II 

Calendar No. 161 

113TH CONGRESS 

1ST SESSION S. 415 

[Report No. 113–84] 

To clarify the collateral requirement for certain loans under section 7(d) 

of the Small Business Act, to address assistance to out-of-State small 

business concerns, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2013 

Ms. LANDRIEU (for herself, Mr. COCHRAN, Mrs. GILLIBRAND, Mr. PRYOR, 

Mr. WICKER, Mr. CARDIN, Ms. HEITKAMP, and Mr. HOEVEN) introduced 

the following bill; which was read twice and referred to the Committee 

on Small Business and Entrepreneurship 

JULY 31, 2013 

Reported by Ms. LANDRIEU, with an amendment 

[Insert the part printed in italic] 

A BILL 

To clarify the collateral requirement for certain loans under 

section 7(d) of the Small Business Act, to address assistance to out-of-State small business concerns, 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, 


rfrederick on DSK6VPTVN1PROD with BILLS
2 

•S 415 RS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Small Business Dis3 aster Reform Act of 2013’’. 

4 SEC. 2. CLARIFICATION OF COLLATERAL REQUIREMENTS. 

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

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

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

8 Provided further, That the Administrator, in obtaining the 

9 best available collateral for a loan of not more than 

10 $200,000 under paragraph (1) or (2) of subsection (b) re11 lating to damage to or destruction of the property of, or 

12 economic injury to, a small business concern, shall not re13 quire the owner of the small business concern to use the 

14 primary residence of the owner as collateral if the Admin15 istrator determines that the owner has other assets with 

16 a value equal to or greater than the amount of the loan 

17 that could be used as collateral for the loan: Provided fur18 ther, That nothing in the preceding proviso may be con19 strued to reduce the amount of collateral required by the 

20 Administrator in connection with a loan described in the 

21 preceding proviso or to modify the standards used to 

22 evaluate the quality (rather than the type) of such collat23 eral’’. 

24 SEC. 3. ASSISTANCE TO OUT-OF-STATE SMALL BUSINESSES. 

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

26 U.S.C. 648(b)(3)) is amended— 


rfrederick on DSK6VPTVN1PROD with BILLS
3 

•S 415 RS

1 (1) by striking ‘‘(3) At the discretion’’ and in2 serting the following: 

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

4 BUSINESSES.— 

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

6 and 

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

8 ‘‘(B) DISASTER RECOVERY ASSISTANCE.— 

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

10 of the Administrator, the Administrator 

11 may authorize a small business develop12 ment center to provide assistance, as de13 scribed in subsection (c), to a small busi14 ness concern located outside of the State, 

15 without regard to geographic proximity, if 

16 the small business concern is located in an 

17 area for which the President has declared 

18 a major disaster under section 401 of the 

19 Robert T. Stafford Disaster Relief and 

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

21 5170), during the period of the declara22 tion. 

23 ‘‘(ii) CONTINUITY OF SERVICES.—A 

24 small business development center that 

25 provides counselors to an area described in 


rfrederick on DSK6VPTVN1PROD with BILLS
4 

•S 415 RS

1 clause (i) shall, to the maximum extent 

2 practicable, ensure continuity of services in 

3 any State in which the small business de4 velopment center otherwise provides serv5 ices. 

6 ‘‘(iii) ACCESS TO DISASTER RECOVERY

7 FACILITIES.—For purposes of this sub8 paragraph, the Administrator shall, to the 

9 maximum extent practicable, permit the 

10 personnel of a small business development 

11 center to use any site or facility designated 

12 by the Administrator for use to provide 

13 disaster recovery assistance.’’. 

