulted in confusion for borrowers, inconsistent 
application of underwriting criteria, and loans going to ineligible 
entities.
  H.R. 208 addresses these shortcomings and ensures those affected by 
Hurricane Sandy are treated fairly. To begin, the bill would allow 
businesses to apply again for loans. As SBA was so unprepared for a 
disaster of this scale, it is important that those impacted have 
another chance at securing assistance.
  This bill would also correct many of the problems identified by the 
IG. SBA will be required to provide up-front notification to borrowers 
on necessary documentation as well as establish clear written policies 
for loan officers. By clearing up confusion for both borrowers and SBA 
staff, H.R. 208 will ensure funds flow more swiftly to businesses after 
future catastrophes.
  Lastly, the measure incorporates a number of bipartisan reforms from 
our Senate colleagues. Under these provisions, for instance, businesses 
would no longer be prohibited from posting their assets as collateral. 
This is important as, previously, many entrepreneurs have had to use 
personal assets for loan collateral.
  Mr. Speaker, this is a truly bipartisan, bicameral effort that 
focuses on better assisting small businesses impacted by natural 
disasters.
  I want to thank Chairman Chabot for his leadership and support on 
this legislation. I also wanted to thank Chairman Vitter, Ranking 
Member Shaheen, and Senators Menendez and Booker for their hard work in 
crafting this bill.
  I urge my colleagues to support it.
  I reserve the balance of my time.
  Mr. CHABOT. Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
  When disasters strike, getting small businesses back on their feet 
quickly can help local economies recover. For that to happen, the SBA's 
disaster lending initiatives must work as intended, providing emergency 
capital to firms that have suffered physical and economical damage.
  H.R. 208 would allow businesses that encounter delays to reapply for 
assistance and be made whole. It also improves how the agency functions 
going forward, speeding help to small businesses and homeowners when 
they are most in need. This is a bipartisan bill, and it will do much 
good for entrepreneurs impacted by Sandy and for businesses impacted by 
future disasters.
  I want to thank Chairman Vitter, Ranking Member Shaheen, Senators 
Menendez and Booker, and especially Chairman Chabot for working in a 
bipartisan manner to get this bill to the President.
  I also would like to take this opportunity to thank the staff for the 
Senate Small Business Committee and our staff for the House Small 
Business Committee: Adam Minehardt, Justin Pelletier, Emily Murphy, 
Barry Pinelas, and Corey Cooke.
  I encourage my colleagues to vote ``yes.''
  I yield back the balance of my time.
  Mr. CHABOT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, in closing, we never know when or where the next 
disaster will strike. But, unfortunately, we do know that there will be 
another disaster. In fact, there will be more disasters. Given this, we 
must ensure that the SBA is truly prepared to help victims in the 
aftermath of those disasters.
  H.R. 208 rights the wrongs imposed by the SBA on those who suffered 
from the effects of Sandy. But H.R. 208 does more than just correct 
past mistakes. It imposes obligations on the SBA to ensure the agency 
learns from history and does not repeat those mistakes.
  I urge my colleagues to vote to concur on the Senate amendment H.R. 
208.
  I yield back the balance of my time.
  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.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Ohio (Mr. Chabot) that the House suspend the rules and 
concur in the Senate amendment to the bill, H.R. 208.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the Senate amendments were concurred in.

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  A motion to reconsider was laid on the table.

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