110TH CONGRESS 

1ST SESSION S. 163

AN ACT

To improve 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,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Small Business Disaster Response and Loan Improve4 ments Act of 2007’’. 

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

6 this Act is as follows:

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Extension of program authority. 

TITLE I—DISASTER PLANNING AND RESPONSE 

Sec. 101. Disaster loans to nonprofits. 

Sec. 102. Disaster loan amounts. 

Sec. 103. Small business development center portability grants. 

Sec. 104. Assistance to out-of-State businesses. 

Sec. 105. Outreach programs. 

Sec. 106. Small business bonding threshold. 

Sec. 107. Termination of program. 

Sec. 108. Increasing collateral requirements. 

Sec. 109. Public awareness of disaster declaration and application periods. 

Sec. 110. Consistency between Administration regulations and standard operating procedures. 

Sec. 111. Processing disaster loans. 

Sec. 112. Development and implementation of major disaster response plan. 

Sec. 113. Disaster planning responsibilities. 

Sec. 114. Additional authority for district offices of the Administration. 

Sec. 115. Assignment of employees of the Office of Disaster Assistance and 

Disaster Cadre. 

TITLE II—DISASTER LENDING 

Sec. 201. Catastrophic national disaster declaration. 

Sec. 202. Private disaster loans. 

Sec. 203. Technical and conforming amendments. 

Sec. 204. Expedited disaster assistance loan program. 

Sec. 205. HUBZones. 

TITLE III—DISASTER ASSISTANCE OVERSIGHT 

Sec. 301. Congressional oversight.

7 SEC. 2. DEFINITIONS. 

8 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 ‘‘catastrophic national disaster’’ 

5 means a catastrophic national disaster declared 

6 under section 7(b)(11) of the Small Business Act 

7 (15 U.S.C. 636(b)), as added by this Act; 

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

9 disaster or a catastrophic national disaster; 

10 (4) the term ‘‘disaster area’’ means an area af11 fected by a natural or other disaster, as determined 

12 for purposes of paragraph (1) or (2) of section 7(b) 

13 of the Small Business Act (15 U.S.C. 636(b)), dur14 ing the period of such declaration; 

15 (5) the term ‘‘disaster loan program of the Ad16 ministration’’ means assistance under section 7(b) of 

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

18 (6) the term ‘‘disaster update period’’ means 

19 the period beginning on the date on which the Presi20 dent declares a major disaster or a catastrophic na21 tional disaster and ending on the date on which such 

22 declaration terminates; 

23 (7) the term ‘‘major disaster’’ has the meaning 

24 given that term in section 102 of the Robert T. 
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1 Stafford Disaster Relief and Emergency Assistance 

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

3 (8) the term ‘‘small business concern’’ has the 

4 same meaning as in section 3 of the Small Business 

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

6 (9) the term ‘‘State’’ means any State of the 

7 United States, the District of Columbia, the Com8 monwealth of Puerto Rico, the Northern Mariana Is9 lands, the Virgin Islands, Guam, American Samoa, 

10 and any territory or possession of the United States. 

11 SEC. 3. EXTENSION OF PROGRAM AUTHORITY. 

12 (a) IN GENERAL.—Section 1 of the Act entitled ‘‘An 

13 Act to extend temporarily certain authorities of the Small 

14 Business Administration’’, approved October 10, 2006 

15 (Public Law 109–316; 120 Stat. 1742), is amended by 

16 striking ‘‘July 31, 2007’’ each place it appears and insert17 ing ‘‘October 31, 2007’’. 

18 (b) EFFECTIVE DATE.—The amendments made by 

19 subsection (a) shall take effect on July 31, 2007. 

20 TITLE I—DISASTER PLANNING 

21 AND RESPONSE 

22 SEC. 101. DISASTER LOANS TO NONPROFITS. 

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

24 636(b)) is amended by inserting immediately after para25 graph (3) the following: 
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1 ‘‘(4) LOANS TO NONPROFITS.—In addition to 

2 any other loan authorized by this subsection, the Ad3 ministrator may make such loans (either directly or 

4 in cooperation with banks or other lending institu5 tions through agreements to participate on an imme6 diate or deferred basis) as the Administrator deter7 mines appropriate to a nonprofit organization lo8 cated or operating in an area affected by a natural 

9 or other disaster, as determined under paragraph 

10 (1) or (2), or providing services to persons who have 

11 evacuated from any such area.’’. 

12 SEC. 102. DISASTER LOAN AMOUNTS. 

13 (a) INCREASED LOAN CAPS.—Section 7(b) of the 

14 Small Business Act (15 U.S.C. 636(b)) is amended by in15 serting immediately after paragraph (4), as added by this 

16 title, the following: 

17 ‘‘(5) INCREASED LOAN CAPS.—

18 ‘‘(A) AGGREGATE LOAN AMOUNTS.—Ex19 cept as provided in subparagraph (B), and not20 withstanding any other provision of law, the ag21 gregate loan amount outstanding and com22 mitted to a borrower under this subsection may 

23 not exceed $2,000,000. 

24 ‘‘(B) WAIVER AUTHORITY.—The Adminis25 trator may, at the discretion of the Adminis-
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1 trator, increase the aggregate loan amount 

2 under subparagraph (A) for loans relating to a 

3 disaster to a level established by the Adminis4 trator, based on appropriate economic indica5 tors for the region in which that disaster oc6 curred.’’. 

7 (b) DISASTER MITIGATION.—

8 (1) IN GENERAL.—Section 7(b)(1)(A) of the 

9 Small Business Act (15 U.S.C. 636(b)(1)(A)) is 

10 amended by inserting ‘‘of the aggregate costs of 

11 such damage or destruction (whether or not com12 pensated for by insurance or otherwise)’’ after ‘‘20 

13 per centum’’. 

14 (2) EFFECTIVE DATE.—The amendment made 

15 by paragraph (1) shall apply with respect to a loan 

16 or guarantee made after the date of enactment of 

17 this Act. 

18 (c) TECHNICAL AMENDMENTS.—Section 7(b) of the 

19 Small Business Act (15 U.S.C. 636(b)) is amended—

20 (1) in the matter preceding paragraph (1), by 

21 striking ‘‘the, Administration’’ and inserting ‘‘the 

22 Administration’’; 

23 (2) in paragraph (2)(A), by striking ‘‘Disaster 

24 Relief and Emergency Assistance Act’’ and inserting 

25 ‘‘Robert T. Stafford Disaster Relief and Emergency 
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1 Assistance Act (42 U.S.C. 5121 et seq.) (in this sub2 section referred to as a ‘major disaster’)’’; and 

3 (3) in the undesignated matter at the end—

4 (A) by striking ‘‘, (2), and (4)’’ and insert5 ing ‘‘and (2)’’; and 

6 (B) by striking ‘‘, (2), or (4)’’ and insert7 ing ‘‘(2)’’. 

