To amend the Small Business Act to provide for loan guarantees for certain private disaster loans.

Summary: Amends the Small Business Act to authorize the Administrator of the Small Business Administration to guarantee timely payment of principal and interest on any loan issued by a qualified private lender to an eligible small business concern located in a disaster area during the 24-month period in which it has been designated as a disaster area.

Permits such loans to be used for acquiring or developing real estate for selling or rental purposes, or to refinance any debt under this Act, or the Small Business Investment Act of 1958.

Authorizes the Administrator to establish an on-line application process for loans guaranteed under this Act.

SECTION 1. PRIVATE DISASTER LOANS.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 
636) is amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Private Disaster Loans.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `disaster area' means a county, 
                parish, or similar unit of general local government in 
                which a disaster was declared under subsection (b);
                    ``(B) the term `eligible small business concern' 
                means a business concern that is--
                            ``(i) is a small business concern, as 
                        defined in this Act; or
                            ``(ii) is a small business concern, as 
                        defined in section 103 of the Small Business 
                        Investment Act of 1958; and
                    ``(C) the term `qualified private lender' means any 
                privately-owned bank or other lending institution that 
                the Administrator determines meets the criteria 
                established under paragraph (10).
            ``(2) Authorization.--The Administrator may guarantee 
        timely payment of all principal and interest as scheduled on 
        any loan issued--
                    ``(A) by a qualified private lender to an eligible 
                small business concern located in a disaster area; and
                    ``(B) during the 24-month period beginning on the 
                date on which the disaster area is designated.
            ``(3) Use of loans.--A loan guaranteed by the Administrator 
        under this subsection may be used for--
                    ``(A) any purpose authorized under subsection (a) 
                or (b); and
                    ``(B) acquiring or developing real estate for the 
                purpose of selling or renting such real estate.
            ``(4) Online applications.--
                    ``(A) In general.--
                            ``(i) Establishment.--The Administrator may 
                        establish, directly or through an agreement 
                        with another entity, an online application 
                        process for loans guaranteed under this 
                        subsection.
                            ``(ii) Other federal assistance.--The 
                        Administrator may coordinate with the head of 
                        any other appropriate Federal agency so that 
                        any application submitted through an online 
                        application process established under clause 
                        (i) may be considered for any other Federal 
                        assistance program for disaster relief.
                    ``(B) Contents.--
                            ``(i) In general.--An online application 
                        process established under subparagraph (A) 
                        shall allow an applicant for a guarantee under 
                        this subsection to specify the qualified 
                        private lender from which the applicant seeks 
                        to obtain a loan.
                            ``(ii) Offers for loans.--
                                    ``(I) In general.--If an applicant 
                                does not specify a qualified private 
                                lender under clause (i), any qualified 
                                private lender may be selected to or 
                                opt to consider the application.
                                    ``(II) Process.--The Administrator 
                                may, via the online process or another 
                                predetermined and objective process, 
                                determine a means of distributing or 
                                otherwise making available for 
                                consideration applications where a 
                                qualified private lender has not been 
                                specified by the applicant.
            ``(5) Refinancing.--A loan guaranteed under this subsection 
        may be used to refinance any debt under this Act or the Small 
        Business Investment Act of 1958.
            ``(6) Maximum amounts.--
                    ``(A) Guarantee percentage.--The Administrator may 
                guarantee not more than 85 percent of a loan under this 
                subsection.
                    ``(B) Loan amounts.--The maximum amount of a loan 
                guaranteed under this subsection shall be $3,000,000.
            ``(7) Loan term.--The longest term of a loan for a loan 
        guaranteed under this subsection shall be--
                    ``(A) 15 years for any loan that is issued without 
                collateral; and
                    ``(B) 25 years for any loan that is issued with 
                collateral.
            ``(8) Fees.--
                    ``(A) In general.--The Administrator may not 
                collect a guarantee fee under this subsection.
                    ``(B) Origination fee.--The Administrator shall pay 
                a qualified private lender an origination fee for a 
                loan guaranteed under this subsection equal to \15/100\ 
                of 1 percent of the amount of the loan.
            ``(9) Documentation.--A qualified private lender may use 
        its own loan documentation for a loan guaranteed by the 
        Administrator, to the extent authorized by the Administrator, 
        except that the Administrator may not require such use by 
        regulation, or otherwise.
            ``(10) Implementation.--
                    ``(A) In general.--Not later than 30 days after the 
                date of enactment of this subsection, the Administrator 
                shall--
                            ``(i) establish interim criteria for 
                        qualified private lenders; and
                            ``(ii) begin accepting applications from 
                        banks and lending institutions.
                    ``(B) Regulations.--
                            ``(i) In general.--Not later than 90 days 
                        after the date of enactment of this subsection, 
                        the Administrator shall promulgate regulations 
                        establishing permanent criteria for qualified 
                        private lenders.
                            ``(ii) Existing qualified private 
                        lenders.--A bank or lending institution that 
                        the Administrator determined met the criteria 
                        established under subparagraph (A)(i) may 
                        continue to operate as a qualified private 
                        lender if the Administrator determines that 
                        such bank or lending institution meets the 
                        criteria established under clause (i).
            ``(11) Other assistance.--The fact that a small business 
        concern receives assistance under this subsection shall not 
        preclude such business concern from receiving other assistance 
        under this Act.
            ``(12) Authorization of appropriations.--
                    ``(A) In general.--Amounts necessary to carry out 
                this subsection shall be made available from amounts 
                appropriated to the Administration under subsection 
                (b).
                    ``(B) Authority to reduce interest rates.--Funds 
                appropriated to the Administration to carry out this 
                subsection, may be used by the Administrator, to the 
                extent available, to reduce the applicable rate of 
                interest for a loan guaranteed under this subsection by 
                not more than 3 percentage points.''.
    (b) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to disasters declared under section 7(b)(2) of the Small 
        Business Act (631 U.S.C. 636(b)(2)) before, on, or after the 
        date of enactment of this Act.
            (2) Construction.--For any disaster described in paragraph 
        (1) that was declared before the date of enactment of this Act, 
        the 24-month period described in section 7(c)(2)(B) of the 
        Small Business Act, as amended by this Act, shall begin on the 
        date on which such disaster was declared.

SEC. 2. TECHNICAL AND CONFORMING AMENDMENTS.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) in section 4(c)--
                    (A) in paragraph (1), by striking ``7(c)(2)'' and 
                inserting ``7(d)(2)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``7(c)(2)'' and inserting 
                        ``7(d)(2)''; and
                            (ii) by striking ``7(e),''; and
            (2) in section 7(b), in the undesignated matter following 
        paragraph (3)--
                    (A) by striking ``That the provisions of paragraph 
                (1) of subsection (c)'' and inserting ``That the 
                provisions of paragraph (1) of subsection (d)''; and
                    (B) by striking ``Notwithstanding the provisions of 
                any other law the interest rate on the Administration's 
                share of any loan made under subsection (b) except as 
                provided in subsection (c),'' and inserting 
                ``Notwithstanding any other provision of law, and 
                except as provided in subsection (d), the interest rate 
                on the Administration's share of any loan made under 
                subsection (b)''.