II 

Calendar No. 113 

114TH CONGRESS 

1ST SESSION S. 1470 

To amend the Small Business Act to provide additional assistance to small 

business concerns for disaster recovery, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 31, 2015 

Mr. VITTER introduced the following bill; which was read twice and referred 

to the Committee on Small Business and Entrepreneurship 

JUNE 10, 2015 

Reported by Mr. VITTER, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To amend the Small Business Act to provide additional assistance to small business concerns for disaster recovery, 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Recovery Improvements for Small Entities After Disaster 

6 Act of 2015’’ or the ‘‘RISE After Disaster Act of 2015’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—IMPROVEMENTS OF DISASTER RESPONSE AND LOANS 

Sec. 101. Use of data sharing. 

Sec. 102. Additional awards to small business development centers, women’s 

business centers, SCORE, and FAST recipients for disaster recovery. 

Sec. 103. Collateral requirements for disaster loans. 

Sec. 104. Assistance to out-of-State business concerns to aid in disaster recovery. 

Sec. 105. Fast-track SBIC applications. 

Sec. 106. FAST priorities. 

Sec. 107. Use of Federal surplus property in disaster areas. 

Sec. 108. Recovery opportunity loans. 

Sec. 109. Contractor malfeasance. 

Sec. 110. Local contracting preferences and incentives. 

TITLE II—DISASTER PLANNING AND MITIGATION 

Sec. 201. Use of physical damage disaster loans. 

Sec. 202. Business recovery centers. 

TITLE III—OTHER PROVISIONS 

Sec. 301. Increased oversight of economic injury disaster loans. 

Sec. 302. Reduction of paperwork burden. 

Sec. 303. Report on web portal for disaster loan applicants. 

Sec. 304. Local disaster contracting fairness. 

3 SEC. 2. DEFINITIONS. 

4 In this Act— 

5 (1) the term ‘‘7(b) loan program’’ means assist6 ance provided by the Administration under section 

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

8 (2) the terms ‘‘Administration’’ and ‘‘Adminis9 trator’’ mean the Small Business Administration 

10 and the Administrator thereof, respectively; 


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1 (3) the term ‘‘covered supplemental appropria2 tions’’ means amounts made available to the Admin3 istration through supplemental appropriations for— 

4 (A) the cost of direct loans authorized 

5 under section 7(b) of the Small Business Act 

6 (15 U.S.C. 636(b)) for necessary expenses re7 lated to the consequences of a major disaster 

8 declared by the President under section 401 of 

9 the Robert T. Stafford Disaster Relief and 

10 Emergency Assistance Act (42 U.S.C. 5170); 

11 and 

12 (B) the direct administrative expenses of 

13 making and servicing those loans; 

14 (4) the term ‘‘major disaster’’ means a major 

15 disaster declared by the President under section 401 

16 of the Robert T. Stafford Disaster Relief and Emer17 gency Assistance Act (42 U.S.C. 5170); and 

18 (5) the term ‘‘small business concern’’ has the 

19 meaning given that term under section 3 of the 

20 Small Business Act (15 U.S.C. 632). 


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1 TITLE I—IMPROVEMENTS OF 

2 DISASTER RESPONSE AND 

3 LOANS 

4 SEC. 101. USE OF DATA SHARING. 

5 Section 312 of the Robert T. Stafford Disaster Relief 

6 and Emergency Assistance Act (42 U.S.C. 5155) is 

7 amended by adding at the end the following: 

8 ‘‘(e) USE OF DATA SHARING.— 

9 ‘‘(1) DEFINITION.—In this subsection, the term 

10 ‘agency’ has the meaning given the term in section 

11 552a of title 5, United States Code. 

12 ‘‘(2) EXEMPTION FROM CERTAIN MATCHING

13 PROGRAM REQUIREMENTS.—Any action taken by an 

14 agency to prevent, investigate, or recover duplicative 

15 Federal assistance under this section shall not be 

16 subject to subsections (e)(12), (o), (q), (r), and (u) 

17 of section 552a of title 5, United States Code. 

18 ‘‘(3) FRAUDULENT ACQUISITION OF ASSIST19 ANCE.—An investigation conducted by an agency re20 lating to the fraudulent acquisition of duplicative 

21 Federal assistance under this section shall not be 

22 subject to section 552a(p) of title 5, United States 

23 Code.’’. 


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1 SEC. 102. ADDITIONAL AWARDS TO SMALL BUSINESS DE2 VELOPMENT CENTERS, WOMEN’S BUSINESS 

3 CENTERS, SCORE, AND FAST RECIPIENTS 

4 FOR DISASTER RECOVERY. 

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

6 636(b)) is amended by inserting before the undesignated 

7 matter following paragraph (9) the following: 

8 ‘‘(10) ADDITIONAL AWARDS TO SMALL BUSI9 NESS DEVELOPMENT CENTERS, WOMEN’S BUSINESS

10 CENTERS, SCORE, AND FAST RECIPIENTS FOR DIS11 ASTER RECOVERY.— 

12 ‘‘(A) IN GENERAL.—The Administration 

13 may provide financial assistance to a small 

14 business development center, a women’s busi15 ness center described in section 29, the Service 

16 Corps of Retired Executives, a entity, organiza17 tion, or individual that receives an award or has 

18 in effect a cooperative agreement under section 

19 34, or any proposed consortium of such individ20 uals or entities to spur disaster recovery and 

21 growth of small business concerns located in an 

22 area for which the President has declared a 

23 major disaster. 

24 ‘‘(B) FORM OF FINANCIAL ASSISTANCE.— 

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1 graph shall be in the form of a grant, contract, 

2 or cooperative agreement. 

3 ‘‘(C) NO MATCHING FUNDS REQUIRED.— 

4 Matching funds shall not be required for any 

5 grant, contract, or cooperative agreement under 

6 this paragraph. 

7 ‘‘(D) REQUIREMENTS.—A recipient of fi8 nancial assistance under this paragraph shall 

9 provide counseling, training, and other related 

10 services, such as promoting long-term resiliency, 

11 to small business concerns and entrepreneurs 

12 impacted by a major disaster. 

13 ‘‘(E) PERFORMANCE.— 

14 ‘‘(i) IN GENERAL.—The Adminis15 trator, in cooperation with the recipients of 

16 financial assistance under this paragraph, 

17 shall establish metrics and goals for per18 formance of grants, contracts, and cooper19 ative agreements under this paragraph, 

20 which shall include recovery of sales, recov21 ery of employment, reestablishment of 

22 business premises, and establishment of 

23 new small business concerns. 

24 ‘‘(ii) USE OF ESTIMATES.—The Ad25 ministrator shall base the goals and 


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1 metrics for performance established under 

2 clause (i), in part, on the estimates of dis3 aster impact prepared by the Office of Dis4 aster Assistance for purposes of estimating 

5 loan-making requirements. 

6 ‘‘(F) TERM.— 

7 ‘‘(i) IN GENERAL.—The term of any 

8 grant, contract, or cooperative agreement 

9 under this paragraph shall be for not more 

10 than 2 years. 

11 ‘‘(ii) EXTENSION.—The Administrator 

12 may make 1 extension of a grant, contract, 

13 or cooperative agreement under this para14 graph for a period of not more than 1 

15 year, upon a showing of good cause and 

16 need for the extension. 

17 ‘‘(G) EXEMPTION FROM OTHER PROGRAM

18 REQUIREMENTS.—Financial assistance provided 

19 under this paragraph is in addition to, and 

20 wholly separate from, any other form of assist21 ance provided by the Administrator under this 

22 Act. 

23 ‘‘(H) COMPETITIVE BASIS.—The Adminis24 tration shall award financial assistance under 

25 this paragraph on a competitive basis.’’. 


