II 

109TH CONGRESS 

2D SESSION S. 3487 

To amend the Small Business Act to reauthorize and improve the disaster 

loan program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 8, 2006 

Mr. KERRY (for himself and Mr. PRYOR) introduced the following bill; which 

was read twice and referred to the Committee on Small Business and Entrepreneurship 

A BILL 

To amend the Small Business Act to reauthorize and improve 

the disaster loan program, 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 Loan Reauthorization and Improvements Act of 

6 2006’’. 

7 SEC. 2. FINDINGS. 

8 Congress finds that— 

9 (1) 43 percent of businesses that close following 

10 a natural disaster never reopen; 


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1 (2) an additional 29 percent of businesses close 

2 down permanently within 2 years of a natural dis3 aster; 

4 (3) the plan of the Federal Government for re5 sponse and recovery with respect to large scale dis6 asters does not meet the needs of homeowners and 

7 small business concerns; 

8 (4) on February 1, 2006, more than 5 months 

9 after Hurricane Katrina struck the Gulf Coast, 48 

10 percent of disaster loan applications remained un11 processed, meaning that of the nearly 370,000 dis12 aster loan applications received by the Administra13 tion, nearly 178,000 remained unprocessed; 

14 (5) as of May 23, 2006, only 35 percent of total 

15 disaster loan applications received by the Adminis16 tration had been approved; 

17 (6) the Administration lacks the tools to re18 spond immediately and effectively to the needs of 

19 victims in the aftermath of a large scale disaster, 

20 such as the terrorist attacks of September 11, 2001, 

21 or the 2005 Gulf Coast hurricanes; 

22 (7) during a major disaster, the Administration 

23 should utilize private lenders to assist in processing 

24 loans, so that a back log of this magnitude will not 

25 prevent disaster victims from accessing capital; 


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1 (8) during 2004 and 2005, in the aftermath of 

2 Hurricane Charlie, Hurricane Francis, Hurricane 

3 Ivan, Hurricane Jeanne, Hurricane Dennis, and 

4 Hurricane Wilma, the State of Florida distributed 

5 $49,304,902 in bridge loans to small business con6 cerns, helping to save an estimated 32,560 jobs 

7 statewide; 

8 (9) there needs to exist a Federal standard for 

9 providing bridge loans to disaster victims, to provide 

10 access to capital while they wait for other types of 

11 assistance; 

12 (10) there is a demonstrated need for coun13 seling in the small business community that is not 

14 being met by the Administration; and 

15 (11) there is a need for greater coordination be16 tween responding agencies during disasters so that 

17 Federal Government can put the needs of victims 

18 first. 

19 SEC. 3. DEFINITIONS. 

20 In this Act— 

21 (1) the terms ‘‘Administration’’ and ‘‘Adminis22 trator’’ mean the Small Business Administration 

23 and the Administrator thereof, respectively; 

24 (2) the term ‘‘applicable declared disaster’’ 

25 means the declared disaster for the disaster area in 


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1 which the person seeking assistance under section 

2 11(c) is located; 

3 (3) the term ‘‘catastrophic national disaster’’ 

4 means a catastrophic national disaster declared 

5 under paragraph (4) of section 7(b) of the Small 

6 Business Act (15 U.S.C. 636(b)), as added by this 

7 Act; 

8 (4) the term ‘‘declared disaster’’ means a major 

9 disaster or a catastrophic national disaster; 

10 (5) the term ‘‘disaster area’’ means— 

11 (A) in the case of a major disaster, the 

12 area for which such disaster was declared, dur13 ing the period of such declaration; and 

14 (B) in the case of a catastrophic national 

15 disaster, the United States, during the period of 

16 such declaration; 

17 (6) the term ‘‘disaster assistance’’ means assist18 ance under the disaster loan program of the Admin19 istration and section 321(a) of the Consolidated 

20 Farm and Rural Development Act (7 U.S.C. 

21 1961(a)); 

22 (7) the term ‘‘disaster loan program of the Ad23 ministration’’ means the assistance under section 

24 7(b) of the Small Business Act (15 U.S.C. 636(b)); 


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1 (8) the term ‘‘disaster update period’’ means 

2 the period beginning on the date on which the Presi3 dent declares a major disaster or a catastrophic na4 tional disaster and ending on the date on which such 

5 declaration terminates; 

6 (9) the term ‘‘major disaster’’ has the same 

7 meaning as in section 102 of the Robert T. Stafford 

8 Disaster Relief and Emergency Assistance Act (42 

9 U.S.C. 5122); 

10 (10) the term ‘‘small business concern’’ has the 

11 same meaning as in section 3 of the Small Business 

12 Act (15 U.S.C. 632); and 

13 (11) the term ‘‘small business development cen14 ter’’ means a small business development center es15 tablished under section 21 of the Small Business Act 

16 (15 U.S.C. 648). 

17 SEC. 4. DISASTER LOAN PROGRAMS REAUTHORIZATION. 

18 (a) GENERAL AUTHORITY.—Section 20 of the Small 

19 Business Act (15 U.S.C. note) is amended by inserting 

20 after subsection (e) the following: 

21 ‘‘(f) ADDITIONAL AUTHORIZATIONS FOR FISCAL

22 YEARS 2007 THROUGH 2009.—There are authorized to 

23 be appropriated to the Administration for each of fiscal 

24 years 2007 through 2009, such sums as may be necessary 

25 to carry out the provisions of this Act not elsewhere proVerDate Aug 31 2005 00:27 Jun 10, 2006 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3487.IS S3487

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1 vided for, including administrative expenses and necessary 

2 loan capital for disaster loans pursuant to section 7(b), 

3 and to carry out the Small Business Investment Act of 

4 1958, including salaries and expenses of the Administra5 tion.’’ 

6 (b) DISASTER MITIGATION PROGRAM.— 

7 (1) IN GENERAL.—Section 20(c) of the Small 

8 Business Act (15 U.S.C. note) is amended by adding 

9 at the end the following: 

10 ‘‘(3) $15,000,000 for fiscal year 2007. 

11 ‘‘(4) $15,000,000 for fiscal year 2008. 

12 ‘‘(5) $15,000,000 for fiscal year 2009.’’. 

13 (2) INCREASE OF LOAN AMOUNTS.—Section 

14 7(b)(1)(A) of the Small Business Act (15 U.S.C. 

15 636(b)(1)(A)) is amended by inserting ‘‘of the ag16 gregate costs of such damage or destruction (wheth17 er or not compensated for by insurance or other18 wise)’’ after ‘‘20 per centum’’. 

19 (3) PREDISASTER MITIGATION.—Section 

20 7(b)(1)(C) of the Small Business Act (15 U.S.C. 

21 636(b)(1)(C)) is amended by striking ‘‘fiscal years 

22 2000 through 2004’’ and inserting ‘‘fiscal years 

23 2007 through 2009’’. 


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1 SEC. 5. CATASTROPHIC NATIONAL DISASTERS. 

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

3 636(b)) is amended by inserting immediately after para4 graph (3) the following: 

5 ‘‘(4) CATASTROPHIC NATIONAL DISASTERS.— 

6 ‘‘(A) DEFINITION.—In this paragraph the 

7 term ‘catastrophic national disaster’ means a 

8 disaster, natural or other, that the President 

9 determines has caused significant adverse phys10 ical or economic conditions outside of the geo11 graphic reach of the disaster. 

