To address ongoing small business and homeowner needs in the Gulf Coast States impacted by Hurricane Katrina and Hurricane Rita.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gulf Coast Back to Business Act of 
2007''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) 43 percent of businesses that close following a natural 
        disaster never reopen;
            (2) an additional 29 percent of businesses close down 
        permanently within 2 years of a natural disaster;
            (3) Hurricane Katrina struck the Gulf Coast of the United 
        States on August 29, 2005, negatively impacting small business 
        concerns and disrupting commerce in the States of Louisiana, 
        Mississippi, and Alabama;
            (4) Hurricane Rita struck the Gulf Coast of the United 
        States on September 24, 2005, negatively impacting small 
        business concerns and disrupting commerce in the States of 
        Texas and Louisiana;
            (5) according to the United States Chamber of Commerce, 
        more than 125,000 small- and medium-sized businesses in the 
        Gulf Coast were disrupted by Hurricane Katrina or Hurricane 
        Rita;
            (6) due to a slow initial Federal response and the 
        widespread devastation in the affected States, businesses 
        impacted by Hurricane Katrina are in dire need of increased 
        access to capital and technical assistance to recover and 
        prosper; and
            (7) without the full recovery and prosperity of affected 
        businesses, the Gulf Coast and the rest of the United States 
        will be negatively impacted.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the term ``Disaster Area'' means an area in which the 
        President has declared a major disaster in response to 
        Hurricane Katrina of 2005 or Hurricane Rita of 2005;
            (2) the term ``major disaster'' has the meaning given that 
        term in section 102 of the Robert T. Stafford Disaster Relief 
        and Emergency Assistance Act (42 U.S.C. 5122); and
            (3) the term ``small business concern'' has the meaning 
        given that term in section 3 of the Small Business Act (15 
        U.S.C. 632).

SEC. 4. SMALL BUSINESS CONCERN RECOVERY GRANTS.

    (a) In General.--There are authorized to be appropriated to the 
Secretary of Commerce $100,000,000 for the Economic Development 
Administration of the Department of Commerce to make grants to the 
appropriate State government agencies in Louisiana and Mississippi, to 
carry out this section.
    (b) Disbursement of Funds.--
            (1) In general.--Subject to paragraph (2), the Secretary of 
        Commerce shall disburse the funds authorized under subsection 
        (a) as follows:
                    (A) $75,000,000 to the State of Louisiana.
                    (B) $25,000,000 to the State of Mississippi.
            (2) Proportionate allocation.--Regardless of the amount 
        appropriated under subsection (a), the amount appropriated 
        shall be allocated among the States listed in paragraph (1) of 
        this subsection in direct proportion to the allocation under 
        that paragraph.
    (c) Use of Funds.--
            (1) In general.--Grants awarded to a State under subsection 
        (a) shall be used by the State to provide grants, which may be 
        made to any small business concern located in a Disaster Area 
        that was negatively impacted by Hurricane Katrina of 2005 or 
        Hurricane Rita of 2005, to assist such small business concern 
        for the purposes of--
                    (A) paying employees;
                    (B) paying bills, insurance costs, and other 
                existing financial obligations;
                    (C) making repairs;
                    (D) purchasing inventory;
                    (E) restarting or operating that business in the 
                community in which it was conducting operations prior 
                to Hurricane Katrina of 2005 or Hurricane Rita of 2005, 
                or to a neighboring area or county or parish in a 
                Disaster Area;
                    (F) compensating such small business concerns for 
                direct economic injury suffered as a result of 
                Hurricane Katrina of 2005 or Hurricane Rita of 2005; or
                    (G) covering additional costs until that small 
                business concern is able to obtain funding through 
                insurance claims, Federal assistance programs, or other 
                sources.
            (2) Criteria.--
                    (A) In general.--Notwithstanding any other 
                provision of law, in making grants under paragraph (1), 
                a State may use such criteria as the State determines 
                appropriate, and shall not be required to apply 
                eligibility criteria for programs administered by the 
                Federal Government, including the Department of 
                Commerce.
                    (B) Exclusion.--In making grants under paragraph 
                (1), a State may not exclude a small business concern 
                based on any increase in the revenue of that small 
                business concern during the 12-month period beginning 
                on October 1, 2005.
            (3) Administrative expenses.--The Department of Commerce 
        may use not more than $1,500,000 of the funds authorized under 
        subsection (a) to administer the provision of grants to the 
        designated States under this subsection.