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1 SEC. 103. COLLATERAL REQUIREMENTS FOR DISASTER 

2 LOANS. 

3 (a) IN GENERAL.—Section 7(d)(6) of the Small Busi4 ness Act (15 U.S.C. 636(d)(6)) is amended in the third 

5 proviso— 

6 (1) by striking ‘‘$14,000’’ and inserting 

7 ‘‘$25,000’’; and 

8 (2) by striking ‘‘major disaster’’ and inserting 

9 ‘‘disaster’’. 

10 (b) SUNSET.—Effective on the date that is 3 years 

11 after the date of enactment of this Act, section 7(d)(6) 

12 of the Small Business Act (15 U.S.C. 636(d)(6)) is 

13 amended in the third proviso— 

14 (1) by striking ‘‘$25,000’’ and inserting 

15 ‘‘$14,000’’; and 

16 (2) by inserting ‘‘major’’ before ‘‘disaster’’. 

17 (c) REPORT.—Not later than 180 days before the 

18 date on which the amendments made by subsection (b) 

19 are to take effect, the Administrator shall submit to Com20 mittee on Small Business and Entrepreneurship of the 

21 Senate and the Committee on Small Business of the 

22 House of Representatives a report on the effects of the 

23 amendments made by subsection (a), which shall in24 clude— 

25 (1) an assessment of the impact and benefits 

26 resulting from the amendments; and 


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1 (2) a recommendation as to whether the amend2 ments should be made permanent. 

3 SEC. 104. ASSISTANCE TO OUT-OF-STATE BUSINESS CON4 CERNS TO AID IN DISASTER RECOVERY. 

5 (a) IN GENERAL.—Section 21(b)(3) of the Small 

6 Business Act (15 U.S.C. 648(b)(3)) is amended— 

7 (1) by striking ‘‘(3) At the discretion’’ and in8 serting the following: 

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

10 BUSINESS CONCERNS.— 

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

12 and 

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

14 ‘‘(B) DISASTER RECOVERY ASSISTANCE.— 

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

16 of the Administrator, the Administrator 

17 may authorize a small business develop18 ment center to provide advice, information, 

19 and assistance, as described in subsection 

20 (c), to a small business concern located 

21 outside of the State, without regard to geo22 graphic proximity to the small business de23 velopment center, if the small business 

24 concern is located in an area for which the 

25 President has declared a major disaster. 


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1 ‘‘(ii) TERM.— 

2 ‘‘(I) IN GENERAL.—A small busi3 ness development center may provide 

4 advice, information, and assistance to 

5 a small business concern under clause 

6 (i) for a period of not more than 2 

7 years after the date on which the 

8 President declared a major disaster 

9 for the area in which the small busi10 ness concern is located. 

11 ‘‘(II) EXTENSION.—The Admin12 istrator may, at the discretion of the 

13 Administrator, extend the period de14 scribed in subclause (I). 

15 ‘‘(iii) CONTINUITY OF SERVICES.—A 

16 small business development center that 

17 provides counselors to an area described in 

18 clause (i) shall, to the maximum extent 

19 practicable, ensure continuity of services in 

20 any State in which the small business de21 velopment center otherwise provides serv22 ices. 

23 ‘‘(iv) ACCESS TO DISASTER RECOVERY

24 FACILITIES.—For purposes of this sub25 paragraph, the Administrator shall, to the 


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1 maximum extent practicable, permit the 

2 personnel of a small business development 

3 center to use any site or facility designated 

4 by the Administrator for use to provide 

5 disaster recovery assistance.’’. 

6 (b) SENSE OF CONGRESS.—It is the sense of Con7 gress that, subject to the availability of funds, the Admin8 istrator should, to the extent practicable, ensure that a 

9 small business development center is appropriately reim10 bursed for any legitimate expenses incurred in carrying 

11 out activities under section 21(b)(3)(B) of the Small Busi12 ness Act, as added by subsection (a). 

13 SEC. 105. FAST-TRACK SBIC APPLICATIONS. 

14 Section 301(c)(2) of the Small Business Investment 

15 Act of 1958 (15 U.S.C. 681(c)(2)) is amended by adding 

16 at the end the following: 

17 ‘‘(C) PRIORITY FOR APPLICANTS LOCATED

18 IN DISASTER AREAS.— 

19 ‘‘(i) DEFINITION.—In this subpara20 graph, the term ‘disaster area’ means the 

21 area for which the President has declared 

22 a major disaster (as defined in section 102 

23 of the Robert T. Stafford Disaster Relief 

24 and Emergency Assistance Act (42 U.S.C. 


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1 5122)), during the period of the declara2 tion. 

3 ‘‘(ii) PRIORITY.—The Administrator 

4 shall give priority to an application for a li5 cense to operate as a small business invest6 ment company that is from an applicant 

7 located in a disaster area.’’. 

8 SEC. 106. FAST PRIORITIES. 

9 (a) DEFINITIONS.—Section 34(a) of the Small Busi10 ness Act (15 U.S.C. 657d(a)) is amended— 

11 (1) by redesignating paragraphs (3) through 

12 (9) as (4) through (10), respectively; and 

13 (2) by inserting after paragraph (2) the fol14 lowing: 

15 ‘‘(3) CATASTROPHIC DISASTER.—The term ‘cat16 astrophic disaster’ means a catastrophic disaster, as 

17 determined by the Administrator.’’. 

18 (b) PRIORITY.—Section 34(c)(2) of the Small Busi19 ness Act (15 U.S.C. 657d(c)(2)) is amended— 

20 (1) in subparagraph (A), by striking ‘‘and’’ at 

21 the end; 

22 (2) in subparagraph (B)(vi)(III), by striking 

23 the period at the end and inserting ‘‘; and’’; and 

24 (3) by adding at the end the following: 


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1 ‘‘(C) shall give special consideration to an 

2 applicant that is located in an area affected by 

3 a catastrophic disaster.’’. 

4 (c) ADDITIONAL ASSISTANCE.—Section 34(c) of the 

5 Small Business Act (15 U.S.C. 657d(c)) is amended by 

6 adding at the end the following: 

7 ‘‘(5) ADDITIONAL ASSISTANCE FOR CATA8 STROPHIC DISASTERS.—Upon application by an ap9 plicant that receives an award or has in effect a co10 operative agreement under this section and that is 

11 located in an area affected by a catastrophic dis12 aster, the Administrator may provide additional as13 sistance to the applicant.’’. 

14 SEC. 107. USE OF FEDERAL SURPLUS PROPERTY IN DIS15 ASTER AREAS. 

16 Section 7(j)(13)(F) of the Small Business Act (15 

17 U.S.C. 636(j)(13)(F)) is amended— 

18 (1) by inserting ‘‘(i)’’ after ‘‘(F)’’; and 

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

20 ‘‘(ii)(I) In this clause— 

21 ‘‘(aa) the term ‘covered period’ 

22 means the 2-year period beginning on 

23 the date on which the President de24 clared the applicable major disaster; 

25 and 


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1 ‘‘(bb) the term ‘disaster area’ 

2 means the area for which the Presi3 dent has declared a major disaster, 

4 during the covered period. 

5 ‘‘(II) The Administrator may transfer 

6 technology or surplus property under 

7 clause (i) on a priority basis to a small 

8 business concern located in a disaster area 

9 if— 

10 ‘‘(aa) the small business concern 

11 meets the requirements for such a 

12 transfer, without regard to whether 

13 the small business concern is a Pro14 gram Participant; and 

15 ‘‘(bb) for a small business con16 cern that is a Program Participant, 

17 on and after the date on which the 

18 President declared the applicable 

19 major disaster, the small business 

20 concern has not received property 

21 under this subparagraph on the basis 

22 of the status of the small business 

23 concern as a Program Participant. 

24 ‘‘(III) For any transfer of property 

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1 cern, the terms and conditions shall be the 

2 same as a transfer to a Program Partici3 pant, except that the small business con4 cern shall agree not to sell or transfer the 

5 property to any party other than the Fed6 eral Government during the covered period. 

