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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 715 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 715

     To amend the Small Business Act to provide expedited disaster 
                  assistance, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 28, 2007

   Ms. Landrieu (for herself, Mr. Kerry, Ms. Snowe, and Mr. Vitter) 
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 provide expedited disaster 
                  assistance, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Disaster Recovery 
Assistance Improvement Act of 2007''.

SEC. 2. BUSINESS EXPEDITED DISASTER ASSISTANCE LOAN PROGRAM.

    (a) Definitions.--In this section--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator 
        thereof, respectively;
            (2) the term ``immediate disaster assistance'' means 
        assistance provided during the period beginning on the date on 
        which a disaster declaration is made and ending on the date 
        that an impacted small business concern is able to secure 
        funding through insurance claims, Federal assistance programs, 
        or other sources;
            (3) the term ``program'' means the expedited disaster 
        assistance business loan program established under subsection 
        (b); and
            (4) the term ``small business concern'' has the meaning 
        given that term in section 3 of the Small Business Act (15 
        U.S.C. 632).
    (b) Creation of Program.--The Administrator shall take such 
administrative action as is necessary to establish and implement an 
expedited disaster assistance business loan program to provide small 
business concerns with immediate disaster assistance under section 7(b) 
of the Small Business Act (15 U.S.C. 636(b)).
    (c) Consultation Required.--In establishing the program, the 
Administrator shall consult with--
            (1) appropriate personnel of the Administration (including 
        District Office personnel of the Administration);
            (2) appropriate technical assistance providers (including 
        small business development centers);
            (3) appropriate lenders and credit unions;
            (4) the Committee on Small Business and Entrepreneurship of 
        the Senate; and
            (5) the Committee on Small Business of the House of 
        Representatives.
    (d) Rules.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Administrator shall promulgate rules 
        establishing and implementing the program in accordance with 
        this section. Such rules shall apply as provided for in this 
        section, beginning 90 days after their issuance in final form.
            (2) Contents.--The rules promulgated under paragraph (1) 
        shall--
                    (A) identify whether appropriate uses of funds 
                under the program may include--
                            (i) paying employees;
                            (ii) paying bills and other financial 
                        obligations;
                            (iii) making repairs;
                            (iv) purchasing inventory;
                            (v) restarting or operating a small 
                        business concern in the community in which it 
                        was conducting operations prior to the declared 
                        disaster, or to a neighboring area, county, or 
                        parish in the disaster area; or
                            (vi) covering additional costs until the 
                        small business concern is able to obtain 
                        funding through insurance claims, Federal 
                        assistance programs, or other sources; and
                    (B) set the terms and conditions of any loan made 
                under the program, subject to paragraph (3).
            (3) Terms and conditions.--A loan made by the 
        Administration under this section--
                    (A) shall be a short-term loan, not to exceed 180 
                days, except that the Administrator may extend such 
                term as the Administrator determines necessary or 
                appropriate on a case-by-case basis;
                    (B) shall have an interest rate not to exceed 1 
                percentage point above the prime rate of interest that 
                a private lender may charge;
                    (C) shall have no prepayment penalty;
                    (D) may be refinanced as part of any subsequent 
                disaster assistance provided under section 7(b) of the 
                Small Business Act; and
                    (E) shall be subject to such additional terms as 
                the Administrator determines necessary or appropriate.
    (e) Report to Congress.--Not later than 5 months after the date of 
enactment of this Act, the Administrator shall report to the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives on the progress of 
the Administrator in establishing the program.
    (f) Authorization.--There are authorized to be appropriated to the 
Administrator such sums as are necessary to carry out this section.
                                 <all>
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