SEC. 5. DISASTER LOANS AFTER HURRICANE KATRINA OR HURRICANE RITA.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after paragraph (3) the 
following:
            ``(4) Disaster loans after hurricane katrina or hurricane 
        rita in a disaster area.--
                    ``(A) Definitions.--In this paragraph--
                            ``(I) the term `Disaster Area' means an 
                        area in which the President has declared a 
                        major disaster in response to Hurricane Katrina 
                        of 2005 or Hurricane Rita of 2005; and
                            ``(ii) the term `qualified borrower' means 
                        a person to whom the Administrator made a loan 
                        under this section because of Hurricane Katrina 
                        of 2005 or Hurricane Rita of 2005.
                    ``(B) Deferment of disaster loan payments.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, payments of principal 
                        and interest on a loan to a qualified borrower 
                        made before December 31, 2006, shall be 
                        deferred, and no interest shall accrue with 
                        respect to such loan, during the time period 
                        described in clause (ii).
                            ``(ii) Time period.--The time period for 
                        purposes of clause (i) shall be 1 year from the 
                        later of the date of enactment of this 
                        paragraph or the date on which funds are 
                        distributed under a loan described in clause 
                        (i), but may be extended to 2 years from such 
                        date, at the discretion of the Administrator.
                            ``(iii) Resumption of payments.--At the end 
                        of the time period described in clause (ii), 
                        the payment of periodic installments of 
                        principal and interest shall be required with 
                        respect to such loan, in the same manner and 
                        subject to the same terms and conditions as 
                        would otherwise be applicable to any other loan 
                        made under this subsection.''.
    (b) Increasing Collateral Requirements.--
            (1) In general.--Notwithstanding any other provision of 
        law, including section 7(c)(6) of the Small Business Act (15 
        U.S.C. 636(c)(6)), the Administrator may not require collateral 
        for any covered loan made by the Administrator.
            (2) Definition.--In this subsection, the term ``covered 
        loan'' means a loan in an amount of not more than $35,000 
        made--
                    (A) under section 7(b)(1) of the Small Business Act 
                (15 U.S.C. 636(b)(1));
                    (B) as a result of Hurricane Katrina of 2005 or 
                Hurricane Rita of 2005; and
                    (C) after the date of enactment of this Act.

SEC. 6. OTHER PROGRAMS.

    (a) HUBZones.--Section 3(p) of the Small Business Act (15 U.S.C. 
632(p)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (D), by striking ``or'';
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(F) an area in which the President has declared a 
                major disaster (as that term is defined in section 102 
                of the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5122)) as a result of 
                Hurricane Katrina of August 2005 or Hurricane Rita of 
                September 2005, during the time period described in 
                paragraph (8).''; and
            (2) by adding at the end the following:
            ``(8) Time period.--The time period for the purposes of 
        paragraph (1)(F)--
                    ``(A) shall be the 2-year period beginning on the 
                later of the date of enactment of this paragraph and 
                August 29, 2007; and
                    ``(B) may, at the discretion of the Administrator, 
                be extended to be the 3-year period beginning on the 
                later of the date of enactment of this paragraph and 
                August 29, 2007.''.
    (b) Relief From Test Program.--Section 711(d) of the Small Business 
Competitive Demonstration Program Act of 1988 (15 U.S.C. 644 note) is 
amended--
            (1) by striking ``The Program'' and inserting the 
        following:
            ``(1) In general.--Except as provided in paragraph (2), the 
        Program''; and
            (2) by adding at the end the following:
            ``(2) Exception.--
                    ``(A) In general.--The Program shall not apply to 
                any contract related to relief or reconstruction from 
                Hurricane Katrina of 2005 or Hurricane Rita of 2005 
                during the time period described in subparagraph (B).
                    ``(B) Time period.--The time period for the 
                purposes of subparagraph (A)--
                            ``(I) shall be the 2-year period beginning 
                        on the later of the date of enactment of this 
                        paragraph and August 29, 2007; and
                            ``(ii) may, at the discretion of the 
                        Administrator, be extended to be the 3-year 
                        period beginning on the later of the date of 
                        enactment of this paragraph and August 29, 
                        2007.''.

Summary: Gulf Coast Back to Business Act of 2007 - Authorizes appropriations for the Economic Development Administration of the Department of Commerce for grants to appropriate state government agencies in Louisiana and Mississippi for small businesses located in disaster areas caused by Hurricanes Katrina or Rita. Amends the Small Business Act to authorize the Administrator of the Small Business Administration (SBA) to defer for a conditional period the payment of principal and interest on disaster loans made to small businesses affected by such hurricanes in the case of loans made before December 31, 2006. Prohibits an increased collateral requirement with respect to the deferred loans. Includes as a HUBZone any area in which the President has declared a major disaster as a result of such hurricanes. Amends the Small Business Competitive Demonstration Program Act of 1988 to make the small business competitive demonstration program inapplicable, for a conditional period, to any contract related to relief or reconstruction from such hurricanes.