12 ‘‘(B) AUTHORIZATION.—The Adminis13 trator may make such loans under this para14 graph (either directly or in cooperation with 

15 banks or other lending institutions through 

16 agreements to participate on an immediate or 

17 deferred basis) as the Administrator determines 

18 appropriate to small business concerns located 

19 anywhere in the United States that are eco20 nomically adversely impacted as a result of a 

21 catastrophic national disaster. 

22 ‘‘(C) LOAN TERMS.—A loan under this 

23 paragraph shall be made on the same terms as 

24 a loan under paragraph (2).’’. 


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1 SEC. 6. PUBLIC AWARENESS OF DISASTER DECLARATION 

2 AND APPLICATION PERIODS. 

3 (a) IN GENERAL.—Section 7(b) of the Small Busi4 ness Act (15 U.S.C. 636(b)) is amended by inserting im5 mediately after paragraph (4), as added by this Act, the 

6 following: 

7 ‘‘(5) COORDINATION WITH FEMA.— 

8 ‘‘(A) IN GENERAL.—Notwithstanding any 

9 other provision of law, for any disaster (includ10 ing a catastrophic national disaster) declared 

11 under this subsection or major disaster (as that 

12 term is defined in section 102 of the Robert T. 

13 Stafford Disaster Relief and Emergency Assist14 ance Act (42 U.S.C. 5122)), the Administrator, 

15 in consultation with the Director of the Federal 

16 Emergency Management Agency, shall ensure, 

17 to the maximum extent practicable, that all ap18 plication periods for disaster relief under this 

19 Act and the Robert T. Stafford Disaster Relief 

20 and Emergency Assistance Act begin on the 

21 same date and end on the same date. 

22 ‘‘(B) DEADLINE EXTENSIONS.—Notwith23 standing any other provision of law— 

24 ‘‘(i) not later than 7 days before the 

25 closing date of an application period for 

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1 aster (including a catastrophic national 

2 disaster) declared under this subsection, 

3 the Administrator, in consultation with the 

4 Director of the Federal Emergency Man5 agement Agency, shall determine whether 

6 to extend such application period; and 

7 ‘‘(ii) not later than 7 days before the 

8 closing date of an application period for 

9 disaster relief under the Robert T. Staf10 ford Disaster Relief and Emergency Assist11 ance Act for any major disaster (as that 

12 term is defined in section 102 of the Rob13 ert T. Stafford Disaster Relief and Emer14 gency Assistance Act (42 U.S.C. 5122)) 

15 for which the President has declared a cat16 astrophic national disaster under para17 graph (4), the Director of the Federal 

18 Emergency Management Agency, in con19 sultation with the Administrator, shall de20 termine whether to extend such application 

21 period. 

22 ‘‘(6) PUBLIC AWARENESS OF DISASTERS.—If a 

23 disaster (including a catastrophic national disaster) 

24 is declared under this subsection, the Administrator 

25 shall make every effort to communicate through 


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1 radio, television, print, and web-based outlets, all 

2 relevant information needed by disaster loan appli3 cants, including— 

4 ‘‘(A) the date of such declaration; 

5 ‘‘(B) cities and towns within the area of 

6 such declaration; 

7 ‘‘(C) loan application deadlines related to 

8 such disaster; 

9 ‘‘(D) all relevant contact information for 

10 victim services available through the Adminis11 tration (including links to small business devel12 opment center websites); 

13 ‘‘(E) links to relevant State disaster assist14 ance websites; and 

15 ‘‘(F) information on eligibility criteria for 

16 Federal Emergency Management Agency dis17 aster assistance applications, as well as for Ad18 ministration loan programs, including where 

19 such applications can be found.’’. 

20 (b) COORDINATION OF AGENCIES AND OUTREACH.— 

21 Not later than 90 days after the date of enactment of this 

22 Act, the Administrator and the Director of the Federal 

23 Emergency Management Agency shall enter into an agree24 ment that ensures adequate lodging and transportation for 

25 employees of the Administration, contract employees, and 


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1 volunteers during a major disaster, if such staff are need2 ed to assist businesses, homeowners, or renters in recov3 ery. 

4 (c) MARKETING AND OUTREACH.—Not later than 90 

5 days after the date of enactment of this Act, the Adminis6 trator shall create a marketing and outreach plan that— 

7 (1) encourages a proactive approach to the dis8 aster relief efforts of the Administration; 

9 (2) distinguishes between disaster services pro10 vided by the Administration and disaster services 

11 provided by the Federal Emergency Management 

12 Agency, including contact information, application 

13 information, and timelines for submitting applica14 tions, the review of applications, and the disburse15 ment of funds; 

16 (3) describes the different disaster loan pro17 grams of the Administration, including how they are 

18 made available and what eligibility requirements 

19 exist for each loan program; 

20 (4) provides for regional marketing, focusing on 

21 disasters occurring in each region before the date of 

22 enactment of this Act, and likely scenarios for disas23 ters in each such region; and 


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1 (5) ensures that the marketing plan is made 

2 available at small business development centers and 

3 on the website of the Administration. 

4 SEC. 7. COORDINATION OF USDA AND ADMINISTRATION 

5 DISASTER LOAN PROGRAMS. 

6 (a) IN GENERAL.—Not later than 1 year after the 

7 date of enactment of this Act, the Comptroller General 

8 of the United States shall conduct a study and submit a 

9 report to the appropriate committees of Congress regard10 ing whether, and if so which, industries have difficulty ob11 taining disaster assistance from the Administration or the 

12 Department of Agriculture. 

13 (b) CONTENTS.—The report submitted under sub14 section (a) shall— 

15 (1) consider relevant disasters declared under 

16 section 7(b) of the Small Business Act and relevant 

17 disasters declared under section 321 of the Consoli18 dated Farm and Rural Development Act; 

19 (2) evaluate the provisions of law referred to in 

20 paragraph (1) and the regulations promulgated 

21 thereunder, as well as the division of responsibilities 

22 and any memoranda of understanding between the 

23 Department of Agriculture and the Administration, 

24 to ensure consistency in providing disaster assist25 ance; 


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1 (3) determine whether there are industries that 

2 are not covered under section 7(b) of the Small 

3 Business Act or section 321 of the Consolidated 

4 Farm and Rural Development Act; and 

5 (4) make recommendations, if any, regarding 

6 how the needs of industries can be better met during 

7 a disaster described in paragraph (1). 

8 (c) DEFINITION.—As used in this section, the term 

9 ‘‘appropriate committees of Congress’’ means— 

10 (1) the Committee on Agriculture, Nutrition, 

11 and Forestry and the Committee on Small Business 

12 and Entrepreneurship of the Senate; and 

13 (2) the Committee on Agriculture and the Com14 mittee on Small Business of the House of Rep15 resentatives. 

16 SEC. 8. CONSISTENCY BETWEEN ADMINISTRATION REGU17 LATIONS AND STANDARD OPERATING PROCE18 DURES. 

19 The Administrator shall, promptly following the date 

20 of enactment of this Act, revise the standard operating 

21 procedures of the Administration so that such procedures 

22 are consistent with Administration regulations for admin23 istering the disaster loan program of the Administration. 