8 SEC. 103. SMALL BUSINESS DEVELOPMENT CENTER PORT9 ABILITY GRANTS. 

10 Section 21(a)(4)(C)(viii) of the Small Business Act 

11 (15 U.S.C. 648(a)(4)(C)(viii)) is amended—

12 (1) in the first sentence, by striking ‘‘as a re13 sult of a business or government facility down sizing 

14 or closing, which has resulted in the loss of jobs or 

15 small business instability’’ and inserting ‘‘due to 

16 events that have resulted or will result in, business 

17 or government facility downsizing or closing’’; and 

18 (2) by adding at the end ‘‘At the discretion of 

19 the Administrator, the Administrator may make an 

20 award greater than $100,000 to a recipient to ac21 commodate extraordinary occurrences having a cata22 strophic impact on the small business concerns in a 

23 community.’’. 
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1 SEC. 104. ASSISTANCE TO OUT-OF-STATE BUSINESSES. 

2 Section 21(b)(3) of the Small Business Act (15 

3 U.S.C. 648(b)(3)) is amended—

4 (1) by striking ‘‘At the discretion’’ and insert5 ing the following: ‘‘SMALL BUSINESS DEVELOPMENT

6 CENTERS.— 

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

8 and 

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

10 ‘‘(B) DURING DISASTERS.—

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

12 of the Administrator, the Administrator 

13 may authorize a small business develop14 ment center to provide such assistance to 

15 small business concerns located outside of 

16 the State, without regard to geographic 

17 proximity, if the small business concerns 

18 are located in a disaster area declared 

19 under section 7(b)(2)(A). 

20 ‘‘(ii) CONTINUITY OF SERVICES.—A 

21 small business development center that 

22 provides counselors to an area described in 

23 clause (i) shall, to the maximum extent 

24 practicable, ensure continuity of services in 

25 any State in which such small business de-
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1 velopment center otherwise provides serv2 ices. 

3 ‘‘(iii) ACCESS TO DISASTER RECOVERY

4 FACILITIES.—For purposes of providing 

5 disaster recovery assistance under this sub6 paragraph, the Administrator shall, to the 

7 maximum extent practicable, permit small 

8 business development center personnel to 

9 use any site or facility designated by the 

10 Administrator for use to provide disaster 

11 recovery assistance.’’. 

12 SEC. 105. OUTREACH PROGRAMS. 

13 (a) IN GENERAL.—Not later than 30 days after the 

14 date of the declaration of a disaster area, the Adminis15 trator may establish a contracting outreach and technical 

16 assistance program for small business concerns which have 

17 had a primary place of business in, or other significant 

18 presence in, such disaster area. 

19 (b) ADMINISTRATOR ACTION.—The Administrator 

20 may carry out subsection (a) by acting through—

21 (1) the Administration; 

22 (2) the Federal agency small business officials 

23 designated under section 15(k)(1) of the Small Busi24 ness Act (15 U.S.C. 644(k)(1)); or 
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1 (3) any Federal, State, or local government en2 tity, higher education institution, procurement tech3 nical assistance center, or private nonprofit organi4 zation that the Administrator may determine appro5 priate, upon conclusion of a memorandum of under6 standing or assistance agreement, as appropriate, 

7 with the Administrator. 

8 SEC. 106. SMALL BUSINESS BONDING THRESHOLD. 

9 (a) IN GENERAL.—Except as provided in subsection 

10 (b), and notwithstanding any other provision of law, for 

11 any procurement related to a major disaster, the Adminis12 trator may, upon such terms and conditions as the Admin13 istrator may prescribe, guarantee and enter into commit14 ments to guarantee any surety against loss resulting from 

15 a breach of the terms of a bid bond, payment bond, per16 formance bond, or bonds ancillary thereto, by a principal 

17 on any total work order or contract amount at the time 

18 of bond execution that does not exceed $5,000,000. 

19 (b) INCREASE OF AMOUNT.—Upon request of the 

20 head of any Federal agency other than the Administration 

21 involved in reconstruction efforts in response to a major 

22 disaster, the Administrator may guarantee and enter into 

23 a commitment to guarantee any security against loss 

24 under subsection (a) on any total work order or contract 
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1 amount at the time of bond execution that does not exceed 

2 $10,000,000. 

3 SEC. 107. TERMINATION OF PROGRAM. 

4 Section 711(c) of the Small Business Competitive 

5 Demonstration Program Act of 1988 (15 U.S.C. 644 note) 

6 is amended by inserting after ‘‘January 1, 1989’’ the fol7 lowing: ‘‘, and shall terminate on the date of enactment 

8 of the Small Business Disaster Response and Loan Im9 provements Act of 2007’’. 

10 SEC. 108. INCREASING COLLATERAL REQUIREMENTS. 

11 Section 7(c)(6) of the Small Business Act (15 U.S.C. 

12 636(c)(6)) is amended by striking ‘‘$10,000 or less’’ and 

13 inserting ‘‘$14,000 or less (or such higher amount as the 

14 Administrator determines appropriate in the event of a 

15 catastrophic national disaster declared under subsection 

16 (b)(11))’’. 

17 SEC. 109. PUBLIC AWARENESS OF DISASTER DECLARATION 

18 AND APPLICATION PERIODS. 

19 (a) IN GENERAL.—Section 7(b) of the Small Busi20 ness Act (15 U.S.C. 636(b)) is amended by inserting im21 mediately after paragraph (5), as added by this Act, the 

22 following: 

23 ‘‘(6) COORDINATION WITH FEMA.—

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

25 other provision of law, for any disaster (includ-
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1 ing a catastrophic national disaster) declared 

2 under this subsection or major disaster, the Ad3 ministrator, in consultation with the Adminis4 trator of the Federal Emergency Management 

5 Agency, shall ensure, to the maximum extent 

6 practicable, that all application periods for dis7 aster relief under this Act correspond with ap8 plication deadlines established under the Robert 

9 T. Stafford Disaster Relief and Emergency As10 sistance Act (42 U.S.C. 5121 et seq.), or as ex11 tended by the President. 

