I 

110TH CONGRESS 

1ST SESSION H. R. 565 

To amend the Small Business Act to improve the availability of disaster 

loans to individuals and businesses affected by catastrophic incidents. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 18, 2007 

Mr. JEFFERSON introduced the following bill; which was referred to the 

Committee on Small Business 

A BILL 

To amend the Small Business Act to improve the availability 

of disaster loans to individuals and businesses affected 

by catastrophic incidents. 

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 Improvement Act of 2007’’. 

6 SEC. 2. AVAILABILITY OF DISASTER LOANS FOR CATA7 STROPHIC INCIDENTS. 

8 Section 7 of the Small Business Act (15 U.S.C. 636) 

9 is amended by adding at the end the following new sub10 section: 


rwilkins on PROD1PC63 with BILLS
2 

•HR 565 IH

1 ‘‘(o) IMPROVEMENTS TO DISASTER LOAN PROGRAM

2 WITH RESPECT TO CATASTROPHIC INCIDENTS.— 

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

4 ‘catastrophic incident’ means a disaster that— 

5 ‘‘(A) results in extraordinary levels of mass 

6 casualties, damage, or disruption severely af7 fecting the population, infrastructure, environ8 ment, economy, national morale, or government 

9 functions; 

10 ‘‘(B) has the potential to result in sus11 tained national impacts over a prolonged period 

12 of time; 

13 ‘‘(C) almost immediately exceeds resources 

14 normally available to State, local, tribal, and 

15 private-sector authorities in the impacted area; 

16 and 

17 ‘‘(D) significantly interrupts governmental 

18 operations and emergency services to such an 

19 extent that national security could be threat20 ened. 

21 ‘‘(2) AVAILABILITY OF DISASTER LOANS.—In 

22 carrying out the disaster loan program under sub23 section (b) with respect to a catastrophic incident, 

24 the Administrator shall not, in determining whether 

25 a person is eligible for such a loan or in determining 


rwilkins on PROD1PC63 with BILLS
3 

•HR 565 IH

1 the amount of such a loan, consider the extent to 

2 which— 

3 ‘‘(A) the loss or damage or injury of the 

4 person is compensated for by insurance or oth5 erwise; or 

6 ‘‘(B) the person paid, voluntarily or invol7 untarily, insurance proceeds to a recorded 

8 lienholder.’’. 

9 SEC. 3. RETROACTIVITY FOR VICTIMS OF HURRICANES 

10 KATRINA, RITA, AND WILMA. 

11 (a) RETROACTIVITY.—Subsection (o) of the Small 

12 Business Act, as added by section 2 of this Act, applies 

13 to all catastrophic incidents occurring on or after August 

14 29, 2005. 

15 (b) HURRICANES KATRINA, RITA, AND WILMA.—For 

16 purposes of subsection (o) of such Act, Hurricanes 

17 Katrina, Rita, and Wilma of 2005 are hereby deemed to 

18 be catastrophic incidents. 

19 (c) REVIEW AND COMPLIANCE.—The Administrator 

20 of the Small Business Administration shall ensure that all 

21 applications, and all loans, under the disaster loan pro22 gram before the date of the enactment of this Act are re23 viewed and brought into compliance with this section. 

Æ 


rwilkins on PROD1PC63 with BILLS