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1 SEC. 9. STUDY AND REPORT ON FEMA REVIEW PROCESS 

2 FOR REFERRALS DURING DISASTER ASSIST3 ANCE APPLICATION PROCESS. 

4 (a) STUDY.—The Comptroller General of the United 

5 States shall evaluate the disaster assistance application 

6 and referral processes of the Federal Emergency Manage7 ment Agency and their impact on the disaster loan assist8 ance process at the Administration. 

9 (b) REPORT.—Not later than 1 year after the date 

10 of enactment of this Act, the Comptroller General shall 

11 submit a report to the Committee on Small Business and 

12 Entrepreneurship and the Committee on Homeland Secu13 rity and Governmental Affairs of the Senate, and the 

14 Committee on Small Business and the Committee on 

15 Homeland Security of the House of Representatives on its 

16 findings under subsection (a), together with recommenda17 tions on the effectiveness and efficiency of the Federal 

18 Emergency Management Agency disaster assistance appli19 cation process in directing eligible applicants to the Ad20 ministration, and any recommendations for legislative ac21 tion. 

22 SEC. 10. DEVELOPMENT AND IMPLEMENTATION OF MAJOR 

23 DISASTER RESPONSE PLAN. 

24 (a) IN GENERAL.—Not later than January 31, 2007, 

25 the Administrator shall, by rule, amend the 2006 Atlantic 

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1 tion to apply to major disasters and catastrophic national 

2 disasters, consistent with this Act and the amendments 

3 made by this Act. 

4 (b) INCLUSIONS.—In carrying out this section, the 

5 Administrator shall develop and execute, not later than 

6 May 31, 2007, simulation exercises to demonstrate the ef7 fectiveness of the amended Hurricane Response Plan. 

8 SEC. 11. OTHER LOAN ASSISTANCE. 

9 (a) AUTHORITY FOR QUALIFIED PRIVATE CONTRAC10 TORS TO PROCESS DISASTER LOANS.—Section 7(b) of the 

11 Small Business Act (15 U.S.C. 636(b)) is amended by in12 serting immediately after paragraph (6), as added by this 

13 Act, the following: 

14 ‘‘(7) AUTHORITY FOR QUALIFIED PRIVATE CON15 TRACTORS TO PROCESS DISASTER LOANS.—The Ad16 ministrator may enter into an agreement with a 

17 qualified private contractor, as determined by the 

18 Administrator, to process loans under this sub19 section in the event of a major disaster (as defined 

20 in section 102 of the Robert T. Stafford Disaster 

21 Relief and Emergency Assistance Act (42 U.S.C. 

22 5122)) or a catastrophic national disaster declared 

23 under paragraph (4), under which the Administrator 

24 shall pay the contractor a fee for each loan proc25 essed.’’. 


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1 (b) STATE BRIDGE LOAN PROGRAM.— 

2 (1) AUTHORIZATION.—Notwithstanding any 

3 other provision of law, a State may use funds made 

4 available under title I of the Housing and Commu5 nity Development Act of 1974 (42 U.S.C. 5301 et 

6 seq.) to make bridge grants and loans to any person 

7 located in a disaster area in such State who was 

8 negatively impacted by the applicable declared dis9 aster, to assist such person in covering costs until 

10 the person is able to obtain loans through Adminis11 tration assistance programs or other sources. 

12 (2) USE OF FUNDS.— 

13 (A) IN GENERAL.—Funds designated 

14 under paragraph (1) shall be used by a State 

15 to provide bridge grants and loans, which may 

16 be made to any person located in a disaster 

17 area in such State who was negatively impacted 

18 by the applicable declared disaster 

19 (B) REIMBURSEMENT.—A State may use 

20 the funds authorized under paragraph (1) as 

21 reimbursement for any State funds used to pro22 vide bridge grants or loans to any person lo23 cated in a disaster area in such State who was 

24 negatively impacted by the applicable declared 

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1 thorized under paragraph (1) are made avail2 able. 

3 (C) CRITERIA.—Notwithstanding any 

4 other provision of law, in making bridge grants 

5 and loans under paragraph (1), the State may 

6 use such criteria as the State determines appro7 priate, and shall not be required to apply eligi8 bility criteria for programs administered by the 

9 Federal Government. 

10 (D) TERMS.—For any loan made by a 

11 State under subparagraph (A)— 

12 (i) such a loan may initially be a 

13 noncollateralized, low-interest loan; 

14 (ii) payments and interest on such a 

15 loan may be deferred for at least 1 year 

16 after the date on which the loan is made; 

17 (iii) the balance remaining on such a 

18 loan 5 years after the date on which the 

19 loan is made may be forgiven entirely by 

20 the State, if the borrower has continued to 

21 operate during that 5-year period in a dis22 aster area in such State; and 

23 (iv) such a loan may be forgiven by 

24 the State, under such terms as it may set, 

25 if the borrower cannot repay such loan. 


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1 (c) LOANS TO NONPROFITS.—Section 7(b) of the 

2 Small Business Act (15 U.S.C. 636(b)) is amended by in3 serting immediately after paragraph (7), as added by this 

4 Act, the following: 

5 ‘‘(8) DISASTER LOANS TO NONPROFITS.— 

6 ‘‘(A) DEFINITIONS.—In this paragraph— 

7 ‘‘(i) the term ‘applicable date’ means 

8 the day before the date on which a major 

9 disaster or a catastrophic national disaster 

10 occurred, as the case may be; 

11 ‘‘(ii) the term ‘disaster area’ means— 

12 ‘‘(I) in the case of a major dis13 aster, the area for which such disaster 

14 was declared; and 

15 ‘‘(II) in the case of a cata16 strophic national disaster under para17 graph (4), the United States; and 

18 ‘‘(iii) the term ‘major disaster’ has the 

19 same meaning as in section 102 of the 

20 Robert T. Stafford Disaster Relief and 

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

22 5122). 

23 ‘‘(B) LOANS TO NONPROFITS.—In addition 

24 to any other loan authorized by this subsection, 

25 the Administrator may make such loans under 


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1 this subsection (either directly or in cooperation 

2 with banks or other lending institutions through 

3 agreements to participate on an immediate or 

4 deferred basis) as the Administrator determines 

5 appropriate to a nonprofit organization, includ6 ing a religious organization, that— 

7 ‘‘(i) was— 

8 ‘‘(I) located in a disaster area on 

9 the applicable date for such disaster 

10 area; and 

11 ‘‘(II) negatively impacted by the 

12 major disaster or the catastrophic na13 tional disaster declared under para14 graph (4), as the case may be; or 

15 ‘‘(ii) is providing services to persons 

16 who were negatively impacted by a major 

17 disaster or a catastrophic national disaster 

18 declared under paragraph (4).’’. 