12 ‘‘(B) DEADLINES.—Notwithstanding any 

13 other provision of law, not later than 10 days 

14 before the closing date of an application period 

15 for a major disaster (including a catastrophic 

16 national disaster), the Administrator, in con17 sultation with the Administrator of the Federal 

18 Emergency Management Agency, shall submit 

19 to the Committee on Small Business and Entre20 preneurship of the Senate and the Committee 

21 on Small Business of the House of Representa22 tives a report that includes—

23 ‘‘(i) the deadline for submitting appli24 cations for assistance under this Act relat25 ing to that major disaster; 
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1 ‘‘(ii) information regarding the num2 ber of loan applications and disbursements 

3 processed by the Administrator relating to 

4 that major disaster for each day during the 

5 period beginning on the date on which that 

6 major disaster was declared and ending on 

7 the date of that report; and 

8 ‘‘(iii) an estimate of the number of 

9 potential applicants that have not sub10 mitted an application relating to that 

11 major disaster. 

12 ‘‘(7) PUBLIC AWARENESS OF DISASTERS.—If a 

13 disaster (including a catastrophic national disaster) 

14 is declared under this subsection, the Administrator 

15 shall make every effort to communicate through 

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

17 relevant information needed by disaster loan appli18 cants, including—

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

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

21 such declaration; 

22 ‘‘(C) loan application deadlines related to 

23 such disaster; 

24 ‘‘(D) all relevant contact information for 

25 victim services available through the Adminis-
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1 tration (including links to small business devel2 opment center websites); 

3 ‘‘(E) links to relevant Federal and State 

4 disaster assistance websites, including links to 

5 websites providing information regarding assist6 ance available from the Federal Emergency 

7 Management Agency; 

8 ‘‘(F) information on eligibility criteria for 

9 Administration loan programs, including where 

10 such applications can be found; and 

11 ‘‘(G) application materials that clearly 

12 state the function of the Administration as the 

13 Federal source of disaster loans for homeowners 

14 and renters.’’. 

15 (b) MARKETING AND OUTREACH.—Not later than 90 

16 days after the date of enactment of this Act, the Adminis17 trator shall create a marketing and outreach plan that—

18 (1) encourages a proactive approach to the dis19 aster relief efforts of the Administration; 

20 (2) makes clear the services provided by the Ad21 ministration, including contact information, applica22 tion information, and timelines for submitting appli23 cations, the review of applications, and the disburse24 ment of funds; 
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1 (3) describes the different disaster loan pro2 grams of the Administration, including how they are 

3 made available and the eligibility requirements for 

4 each loan program; 

5 (4) provides for regional marketing, focusing on 

6 disasters occurring in each region before the date of 

7 enactment of this Act, and likely scenarios for disas8 ters in each such region; and 

9 (5) ensures that the marketing plan is made 

10 available at small business development centers and 

11 on the website of the Administration. 

12 SEC. 110. CONSISTENCY BETWEEN ADMINISTRATION REGU13 LATIONS AND STANDARD OPERATING PROCE14 DURES. 

15 (a) IN GENERAL.—The Administrator shall, prompt16 ly following the date of enactment of this Act, conduct 

17 a study of whether the standard operating procedures of 

18 the Administration for loans offered under section 7(b) of 

19 the Small Business Act (15 U.S.C. 636(b)) are consistent 

20 with the regulations of the Administration for admin21 istering the disaster loan program. 

22 (b) REPORT.—Not later than 180 days after the date 

23 of enactment of this Act, the Administration shall submit 

24 to Congress a report containing all findings and rec-
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1 ommendations of the study conducted under subsection 

2 (a). 

3 SEC. 111. PROCESSING DISASTER LOANS. 

4 (a) AUTHORITY FOR QUALIFIED PRIVATE CONTRAC5 TORS TO PROCESS DISASTER LOANS.—Section 7(b) of the 

6 Small Business Act (15 U.S.C. 636(b)) is amended by in7 serting immediately after paragraph (7), as added by this 

8 Act, the following: 

9 ‘‘(8) AUTHORITY FOR QUALIFIED PRIVATE CON10 TRACTORS.—

11 ‘‘(A) DISASTER LOAN PROCESSING.—The 

12 Administrator may enter into an agreement 

13 with a qualified private contractor, as deter14 mined by the Administrator, to process loans 

15 under this subsection in the event of a major 

16 disaster or a catastrophic national disaster de17 clared under paragraph (11), under which the 

18 Administrator shall pay the contractor a fee for 

19 each loan processed. 

20 ‘‘(B) LOAN LOSS VERIFICATION SERV21 ICES.—The Administrator may enter into an 

22 agreement with a qualified lender or loss 

23 verification professional, as determined by the 

24 Administrator, to verify losses for loans under 

25 this subsection in the event of a major disaster 
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1 or a catastrophic national disaster declared 

2 under paragraph (11), under which the Admin3 istrator shall pay the lender or verification pro4 fessional a fee for each loan for which such 

5 lender or verification professional verifies 

6 losses.’’. 

7 (b) COORDINATION OF EFFORTS BETWEEN THE AD8 MINISTRATOR AND THE INTERNAL REVENUE SERVICE TO

9 EXPEDITE LOAN PROCESSING.—The Administrator and 

10 the Commissioner of Internal Revenue shall, to the max11 imum extent practicable, ensure that all relevant and al12 lowable tax records for loan approval are shared with loan 

13 processors in an expedited manner, upon request by the 

14 Administrator. 

15 SEC. 112. DEVELOPMENT AND IMPLEMENTATION OF 

16 MAJOR DISASTER RESPONSE PLAN. 

17 (a) IN GENERAL.—Not later than 3 months after the 

18 date of enactment of this Act, the Administrator shall—

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

20 season disaster response plan of the Administration 

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

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

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

24 Business and Entrepreneurship of the Senate and 

25 the Committee on Small Business of the House of 
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1 Representatives detailing the amendments to the dis2 aster response plan. 

3 (b) CONTENTS.—The report required under sub4 section (a)(2) shall include—

5 (1) any updates or modifications made to the 

6 disaster response plan since the report regarding the 

7 disaster response plan submitted to Congress on 

8 July 14, 2006; 

9 (2) a description of how the Administrator 

10 plans to utilize and integrate District Office per11 sonnel of the Administration in the response to a 

12 major disaster, including information on the utiliza13 tion of personnel for loan processing and loan dis14 bursement; 

15 (3) a description of the disaster scalability 

16 model of the Administration and on what basis or 

17 function the plan is scaled; 

18 (4) a description of how the agency-wide Dis19 aster Oversight Council is structured, which offices 

20 comprise its membership, and whether the Associate 

21 Deputy Administrator for Entrepreneurial Develop22 ment of the Administration is a member; 

23 (5) a description of how the Administrator 

24 plans to coordinate the disaster efforts of the Ad25 ministration with State and local government offi-
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1 cials, including recommendations on how to better 

2 incorporate State initiatives or programs, such as 

3 State-administered bridge loan programs, into the 

4 disaster response of the Administration; 

