SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Private Disaster Loans Act of 
2007''.

SEC. 2. 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) a small business concern, as defined 
                        in this Act; or
                            ``(ii) 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 (9).
            ``(2) Authorization.--The Administrator may guarantee 
        timely payment of principal and interest, as scheduled on any 
        loan issued by a qualified private lender to an eligible small 
        business concern located in a disaster area.
            ``(3) Use of loans.--A loan guaranteed by the Administrator 
        under this subsection may be used for any purpose authorized 
        under subsection (b).
            ``(4) Online applications.--
                    ``(A) Establishment.--The Administrator may 
                establish, directly or through an agreement with 
                another entity, an online application process for loans 
                guaranteed under this subsection.
                    ``(B) 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 
                this paragraph may be considered for any other Federal 
                assistance program for disaster relief.
                    ``(C) Consultation.--In establishing an online 
                application process under this paragraph, the 
                Administrator shall consult with appropriate persons 
                from the public and private sectors, including private 
                lenders.
            ``(5) 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 $2,000,000.
            ``(6) 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.
            ``(7) Fees.--
                    ``(A) In general.--The Administrator may not 
                collect a guarantee fee under this subsection.
                    ``(B) Origination fee.--The Administrator may pay a 
                qualified private lender an origination fee for a loan 
                guaranteed under this subsection in an amount agreed 
                upon in advance between the qualified private lender 
                and the Administrator.
            ``(8) 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. 
        The ability of a lender to use its own loan documentation for a 
        loan offered under this subsection shall not be considered part 
        of the criteria for becoming a qualified private lender under 
        the regulations promulgated under paragraph (9).
            ``(9) Implementation regulations.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of the Private Disaster Loans Act of 
                2007, the Administrator shall issue final regulations 
                establishing permanent criteria for qualified private 
                lenders.
                    ``(B) Report to congress.--Not later than 6 months 
                after the date of enactment of the Private Disaster 
                Loans Act of 2007, the Administrator shall submit a 
                report on the progress of the regulations required by 
                subparagraph (A) to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives.
            ``(10) 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.--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.

SEC. 3. 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)''.
Private Disaster Loans Act of 2007 - Amends the Small Business Act to authorize the Administrator of the Small Business Administration (SBA) to guarantee timely payment of principal and interest on any loan issued by a qualified private lender to an eligible small business located in a disaster area. Authorizes the Administrator to establish an online application process for such loans.

Authorizes the Administrator to guarantee up to 85 percent of such a loan. Sets the maximum amount of such a loan at $2 million.
A bill to improve the disaster loan program of the Small Business Administration, and for other purposes.