19 (d) INCREASED LOAN CAPS.—Section 7(b) of the 

20 Small Business Act (15 U.S.C. 636(b)) is amended by in21 serting immediately after paragraph (8), as added by this 

22 Act, the following: 

23 ‘‘(9) LOAN CAPS.— 

24 ‘‘(A) AGGREGATE LOAN AMOUNTS.—Not25 withstanding any other provision of law, and exVerDate Aug 31 2005 00:27 Jun 10, 2006 Jkt 049200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S3487.IS S3487

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1 cept as provided in subparagraph (B), the ag2 gregate loan amount outstanding and com3 mitted to a borrower under this subsection 

4 made as a result of a major disaster (as defined 

5 in section 102 of the Robert T. Stafford Dis6 aster Relief and Emergency Assistance Act (42 

7 U.S.C. 5122)) or a catastrophic national dis8 aster declared under paragraph (4) may not ex9 ceed $10,000,000. 

10 ‘‘(B) WAIVER AUTHORITY.—The Adminis11 trator may, at the discretion of the Adminis12 trator, waive the aggregate loan amount estab13 lished under subparagraph (A).’’. 

14 (e) COORDINATION OF EFFORTS BETWEEN THE AD15 MINISTRATOR AND THE INTERNAL REVENUE SERVICE TO

16 EXPEDITE LOAN PROCESSING.—The Administrator and 

17 the Commissioner of Internal Revenue shall, to the max18 imum extent practicable, ensure that all relevant and al19 lowable tax records for loan approval are shared with loan 

20 processors in an expedited manner, upon request by the 

21 Administrator. 

22 (f) USE OF PREDISASTER CREDIT SCORE.—Section 

23 7(b) of the Small Business Act (15 U.S.C. 636(b)) is 

24 amended by inserting immediately after paragraph (9), as 

25 added by this Act, the following: 


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1 ‘‘(10) CREDIT SCORE.—Notwithstanding any 

2 other provision of law, in making a loan under this 

3 subsection, the Administrator shall assess the risk of 

4 default by the applicant based on the credit score of 

5 the applicant on the day before the date on which 

6 the disaster for which the applicant is seeking assist7 ance was declared.’’. 

8 (g) REPORT ON LOAN APPROVAL RATE.— 

9 (1) IN GENERAL.—Not later than 6 months 

10 after the date of enactment of this Act, the Adminis11 trator shall submit a report to the Committee on 

12 Small Business and Entrepreneurship of the Senate 

13 and the Committee on Small Business of the House 

14 of Representatives detailing how the Administration 

15 can improve the processing of applications under the 

16 disaster loan program of the Administration. 

17 (2) CONTENTS.—The report submitted under 

18 paragraph (1) shall include— 

19 (A) recommendations, if any, regarding— 

20 (i) staffing levels during a major dis21 aster; and 

22 (ii) how to improve the process for 

23 processing, approving, and disbursing 

24 loans under the disaster loan program of 

25 the Administration, to ensure that the 


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1 maximum assistance is provided to victims 

2 in a timely manner; and 

3 (B) the plans of the Administrator for im4 plementing any recommendation made under 

5 subparagraph (A). 

6 (h) SUPPLEMENTAL EMERGENCY LOANS AFTER DIS7 ASTERS.— 

8 (1) IN GENERAL.—Section 7(a) of the Small 

9 Business Act (15 U.S.C. 636(a)) is amended by add10 ing at the end the following: 

11 ‘‘(32) SUPPLEMENTAL EMERGENCY LOANS

12 AFTER DISASTERS.— 

13 ‘‘(A) LOAN AUTHORITY.—In addition to 

14 any other loan authorized by this subsection, 

15 the Administrator shall make such loans under 

16 this subsection (either directly or in cooperation 

17 with banks or other lending institutions through 

18 agreements to participate on an immediate or 

19 deferred basis) as the Administrator determines 

20 appropriate to a small business concern, located 

21 anywhere in the United States, that is directly 

22 adversely affected by a catastrophic national 

23 disaster declared under subsection (b)(4), based 

24 on such criteria as the Administrator may set 


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1 by rule, regulation, or order, subject to sub2 paragraph (B). 

3 ‘‘(B) OVERSIGHT PROTECTIONS.—In mak4 ing any loan under subparagraph (A)— 

5 ‘‘(i) the borrower shall be made aware 

6 that such loans are for those directly ad7 versely affected by a catastrophic national 

8 disaster; and 

9 ‘‘(ii) if such loans are made in co10 operation with a bank or other lending in11 stitution— 

12 ‘‘(I) lenders shall document for 

13 the Administrator how the borrower 

14 was directly adversely affected by the 

15 catastrophic national disaster; and 

16 ‘‘(II) not later than 6 months 

17 after the date of enactment of this 

18 paragraph, and every 6 months there19 after, the Inspector General of the 

20 Administration shall make a report 

21 regarding such loans to the Com22 mittee on Small Business and Entre23 preneurship of the Senate and the 

24 Committee on Small Business of the 

25 House of Representatives, including 


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1 verification that the program is being 

2 administered appropriately and that 

3 such loans are being used for pur4 poses authorized by this paragraph. 

5 ‘‘(C) FEES.—Notwithstanding any other 

6 provision of law, the Administrator shall, in lieu 

7 of the fee established under paragraph (23)(A), 

8 collect an annual fee of 0.25 percent of the out9 standing balance of a loan made under this 

10 paragraph. 

11 ‘‘(D) EVALUATION OF LENDERS.—The Of12 fice of Lender Oversight of the Administration 

13 shall evaluate the portfolio of loans for a lender 

14 under this paragraph separately from the rest 

15 of the loans made under this subsection by such 

16 lender. 

17 ‘‘(33) GUARANTEE FEES.—Notwithstanding 

18 any other provision of law, the guarantee fee under 

19 paragraph (18)(A) for a guarantee under this sub20 section of a loan made because of a catastrophic na21 tional disaster declared under subsection (b)(4), 

22 shall be as follows: 

23 ‘‘(A) A guarantee fee equal to 1 percent of 

24 the deferred participation share of a total loan 

25 amount that is not more than $150,000. 


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1 ‘‘(B) A guarantee fee equal to 2.5 percent 

2 of the deferred participation share of a total 

3 loan amount that is more than $150,000, but 

4 not more than $700,000. 

5 ‘‘(C) A guarantee fee equal to 3.5 percent 

6 of the deferred participation share of a total 

7 loan amount that is more than $700,000.’’. 

8 (2) SEPARATE TREATMENT FOR SUPPLE9 MENTAL EMERGENCY LOANS.—Only for purposes of 

10 the Federal Credit Reform Act of 1990 (2 U.S.C. 

11 661 et seq.), loans made or approved under section 

12 7(a)(32) of the Small Business Act, as added by this 

13 subsection, shall be treated as a separate program of 

14 the Small Business Administration. 

15 (3) AUTHORIZATION OF APPROPRIATIONS.— 

16 (A) IN GENERAL.—There are authorized to 

17 be appropriated to the Administration for each 

18 of fiscal years 2007 through 2009, such sums 

19 as may be necessary to carry out section 

20 7(a)(32) of the Small Business Act, as added 

21 by this subsection, including administrative ex22 penses and necessary loan capital. 