5 (6) recommendations, if any, on how the Ad6 ministration can better coordinate its disaster re7 sponse operations with the operations of other Fed8 eral, State, and local entities; 

9 (7) any surge plan for the disaster loan pro10 gram of the Administration in effect on or after Au11 gust 29, 2005 (including surge plans for loss 

12 verification, loan processing, mailroom, customer 

13 service or call center operations, and a continuity of 

14 operations plan); 

15 (8) the number of full-time equivalent employ16 ees and job descriptions for the planning and dis17 aster response staff of the Administration; 

18 (9) the in-service and preservice training proce19 dures for disaster response staff of the Administra20 tion; 

21 (10) information on the logistical support plans 

22 of the Administration (including equipment and 

23 staffing needs, and detailed information on how such 

24 plans will be scalable depending on the size and 

25 scope of the major disaster; 
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1 (11) a description of the findings and rec2 ommendations of the Administrator, if any, based on 

3 a review of the response of the Administration to 

4 Hurricane Katrina of 2005, Hurricane Rita of 2005, 

5 and Hurricane Wilma of 2005; and 

6 (12) a plan for how the Administrator, in con7 sultation with the Administrator of the Federal 

8 Emergency Management Agency, will coordinate the 

9 provision of accommodations and necessary re10 sources for disaster assistance personnel to effec11 tively perform their responsibilities in the aftermath 

12 of a major disaster. 

13 (c) EXERCISES.—Not later than 6 months after the 

14 date of the submission of the report under subsection 

15 (a)(2), the Administrator shall develop and execute sim16 ulation exercises to demonstrate the effectiveness of the 

17 amended disaster response plan required under this sec18 tion. 

19 SEC. 113. DISASTER PLANNING RESPONSIBILITIES. 

20 (a) ASSIGNMENT OF SMALL BUSINESS ADMINISTRA21 TION DISASTER PLANNING RESPONSIBILITIES.—The Ad22 ministrator shall specifically assign the disaster planning 

23 responsibilities described in subsection (b) to an employee 

24 of the Administration who—
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1 (1) is not an employee of the Office of Disaster 

2 Assistance of the Administration; 

3 (2) shall report directly to the Administrator; 

4 and 

5 (3) has a background and expertise dem6 onstrating significant experience in the area of dis7 aster planning. 

8 (b) RESPONSIBILITIES.—The responsibilities de9 scribed in this subsection are—

10 (1) creating and maintaining the comprehensive 

11 disaster response plan of the Administration; 

12 (2) ensuring in-service and pre-service training 

13 procedures for the disaster response staff of the Ad14 ministration; 

15 (3) coordinating and directing Administration 

16 training exercises, including mock disaster re17 sponses, with other Federal agencies; and 

18 (4) other responsibilities, as determined by the 

19 Administrator. 

20 (c) REPORT.—Not later than 30 days after the date 

21 of enactment of this Act, the Administrator shall submit 

22 to the Committee on Small Business and Entrepreneur23 ship of the Senate and the Committee on Small Business 

24 of the House of Representatives a report containing—
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1 (1) a description of the actions of the Adminis2 trator to assign an employee under subsection (a); 

3 (2) information detailing the background and 

4 expertise of the employee assigned under subsection 

5 (a); and 

6 (3) information on the status of the implemen7 tation of the responsibilities described in subsection 

8 (b). 

9 SEC. 114. ADDITIONAL AUTHORITY FOR DISTRICT OFFICES 

10 OF THE ADMINISTRATION. 

11 (a) IN GENERAL.—Section 7(b) of the Small Busi12 ness Act (15 U.S.C. 636(b)) is amended by inserting im13 mediately after paragraph (8), as added by this Act, the 

14 following: 

15 ‘‘(9) USE OF DISTRICT OFFICES.—In the event 

16 of a major disaster, the Administrator may author17 ize a district office of the Administration to process 

18 loans under paragraph (1) or (2).’’. 

19 (b) DESIGNATION.—

20 (1) IN GENERAL.—The Administrator may des21 ignate an employee in each district office of the Ad22 ministration to act as a disaster loan liaison between 

23 the disaster processing center and applicants under 

24 the disaster loan program of the Administration. 
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1 (2) RESPONSIBILITIES.—Each employee des2 ignated under paragraph (1) shall—

3 (A) be responsible for coordinating and fa4 cilitating communications between applicants 

5 under the disaster loan program of the Admin6 istration and disaster loan processing staff re7 garding documentation and information re8 quired for completion of an application; and 

9 (B) provide information to applicants 

10 under the disaster loan program of the Admin11 istration regarding additional services and bene12 fits that may be available to such applicants to 

13 assist with recovery. 

14 (3) OUTREACH.—In providing outreach to dis15 aster victims following a declared disaster, the Ad16 ministrator shall make disaster victims aware of—

17 (A) any relevant employee designated 

18 under paragraph (1); and 

19 (B) how to contact that employee. 

20 SEC. 115. ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF 

21 DISASTER ASSISTANCE AND DISASTER 

22 CADRE. 

23 (a) IN GENERAL.—Section 7(b) of the Small Busi24 ness Act (15 U.S.C. 636(b)) is amended by inserting im-
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1 mediately after paragraph (9), as added by this Act, the 

2 following: 

3 ‘‘(10) DISASTER ASSISTANCE EMPLOYEES.—

4 ‘‘(A) IN GENERAL.—In carrying out this 

5 section, the Administrator may, where prac6 ticable, ensure that the number of full-time 

7 equivalent employees—

8 ‘‘(i) in the Office of the Disaster As9 sistance is not fewer than 800; and 

10 ‘‘(ii) in the Disaster Cadre of the Ad11 ministration is not fewer than 750. 

12 ‘‘(B) REPORT.—In carrying out this sub13 section, if the number of full-time employees for 

14 either the Office of Disaster Assistance or the 

15 Disaster Cadre of the Administration is below 

16 the level described in subparagraph (A) for that 

17 office, not later than 21 days after the date on 

18 which that staffing level decreased below the 

19 level described in subparagraph (A), the Admin20 istrator shall submit to the Committee on Ap21 propriations and the Committee on Small Busi22 ness and Entrepreneurship of the Senate and 

23 the Committee on Appropriations and Com24 mittee on Small Business of the House of Rep25 resentatives, a report—
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1 ‘‘(i) detailing staffing levels on that 

2 date; 

3 ‘‘(ii) requesting, if practicable and de4 termined appropriate by the Administrator, 

5 additional funds for additional employees; 

6 and 

7 ‘‘(iii) containing such additional infor8 mation, as determined appropriate by the 

9 Administrator.’’. 

10 TITLE II—DISASTER LENDING 

11 SEC. 201. CATASTROPHIC NATIONAL DISASTER DECLARA12 TION. 

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

14 636(b)) is amended by inserting immediately after para15 graph (10), as added by this Act, the following: 

16 ‘‘(11) CATASTROPHIC NATIONAL DISASTERS.—

17 ‘‘(A) IN GENERAL.—The President may 

18 make a catastrophic national disaster declara19 tion in accordance with this paragraph. 

