I 

113TH CONGRESS 

1ST SESSION H. R. 1974 

To clarify the collateral requirement for certain loans under section 7(d) 

of the Small Business Act, to address assistance to out-of-State small 

business concerns, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 14, 2013 

Mr. MURPHY of Florida (for himself, Mr. MULVANEY, Ms. CHU, Mr. COFFMAN, Mr. DEUTCH, Mr. KING of New York, Mr. PAYNE, Mr. NUNNELEE, 

and Mr. RICHMOND) introduced the following bill; which was referred to 

the Committee on Small Business 

A BILL 

To clarify the collateral requirement for certain loans under 

section 7(d) of the Small Business Act, to address assistance to out-of-State small business concerns, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Dis5 aster Reform Act of 2013’’. 


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1 SEC. 2. CLARIFICATION OF COLLATERAL REQUIREMENTS. 

2 Section 7(d)(6) of the Small Business Act (15 U.S.C. 

3 636(d)(6)) is amended by inserting after ‘‘which are made 

4 under paragraph (1) of subsection (b)’’ the following: ‘‘: 

5 Provided further, That the Administrator, in obtaining the 

6 best available collateral for a loan of not more than 

7 $200,000 under paragraph (1) or (2) of subsection (b) re8 lating to damage to or destruction of the property of, or 

9 economic injury to, a small business concern, shall not re10 quire the owner of the small business concern to use the 

11 primary residence of the owner as collateral if the Admin12 istrator determines that the owner has other assets with 

13 a value equal to or greater than the amount of the loan 

14 that could be used as collateral for the loan: Provided fur15 ther, That nothing in the preceding proviso may be con16 strued to reduce the amount of collateral required by the 

17 Administrator in connection with a loan described in the 

18 preceding proviso or to modify the standards used to 

19 evaluate the quality (rather than the type) of such collat20 eral’’. 

21 SEC. 3. ASSISTANCE TO OUT-OF-STATE SMALL BUSINESSES. 

22 Section 21(b)(3) of the Small Business Act (15 

23 U.S.C. 648(b)(3)) is amended— 

24 (1) by striking ‘‘(3) At the discretion’’ and in25 serting the following: 


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1 ‘‘(3) ASSISTANCE TO OUT-OF-STATE SMALL

2 BUSINESSES.— 

3 ‘‘(A) IN GENERAL.—At the discretion’’; 

4 and 

5 (2) by adding at the end the following: 

6 ‘‘(B) DISASTER RECOVERY ASSISTANCE.— 

7 ‘‘(i) IN GENERAL.—At the discretion 

8 of the Administrator, the Administrator 

9 may authorize a small business develop10 ment center to provide assistance, as de11 scribed in subsection (c), to a small busi12 ness concern located outside of the State, 

13 without regard to geographic proximity, if 

14 the small business concern is located in an 

15 area for which the President has declared 

16 a major disaster under section 401 of the 

17 Robert T. Stafford Disaster Relief and 

18 Emergency Assistance Act (42 U.S.C. 

19 5170), during the period of the declara20 tion. 

21 ‘‘(ii) CONTINUITY OF SERVICES.—A 

22 small business development center that 

23 provides counselors to an area described in 

24 clause (i) shall, to the maximum extent 

25 practicable, ensure continuity of services in 


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1 any State in which the small business de2 velopment center otherwise provides serv3 ices. 

4 ‘‘(iii) ACCESS TO DISASTER RECOVERY

5 FACILITIES.—For purposes of this sub6 paragraph, the Administrator shall, to the 

7 maximum extent practicable, permit the 

8 personnel of a small business development 

9 center to use any site or facility designated 

10 by the Administrator for use to provide 

11 disaster recovery assistance.’’. 

12 SEC. 4. SENSE OF CONGRESS. 

13 It is the sense of Congress that, subject to the avail14 ability of funds, the Administrator of the Small Business 

15 Administration shall, to the extent practicable, ensure that 

16 a small business development center is appropriately reim17 bursed for any legitimate expenses incurred in carrying 

18 out activities under section 21(b)(3)(B) of the Small Busi19 ness Act (15 U.S.C. 648(b)(3)(B)), as added by this Act. 

Æ 


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