23 (B) OFFSET COST.—Assistance under sec24 tion 7(a)(32) of the Small Business Act, as 

25 added by this subsection, shall be available only 


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1 to the extent that funds are made available in 

2 advance in appropriations Acts to offset the 

3 cost (as such term is defined in section 502 of 

4 the Federal Credit Reform Act of 1990 (2 

5 U.S.C. 661a)) of providing such assistance. 

6 (i) DEVELOPMENT COMPANY DEBENTURES.— 

7 (1) AUTHORITY.—Section 503 of the Small 

8 Business Investment Act of 1958 (15 U.S.C. 697) is 

9 amended by adding at the end the following: 

10 ‘‘(j) DEBENTURES AFTER A CATASTROPHIC NA11 TIONAL DISASTER.— 

12 ‘‘(1) AUTHORITY.— 

13 ‘‘(A) IN GENERAL.—In addition to any 

14 other guarantee authorized by this section, the 

15 Administrator may guarantee the timely pay16 ment of all principal and interest, as scheduled 

17 on any debenture issued to a qualified borrower. 

18 ‘‘(B) TERMS.—The Administrator shall es19 tablish a fee for a guarantee issued under sub20 paragraph (A) that is lower than that for other 

21 guarantees under this section. 

22 ‘‘(2) EXISTING GUARANTEES.— 

23 ‘‘(A) IN GENERAL.—Notwithstanding any 

24 other provision of law, the Administrator may 

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1 terest on a guarantee made under this section 

2 before the date on which a catastrophic national 

3 disaster was declared to a qualified borrower di4 rectly adversely affected by such catastrophic 

5 national disaster, in any case in which the pay6 ments are owed to the Administration. 

7 ‘‘(B) PAYMENTS TO OTHER PARTIES.— 

8 Notwithstanding any other provision of law, the 

9 Administrator may temporarily make payments 

10 of principal and interest on a loan made under 

11 this section before the date on which a cata12 strophic national disaster was declared to a 

13 qualified borrower directly adversely affected by 

14 such catastrophic national disaster, in any case 

15 in which the payments are owed to a person 

16 other than the Administration. 

17 ‘‘(C) TERMINATION OF AUTHORITY.—The 

18 authority to defer, or make, payments under 

19 this paragraph for a catastrophic national dis20 aster shall terminate 1 year after the date on 

21 which such catastrophic national disaster was 

22 declared. 

23 ‘‘(3) DEFINITIONS.—In this subsection, the fol24 lowing definitions shall apply: 


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1 ‘‘(A) CATASTROPHIC NATIONAL DIS2 ASTER.—The term ‘catastrophic national dis3 aster’ means a catastrophic national disaster 

4 declared under section 7(b)(4) of the Small 

5 Business Act. 

6 ‘‘(B) QUALIFIED BORROWER.—The term 

7 ‘qualified borrower’ means a small business con8 cern located anywhere in the United States that 

9 has been directly adversely affected by a cata10 strophic national disaster, based on such cri11 teria as the Administrator may set by rule, reg12 ulation, or order.’’. 

13 (2) SEPARATE TREATMENT.—Only for purposes 

14 of the Federal Credit Reform Act of 1990 (2 U.S.C. 

15 661 et seq.), debentures guaranteed under section 

16 503(j) of the Small Business Investment Act of 

17 1958, as added by this subsection, shall be treated 

18 as a separate program of the Small Business Admin19 istration. 

20 (3) AUTHORIZATION OF APPROPRIATIONS.— 

21 There are authorized to be appropriated such sums 

22 as may be necessary to carry out section 503(j) of 

23 the Small Business Investment Act of 1958, as 

24 added by this subsection. 


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1 SEC. 12. REMOVING BARRIERS TO BONDING FOR SMALL 

2 BUSINESSES. 

3 (a) REQUISITIONS.—Notwithstanding any other pro4 vision of law, for any procurement related to a declared 

5 disaster that has been set aside for small business con6 cerns, the Administrator shall negotiate with the head of 

7 the Federal agency making such procurement an agree8 ment to permit contracting officers to submit requisitions 

9 on a biweekly basis. 

10 (b) SURETIES.— 

11 (1) IN GENERAL.—The Administrator shall 

12 waive any increase in guarantee fees for a surety lo13 cated in a disaster area providing guarantees related 

14 to contracts for disaster relief, recovery, or recon15 struction related to the aftermath of a declared dis16 aster under the Surety Bond Guarantee Program 

17 under part B of title IV of the Small Business In18 vestment Act of 1958 (15 U.S.C. 694a et seq.) dur19 ing the 2-year period beginning on the date on which 

20 the declared disaster was declared. 

21 (2) PREFERRED PROGRAM.—For any contract 

22 for relief, recovery, or reconstruction related to the 

23 aftermath of a declared disaster, the Administrator 

24 may permit a surety participating in the Preferred 

25 Surety Bond Guarantee Program under section 

26 411(a)(3) of the Small Business Investment Act of 


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1 1958 (15 U.S.C. 694b(a)(3)) to use rates approved 

2 by the insurance commissioner in the State in which 

3 such contract will be performed. 

4 (3) REPORTING.—Not later than 180 days after 

5 the date of enactment of this Act and annually 

6 thereafter, the Administrator shall submit a report 

7 to the Committee on Small Business and Entrepre8 neurship of the Senate and the Committee on Small 

9 Business of the House of Representatives on the 

10 availability of bonds to small business concerns per11 forming contracts for disaster relief, recovery, or re12 construction related to the aftermath of a declared 

13 disaster. 

14 (c) SMALL BUSINESS BONDING THRESHOLD.—Not15 withstanding any other provision of law, for all procure16 ments related to a declared disaster, the Administrator 

17 may, upon such terms and conditions as it may prescribe, 

18 guarantee and enter into commitments to guarantee any 

19 surety against loss resulting from a breach of the terms 

20 of a bid bond, payment bond, performance bond, or bonds 

21 ancillary thereto, by a principal on any total work order 

22 or contract amount at the time of bond execution that does 

23 not exceed $5,000,000, except that the Administrator may 

24 increase such amount to $10,000,000, at the discretion 

25 of the Administrator. 


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1 SEC. 13. USE OF LOCAL FIRMS AND INDIVIDUALS. 

2 (a) IN GENERAL.—Section 307 of the Robert T. 

3 Stafford Disaster Relief and Emergency Assistance Act 

4 (42 U.S.C. 5150) is amended to read as follows: 

5 ‘‘SEC. 307. USE OF LOCAL FIRMS AND INDIVIDUALS. 

6 ‘‘In the expenditure of Federal funds for debris clear7 ance, distribution of supplies, reconstruction, and other 

8 major disaster or emergency assistance activities which 

9 may be carried out by contract or agreement with private 

10 organizations, firms, or individuals, preference shall be 

11 given, to the maximum extent practicable, to those organi12 zations, firms, and individuals residing or doing business 

13 primarily in the area affected by such disaster or emer14 gency. The Federal Government shall establish a goal to 

15 award not less than 10 percent of such contracts to firms 

16 within or in close proximity of the area in which the Presi17 dent has declared a major disaster during the term of such 

18 designation. This section shall not be considered to restrict 

19 the use of Department of Defense resources in the provi20 sion of major disaster assistance under this Act or any 

21 other provision of law.’’. 