7 ‘‘(IV) A small business concern that 

8 receives a transfer of property under this 

9 clause may not receive a transfer of prop10 erty under clause (i) during the covered 

11 period. 

12 ‘‘(V) If a small business concern sells 

13 or transfers property in violation of the 

14 agreement described in subclause (III), the 

15 Administrator may initiate proceedings to 

16 prohibit the small business concern from 

17 receiving a transfer of property under this 

18 clause or clause (i), in addition to any 

19 other remedy available to the Adminis20 trator.’’. 

21 SEC. 108. RECOVERY OPPORTUNITY LOANS. 

22 Section 7(a)(31) of the Small Business Act (15 

23 U.S.C. 636(a)(31)) is amended— 

24 (1) in subparagraph (A)— 


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1 (A) by redesignating clauses (i), (ii), and 

2 (iii) as clauses (ii), (iii), and (iv), respectively; 

3 and 

4 (B) by inserting before clause (ii), as so re5 designated, the following: 

6 ‘‘(i) The term ‘disaster area’ means 

7 the area for which the President has de8 clared a major disaster, during the 5-year 

9 period beginning on the date of the dec10 laration.’’; 

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

12 ‘‘(G) RECOVERY OPPORTUNITY LOANS.— 

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

14 may guarantee an express loan to a small 

15 business concern located in a disaster area 

16 in accordance with this subparagraph. 

17 ‘‘(ii) MAXIMUMS.—For a loan guaran18 teed under clause (i)— 

19 ‘‘(I) the maximum loan amount 

20 is $150,000; and 

21 ‘‘(II) the guarantee rate shall be 

22 not more than 85 percent. 

23 ‘‘(iii) OVERALL CAP.—A loan guaran24 teed under clause (i) shall not be counted 

25 in determining the amount of loans made 


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1 to a borrower for purposes of subpara2 graph (D). 

3 ‘‘(iv) EXISTING DEBT.—A loan guar4 anteed under clause (i) may be used to re5 finance existing debt arising from the ap6 plicable major disaster, subject to section 

7 120.201 of title 13, Code of Federal Regu8 lations, or any successor thereto. 

9 ‘‘(v) OPERATIONS.—A small business 

10 concern receiving a loan guaranteed under 

11 clause (i) shall certify that the small busi12 ness concern was in operation on the date 

13 on which the applicable major disaster oc14 curred as a condition of receiving the loan. 

15 ‘‘(vi) REPAYMENT ABILITY.—A loan 

16 guaranteed under clause (i) may only be 

17 made to a small business concern that 

18 demonstrates, to the satisfaction of the Ad19 ministrator, sufficient capacity to repay 

20 the loan. 

21 ‘‘(vii) TIMING OF PAYMENT OF GUAR22 ANTEES.— 

23 ‘‘(I) IN GENERAL.—Not later 

24 than 90 days after the date on which 

25 the Administrator receives notice of a 


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1 default on a loan guaranteed under 

2 clause (i), the Administrator shall de3 termine whether to pay the guaran4 teed portion of the loan. 

5 ‘‘(II) RECAPTURE.—Unless there 

6 is a fraud relating to a loan guaran7 teed under clause (i), on and after the 

8 date that is 6 months after the date 

9 on which the Administrator deter10 mines to pay the guaranteed portion 

11 of the loan, the Administrator may 

12 not attempt to recapture the paid 

13 guarantee.’’. 

14 SEC. 109. CONTRACTOR MALFEASANCE. 

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

16 636(b)) is amended by inserting before the undesignated 

17 matter following paragraph (10), as added by section 102 

18 of this Act, the following: 

19 ‘‘(11) SUPPLEMENTAL ASSISTANCE FOR CON20 TRACTOR MALFEASANCE.— 

21 ‘‘(A) IN GENERAL.—If a contractor or 

22 other person engages in malfeasance in connec23 tion with repairs to, rehabilitation of, or re24 placement of real or personal property relating 

25 to which a loan was made under this subsection 


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1 and the malfeasance results in substantial eco2 nomic damage to the recipient of the loan or 

3 substantial risks to health or safety, upon re4 ceiving documentation of the substantial eco5 nomic damage or the substantial risk to health 

6 and safety from an independent loss verifier, 

7 and subject to subparagraph (B), the Adminis8 trator may increase the amount of the loan 

9 under this subsection, as necessary for the cost 

10 of repairs, rehabilitation, or replacement needed 

11 to address the cause of the economic damage or 

12 health or safety risk. 

13 ‘‘(B) REQUIREMENTS.—The Administrator 

14 may only increase the amount of a loan under 

15 subparagraph (A) upon receiving an appro16 priate certification from the borrower and per17 son performing the mitigation attesting to the 

18 reasonableness of the mitigation costs and an 

19 assignment of any proceeds received from the 

20 person engaging in the malfeasance. The as21 signment of proceeds recovered from the person 

22 engaging in the malfeasance shall be equal to 

23 the amount of the loan under this section. Any 

24 mitigation activities shall be subject to audit 


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1 and independent verification of completeness 

2 and cost reasonableness.’’. 

3 SEC. 110. LOCAL CONTRACTING PREFERENCES AND INCEN4 TIVES. 

5 Section 15 of the Small Business Act (15 U.S.C. 644) 

6 is amended by inserting after subsection (e) the following: 

7 ‘‘(f) CONTRACTING PREFERENCE FOR SMALL BUSI8 NESS CONCERNS IN A MAJOR DISASTER AREA.— 

9 ‘‘(1) DEFINITION.—In this subsection, the term 

10 ‘disaster area’ means the area for which the Presi11 dent has declared a major disaster, during the pe12 riod of the declaration. 

13 ‘‘(2) CONTRACTING PREFERENCE.—An agency 

14 shall provide a contracting preference for a small 

15 business concern located in a disaster area if the 

16 small business concern will perform the work re17 quired under the contract in the disaster area. 

18 ‘‘(3) CREDIT FOR MEETING CONTRACTING

19 GOALS.—If an agency awards a contract to a small 

20 business concern under the circumstances described 

21 in paragraph (2), the value of the contract shall be 

22 doubled for purposes of determining compliance with 

23 the goals for procurement contracts under sub24 section (g)(1)(A).’’. 


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1 TITLE II—DISASTER PLANNING 

2 AND MITIGATION 

3 SEC. 201. USE OF PHYSICAL DAMAGE DISASTER LOANS. 

4 Section 7(b)(1)(A) of the Small Business Act (15 

5 U.S.C. 636(b)(1)(A)) is amended in the second proviso— 

6 (1) by striking ‘‘the Administration may in7 crease’’ and inserting ‘‘the Administration may, sub8 ject to section 18(a), increase’’; and 

9 (2) by striking ‘‘and modifying structures’’ and 

10 inserting ‘‘, and modifying structures (including con11 struction of a safe room or similar storm shelter de12 signed to protect property and occupants from tor13 nadoes or other natural disasters)’’. 

14 SEC. 202. BUSINESS RECOVERY CENTERS. 

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

16 636(b)) is amended by inserting before the undesignated 

17 matter following paragraph (11), as added by section 109 

18 of this Act, the following: 

19 ‘‘(12) BUSINESS RECOVERY CENTERS.— 

20 ‘‘(A) IN GENERAL.—The Administrator, 

21 acting through the district offices of the Admin22 istration, shall identify locations that may be 

23 used as recovery centers by the Administration 

24 in the event of a disaster declared under this 

25 subsection or a major disaster. 