20 ‘‘(B) PROMULGATION OF RULES.—

21 ‘‘(i) IN GENERAL.—Not later than 6 

22 months after the date of enactment of this 

23 paragraph, the Administrator, with the 

24 concurrence of the Secretary of Homeland 

25 Security and the Administrator of the Fed-
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1 eral Emergency Management Agency, shall 

2 promulgate regulations establishing a 

3 threshold for a catastrophic national dis4 aster declaration. 

5 ‘‘(ii) CONSIDERATIONS.—In promul6 gating the regulations required under 

7 clause (i), the Administrator shall establish 

8 a threshold that—

9 ‘‘(I) is similar in size and scope 

10 to the events relating to the terrorist 

11 attacks of September 11, 2001, and 

12 Hurricane Katrina of 2005; 

13 ‘‘(II) requires that the President 

14 declares a major disaster before mak15 ing a catastrophic national disaster 

16 declaration under this paragraph; 

17 ‘‘(III) requires consideration of—

18 ‘‘(aa) the dollar amount per 

19 capita of damage to the State, its 

20 political subdivisions, or a region; 

21 ‘‘(bb) the number of small 

22 business concerns damaged, 

23 physically or economically, as a 

24 direct result of the event; 
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1 ‘‘(cc) the number of individ2 uals and households displaced 

3 from their predisaster residences 

4 by the event; 

5 ‘‘(dd) the severity of the im6 pact on employment rates in the 

7 State, its political subdivisions, or 

8 a region; 

9 ‘‘(ee) the anticipated length 

10 and difficulty of the recovery 

11 process; 

12 ‘‘(ff) whether the events 

13 leading to the relevant major dis14 aster declaration are of an un15 usually large and calamitous na16 ture that is orders of magnitude 

17 larger than for an average major 

18 disaster; and 

19 ‘‘(gg) any other factor deter20 mined relevant by the Adminis21 trator. 

22 ‘‘(C) AUTHORIZATION.—If the President 

23 makes a catastrophic national disaster declara24 tion under this paragraph, the Administrator 

25 may make such loans under this paragraph (ei-
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1 ther directly or in cooperation with banks or 

2 other lending institutions through agreements 

3 to participate on an immediate or deferred 

4 basis) as the Administrator determines appro5 priate to small business concerns located any6 where in the United States that are economi7 cally adversely impacted as a result of that cat8 astrophic national disaster. 

9 ‘‘(D) LOAN TERMS.—A loan under this 

10 paragraph shall be made on the same terms as 

11 a loan under paragraph (2).’’. 

12 SEC. 202. PRIVATE DISASTER LOANS. 

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

14 Act (15 U.S.C. 636) is amended—

15 (1) by redesignating subsections (c) and (d) as 

16 subsections (d) and (e), respectively; and 

17 (2) by inserting after subsection (b) the fol18 lowing: 

19 ‘‘(c) PRIVATE DISASTER LOANS.—

20 ‘‘(1) DEFINITIONS.—In this subsection—

21 ‘‘(A) the term ‘disaster area’ means any 

22 area for which the President declared a major 

23 disaster (as that term is defined in section 102 

24 of the Robert T. Stafford Disaster Relief and 

25 Emergency Assistance Act (42 U.S.C. 5122)) 
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1 that subsequently results in the President mak2 ing a catastrophic national disaster declaration 

3 under subsection (b)(11); 

4 ‘‘(B) the term ‘eligible small business con5 cern’ means a business concern that is—

6 ‘‘(i) a small business concern, as de7 fined in this Act; or 

8 ‘‘(ii) a small business concern, as de9 fined in section 103 of the Small Business 

10 Investment Act of 1958; and 

11 ‘‘(C) the term ‘qualified private lender’ 

12 means any privately-owned bank or other lend13 ing institution that the Administrator deter14 mines meets the criteria established under para15 graph (9). 

16 ‘‘(2) AUTHORIZATION.—The Administrator may 

17 guarantee timely payment of principal and interest, 

18 as scheduled on any loan issued by a qualified pri19 vate lender to an eligible small business concern lo20 cated in a disaster area. 

21 ‘‘(3) USE OF LOANS.—A loan guaranteed by 

22 the Administrator under this subsection may be used 

23 for any purpose authorized under subsection (b). 

24 ‘‘(4) ONLINE APPLICATIONS.—
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1 ‘‘(A) ESTABLISHMENT.—The Adminis2 trator may establish, directly or through an 

3 agreement with another entity, an online appli4 cation process for loans guaranteed under this 

5 subsection. 

6 ‘‘(B) OTHER FEDERAL ASSISTANCE.—The 

7 Administrator may coordinate with the head of 

8 any other appropriate Federal agency so that 

9 any application submitted through an online ap10 plication process established under this para11 graph may be considered for any other Federal 

12 assistance program for disaster relief. 

13 ‘‘(C) CONSULTATION.—In establishing an 

14 online application process under this paragraph, 

15 the Administrator shall consult with appro16 priate persons from the public and private sec17 tors, including private lenders. 

18 ‘‘(5) MAXIMUM AMOUNTS.—

19 ‘‘(A) GUARANTEE PERCENTAGE.—The Ad20 ministrator may guarantee not more than 85 

21 percent of a loan under this subsection. 

22 ‘‘(B) LOAN AMOUNTS.—The maximum 

23 amount of a loan guaranteed under this sub24 section shall be $2,000,000. 
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1 ‘‘(6) LOAN TERM.—The longest term of a loan 

2 for a loan guaranteed under this subsection shall 

3 be—

4 ‘‘(A) 15 years for any loan that is issued 

5 without collateral; and 

6 ‘‘(B) 25 years for any loan that is issued 

7 with collateral. 

8 ‘‘(7) FEES.—

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

10 may not collect a guarantee fee under this sub11 section. 

12 ‘‘(B) ORIGINATION FEE.—The Adminis13 trator may pay a qualified private lender an 

14 origination fee for a loan guaranteed under this 

15 subsection in an amount agreed upon in ad16 vance between the qualified private lender and 

17 the Administrator. 