22 (b) NONDISCRIMINATION IN DISASTER ASSIST23 ANCE.—Section 308(b) of the Robert T. Stafford Disaster 

24 Relief and Emergency Assistance Act (42 U.S.C. 5151(b)) 

25 is amended by adding at the end the following: ‘‘The re26 quirements of this subsection shall also apply to the 


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1 awarding of contracts for debris clearance, distribution of 

2 supplies, reconstruction, and other major disaster or emer3 gency assistance activities and shall require governmental 

4 bodies to fully consider the utilization of expedited pro5 curement tools for small business concerns, small business 

6 concerns owned and controlled by service-disabled vet7 erans, and HUBZone small business concerns, as such 

8 terms are defined in section 3 of the Small Business Act 

9 (15 U.S.C. 632) and for small business concerns owned 

10 and controlled by socially and economically disadvantaged 

11 individuals, as such term is defined in section 8 of the 

12 Small Business Act (15 U.S.C. 637).’’. 

13 SEC. 14. WAIVER OF MAXIMUM AMOUNT. 

14 Section 21(a)(4) of the Small Business Act (15 

15 U.S.C. 648(a)(4)) is amended by adding at the end the 

16 following: 

17 ‘‘(D) DISASTERS.—The Administrator shall 

18 waive the maximum amount of $100,000 for a grant 

19 under subparagraph (C)(viii) to a small business de20 velopment center to provide assistance to small busi21 ness concerns adversely affected by a major disaster 

22 (as defined in section 102 of the Robert T. Stafford 

23 Disaster Relief and Emergency Assistance Act (42 

24 U.S.C. 5122)) or a catastrophic national disaster de25 clared under section 7(b)(4).’’. 


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1 SEC. 15. WAIVER OF GEOGRAPHIC RESTRICTIONS ON SBDC 

2 COUNSELORS. 

3 Section 21(b) of the Small Business Act (15 U.S.C. 

4 648(b)) is amended by adding at the end the following: 

5 ‘‘(4) WAIVER OF GEOGRAPHIC RESTRICTIONS ON

6 SBDC COUNSELORS.— 

7 ‘‘(A) IN GENERAL.—The Administrator shall 

8 authorize any small business development center, re9 gardless of location, to provide advice, information, 

10 and assistance, as described in subsection (c), to a 

11 small business concern located in an area in which 

12 the President declared a major disaster (as defined 

13 in section 102 of the Robert T. Stafford Disaster 

14 Relief and Emergency Assistance Act (42 U.S.C. 

15 5122)), during the period of such declaration. 

16 ‘‘(B) CONTINUITY OF SERVICES.—A small busi17 ness development center that provides counselors to 

18 an area described in subparagraph (A) shall, to the 

19 maximum extent practicable, ensure continuity of 

20 services in the State it currently serves. 

21 ‘‘(C) ACCESS TO DISASTER RECOVERY FACILI22 TIES.—For purposes of providing recovery assistance 

23 under this paragraph, the Administrator shall per24 mit small business development center personnel to 

25 use any site or facility designated by the Administra26 tion for use for such purpose.’’. 


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1 SEC. 16. CONGRESSIONAL OVERSIGHT. 

2 (a) MONTHLY ACCOUNTING REPORT TO CON3 GRESS.— 

4 (1) IN GENERAL.—On the first Monday of each 

5 month, the Administrator shall provide to the Com6 mittee on Small Business and Entrepreneurship of 

7 the Senate and to the Committee on Small Business 

8 of the House of Representatives a report on the dis9 aster loan program of the Administration for the 

10 preceding month. 

11 (2) CONTENTS.—Each report under paragraph 

12 (1) shall include— 

13 (A) the daily average lending volume, in 

14 number of loans and dollars, and the percent by 

15 which each category has increased or decreased 

16 since the previous report under paragraph (1); 

17 (B) the weekly average lending volume, in 

18 number of loans and dollars, and the percent by 

19 which each category has increased or decreased 

20 since the previous report under paragraph (1); 

21 (C) the amount of funding spent over the 

22 month for loans, both in appropriations and 

23 program level, and the percent by which each 

24 category has increased or decreased since the 

25 previous report under paragraph (1); 


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1 (D) the amount of funding available for 

2 loans, both in appropriations and program level, 

3 and the percent by which each category has in4 creased or decreased, noting the source of any 

5 additional funding; 

6 (E) an estimate of how long the available 

7 funding for such loans will last, based on the 

8 spending rate; 

9 (F) the amount of funding spent over the 

10 month for staff, along with the number of staff, 

11 and the percent by which each category has in12 creased or decreased since the previous report 

13 under paragraph (1); 

14 (G) the amount of funding spent over the 

15 month for administrative costs, and the percent 

16 by which spending has increased or decreased 

17 since the previous report under paragraph (1); 

18 (H) the amount of funding available for 

19 salaries and expenses combined, and the per20 cent by which funding has increased or de21 creased, noting the source of any additional 

22 funding; and 

23 (I) an estimate of how long the available 

24 funding for salaries and expenses will last, 

25 based on the spending rate. 


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1 (b) DAILY DISASTER UPDATES TO CONGRESS FOR

2 PRESIDENTIALLY DECLARED DISASTERS.— 

3 (1) IN GENERAL.—Each day during a disaster 

4 update period, excluding Federal holidays and week5 ends, the Administrator shall provide to the Com6 mittee on Small Business and Entrepreneurship of 

7 the Senate and to the Committee on Small Business 

8 of the House of Representatives a report on the op9 eration of the disaster loan program of the Adminis10 tration for the area in which the President declared 

11 a major disaster or a catastrophic national disaster, 

12 as the case may be. 

13 (2) CONTENTS.—Each report under paragraph 

14 (1) shall include— 

15 (A) the allocations of loan processing, loss 

16 verification, and additional field staff at Admin17 istration offices nationwide, as well as the allo18 cations of such staff at the various disaster 

19 field offices, disaster recovery centers, and 

20 workshops in each State in the relevant area; 

21 (B) the daily number of applications re22 ceived from applicants in the relevant area, as 

23 well as a breakdown of such figures by State; 

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1 evant area, as well as a breakdown of such fig2 ures by State; 

3 (D) the daily number of applications with4 drawn by applicants in the relevant area, as 

5 well as a breakdown of such figures by State; 

6 (E) the daily number of applications sum7 marily declined by the Administrator from ap8 plicants in the relevant area, as well as a break9 down of such figures by State; 

10 (F) the daily number of applications de11 clined by the Administrator from applicants in 

12 the relevant area, as well as a breakdown of 

13 such figures by State; 

14 (G) the daily number of applications in 

15 process from applicants in the relevant area, as 

16 well as a breakdown of such figures by State; 

17 (H) the daily number of applications ap18 proved by the Administrator from applicants in 

19 the relevant area, as well as a breakdown of 

20 such figures by State; 

21 (I) the daily dollar amount of applications 

22 approved by the Administrator from applicants 

23 in the relevant area, as well as a breakdown of 

24 such figures by State; 


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1 (J) the daily amount of loans dispersed, 

2 both partially and fully, by the Administrator to 

3 applicants in the relevant area, as well as a 

4 breakdown of such figures by State; 

5 (K) the daily dollar amount of loans dis6 persed, both partially and fully, from the Dis7 aster Area, as well as a breakdown of such fig8 ures by State; 

9 (L) the number of applications approved, 

10 including dollar amount approved, as well as 

11 applications partially and fully dispersed, in12 cluding dollar amounts, since the last report 

13 under paragraph (1); and 

14 (M) the declaration date, physical damage 

15 closing date, economic injury closing date, and 

16 number of counties included in the declaration 

17 of a major disaster. 