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1 ‘‘(B) REQUIREMENTS FOR IDENTIFICA2 TION.—Each district office of the Administra3 tion shall— 

4 ‘‘(i) identify a location described in 

5 subparagraph (A) in each county, parish, 

6 or similar unit of general local government 

7 in the area served by the district office; 

8 and 

9 ‘‘(ii) ensure that the locations identi10 fied under subparagraph (A) may be used 

11 as a recovery center without cost to the 

12 Government, to the extent practicable.’’. 

13 TITLE III—OTHER PROVISIONS 

14 SEC. 301. INCREASED OVERSIGHT OF ECONOMIC INJURY 

15 DISASTER LOANS. 

16 (a) IN GENERAL.—Section 7(b) of the Small Busi17 ness Act (15 U.S.C. 636(b)) is amended by inserting be18 fore the undesignated matter following paragraph (12), as 

19 added by section 202 of this Act, the following: 

20 ‘‘(13) INCREASED OVERSIGHT OF ECONOMIC IN21 JURY DISASTER LOANS.—The Administrator shall 

22 increase oversight of entities receiving loans under 

23 paragraph (2), including through— 


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1 ‘‘(A) scheduled site visits to ensure bor2 rower eligibility and compliance with require3 ments established by the Administrator; and 

4 ‘‘(B) reviews of the use of the loan pro5 ceeds by an entity described in paragraph (2) to 

6 ensure compliance with requirements estab7 lished by the Administrator.’’. 

8 (b) SENSE OF CONGRESS RELATING TO USING EX9 ISTING FUNDS.—It is the sense of Congress that no addi10 tional Federal funds should be made available to carry out 

11 the amendments made by this section. 

12 SEC. 302. REDUCTION OF PAPERWORK BURDEN. 

13 (a) SENSE OF CONGRESS.—It is the sense of Con14 gress that the Administrator should— 

15 (1) reduce paperwork burdens pursuant to sec16 tion 3501 of title 44, United States Code, on small 

17 business concerns applying for disaster assistance 

18 under section 7(b) of the Small Business Act (15 

19 U.S.C. 636(b)); and 

20 (2) ensure that the application for disaster as21 sistance under section 7(b) of the Small Business 

22 Act (15 U.S.C. 636(b)) facilitates deterring and de23 tecting potential incidents of waste, fraud, and 

24 abuse. 


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1 (b) REDUCTION.—Section 7(b) of the Small Business 

2 Act (15 U.S.C. 636(b)) is amended by inserting before the 

3 undesignated matter following paragraph (13), as added 

4 by section 301 of this Act, the following: 

5 ‘‘(14) PAPERWORK REDUCTION.—The Adminis6 trator shall take steps to reduce, to the maximum 

7 extent practicable, the paperwork associated with the 

8 application for a loan under this subsection.’’. 

9 SEC. 303. REPORT ON WEB PORTAL FOR DISASTER LOAN 

10 APPLICANTS. 

11 Section 38 of the Small Business Act (15 U.S.C. 

12 657j) is amended by adding at the end the following: 

13 ‘‘(c) REPORT ON WEB PORTAL FOR DISASTER LOAN

14 APPLICATION STATUS.— 

15 ‘‘(1) IN GENERAL.—Not later than 90 days 

16 after the date of enactment of this subsection, the 

17 Administrator shall submit to the Committee on 

18 Small Business and Entrepreneurship of the Senate 

19 and the Committee on Small Business of the House 

20 of Representatives a report relating to the creation 

21 of a web portal to the track the status of applica22 tions for disaster assistance under section 7(b). 

23 ‘‘(2) CONTENTS.—The report under paragraph 

24 (1) shall include— 


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1 ‘‘(A) information on the progress of the 

2 Administration in implementing the information 

3 system under subsection (a); 

4 ‘‘(B) recommendations from the Adminis5 tration relating to the creation of a web portal 

6 for applicants to check the status of an applica7 tion for disaster assistance under section 7(b), 

8 including a review of best practices and web 

9 portal models from the private sector; 

10 ‘‘(C) information on any related costs or 

11 staffing needed to implement such a web portal; 

12 ‘‘(D) information on whether such a web 

13 portal can maintain high standards for data 

14 privacy and data security; 

15 ‘‘(E) information on whether such a web 

16 portal will minimize redundancy among Admin17 istration disaster programs, improve manage18 ment of the number of inquiries made by dis19 aster applicants to employees located in the 

20 area affected by the disaster and to call centers, 

21 and reduce paperwork burdens on disaster vic22 tims; and 

23 ‘‘(F) such additional information as is de24 termined necessary by the Administrator.’’. 


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1 SEC. 304. LOCAL DISASTER CONTRACTING FAIRNESS. 

2 (a) DEFINITIONS.—In this section— 

3 (1) the term ‘‘executive agency’’ has the mean4 ing given that term in section 133 of title 41, United 

5 States Code; 

6 (2) the term ‘‘local subcontractor’’ means, with 

7 respect to a contract, a subcontractor who has a 

8 principal place of business or regularly conducts op9 erations in the area in which work is to be per10 formed under the contract by the subcontractor; and 

11 (3) the term ‘‘natural disaster reconstruction 

12 efforts’’ means reconstruction efforts undertaken in 

13 an area for which the President has declared a 

14 major disaster under section 401 of the Robert T. 

15 Stafford Disaster Relief and Emergency Assistance 

16 Act (42 U.S.C. 5170). 

17 (b) FEDERAL CONTRACTING REQUIREMENTS.— 

18 (1) IN GENERAL.—The head of an executive 

19 agency may not enter into an agreement for debris 

20 removal or demolition services in connection with 

21 natural disaster reconstruction efforts unless the 

22 agreement specifies that— 

23 (A) all of the work under the contract will 

24 be performed by the prime contractor or 1 or 

25 more subcontractors at 1 tier under the con26 tract; 


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1 (B) any work performed under the con2 tract by subcontractors will be performed by 

3 local subcontractors, except to the extent that 

4 local subcontractors are not available to per5 form such work; 

6 (C) the prime contractor will act as the 

7 project manager or construction manager for 

8 the contract; and 

9 (D) the prime contractor— 

10 (i) has primary responsibility for man11 aging all work under the contract; and 

12 (ii) will be paid a certain percentage 

13 of the overall value of the contract as sole 

14 compensation for assuming the risk associ15 ated with such responsibility. 

16 (2) PREFERENCE FOR SUBCONTRACTORS AF17 FECTED BY NATURAL DISASTERS.—In entering into 

18 an agreement for debris removal or demolition serv19 ices in connection with natural disaster reconstruc20 tion efforts, the head of an executive agency shall 

21 give a preference in the source selection process to 

22 each offeror who certifies that any work that is to 

23 be performed under the contract by subcontractors 

24 will be performed by local subcontractors. 


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1 (c) APPLICABILITY.—The requirements under sub2 section (b) shall apply to agreements entered into on or 

3 after the date of enactment of this Act. 

4 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

5 (a) SHORT TITLE.—This Act may be cited as the ‘‘Re6 covery Improvements for Small Entities After Disaster Act 

7 of 2015’’ or the ‘‘RISE After Disaster Act of 2015’’. 

8 (b) TABLE OF CONTENTS.—The table of contents for 

9 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—IMPROVEMENTS OF DISASTER RESPONSE AND LOANS 

Sec. 101. Use of data sharing. 

Sec. 102. Additional awards to small business development centers, women’s business centers, SCORE, and FAST recipients for disaster recovery. 

Sec. 103. Collateral requirements for disaster loans. 

Sec. 104. Assistance to out-of-State business concerns to aid in disaster recovery. 

Sec. 105. SBIC program. 

Sec. 106. FAST program. 

Sec. 107. Use of Federal surplus property in disaster areas. 

Sec. 108. Recovery opportunity loans. 

Sec. 109. Contractor malfeasance. 

Sec. 110. Local contracting preferences and incentives. 

Sec. 111. Clarification of collateral requirements. 

TITLE II—DISASTER PLANNING AND MITIGATION 

Sec. 201. Use of physical damage disaster loans. 

Sec. 202. Business recovery centers. 

TITLE III—OTHER PROVISIONS 

Sec. 301. Increased oversight of economic injury disaster loans. 

Sec. 302. Reduction of paperwork burden. 

Sec. 303. Report on web portal for disaster loan applicants. 

Sec. 304. Local disaster contracting fairness. 

