II 

110TH CONGRESS 

1ST SESSION S. 598 

To require reporting regarding the disaster loan program of the Small 

Business Administration, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 14, 2007 

Mr. KERRY (for himself, Ms. SNOWE, Ms. LANDRIEU, Mr. VITTER, and Mr. 

LIEBERMAN) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship 

A BILL 

To require reporting regarding the disaster loan program 

of the Small Business Administration, 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 Reporting Act of 2007’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 


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1 (1) the terms ‘‘Administration’’ and ‘‘Adminis2 trator’’ mean the Small Business Administration 

3 and the Administrator thereof, respectively; 

4 (2) the term ‘‘applicable period’’ means the pe5 riod beginning on the date on which the President 

6 declares a major disaster and ending on the date 

7 that is 30 days after the later of the closing date for 

8 applications for physical disaster loans for that dis9 aster and the closing date for applications for eco10 nomic injury disaster loans for that disaster; 

11 (3) the term ‘‘disaster loan program of the Ad12 ministration’’ means assistance under section 7(b) of 

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

14 (4) the term ‘‘disaster update period’’ means 

15 the period beginning on the date on which the Presi16 dent declares a major disaster and ending on the 

17 date on which that declaration terminates; 

18 (5) the term ‘‘major disaster’’ has the meaning 

19 given that term in section 102 of the Robert T. 

20 Stafford Disaster Relief and Emergency Assistance 

21 Act (42 U.S.C. 5122); 

22 (6) the term ‘‘small business concern’’ has the 

23 meaning given that term in section 3 of the Small 

24 Business Act (15 U.S.C. 632); and 


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1 (7) the term ‘‘State’’ means any State of the 

2 United States, the District of Columbia, the Com3 monwealth of Puerto Rico, the Northern Mariana Is4 lands, the Virgin Islands, Guam, American Samoa, 

5 and any territory or possession of the United States. 

6 SEC. 3. DEVELOPMENT AND IMPLEMENTATION OF MAJOR 

7 DISASTER RESPONSE PLAN. 

8 (a) IN GENERAL.—Not later than May 1, 2007, the 

9 Administrator shall— 

10 (1) by rule, amend the 2006 Atlantic hurricane 

11 season disaster response plan of the Administration 

12 (in this section referred to as the ‘‘disaster response 

13 plan’’) to apply to major disasters; and 

14 (2) submit a report to the Committee on Small 

15 Business and Entrepreneurship of the Senate and 

16 the Committee on Small Business of the House of 

17 Representatives detailing the amendments to the dis18 aster response plan. 

19 (b) CONTENTS.—The amended report required under 

20 subsection (a)(2) shall include— 

21 (1) any updates or modifications made to the 

22 disaster response plan since the report regarding the 

23 disaster response plan submitted on July 14, 2006; 

24 (2) a description of how the Administrator 

25 plans to utilize and integrate District Office perVerDate Aug 31 2005 23:25 Feb 17, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S598.IS S598

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1 sonnel of the Administration in the response to a 

2 major disaster, including information on the utiliza3 tion of personnel for loan processing and loan dis4 bursement; 

5 (3) a description of the disaster scalability 

6 model of the Administration and on what basis or 

7 function the plan is scaled; 

8 (4) a description of how the agency-wide Dis9 aster Oversight Council is structured, which offices 

10 comprise its membership, and whether the Associate 

11 Deputy Administrator for Entrepreneurial Develop12 ment of the Administration is a member; 

13 (5) a description of how the Administrator 

14 plans to coordinate the disaster efforts of the Ad15 ministration with State and local government offi16 cials, including recommendations on how to better 

17 incorporate State initiatives or programs, such as 

18 State-administered bridge loan programs, into the 

19 disaster response of the Administration; 

20 (6) recommendations, if any, on how the Ad21 ministrator can better coordinate its disaster re22 sponse operations with the operations of other Fed23 eral, State, and local entities; 

24 (7) any surge plan for the disaster loan pro25 gram of the Administration in effect on or after AuVerDate Aug 31 2005 23:25 Feb 17, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S598.IS S598

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1 gust 29, 2005 (including surge plans for loss 

2 verification, loan processing, mailroom, customer 

3 service or call center operations, and a continuity of 

4 operations plan); 

5 (8) the number of full-time equivalent employ6 ees and job descriptions for the planning and dis7 aster response staff of the Administration; 

8 (9) the in-service and preservice training proce9 dures for disaster response staff of the Administra10 tion; 