18 (c) REPORT ON NEED FOR SUPPLEMENTAL

19 FUNDS.—Not later than 3 months before the date on 

20 which the Administrator estimates funding will no longer 

21 be available for the disaster loan program of the Adminis22 tration in any fiscal year, the Administrator shall submit 

23 a report to the Committee on Small Business and Entre24 preneurship of the Senate and to the Committee on Small 

25 Business of the House of Representatives regarding the 


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1 need for supplemental funds for such loan program, in2 cluding the amount needed to sustain such loan program 

3 at current funding rates through the end of the fiscal year 

4 in which the Administrator submits such report. 

5 (d) REPORT ON CONTRACTING.— 

6 (1) IN GENERAL.—Not later than 6 months 

7 after the date on which a declared disaster is de8 clared, and every 6 months thereafter until the date 

9 that is 18 months after the date on which the de10 clared disaster was declared, the Administrator shall 

11 submit a report to the Committee on Small Business 

12 and Entrepreneurship of the Senate and to the Com13 mittee on Small Business of the House of Rep14 resentatives regarding Federal contracts awarded as 

15 a result of the declared disaster. 

16 (2) CONTENTS .—Each report submitted under 

17 paragraph (1) shall include— 

18 (A) the total number of contracts awarded 

19 as a result of the declared disaster; 

20 (B) the total number of contracts awarded 

21 to small business concerns as a result of the de22 clared disaster; 

23 (C) the total number of contracts awarded 

24 to women and minority-owned businesses as a 

25 result of the declared disaster; and 


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1 (D) the total number of contracts awarded 

2 to local businesses as a result of the declared 

3 disaster. 

4 SEC. 17. GRANT ASSISTANCE FOR MILITARY RESERVISTS’

5 SMALL BUSINESS CONCERNS. 

6 (a) AUTHORIZATION OF GRANTS.—Section 

7 7(b)(3)(B) of the Small Business Act (15 U.S.C. 

8 636(b)(3)(B)) is amended by inserting ‘‘or grants’’ after 

9 ‘‘or deferred basis)’’. 

10 (b) GRANT SPECIFICATIONS.—Section 7(b)(3) of the 

11 Small Business Act (15 U.S.C. 636(b)(3)) is amended by 

12 inserting after subparagraph (F) the following: 

13 ‘‘(G) Grants made under subparagraph 

14 (B)— 

15 ‘‘(i) may be awarded in addition to 

16 any loan made under subparagraph (B); 

17 ‘‘(ii) shall not exceed $25,000; and 

18 ‘‘(iii) shall be made only to a small 

19 business concern— 

20 ‘‘(I) that provides a business plan 

21 demonstrating viability for not less 

22 than 3 future years; 

23 ‘‘(II) with 10 or fewer employees; 


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1 ‘‘(III) that has not received an2 other grant under subparagraph (B) 

3 in the previous 2 years.’’. 

4 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

5 20(e)(2) of the Small Business Act (15 U.S.C. 631 note) 

6 is amended by inserting after subparagraph (B) the fol7 lowing: 

8 ‘‘(C) GRANT ASSISTANCE FOR MILITARY

9 RESERVISTS’ SMALL BUSINESSES.—There are 

10 authorized to be appropriated for grants under 

11 section 7(b)(3)(B)— 

12 ‘‘(i) $5,000,000 for the first fiscal 

13 year beginning after the date of enactment 

14 of this subparagraph; and 

15 ‘‘(ii) $5,000,000 for each of the 2 fis16 cal years following the fiscal year described 

17 in clause (i).’’. 

18 SEC. 18. ENERGY EMERGENCY RELIEF. 

19 (a) SMALL BUSINESS AND FARM ENERGY EMER20 GENCY DISASTER LOAN PROGRAM.— 

21 (1) SMALL BUSINESS DISASTER LOAN AUTHOR22 ITY.—Section 7(b) of the Small Business Act (15 

23 U.S.C. 636(b)) is amended by inserting immediately 

24 after paragraph (10), as added by this Act, the fol25 lowing: 


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1 ‘‘(11) ENERGY EMERGENCY RELIEF.— 

2 ‘‘(A) DEFINITIONS.—For purposes of this 

3 paragraph— 

4 ‘‘(i) the term ‘base price index’ means 

5 the moving average of the closing unit 

6 price on the New York Mercantile Ex7 change for heating oil, natural gas, gaso8 line, or propane for the 10 days, in each 

9 of the most recent 2 preceding years, 

10 which correspond to the trading days de11 scribed in clause (ii); 

12 ‘‘(ii) the term ‘current price index’ 

13 means the moving average of the closing 

14 unit price on the New York Mercantile Ex15 change, for the 10 most recent trading 

16 days, for contracts to purchase heating oil, 

17 natural gas, gasoline, or propane during 

18 the subsequent calendar month, commonly 

19 known as the ‘front month’; and 

20 ‘‘(iii) the term ‘significant increase’ 

21 means— 

22 ‘‘(I) with respect to the price of 

23 heating oil, natural gas, gasoline, or 

24 propane, any time the current price 


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1 index exceeds the base price index by 

2 not less than 40 percent; and 

3 ‘‘(II) with respect to the price of 

4 kerosene, any increase which the Ad5 ministrator, in consultation with the 

6 Secretary of Energy, determines to be 

7 significant. 

8 ‘‘(B) LOAN AUTHORITY.— 

9 ‘‘(i) IN GENERAL.—The Administrator 

10 may make such loans, either directly or in 

11 cooperation with banks or other lending in12 stitutions through agreements to partici13 pate on an immediate or deferred basis, to 

14 assist a small business concern described 

15 in clause (ii). 

16 ‘‘(ii) CRITERIA.—A small business 

17 concern described in this clause is a small 

18 business concern that— 

19 ‘‘(I) has suffered or that is likely 

20 to suffer substantial economic injury 

21 on or after August 24, 2005, as the 

22 result of a significant increase in the 

23 price of heating oil, natural gas, gaso24 line, propane, or kerosene occurring 

25 on or after August 24, 2005; and 


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1 ‘‘(II) if engaged in the heating oil 

2 business, sells not more than 

3 10,000,000 gallons of heating oil per 

4 year. 

5 ‘‘(C) APPLICABLE INTEREST RATE.—Any 

6 loan or guarantee extended pursuant to this 

7 paragraph shall be made at the same interest 

8 rate as economic injury loans under paragraph 

9 (2). 

10 ‘‘(D) LOAN LIMITATION.—No loan may be 

11 made under this paragraph, either directly or in 

12 cooperation with banks or other lending institu13 tions through agreements to participate on an 

14 immediate or deferred basis, if the total amount 

15 outstanding and committed to the borrower 

16 under this subsection would exceed $1,500,000, 

17 unless such borrower constitutes a major source 

18 of employment in its surrounding area, as de19 termined by the Administrator, in which case 

20 the Administrator, in its discretion, may waive 

21 the $1,500,000 limitation. 