18 ‘‘(8) DOCUMENTATION.—A qualified private 

19 lender may use its own loan documentation for a 

20 loan guaranteed by the Administrator, to the extent 

21 authorized by the Administrator. The ability of a 

22 lender to use its own loan documentation for a loan 

23 guaranteed under this subsection shall not be con24 sidered part of the criteria for becoming a qualified 
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1 private lender under the regulations promulgated 

2 under paragraph (9). 

3 ‘‘(9) IMPLEMENTATION REGULATIONS.—

4 ‘‘(A) IN GENERAL.—Not later than 1 year 

5 after the date of enactment of the Small Busi6 ness Disaster Response and Loan Improve7 ments Act of 2007, the Administrator shall 

8 issue final regulations establishing permanent 

9 criteria for qualified private lenders. 

10 ‘‘(B) REPORT TO CONGRESS.—Not later 

11 than 6 months after the date of enactment of 

12 the Small Business Disaster Response and 

13 Loan Improvements Act of 2007, the Adminis14 trator shall submit a report on the progress of 

15 the regulations required by subparagraph (A) to 

16 the Committee on Small Business and Entre17 preneurship of the Senate and the Committee 

18 on Small Business of the House of Representa19 tives. 

20 ‘‘(10) AUTHORIZATION OF APPROPRIATIONS.—

21 ‘‘(A) IN GENERAL.—Amounts necessary to 

22 carry out this subsection shall be made avail23 able from amounts appropriated to the Admin24 istration to carry out subsection (b). 
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1 ‘‘(B) AUTHORITY TO REDUCE INTEREST

2 RATES.—Funds appropriated to the Adminis3 tration to carry out this subsection, may be 

4 used by the Administrator, to the extent avail5 able, to reduce the rate of interest for any loan 

6 guaranteed under this subsection by not more 

7 than 3 percentage points. 

8 ‘‘(11) PURCHASE OF LOANS.—The Adminis9 trator may enter into an agreement with a qualified 

10 private lender to purchase any loan issued under 

11 this subsection.’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to disasters declared under section 

14 7(b)(2) of the Small Business Act (631 U.S.C. 636(b)(2)) 

15 before, on, or after the date of enactment of this Act. 

16 SEC. 203. TECHNICAL AND CONFORMING AMENDMENTS. 

17 The Small Business Act (15 U.S.C. 631 et seq.) is 

18 amended—

19 (1) in section 4(c)—

20 (A) in paragraph (1), by striking ‘‘7(c)(2)’’ 

21 and inserting ‘‘7(d)(2)’’; and 

22 (B) in paragraph (2)—

23 (i) by striking ‘‘7(c)(2)’’ and inserting 

24 ‘‘7(d)(2)’’; and 

25 (ii) by striking ‘‘7(e),’’; and 
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1 (2) in section 7(b), in the undesignated matter 

2 following paragraph (3)—

3 (A) by striking ‘‘That the provisions of 

4 paragraph (1) of subsection (c)’’ and inserting 

5 ‘‘That the provisions of paragraph (1) of sub6 section (d)’’; and 

7 (B) by striking ‘‘Notwithstanding the pro8 visions of any other law the interest rate on the 

9 Administration’s share of any loan made under 

10 subsection (b) except as provided in subsection 

11 (c),’’ and inserting ‘‘Notwithstanding any other 

12 provision of law, and except as provided in sub13 section (d), the interest rate on the Administra14 tion’s share of any loan made under subsection 

15 (b)’’. 

16 SEC. 204. EXPEDITED DISASTER ASSISTANCE LOAN PRO17 GRAM. 

18 (a) DEFINITIONS.—In this section—

19 (1) the term ‘‘immediate disaster assistance’’ 

20 means assistance provided during the period begin21 ning on the date on which the President makes a 

22 catastrophic disaster declaration under paragraph 

23 (11) of section 7(b) of the Small Business Act (15 

24 U.S.C. 636(b)), as added by this Act, and ending on 

25 the date that an impacted small business concern is 
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1 able to secure funding through insurance claims, 

2 Federal assistance programs, or other sources; and 

3 (2) the term ‘‘program’’ means the expedited 

4 disaster assistance business loan program estab5 lished under subsection (b). 

6 (b) CREATION OF PROGRAM.—The Administrator 

7 shall take such administrative action as is necessary to 

8 establish and implement an expedited disaster assistance 

9 business loan program to provide small business concerns 

10 with immediate disaster assistance under paragraph (11) 

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

12 636(b)), as added by this Act. 

13 (c) CONSULTATION REQUIRED.—In establishing the 

14 program, the Administrator shall consult with—

15 (1) appropriate personnel of the Administration 

16 (including District Office personnel of the Adminis17 tration); 

18 (2) appropriate technical assistance providers 

19 (including small business development centers); 

20 (3) appropriate lenders and credit unions; 

21 (4) the Committee on Small Business and En22 trepreneurship of the Senate; and 

23 (5) the Committee on Small Business of the 

24 House of Representatives. 

25 (d) RULES.—
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1 (1) IN GENERAL.—Not later than 1 year after 

2 the date of enactment of this Act, the Administrator 

3 shall issue rules in final form establishing and imple4 menting the program in accordance with this sec5 tion. Such rules shall apply as provided for in this 

6 section, beginning 90 days after their issuance in 

7 final form. 

8 (2) CONTENTS.—The rules promulgated under 

9 paragraph (1) shall—

10 (A) identify whether appropriate uses of 

11 funds under the program may include—

12 (i) paying employees; 

13 (ii) paying bills and other financial 

14 obligations; 

15 (iii) making repairs; 

16 (iv) purchasing inventory; 

17 (v) restarting or operating a small 

18 business concern in the community in 

19 which it was conducting operations prior to 

20 the declared disaster, or to a neighboring 

21 area, county, or parish in the disaster 

22 area; or 

23 (vi) covering additional costs until the 

24 small business concern is able to obtain 
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1 funding through insurance claims, Federal 

2 assistance programs, or other sources; and 

3 (B) set the terms and conditions of any 

4 loan made under the program, subject to para5 graph (3). 

6 (3) TERMS AND CONDITIONS.—A loan made by 

7 the Administration under this section—

8 (A) shall be for not more than $150,000; 

9 (B) shall be a short-term loan, not to ex10 ceed 180 days, except that the Administrator 

11 may extend such term as the Administrator de12 termines necessary or appropriate on a case-by13 case basis; 

14 (C) shall have an interest rate not to ex15 ceed 1 percentage point above the prime rate of 

16 interest that a private lender may charge; 

17 (D) shall have no prepayment penalty; 

18 (E) may only be made to a borrower that 

19 meets the requirements for a loan under section 

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

21 636(b)); 

22 (F) may be refinanced as part of any sub23 sequent disaster assistance provided under sec24 tion 7(b) of the Small Business Act; 
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1 (G) may receive expedited loss verification 

2 and loan processing, if the applicant is—

3 (i) a major source of employment in 

4 the disaster area (which shall be deter5 mined in the same manner as under sec6 tion 7(b)(3)(B) of the Small Business Act 

7 (15 U.S.C. 636(b)(3)(B))); or 

8 (ii) vital to recovery efforts in the re9 gion (including providing debris removal 

10 services, manufactured housing, or building 

11 materials); and 

12 (H) shall be subject to such additional 

13 terms as the Administrator determines nec14 essary or appropriate. 