11 (10) information on the logistical support plans 

12 of the Administration (including equipment and 

13 staffing needs, and detailed information on how such 

14 plans will be scalable depending on the size and 

15 scope of the major disaster; 

16 (11) a description of the findings and rec17 ommendations of the Administrator, if any, based on 

18 a review of the response of the Administration to 

19 Hurricane Katrina of 2005, Hurricane Rita of 2005, 

20 and Hurricane Wilma of 2005; and 

21 (12) a plan for how the Administrator, in co22 operation with the Administrator of the Federal 

23 Emergency Management Agency, will coordinate the 

24 provision of accommodations and necessary re25 sources for disaster assistance personnel to effecVerDate Aug 31 2005 23:25 Feb 17, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S598.IS S598

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1 tively perform their responsibilities in the aftermath 

2 of a major disaster. 

3 (c) EXERCISES.—Not later than May 31, 2007, the 

4 Administrator shall develop and execute simulation exer5 cises to demonstrate the effectiveness of the amended dis6 aster response plan required under this section. 

7 SEC. 4. CONGRESSIONAL OVERSIGHT. 

8 (a) MONTHLY ACCOUNTING REPORT TO CON9 GRESS.— 

10 (1) REPORTING REQUIREMENTS.—Not later 

11 than the fifth business day of each month during the 

12 applicable period for a major disaster, the Adminis13 trator shall provide to the Committee on Small Busi14 ness and Entrepreneurship and the Committee on 

15 Appropriations of the Senate and to the Committee 

16 on Small Business and the Committee on Appropria17 tions of the House of Representatives a report on 

18 the operation of the disaster loan program author19 ized under section 7 of the Small Business Act (15 

20 U.S.C. 636) for that major disaster during the pre21 ceding month. 

22 (2) CONTENTS.—Each report under paragraph 

23 (1) shall include— 

24 (A) the daily average lending volume, in 

25 number of loans and dollars, and the percent by 


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1 which each category has increased or decreased 

2 since the previous report under paragraph (1); 

3 (B) the weekly average lending volume, in 

4 number of loans and dollars, and the percent by 

5 which each category has increased or decreased 

6 since the previous report under paragraph (1); 

7 (C) the amount of funding spent over the 

8 month for loans, both in appropriations and 

9 program level, and the percent by which each 

10 category has increased or decreased since the 

11 previous report under paragraph (1); 

12 (D) the amount of funding available for 

13 loans, both in appropriations and program level, 

14 and the percent by which each category has in15 creased or decreased since the previous report 

16 under paragraph (1), noting the source of any 

17 additional funding; 

18 (E) an estimate of how long the available 

19 funding for such loans will last, based on the 

20 spending rate; 

21 (F) the amount of funding spent over the 

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

23 and the percent by which each category has in24 creased or decreased since the previous report 

25 under paragraph (1); 


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1 (G) the amount of funding spent over the 

2 month for administrative costs, and the percent 

3 by which such spending has increased or de4 creased since the previous report under para5 graph (1); 

6 (H) the amount of funding available for 

7 salaries and expenses combined, and the per8 cent by which such funding has increased or de9 creased since the previous report under para10 graph (1), noting the source of any additional 

11 funding; and 

12 (I) an estimate of how long the available 

13 funding for salaries and expenses will last, 

14 based on the spending rate. 

15 (b) DAILY DISASTER UPDATES TO CONGRESS FOR

16 PRESIDENTIALLY DECLARED DISASTERS.— 

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

18 update period, excluding Federal holidays and week19 ends, the Administration shall provide to the Com20 mittee on Small Business and Entrepreneurship of 

21 the Senate and to the Committee on Small Business 

22 of the House of Representatives a report on the op23 eration of the disaster loan program of the Adminis24 tration for the area in which the President declared 

25 a major disaster. 


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1 (2) CONTENTS.—Each report under paragraph 

2 (1) shall include— 

3 (A) the number of Administration staff 

4 performing loan processing, field inspection, 

5 and other duties for the declared disaster, and 

6 the allocations of such staff in the disaster field 

7 offices, disaster recovery centers, workshops, 

8 and other Administration offices nationwide; 

9 (B) the daily number of applications re10 ceived from applicants in the relevant area, as 

11 well as a breakdown of such figures by State; 

12 (C) the daily number of applications pend13 ing application entry from applicants in the rel14 evant area, as well as a breakdown of such fig15 ures by State; 

16 (D) the daily number of applications with17 drawn by applicants in the relevant area, as 

18 well as a breakdown of such figures by State; 

19 (E) the daily number of applications sum20 marily declined by the Administration from ap21 plicants in the relevant area, as well as a break22 down of such figures by State; 