22 ‘‘(E) LOAN CRITERIA.—For purposes of 

23 assistance under this paragraph— 

24 ‘‘(i) a declaration of a disaster area 

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1 graph shall be required, and shall be made 

2 by the President or the Administrator; or 

3 ‘‘(ii) if no declaration has been made 

4 pursuant to clause (i), the Governor of a 

5 State in which a significant increase in the 

6 price of heating oil, natural gas, gasoline, 

7 propane, or kerosene has occurred may 

8 certify to the Administration that small 

9 business concerns have suffered economic 

10 injury as a result of such increase and are 

11 in need of financial assistance which is not 

12 otherwise available on reasonable terms in 

13 that State, and upon receipt of such cer14 tification, the Administrator may make 

15 such loans as would have been available 

16 under this paragraph if a disaster declara17 tion had been issued. 

18 ‘‘(F) PERMISSIBLE USES.—Notwith19 standing any other provision of law, loans made 

20 under this paragraph may be used by a small 

21 business concern described in subparagraph (B) 

22 to convert from the use of heating oil, natural 

23 gas, gasoline, propane, or kerosene to a renew24 able or alternative energy source, including ag25 riculture and urban waste, geothermal energy, 


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1 cogeneration, solar energy, wind energy, or fuel 

2 cells.’’. 

3 (2) CONFORMING AMENDMENTS.—Section 3(k) 

4 of the Small Business Act (15 U.S.C. 632(k)) is 

5 amended— 

6 (A) by inserting ‘‘, significant increase in 

7 the price of heating oil, natural gas, gasoline, 

8 propane, or kerosene’’ after ‘‘civil disorders’’; 

9 and 

10 (B) by inserting ‘‘other’’ before ‘‘eco11 nomic’’. 

12 (3) REPORT.—Not later than 12 months after 

13 the date on which the Administrator issues guide14 lines under subsection (c)(1), and annually there15 after, until the date that is 12 months after the end 

16 of the effective period of section 7(b)(11) of the 

17 Small Business Act, as added by this subsection, the 

18 Administrator shall submit to the Committee on 

19 Small Business and Entrepreneurship of the Senate 

20 and the Committee on Small Business of the House 

21 of Representatives, a report on the effectiveness of 

22 the assistance made available under that section 

23 7(b)(11), including— 

24 (A) the number of small business concerns 

25 that applied for a loan under that section 


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1 7(b)(11) and the number of those that received 

2 such loans; 

3 (B) the dollar value of those loans; 

4 (C) the States in which the small business 

5 concerns that received such loans are located; 

6 (D) the type of energy that caused the sig7 nificant increase in the cost for the partici8 pating small business concerns; and 

9 (E) recommendations for ways to improve 

10 the assistance provided under that section 

11 7(b)(11), if any. 

12 (4) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply during the 4-year pe14 riod beginning on the earlier of the date on which 

15 guidelines are published by the Administrator under 

16 subsection (c)(1), or 30 days after the date of enact17 ment of this Act, with respect to assistance under 

18 section 7(b)(11) of the Small Business Act, as added 

19 by this subsection. 

20 (b) FARM ENERGY EMERGENCY RELIEF.— 

21 (1) IN GENERAL.—Section 321(a) of the Con22 solidated Farm and Rural Development Act (7 

23 U.S.C. 1961(a)) is amended— 

24 (A) in the first sentence— 


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1 (i) by striking ‘‘operations have’’ and 

2 inserting ‘‘operations (i) have’’; and 

3 (ii) by inserting before ‘‘: Provided,’’ 

4 the following: ‘‘, or (ii)(I) are owned or op5 erated by such an applicant that is also a 

6 small business concern (as defined in sec7 tion 3 of the Small Business Act (15 

8 U.S.C. 632)), and (II) have suffered or are 

9 likely to suffer substantial economic injury 

10 on or after August 24, 2005, as the result 

11 of a significant increase in energy costs or 

12 input costs from energy sources occurring 

13 on or after August 24, 2005, in connection 

14 with an energy emergency declared by the 

15 President or the Secretary’’; 

16 (B) in the third sentence, by inserting be17 fore the period at the end the following: ‘‘or by 

18 an energy emergency declared by the President 

19 or the Secretary’’; and 

20 (C) in the fourth sentence— 

21 (i) by inserting ‘‘or energy emer22 gency’’ after ‘‘natural disaster’’ each place 

23 that term appears; and 

24 (ii) by inserting ‘‘or declaration’’ after 

25 ‘‘emergency designation’’. 


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1 (2) FUNDING.—Funds available on the date of 

2 enactment of this Act for emergency loans under 

3 subtitle C of the Consolidated Farm and Rural De4 velopment Act (7 U.S.C. 1961 et seq.) shall be avail5 able to carry out the amendments made by para6 graph (1) to meet the needs resulting from energy 

7 emergencies. 

8 (3) REPORT.—Not later than 12 months after 

9 the date on which the Secretary of Agriculture 

10 issues guidelines under subsection (c)(1), and annu11 ally thereafter until the date that is 12 months after 

12 the end of the effective period of the amendments 

13 made to section 321(a) of the Consolidated Farm 

14 and Rural Development Act (7 U.S.C. 1961(a)) by 

15 this subsection, the Secretary shall submit to the 

16 Committee on Small Business and Entrepreneurship 

17 and the Committee on Agriculture, Nutrition, and 

18 Forestry of the Senate and to the Committee on 

19 Small Business and the Committee on Agriculture of 

20 the House of Representatives, a report that— 

21 (A) describes the effectiveness of the as22 sistance made available under that section 

23 321(a) ; and 


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1 (B) contains recommendations for ways to 

2 improve the assistance provided under that sec3 tion 321(a). 

4 (4) EFFECTIVE DATE.—The amendments made 

5 by this subsection shall apply during the 4-year pe6 riod beginning on the earlier of the date on which 

7 guidelines are published by the Secretary of Agri8 culture under subsection (c)(1), or 30 days after the 

9 date of enactment of this Act, with respect to assist10 ance under section 321(a) of the Consolidated Farm 

11 and Rural Development Act (7 U.S.C. 1961(a)), as 

12 amended by this subsection. 

13 (c) GUIDELINES AND RULEMAKING.— 

14 (1) GUIDELINES.—Not later than 30 days after 

15 the date of enactment of this Act, the Administrator 

16 and the Secretary of Agriculture shall each issue 

17 guidelines to carry out subsections (a) and (b), re18 spectively, and the amendments made thereby, which 

19 guidelines shall become effective on the date of their 

20 issuance. 

21 (2) RULEMAKING.—Not later than 30 days 

22 after the date of enactment of this Act, the Adminis23 trator, after consultation with the Secretary of En24 ergy, shall promulgate regulations specifying the 

25 method for determining a significant increase in the 


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1 price of kerosene under section 7(b)(11)(A)(iii)(II) 

2 of the Small Business Act, as added by this Act. 

Æ 


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