14 SEC. 4. SENSE OF CONGRESS. 

15 It is the sense of Congress that, subject to the avail16 ability of funds, the Administrator of the Small Business 

17 Administration shall, to the extent practicable, ensure that 

18 a small business development center is appropriately reim19 bursed for any legitimate expenses incurred in carrying 

20 out activities under section 21(b)(3)(B) of the Small Busi21 ness Act (15 U.S.C. 648(b)(3)(B)), as added by this Act. 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

•S 415 RS

1 SEC. 5. INCREASED OVERSIGHT OF ECONOMIC INJURY DIS2 ASTER LOANS. 

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

4 Act (15 U.S.C. 636(b)) is amended by inserting imme5 diately after paragraph (9)(D)(3)(cc) the following: 

6 ‘‘(10) INCREASED OVERSIGHT OF ECONOMIC IN7 JURY DISASTER LOANS.—The Administrator shall in8 crease oversight of entities receiving loans under 

9 paragraph (2), including— 

10 ‘‘(A) random site visits to ensure borrower 

11 eligibility and compliance with requirements es12 tablished by the Administrator; and 

13 ‘‘(B) random reviews of the use of the loan 

14 proceeds by an entity described in paragraph (2) 

15 to ensure compliance with requirements estab16 lished by the Administrator.’’. 

17 (b) SENSE OF CONGRESS RELATING TO USING EXIST18 ING FUNDS.—It is the sense of Congress that no additional 

19 Federal funds shall be made available to carry out the 

20 amendments made by this section. 

21 SEC. 6. REDUCTION OF PAPERWORK BURDEN. 

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

23 that the Administrator of the Small Business Administra24 tion should— 

25 (1) reduce paperwork burdens pursuant to sec26 tion 3501 of title 44, United States Code, on small 


rfrederick on DSK6VPTVN1PROD with BILLS
6 

•S 415 RS

1 business concerns applying for disaster assistance 

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

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

4 (2) ensure that the application for disaster as5 sistance under section 7(b) of the Small Business Act 

6 (15 U.S.C. 636(b)) facilitates deterring and detecting 

7 potential incidents of waste, fraud, and abuse. 

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

9 Act (15 U.S.C. 636(b)) is amended by inserting imme10 diately after paragraph (10), as added by this Act, the fol11 lowing: 

12 ‘‘(11) PAPERWORK REDUCTION.—The Adminis13 trator shall take steps to reduce, to the maximum ex14 tent practicable, the paperwork associated with the 

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

16 SEC. 7. REPORT ON WEB PORTAL FOR DISASTER LOAN AP17 PLICANTS. 

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

19 is amended by adding at the end the following: 

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

21 APPLICATION STATUS.— 

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

23 the date of enactment of this subsection, the Adminis24 trator shall submit to the Committee on Small Busi25 ness and Entrepreneurship of the Senate and the 


rfrederick on DSK6VPTVN1PROD with BILLS
7 

•S 415 RS

1 Committee on Small Business of the House of Rep2 resentatives a report relating to the creation of a web 

3 portal to the track the status of applications for dis4 aster assistance under section 7(b). 

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

6 (1) shall include— 

7 ‘‘(A) information on the progress of the Ad8 ministration in implementing the information 

9 system under subsection (a); 

10 ‘‘(B) recommendations from the Adminis11 tration relating to the creation of a web portal 

12 for applicants to check the status of an applica13 tion for disaster assistance under section 7(b), 

14 including a review of best practices and web por15 tal models from the private sector; 

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

17 staffing needed to implement such a web portal; 

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

19 portal can maintain high standards for data 

20 privacy and data security; 

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

22 portal will minimize redundancy among Admin23 istration disaster programs, improve manage24 ment of the number of inquiries made by disaster 

25 applicants to employees located in the area afVerDate Mar 15 2010 23:37 Jul 31, 2013 Jkt 029200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\S415.RS S415

rfrederick on DSK6VPTVN1PROD with BILLS
8 

•S 415 RS

1 fected by the disaster and to call centers, and re2 duce paperwork burdens on disaster victims; and 

3 ‘‘(F) such additional information as is de4 termined necessary by the Administrator.’’. 


rfrederick on DSK6VPTVN1PROD with BILLS

rfrederick on DSK6VPTVN1PROD with BILLS
Calendar No. 161 

113TH CONGRESS 

1ST SESSION S. 415 

[Report No. 113–84] 

A BILL 

To clarify the collateral requirement for certain 

business concerns, and for other purposes. Act, to address assistance to out-of-State small loans under section 7(d) of the Small Business 

JULY 31, 2013 

Reported with an amendment 


rfrederick on DSK6VPTVN1PROD with BILLS