23 (F) the daily number of applications de24 clined by the Administration from applicants in 


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1 the relevant area, as well as a breakdown of 

2 such figures by State; 

3 (G) the daily number of applications in 

4 process from applicants in the relevant area, as 

5 well as a breakdown of such figures by State; 

6 (H) the daily number of applications ap7 proved by the Administration from applicants in 

8 the relevant area, as well as a breakdown of 

9 such figures by State; 

10 (I) the daily dollar amount of applications 

11 approved by the Administration from applicants 

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

13 such figures by State; 

14 (J) the daily amount of loans dispersed, 

15 both partially and fully, by the Administration 

16 to applicants in the relevant area, as well as a 

17 breakdown of such figures by State; 

18 (K) the daily dollar amount of loans dis19 bursed, both partially and fully, from the rel20 evant area, as well as a breakdown of such fig21 ures by State; 

22 (L) the number of applications approved, 

23 including dollar amount approved, as well as 

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1 cluding dollar amounts, since the last report 

2 under paragraph (1); and 

3 (M) the declaration date, physical damage 

4 closing date, economic injury closing date, and 

5 number of counties included in the declaration 

6 of a major disaster. 

7 (c) NOTICE OF THE NEED FOR SUPPLEMENTAL

8 FUNDS.—On the same date that the Administrator noti9 fies any committee of the Senate or the House of Rep10 resentatives that supplemental funding is necessary for 

11 the disaster loan program of the Administration in any 

12 fiscal year, the Administrator shall notify in writing the 

13 Committee on Small Business and Entrepreneurship of 

14 the Senate and to the Committee on Small Business of 

15 the House of Representatives regarding the need for sup16 plemental funds for that loan program. 

17 (d) REPORT ON CONTRACTING.— 

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

19 after the date on which the President declares a 

20 major disaster, and every 6 months thereafter until 

21 the date that is 18 months after the date on which 

22 the major disaster was declared, the Administrator 

23 shall submit a report to the Committee on Small 

24 Business and Entrepreneurship of the Senate and to 

25 the Committee on Small Business of the House of 


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1 Representatives regarding Federal contracts award2 ed as a result of that major disaster. 

3 (2) CONTENTS.—Each report submitted under 

4 paragraph (1) shall include— 

5 (A) the total number of contracts awarded 

6 as a result of that major disaster; 

7 (B) the total number of contracts awarded 

8 to small business concerns as a result of that 

9 major disaster; 

10 (C) the total number of contracts awarded 

11 to women and minority-owned businesses as a 

12 result of that major disaster; and 

13 (D) the total number of contracts awarded 

14 to local businesses as a result of that major dis15 aster. 

16 (e) REPORT ON LOAN APPROVAL RATE.— 

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

18 after the date of enactment of this Act, the Adminis19 trator shall submit a report to the Committee on 

20 Small Business and Entrepreneurship of the Senate 

21 and the Committee on Small Business of the House 

22 of Representatives detailing how the Administration 

23 can improve the processing of applications under the 

24 disaster loan program of the Administration. 


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1 (2) CONTENTS.—The report submitted under 

2 paragraph (1) shall include— 

3 (A) recommendations, if any, regarding— 

4 (i) staffing levels during a major dis5 aster; 

6 (ii) how to improve the process for 

7 processing, approving, and disbursing 

8 loans under the disaster loan program of 

9 the Administration, to ensure that the 

10 maximum assistance is provided to victims 

11 in a timely manner; 

12 (iii) the viability of using alternative 

13 methods for assessing the ability of an ap14 plicant to repay a loan, including the credit 

15 score of the applicant on the day before 

16 the date on which the disaster for which 

17 the applicant is seeking assistance was de18 clared; 

19 (iv) methods, if any, for the Adminis20 tration to expedite loss verification and 

21 loan processing of disaster loans during a 

22 major disaster for businesses affected by, 

23 and located in the area for which the 

24 President declared, the major disaster that 

25 are a major source of employment in the 


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1 area or are vital to recovery efforts in the 

2 region (including providing debris removal 

3 services, manufactured housing, or building 

4 materials); 

5 (v) legislative changes, if any, needed 

6 to implement findings from the Adminis7 tration’s Accelerated Disaster Response 

8 Initiative; and 

9 (vi) a description of how the Adminis10 tration plans to integrate and coordinate 

11 the response to a major disaster with the 

12 technical assistance programs of the Ad13 ministration; and 

14 (B) the plans of the Administrator for im15 plementing any recommendation made under 

16 subparagraph (A). 

Æ 


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