15 (e) REPORT TO CONGRESS.—Not later than 5 

16 months after the date of enactment of this Act, the Ad17 ministrator shall report to the Committee on Small Busi18 ness and Entrepreneurship of the Senate and the Com19 mittee on Small Business of the House of Representatives 

20 on the progress of the Administrator in establishing the 

21 program. 

22 (f) AUTHORIZATION.—There are authorized to be ap23 propriated to the Administrator such sums as are nec24 essary to carry out this section. 
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1 SEC. 205. HUBZONES. 

2 (a) IN GENERAL.—Section 3(p) of the Small Busi3 ness Act (15 U.S.C. 632(p)) is amended—

4 (1) in paragraph (1)—

5 (A) in subparagraph (D), by striking ‘‘or’’; 

6 (B) in subparagraph (E), by striking the 

7 period at the end and inserting a semicolon; 

8 and 

9 (C) by adding at the end the following: 

10 ‘‘(F) areas in which the President has de11 clared a major disaster (as that term is defined 

12 in section 102 of the Robert T. Stafford Dis13 aster Relief and Emergency Assistance Act (42 

14 U.S.C. 5122)) as a result of Hurricane Katrina 

15 of August 2005 or Hurricane Rita of Sep16 tember 2005, during the time period described 

17 in paragraph (8); or 

18 ‘‘(G) catastrophic national disaster areas.’’; 

19 (2) in paragraph (4), by adding at the end the 

20 following: 

21 ‘‘(E) CATASTROPHIC NATIONAL DISASTER

22 AREA.—

23 ‘‘(i) IN GENERAL.—The term ‘cata24 strophic national disaster area’ means an 

25 area—
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1 ‘‘(I) affected by a catastrophic 

2 national disaster declared under sec3 tion 7(b)(11), during the time period 

4 described in clause (ii); and 

5 ‘‘(II) for which the Administrator 

6 determines that designation as a 

7 HUBZone would substantially con8 tribute to the reconstruction and re9 covery effort in that area. 

10 ‘‘(ii) TIME PERIOD.—The time period 

11 for the purposes of clause (i)—

12 ‘‘(I) shall be the 2-year period 

13 beginning on the date that the appli14 cable catastrophic national disaster 

15 was declared under section 7(b)(11); 

16 and 

17 ‘‘(II) may, at the discretion of 

18 the Administrator, be extended to be 

19 the 3-year period beginning on the 

20 date described in subclause (I).’’; and 

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

22 ‘‘(8) TIME PERIOD.—The time period for the 

23 purposes of paragraph (1)(F)—
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1 ‘‘(A) shall be the 2-year period beginning 

2 on the later of the date of enactment of this 

3 paragraph and August 29, 2007; and 

4 ‘‘(B) may, at the discretion of the Admin5 istrator, be extended to be the 3-year period be6 ginning on the later of the date of enactment 

7 of this paragraph and August 29, 2007.’’. 

8 (b) TOLLING OF GRADUATION.—Section 7(j)(10)(C) 

9 of the Small Business Act (15 U.S.C. 636(j)(10)(C)) is 

10 amended by adding at the end the following: 

11 ‘‘(iii)(I) For purposes of this subpara12 graph, if the Administrator designates an area 

13 as a HUBZone under section 3(p)(4)(E)(i)(II), 

14 the Administrator shall not count the time pe15 riod described in subclause (II) of this clause 

16 for any small business concern—

17 ‘‘(aa) that is participating in any pro18 gram, activity, or contract under section 

19 8(a); and 

20 ‘‘(bb) the principal place of business 

21 of which is located in that area. 

22 ‘‘(II) The time period for purposes of sub23 clause (I)—

24 ‘‘(aa) shall be the 2-year period begin25 ning on the date that the applicable cata-
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1 strophic national disaster was declared 

2 under section 7(b)(11); and 

3 ‘‘(bb) may, at the discretion of the 

4 Administrator, be extended to be the 3-

5 year period beginning on the date de6 scribed in item (aa).’’. 

7 (c) STUDY OF HUBZONE DISASTER AREAS.—Not 

8 later than 1 year after the date of enactment of this Act, 

9 the Comptroller General of the United States shall submit 

10 a report to the Committee on Small Business and Entre11 preneurship of the Senate and the Committee on Small 

12 Business of the House of Representatives evaluating the 

13 designation by the Administrator of catastrophic national 

14 disaster areas, as that term is defined in section 

15 3(p)(4)(E) of the Small Business Act (as added by this 

16 Act), as HUBZones. 

17 TITLE III—DISASTER 

18 ASSISTANCE OVERSIGHT 

19 SEC. 301. CONGRESSIONAL OVERSIGHT. 

20 (a) MONTHLY ACCOUNTING REPORT TO CON21 GRESS.—

22 (1) REPORTING REQUIREMENTS.—Not later 

23 than the fifth business day of each month during the 

24 applicable period for a major disaster, the Adminis25 trator shall provide to the Committee on Small Busi-
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1 ness and Entrepreneurship and the Committee on 

2 Appropriations of the Senate and to the Committee 

3 on Small Business and the Committee on Appropria4 tions of the House of Representatives a report on 

5 the operation of the disaster loan program author6 ized under section 7 of the Small Business Act (15 

7 U.S.C. 636) for that major disaster during the pre8 ceding month. 

9 (2) CONTENTS.—Each report under paragraph 

10 (1) shall include—

11 (A) the daily average lending volume, in 

12 number of loans and dollars, and the percent by 

13 which each category has increased or decreased 

14 since the previous report under paragraph (1); 

15 (B) the weekly average lending volume, in 

16 number of loans and dollars, and the percent by 

17 which each category has increased or decreased 

18 since the previous report under paragraph (1); 

19 (C) the amount of funding spent over the 

20 month for loans, both in appropriations and 

21 program level, and the percent by which each 

22 category has increased or decreased since the 

23 previous report under paragraph (1); 

24 (D) the amount of funding available for 

25 loans, both in appropriations and program level, 
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1 and the percent by which each category has in2 creased or decreased since the previous report 

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

4 additional funding; 

5 (E) an estimate of how long the available 

6 funding for such loans will last, based on the 

7 spending rate; 

8 (F) the amount of funding spent over the 

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

10 and the percent by which each category has in11 creased or decreased since the previous report 

12 under paragraph (1); 

13 (G) the amount of funding spent over the 

14 month for administrative costs, and the percent 

15 by which such spending has increased or de16 creased since the previous report under para17 graph (1); 

18 (H) the amount of funding available for 

19 salaries and expenses combined, and the per20 cent by which such funding has increased or de21 creased since the previous report under para22 graph (1), noting the source of any additional 

23 funding; and 
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1 (I) an estimate of how long the available 

2 funding for salaries and expenses will last, 

3 based on the spending rate. 