10 SEC. 2. DEFINITIONS. 

11 In this Act— 


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1 (1) the term ‘‘7(b) loan program’’ means assist2 ance provided by the Administration under section 

3 7(b) of the Small Business Act (15 U.S.C. 636(b)); 

4 (2) the terms ‘‘Administration’’ and ‘‘Adminis5 trator’’ mean the Small Business Administration and 

6 the Administrator thereof, respectively; 

7 (3) the term ‘‘covered supplemental appropria8 tions’’ means amounts made available to the Admin9 istration through supplemental appropriations for— 

10 (A) the cost of direct loans authorized under 

11 section 7(b) of the Small Business Act (15 U.S.C. 

12 636(b)) for necessary expenses related to the con13 sequences of a major disaster declared by the 

14 President under section 401 of the Robert T. 

15 Stafford Disaster Relief and Emergency Assist16 ance Act (42 U.S.C. 5170); and 

17 (B) the direct administrative expenses of 

18 making and servicing those loans; 

19 (4) the term ‘‘major disaster’’ means a major 

20 disaster declared by the President under section 401 

21 of the Robert T. Stafford Disaster Relief and Emer22 gency Assistance Act (42 U.S.C. 5170); and 

23 (5) the term ‘‘small business concern’’ has the 

24 meaning given that term under section 3 of the Small 

25 Business Act (15 U.S.C. 632). 


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1 TITLE I—IMPROVEMENTS OF 

2 DISASTER RESPONSE AND 

3 LOANS 

4 SEC. 101. USE OF DATA SHARING. 

5 Section 312 of the Robert T. Stafford Disaster Relief 

6 and Emergency Assistance Act (42 U.S.C. 5155) is amend7 ed by adding at the end the following: 

8 ‘‘(e) USE OF DATA SHARING.— 

9 ‘‘(1) DEFINITION.—In this subsection, the term 

10 ‘agency’ has the meaning given the term in section 

11 552a of title 5, United States Code. 

12 ‘‘(2) EXEMPTION FROM CERTAIN MATCHING PRO13 GRAM REQUIREMENTS.—Any action taken by an 

14 agency to prevent, investigate, or recover duplicative 

15 Federal assistance under this section shall not be sub16 ject to subsections (e)(12), (o), (q), (r), and (u) of sec17 tion 552a of title 5, United States Code. 

18 ‘‘(3) FRAUDULENT ACQUISITION OF ASSIST19 ANCE.—An investigation conducted by an agency re20 lating to the fraudulent acquisition of duplicative 

21 Federal assistance under this section shall not be sub22 ject to section 552a(p) of title 5, United States Code.’’. 


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1 SEC. 102. ADDITIONAL AWARDS TO SMALL BUSINESS DE2 VELOPMENT CENTERS, WOMEN’S BUSINESS 

3 CENTERS, SCORE, AND FAST RECIPIENTS FOR 

4 DISASTER RECOVERY. 

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

6 636(b)) is amended by inserting before the undesignated 

7 matter following paragraph (9) the following: 

8 ‘‘(10) ADDITIONAL AWARDS TO SMALL BUSINESS

9 DEVELOPMENT CENTERS, WOMEN’S BUSINESS CEN10 TERS, SCORE, AND FAST RECIPIENTS FOR DISASTER

11 RECOVERY.— 

12 ‘‘(A) IN GENERAL.—The Administration 

13 may provide financial assistance to a small 

14 business development center, a women’s business 

15 center described in section 29, the Service Corps 

16 of Retired Executives, an entity, organization, or 

17 individual that receives an award or has in ef18 fect a cooperative agreement under section 34, or 

19 any proposed consortium of such individuals or 

20 entities to spur disaster recovery and growth of 

21 small business concerns located in an area for 

22 which the President has declared a major dis23 aster. 

24 ‘‘(B) FORM OF FINANCIAL ASSISTANCE.— 

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1 graph shall be in the form of a grant, contract, 

2 or cooperative agreement. 

3 ‘‘(C) NO MATCHING FUNDS REQUIRED.— 

4 Matching funds shall not be required for any 

5 grant, contract, or cooperative agreement under 

6 this paragraph. 

7 ‘‘(D) REQUIREMENTS.—A recipient of fi8 nancial assistance under this paragraph shall 

9 provide counseling, training, and other related 

10 services, such as promoting long-term resiliency, 

11 to small business concerns and entrepreneurs im12 pacted by a major disaster. 

13 ‘‘(E) PERFORMANCE.— 

14 ‘‘(i) IN GENERAL.—The Administrator, 

15 in cooperation with the recipients of finan16 cial assistance under this paragraph, shall 

17 establish metrics and goals for performance 

18 of grants, contracts, and cooperative agree19 ments under this paragraph, which shall in20 clude recovery of sales, recovery of employ21 ment, reestablishment of business premises, 

22 and establishment of new small business 

23 concerns. 

24 ‘‘(ii) USE OF ESTIMATES.—The Ad25 ministrator shall base the goals and metrics 


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1 for performance established under clause (i), 

2 in part, on the estimates of disaster impact 

3 prepared by the Office of Disaster Assist4 ance for purposes of estimating loan-making 

5 requirements. 

6 ‘‘(F) TERM.— 

7 ‘‘(i) IN GENERAL.—The term of any 

8 grant, contract, or cooperative agreement 

9 under this paragraph shall be for not more 

10 than 2 years. 

11 ‘‘(ii) EXTENSION.—The Administrator 

12 may make 1 extension of a grant, contract, 

13 or cooperative agreement under this para14 graph for a period of not more than 1 year, 

15 upon a showing of good cause and need for 

16 the extension. 

17 ‘‘(G) EXEMPTION FROM OTHER PROGRAM

18 REQUIREMENTS.—Financial assistance provided 

19 under this paragraph is in addition to, and 

20 wholly separate from, any other form of assist21 ance provided by the Administrator under this 

22 Act. 

23 ‘‘(H) COMPETITIVE BASIS.—The Adminis24 tration shall award financial assistance under 

25 this paragraph on a competitive basis.’’. 


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1 SEC. 103. COLLATERAL REQUIREMENTS FOR DISASTER 

2 LOANS. 

3 (a) IN GENERAL.—Section 7(d)(6) of the Small Busi4 ness Act (15 U.S.C. 636(d)(6)) is amended in the third pro5 viso— 

6 (1) by striking ‘‘$14,000’’ and inserting 

7 ‘‘$25,000’’; and 

8 (2) by striking ‘‘major disaster’’ and inserting 

9 ‘‘disaster’’. 

10 (b) SUNSET.—Effective on the date that is 3 years 

11 after the date of enactment of this Act, section 7(d)(6) of 

12 the Small Business Act (15 U.S.C. 636(d)(6)) is amended 

13 in the third proviso— 

14 (1) by striking ‘‘$25,000’’ and inserting 

15 ‘‘$14,000’’; and 

16 (2) by inserting ‘‘major’’ before ‘‘disaster’’. 

17 (c) REPORT.—Not later than 180 days before the date 

18 on which the amendments made by subsection (b) are to 

19 take effect, the Administrator shall submit to Committee on 

20 Small Business and Entrepreneurship of the Senate and 

21 the Committee on Small Business of the House of Represent22 atives a report on the effects of the amendments made by 

23 subsection (a), which shall include— 

24 (1) an assessment of the impact and benefits re25 sulting from the amendments; and 


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1 (2) a recommendation as to whether the amend2 ments should be made permanent. 