4 (b) DAILY DISASTER UPDATES TO CONGRESS FOR

5 PRESIDENTIALLY DECLARED DISASTERS.—

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

7 update period, excluding Federal holidays and week8 ends, the Administration shall provide to the Com9 mittee on Small Business and Entrepreneurship of 

10 the Senate and to the Committee on Small Business 

11 of the House of Representatives a report on the op12 eration of the disaster loan program of the Adminis13 tration for the area in which the President declared 

14 a major disaster. 

15 (2) CONTENTS.—Each report under paragraph 

16 (1) shall include—

17 (A) the number of Administration staff 

18 performing loan processing, field inspection, 

19 and other duties for the declared disaster, and 

20 the allocations of such staff in the disaster field 

21 offices, disaster recovery centers, workshops, 

22 and other Administration offices nationwide; 

23 (B) the daily number of applications re24 ceived from applicants in the relevant area, as 

25 well as a breakdown of such figures by State; 
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1 (C) the daily number of applications pend2 ing application entry from applicants in the rel3 evant area, as well as a breakdown of such fig4 ures by State; 

5 (D) the daily number of applications with6 drawn by applicants in the relevant area, as 

7 well as a breakdown of such figures by State; 

8 (E) the daily number of applications sum9 marily declined by the Administration from ap10 plicants in the relevant area, as well as a break11 down of such figures by State; 

12 (F) the daily number of applications de13 clined by the Administration from applicants in 

14 the relevant area, as well as a breakdown of 

15 such figures by State; 

16 (G) the daily number of applications in 

17 process from applicants in the relevant area, as 

18 well as a breakdown of such figures by State; 

19 (H) the daily number of applications ap20 proved by the Administration from applicants in 

21 the relevant area, as well as a breakdown of 

22 such figures by State; 

23 (I) the daily dollar amount of applications 

24 approved by the Administration from applicants 
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1 in the relevant area, as well as a breakdown of 

2 such figures by State; 

3 (J) the daily amount of loans dispersed, 

4 both partially and fully, by the Administration 

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

6 breakdown of such figures by State; 

7 (K) the daily dollar amount of loans dis8 bursed, both partially and fully, from the rel9 evant area, as well as a breakdown of such fig10 ures by State; 

11 (L) the number of applications approved, 

12 including dollar amount approved, as well as 

13 applications partially and fully disbursed, in14 cluding dollar amounts, since the last report 

15 under paragraph (1); and 

16 (M) the declaration date, physical damage 

17 closing date, economic injury closing date, and 

18 number of counties included in the declaration 

19 of a major disaster. 

20 (c) NOTICE OF THE NEED FOR SUPPLEMENTAL

21 FUNDS.—On the same date that the Administrator noti22 fies any committee of the Senate or the House of Rep23 resentatives that supplemental funding is necessary for 

24 the disaster loan program of the Administration in any 

25 fiscal year, the Administrator shall notify in writing the 
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1 Committee on Small Business and Entrepreneurship of 

2 the Senate and the Committee on Small Business of the 

3 House of Representatives regarding the need for supple4 mental funds for that loan program. 

5 (d) REPORT ON CONTRACTING.—

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

7 after the date on which the President declares a 

8 major disaster, and every 6 months thereafter until 

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

10 the major disaster was declared, the Administrator 

11 shall submit a report to the Committee on Small 

12 Business and Entrepreneurship of the Senate and to 

13 the Committee on Small Business of the House of 

14 Representatives regarding Federal contracts award15 ed as a result of that major 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 that major disaster; 

20 (B) the total number of contracts awarded 

21 to small business concerns as a result of that 

22 major disaster; 

23 (C) the total number of contracts awarded 

24 to women and minority-owned businesses as a 

25 result of that major disaster; and 
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1 (D) the total number of contracts awarded 

2 to local businesses as a result of that major dis3 aster. 

4 (e) REPORT ON LOAN APPROVAL RATE.—

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

6 after the date of enactment of this Act, the Adminis7 trator shall submit a report to the Committee on 

8 Small Business and Entrepreneurship of the Senate 

9 and the Committee on Small Business of the House 

10 of Representatives detailing how the Administration 

11 can improve the processing of applications under the 

12 disaster loan program of the Administration. 

13 (2) CONTENTS.—The report submitted under 

14 paragraph (1) shall include—

15 (A) recommendations, if any, regarding—

16 (i) staffing levels during a major dis17 aster; 

18 (ii) how to improve the process for 

19 processing, approving, and disbursing 

20 loans under the disaster loan program of 

21 the Administration, to ensure that the 

22 maximum assistance is provided to victims 

23 in a timely manner; 

24 (iii) the viability of using alternative 

25 methods for assessing the ability of an ap-
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1 plicant to repay a loan, including the credit 

2 score of the applicant on the day before 

3 the date on which the disaster for which 

4 the applicant is seeking assistance was de5 clared; 

6 (iv) methods, if any, for the Adminis7 tration to expedite loss verification and 

8 loan processing of disaster loans during a 

9 major disaster for businesses affected by, 

10 and located in the area for which the 

11 President declared, the major disaster that 

12 are a major source of employment in the 

13 area or are vital to recovery efforts in the 

14 region (including providing debris removal 

15 services, manufactured housing, or building 

16 materials); 

17 (v) legislative changes, if any, needed 

18 to implement findings from the Accelerated 

19 Disaster Response Initiative of the Admin20 istration; and 

21 (vi) a description of how the Adminis22 tration plans to integrate and coordinate 

23 the response to a major disaster with the 

24 technical assistance programs of the Ad25 ministration; and 
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1 (B) the plans of the Administrator for im2 plementing any recommendation made under 

3 subparagraph (A). 

Passed the Senate August 3, 2007. 

Attest:

Secretary. 
110TH CONGRESS 

1ST SESSION S. 163

AN ACT

Business Administration, and for other purposes.

To improve the disaster loan program of the Small