3 SEC. 104. ASSISTANCE TO OUT-OF-STATE BUSINESS CON4 CERNS TO AID IN DISASTER RECOVERY. 

5 (a) IN GENERAL.—Section 21(b)(3) of the Small Busi6 ness Act (15 U.S.C. 648(b)(3)) is amended— 

7 (1) by striking ‘‘(3) At the discretion’’ and in8 serting the following: 

9 ‘‘(3) ASSISTANCE TO OUT-OF-STATE SMALL BUSI10 NESS CONCERNS.— 

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

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

13 ‘‘(B) DISASTER RECOVERY ASSISTANCE.— 

14 ‘‘(i) IN GENERAL.—At the discretion of 

15 the Administrator, the Administrator may 

16 authorize a small business development cen17 ter to provide advice, information, and as18 sistance, as described in subsection (c), to a 

19 small business concern located outside of the 

20 State, without regard to geographic prox21 imity to the small business development 

22 center, if the small business concern is lo23 cated in an area for which the President 

24 has declared a major disaster. 

25 ‘‘(ii) TERM.— 


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1 ‘‘(I) IN GENERAL.—A small busi2 ness development center may provide 

3 advice, information, and assistance to 

4 a small business concern under clause 

5 (i) for a period of not more than 2 

6 years after the date on which the Presi7 dent declared a major disaster for the 

8 area in which the small business con9 cern is located. 

10 ‘‘(II) EXTENSION.—The Adminis11 trator may, at the discretion of the Ad12 ministrator, extend the period de13 scribed in subclause (I). 

14 ‘‘(iii) CONTINUITY OF SERVICES.—A 

15 small business development center that pro16 vides counselors to an area described in 

17 clause (i) shall, to the maximum extent 

18 practicable, ensure continuity of services in 

19 any State in which the small business devel20 opment center otherwise provides services. 

21 ‘‘(iv) ACCESS TO DISASTER RECOVERY

22 FACILITIES.—For purposes of this subpara23 graph, the Administrator shall, to the max24 imum extent practicable, permit the per25 sonnel of a small business development cenVerDate Sep 11 2014 22:14 Jun 10, 2015 Jkt 049200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6203 E:\BILLS\S1470.RS S1470

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1 ter to use any site or facility designated by 

2 the Administrator for use to provide dis3 aster recovery assistance.’’. 

4 (b) SENSE OF CONGRESS.—It is the sense of Congress 

5 that, subject to the availability of funds, the Administrator 

6 should, to the extent practicable, ensure that a small busi7 ness development center is appropriately reimbursed for 

8 any legitimate expenses incurred in carrying out activities 

9 under section 21(b)(3)(B) of the Small Business Act, as 

10 added by subsection (a). 

11 SEC. 105. SBIC PROGRAM. 

12 (a) FAST-TRACK APPLICATIONS.—Section 301(c)(2) of 

13 the Small Business Investment Act of 1958 (15 U.S.C. 

14 681(c)(2)) is amended by adding at the end the following: 

15 ‘‘(C) PRIORITY FOR APPLICANTS LOCATED

16 IN DISASTER AREAS.— 

17 ‘‘(i) DEFINITION.—In this subpara18 graph, the term ‘disaster area’ means the 

19 area for which the President has declared a 

20 major disaster (as defined in section 102 of 

21 the Robert T. Stafford Disaster Relief and 

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

23 5122)), during the period of the declaration. 

24 ‘‘(ii) PRIORITY.—The Administrator 

25 shall give priority to an application for a 


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1 license to operate as a small business invest2 ment company that is from an applicant lo3 cated in a disaster area.’’. 

4 (b) MAXIMUM LEVERAGE.—Section 303(b)(2) of the 

5 Small Business Investment Act of 1958 (15 U.S.C. 

6 683(b)(2)) is amended by adding at the end the following: 

7 ‘‘(E) INVESTMENTS IN DISASTER AREAS.— 

8 In calculating the outstanding leverage of a com9 pany licensed under section 301(c) for the pur10 poses of subparagraph (A), or 2 or more compa11 nies licensed under section 301(c) for the pur12 poses of subparagraph (B), the Administrator 

13 shall not include the amount equal to the cost 

14 basis of any investment made by the company in 

15 a small business concern that is located in an 

16 area for which the President declared a major 

17 disaster (as defined in section 102 of the Robert 

18 T. Stafford Disaster Relief and Emergency As19 sistance Act (42 U.S.C. 5122)) during the 1-year 

20 period beginning on the date of the declaration.’’. 

21 SEC. 106. FAST PROGRAM. 

22 (a) DEFINITIONS.—Section 34(a) of the Small Busi23 ness Act (15 U.S.C. 657d(a)) is amended— 

24 (1) by redesignating paragraphs (3) through (9) 

25 as paragraphs (4) through (10), respectively; and 


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1 (2) by inserting after paragraph (2) the fol2 lowing: 

3 ‘‘(3) CATASTROPHIC DISASTER.—The term ‘cata4 strophic disaster’ means a catastrophic disaster, as 

5 determined by the Administrator.’’. 

6 (b) PRIORITY.—Section 34(c)(2) of the Small Business 

7 Act (15 U.S.C. 657d(c)(2)) is amended— 

8 (1) in subparagraph (A), by striking ‘‘and’’ at 

9 the end; 

10 (2) in subparagraph (B)(vi)(III), by striking the 

11 period at the end and inserting ‘‘; and’’; and 

12 (3) by adding at the end the following: 

13 ‘‘(C) shall give special consideration to an 

14 applicant that is located in an area affected by 

15 a catastrophic disaster.’’. 

16 (c) ADDITIONAL ASSISTANCE.—Section 34(c) of the 

17 Small Business Act (15 U.S.C. 657d(c)) is amended by add18 ing at the end the following: 

19 ‘‘(5) ADDITIONAL ASSISTANCE FOR CATA20 STROPHIC DISASTERS.—Upon application by an ap21 plicant that receives an award or has in effect a coop22 erative agreement under this section and that is lo23 cated in an area affected by a catastrophic disaster, 

24 the Administrator may— 


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1 ‘‘(A) provide additional assistance to the 

2 applicant; and 

3 ‘‘(B) waive the matching requirements 

4 under subsection (e)(2).’’. 

5 (d) AUTHORIZATION OF FAST PROGRAM.—Section 34 

6 of the Small Business Act (15 U.S.C. 657d) is amended— 

7 (1) in subsection (h), by striking ‘‘2005’’ each 

8 place that term appears and inserting ‘‘2017’’; and 

9 (2) in subsection (i), by striking ‘‘September 30, 

10 2005’’ and inserting ‘‘September 30, 2017’’. 

11 SEC. 107. USE OF FEDERAL SURPLUS PROPERTY IN DIS12 ASTER AREAS. 

13 Section 7(j)(13)(F) of the Small Business Act (15 

14 U.S.C. 636(j)(13)(F)) is amended— 

15 (1) by inserting ‘‘(i)’’ after ‘‘(F)’’; and 

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

17 ‘‘(ii)(I) In this clause— 

18 ‘‘(aa) the term ‘covered period’ 

19 means the 2-year period beginning on 

20 the date on which the President de21 clared the applicable major disaster; 

22 and 

23 ‘‘(bb) the term ‘disaster area’ 

24 means the area for which the President 


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1 has declared a major disaster, during 

2 the covered period. 

3 ‘‘(II) The Administrator may transfer 

4 technology or surplus property under clause 

5 (i) on a priority basis to a small business 

6 concern located in a disaster area if— 

7 ‘‘(aa) the small business concern 

8 meets the requirements for such a 

9 transfer, without regard to whether the 

10 small business concern is a Program 

11 Participant; and 

12 ‘‘(bb) for a small business concern 

13 that is a Program Participant, on and 

14 after the date on which the President 

15 declared the applicable major disaster, 

16 the small business concern has not re17 ceived property under this subpara18 graph on the basis of the status of the 

19 small business concern as a Program 

20 Participant. 

21 ‘‘(III) For any transfer of property 

22 under this clause to a small business con23 cern, the terms and conditions shall be the 

24 same as a transfer to a Program Partici25 pant, except that the small business concern 


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1 shall agree not to sell or transfer the prop2 erty to any party other than the Federal 

3 Government during the covered period. 

4 ‘‘(IV) A small business concern that re5 ceives a transfer of property under this 

6 clause may not receive a transfer of prop7 erty under clause (i) during the covered pe8 riod. 

9 ‘‘(V) If a small business concern sells 

10 or transfers property in violation of the 

11 agreement described in subclause (III), the 

12 Administrator may initiate proceedings to 

13 prohibit the small business concern from re14 ceiving a transfer of property under this 

15 clause or clause (i), in addition to any 

16 other remedy available to the Adminis17 trator.’’. 

18 SEC. 108. RECOVERY OPPORTUNITY LOANS. 

19 Section 7(a)(31) of the Small Business Act (15 U.S.C. 

20 636(a)(31)) is amended— 

21 (1) in subparagraph (A)— 

22 (A) by redesignating clauses (i), (ii), and 

23 (iii) as clauses (ii), (iii), and (iv), respectively; 

24 and 


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1 (B) by inserting before clause (ii), as so re2 designated, the following: 

3 ‘‘(i) The term ‘disaster area’ means the 

4 area for which the President has declared a 

5 major disaster, during the 5-year period be6 ginning on the date of the declaration.’’; 

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

8 ‘‘(G) RECOVERY OPPORTUNITY LOANS.— 

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

10 may guarantee an express loan to a small 

11 business concern located in a disaster area 

12 in accordance with this subparagraph. 

13 ‘‘(ii) MAXIMUMS.—For a loan guaran14 teed under clause (i)— 

15 ‘‘(I) the maximum loan amount is 

16 $150,000; and 

17 ‘‘(II) the guarantee rate shall be 

18 not more than 85 percent. 

19 ‘‘(iii) OVERALL CAP.—A loan guaran20 teed under clause (i) shall not be counted in 

21 determining the amount of loans made to a 

22 borrower for purposes of subparagraph (D). 

23 ‘‘(iv) OPERATIONS.—A small business 

24 concern receiving a loan guaranteed under 

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1 ness concern was in operation on the date 

2 on which the applicable major disaster oc3 curred as a condition of receiving the loan. 

4 ‘‘(v) REPAYMENT ABILITY.—A loan 

5 guaranteed under clause (i) may only be 

6 made to a small business concern that dem7 onstrates, to the satisfaction of the Adminis8 trator, sufficient capacity to repay the loan. 

9 ‘‘(vi) TIMING OF PAYMENT OF GUARAN10 TEES.— 

11 ‘‘(I) IN GENERAL.—Not later than 

12 90 days after the date on which a re13 quest for purchase is filed with the Ad14 ministrator, the Administrator shall 

15 determine whether to pay the guaran16 teed portion of the loan. 

17 ‘‘(II) RECAPTURE.—Notwith18 standing any other provision of law, 

19 unless there is a subsequent finding of 

20 fraud by a court of competent jurisdic21 tion relating to a loan guaranteed 

22 under clause (i), on and after the date 

23 that is 6 months after the date on 

24 which the Administrator determines to 

25 pay the guaranteed portion of the loan, 


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1 the Administrator may not attempt to 

2 recapture the paid guarantee. 

3 ‘‘(vii) FEES.— 

4 ‘‘(I) IN GENERAL.—Unless the Ad5 ministrator has waived the guarantee 

6 fee that would otherwise be collected by 

7 the Administrator under paragraph 

8 (18) for a loan guaranteed under 

9 clause (i), and except as provided in 

10 subclause (II), the guarantee fee for the 

11 loan shall be equal to the guarantee fee 

12 that the Administrator would collect if 

13 the guarantee rate for the loan was 50 

14 percent. 

15 ‘‘(II) EXCEPTION.—Subclause (I) 

16 shall not apply if the cost of carrying 

17 out the program under this subsection 

18 in a fiscal year is more than zero and 

19 such cost is directly attributable to the 

20 cost of guaranteeing loans under clause 

21 (i).’’. 

22 SEC. 109. CONTRACTOR MALFEASANCE. 

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

24 636(b)) is amended by inserting before the undesignated 


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1 matter following paragraph (10), as added by section 102 

2 of this Act, the following: 

3 ‘‘(11) SUPPLEMENTAL ASSISTANCE FOR CON4 TRACTOR MALFEASANCE.— 

5 ‘‘(A) IN GENERAL.—If a contractor or other 

6 person engages in malfeasance in connection 

7 with repairs to, rehabilitation of, or replacement 

8 of real or personal property relating to which a 

9 loan was made under this subsection and the 

10 malfeasance results in substantial economic dam11 age to the recipient of the loan or substantial 

12 risks to health or safety, upon receiving docu13 mentation of the substantial economic damage or 

14 the substantial risk to health and safety from an 

15 independent loss verifier, and subject to subpara16 graph (B), the Administrator may increase the 

17 amount of the loan under this subsection, as nec18 essary for the cost of repairs, rehabilitation, or 

19 replacement needed to address the cause of the 

20 economic damage or health or safety risk. 

21 ‘‘(B) REQUIREMENTS.—The Administrator 

22 may only increase the amount of a loan under 

23 subparagraph (A) upon receiving an appropriate 

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1 ableness of the mitigation costs and an assign2 ment of any proceeds received from the person 

3 engaging in the malfeasance. The assignment of 

4 proceeds recovered from the person engaging in 

5 the malfeasance shall be equal to the amount of 

6 the loan under this section. Any mitigation ac7 tivities shall be subject to audit and independent 

8 verification of completeness and cost reasonable9 ness.’’. 

10 SEC. 110. LOCAL CONTRACTING PREFERENCES AND INCEN11 TIVES. 

12 Section 15 of the Small Business Act (15 U.S.C. 644) 

13 is amended by inserting after subsection (e) the following: 

14 ‘‘(f) CONTRACTING PREFERENCE FOR SMALL BUSI15 NESS CONCERNS IN A MAJOR DISASTER AREA.— 

16 ‘‘(1) DEFINITION.—In this subsection, the term 

17 ‘disaster area’ means the area for which the President 

18 has declared a major disaster, during the period of 

19 the declaration. 

20 ‘‘(2) CONTRACTING PREFERENCE.—An agency 

21 shall provide a contracting preference for a small 

22 business concern located in a disaster area if the 

23 small business concern will perform the work required 

24 under the contract in the disaster area. 


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1 ‘‘(3) CREDIT FOR MEETING CONTRACTING

2 GOALS.—If an agency awards a contract to a small 

3 business concern under the circumstances described in 

4 paragraph (2), the value of the contract shall be dou5 bled for purposes of determining compliance with the 

6 goals for procurement contracts under subsection 

7 (g)(1)(A).’’. 

8 SEC. 111. CLARIFICATION OF COLLATERAL REQUIREMENTS. 

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

10 636(d)(6)) is amended by inserting after ‘‘which are made 

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

12 Provided further, That the Administrator, in obtaining the 

13 best available collateral for a loan of not more than 

14 $200,000 under paragraph (1) or (2) of subsection (b) relat15 ing to damage to or destruction of the property of, or eco16 nomic injury to, a small business concern, shall not require 

17 the owner of the small business concern to use the primary 

18 residence of the owner as collateral if the Administrator de19 termines that the owner has other assets of equal quality 

20 and with a value equal to or greater than the amount of 

21 the loan that could be used as collateral for the loan: Pro22 vided further, That nothing in the preceding proviso may 

23 be construed to reduce the amount of collateral required by 

24 the Administrator in connection with a loan described in 

25 the preceding proviso or to modify the standards used to 


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1 evaluate the quality (rather than the type) of such collat2 eral’’. 

3 TITLE II—DISASTER PLANNING 

4 AND MITIGATION 

5 SEC. 201. USE OF PHYSICAL DAMAGE DISASTER LOANS. 

6 Section 7(b)(1)(A) of the Small Business Act (15 

7 U.S.C. 636(b)(1)(A)) is amended in the second proviso— 

8 (1) by striking ‘‘the Administration may in9 crease’’ and inserting ‘‘the Administration may, sub10 ject to section 18(a), increase’’; and 

11 (2) by striking ‘‘and modifying structures’’ and 

12 inserting ‘‘, and modifying structures (including con13 struction of a safe room or similar storm shelter de14 signed to protect property and occupants from torna15 does or other natural disasters)’’. 

16 SEC. 202. BUSINESS RECOVERY CENTERS. 

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

18 636(b)) is amended by inserting before the undesignated 

19 matter following paragraph (11), as added by section 109 

20 of this Act, the following: 

21 ‘‘(12) BUSINESS RECOVERY CENTERS.— 

22 ‘‘(A) IN GENERAL.—The Administrator, act23 ing through the district offices of the Administra24 tion, shall identify locations that may be used as 

25 recovery centers by the Administration in the 


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1 event of a disaster declared under this subsection 

2 or a major disaster. 

3 ‘‘(B) REQUIREMENTS FOR IDENTIFICA4 TION.—Each district office of the Administration 

5 shall— 

6 ‘‘(i) identify a location described in 

7 subparagraph (A) in each county, parish, 

8 or similar unit of general local government 

9 in the area served by the district office; and 

10 ‘‘(ii) ensure that the locations identi11 fied under subparagraph (A) may be used 

12 as a recovery center without cost to the Gov13 ernment, to the extent practicable.’’. 

14 TITLE III—OTHER PROVISIONS 

15 SEC. 301. INCREASED OVERSIGHT OF ECONOMIC INJURY 

16 DISASTER LOANS. 

17 (a) IN GENERAL.—Section 7(b) of the Small Business 

18 Act (15 U.S.C. 636(b)) is amended by inserting before the 

19 undesignated matter following paragraph (12), as added by 

20 section 202 of this Act, the following: 

21 ‘‘(13) INCREASED OVERSIGHT OF ECONOMIC IN22 JURY DISASTER LOANS.—The Administrator shall in23 crease oversight of entities receiving loans under 

24 paragraph (2), including through— 


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1 ‘‘(A) scheduled site visits to ensure borrower 

2 eligibility and compliance with requirements es3 tablished by the Administrator; and 

4 ‘‘(B) reviews of the use of the loan proceeds 

5 by an entity described in paragraph (2) to en6 sure compliance with requirements established by 

7 the Administrator.’’. 

8 (b) SENSE OF CONGRESS RELATING TO USING EXIST9 ING FUNDS.—It is the sense of Congress that no additional 

10 Federal funds should be made available to carry out the 

11 amendments made by this section. 

12 SEC. 302. REDUCTION OF PAPERWORK BURDEN. 

13 (a) SENSE OF CONGRESS.—It is the sense of Congress 

14 that the Administrator should— 

15 (1) reduce paperwork burdens pursuant to sec16 tion 3501 of title 44, United States Code, on small 

17 business concerns applying for disaster assistance 

18 under section 7(b) of the Small Business Act (15 

19 U.S.C. 636(b)); and 

20 (2) ensure that the application for disaster as21 sistance under section 7(b) of the Small Business Act 

22 (15 U.S.C. 636(b)) facilitates deterring and detecting 

23 potential incidents of waste, fraud, and abuse. 

24 (b) REDUCTION.—Section 7(b) of the Small Business 

25 Act (15 U.S.C. 636(b)) is amended by inserting before the 


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1 undesignated matter following paragraph (13), as added by 

2 section 301 of this Act, the following: 

3 ‘‘(14) PAPERWORK REDUCTION.—The Adminis4 trator shall take steps to reduce, to the maximum ex5 tent practicable, the paperwork associated with the 

6 application for a loan under this subsection.’’. 

7 SEC. 303. REPORT ON WEB PORTAL FOR DISASTER LOAN 

8 APPLICANTS. 

9 Section 38 of the Small Business Act (15 U.S.C. 657j) 

10 is amended by adding at the end the following: 

11 ‘‘(c) REPORT ON WEB PORTAL FOR DISASTER LOAN

12 APPLICATION STATUS.— 

13 ‘‘(1) IN GENERAL.—Not later than 90 days after 

14 the date of enactment of this subsection, the Adminis15 trator shall submit to the Committee on Small Busi16 ness and Entrepreneurship of the Senate and the 

17 Committee on Small Business of the House of Rep18 resentatives a report relating to the creation of a web 

19 portal to the track the status of applications for dis20 aster assistance under section 7(b). 

21 ‘‘(2) CONTENTS.—The report under paragraph 

22 (1) shall include— 

23 ‘‘(A) information on the progress of the Ad24 ministration in implementing the information 

25 system under subsection (a); 


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1 ‘‘(B) recommendations from the Adminis2 tration relating to the creation of a web portal 

3 for applicants to check the status of an applica4 tion for disaster assistance under section 7(b), 

5 including a review of best practices and web por6 tal models from the private sector; 

7 ‘‘(C) information on any related costs or 

8 staffing needed to implement such a web portal; 

9 ‘‘(D) information on whether such a web 

10 portal can maintain high standards for data 

11 privacy and data security; 

12 ‘‘(E) information on whether such a web 

13 portal will minimize redundancy among Admin14 istration disaster programs, improve manage15 ment of the number of inquiries made by disaster 

16 applicants to employees located in the area af17 fected by the disaster and to call centers, and re18 duce paperwork burdens on disaster victims; and 

19 ‘‘(F) such additional information as is de20 termined necessary by the Administrator.’’. 

21 SEC. 304. LOCAL DISASTER CONTRACTING FAIRNESS. 

22 (a) DEFINITIONS.—In this section— 

23 (1) the term ‘‘executive agency’’ has the meaning 

24 given that term in section 133 of title 41, United 

25 States Code; 


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1 (2) the term ‘‘local subcontractor’’ means, with 

2 respect to a contract, a subcontractor who has a prin3 cipal place of business or regularly conducts oper4 ations in the area in which work is to be performed 

5 under the contract by the subcontractor; and 

6 (3) the term ‘‘natural disaster reconstruction ef7 forts’’ means reconstruction efforts undertaken in an 

8 area for which the President has declared a major 

9 disaster under section 401 of the Robert T. Stafford 

10 Disaster Relief and Emergency Assistance Act (42 

11 U.S.C. 5170). 

12 (b) FEDERAL CONTRACTING REQUIREMENTS.— 

13 (1) IN GENERAL.—The head of an executive 

14 agency may not enter into an agreement for debris re15 moval or demolition services in connection with nat16 ural disaster reconstruction efforts unless the agree17 ment specifies that— 

18 (A) all of the work under the contract will 

19 be performed by the prime contractor or 1 or 

20 more subcontractors at 1 tier under the contract; 

21 (B) any work performed under the contract 

22 by subcontractors will be performed by local sub23 contractors, except to the extent that local sub24 contractors are not available to perform such 

25 work; 


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1 (C) the prime contractor will act as the 

2 project manager or construction manager for the 

3 contract; and 

4 (D) the prime contractor— 

5 (i) has primary responsibility for 

6 managing all work under the contract; and 

7 (ii) will be paid a certain percentage 

8 of the overall value of the contract as sole 

9 compensation for assuming the risk associ10 ated with such responsibility. 

11 (2) PREFERENCE FOR SUBCONTRACTORS AF12 FECTED BY NATURAL DISASTERS.—In entering into 

13 an agreement for debris removal or demolition serv14 ices in connection with natural disaster reconstruc15 tion efforts, the head of an executive agency shall give 

16 a preference in the source selection process to each of17 feror who certifies that any work that is to be per18 formed under the contract by subcontractors will be 

19 performed by local subcontractors. 

20 (c) APPLICABILITY.—The requirements under sub21 section (b) shall apply to agreements entered into on or 

22 after the date of enactment of this Act. 


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Calendar No. 113 

114TH CONGRESS 

1ST SESSION S. 1470 

A BILL 

To amend the Small Business Act to provide addidisaster recovery, and for other purposes. tional assistance to small business concerns for 

JUNE 10, 2015 

Reported with an amendment 


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