II 

113TH CONGRESS 

1ST SESSION S. 415 

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, and Mr. 

PRYOR) introduced the following bill; which was read twice and referred 

to the Committee on Small Business and Entrepreneurship 

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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Dis5 aster Reform Act of 2013’’. 

6 SEC. 2. CLARIFICATION OF COLLATERAL REQUIREMENTS. 

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

8 636(d)(6)) is amended by inserting after ‘‘which are made 


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•S 415 IS

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

2 Provided further, That the Administrator, in obtaining the 

3 best available collateral for a loan of not more than 

4 $200,000 under paragraph (1) or (2) of subsection (b) re5 lating to damage to or destruction of the property of, or 

6 economic injury to, a small business concern, shall not re7 quire the owner of the small business concern to use the 

8 primary residence of the owner as collateral if the Admin9 istrator determines that the owner has other assets with 

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

11 that could be used as collateral for the loan: Provided fur12 ther, That nothing in the preceding proviso may be con13 strued to reduce the amount of collateral required by the 

14 Administrator in connection with a loan described in the 

15 preceding proviso or to modify the standards used to 

16 evaluate the quality (rather than the type) of such collat17 eral’’. 

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

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

20 U.S.C. 648(b)(3)) is amended— 

21 (1) by striking ‘‘(3) At the discretion’’ and in22 serting the following: 

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

24 BUSINESSES.— 


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

2 and 

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

4 ‘‘(B) DISASTER RECOVERY ASSISTANCE.— 

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

6 of the Administrator, the Administrator 

7 may authorize a small business develop8 ment center to provide assistance, as de9 scribed in subsection (c), to a small busi10 ness concern located outside of the State, 

11 without regard to geographic proximity, if 

12 the small business concern is located in an 

13 area for which the President has declared 

14 a major disaster under section 401 of the 

15 Robert T. Stafford Disaster Relief and 

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

17 5170), during the period of the declara18 tion. 

19 ‘‘(ii) CONTINUITY OF SERVICES.—A 

20 small business development center that 

21 provides counselors to an area described in 

22 clause (i) shall, to the maximum extent 

23 practicable, ensure continuity of services in 

24 any State in which the small business deVerDate Mar 15 2010 09:00 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S415.IS S415

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1 velopment center otherwise provides serv2 ices. 

3 ‘‘(iii) ACCESS TO DISASTER RECOVERY

4 FACILITIES.—For purposes of this sub5 paragraph, the Administrator shall, to the 

6 maximum extent practicable, permit the 

7 personnel of a small business development 

8 center to use any site or facility designated 

9 by the Administrator for use to provide 

10 disaster recovery assistance.’’. 

11 SEC. 4. SENSE OF CONGRESS. 

12 It is the sense of Congress that, subject to the avail13 ability of funds, the Administrator of the Small Business 

14 Administration shall, to the extent practicable, ensure that 

15 a small business development center is appropriately reim16 bursed for any legitimate expenses incurred in carrying 

17 out activities under section 21(b)(3)(B) of the Small Busi18 ness Act (15 U.S.C. 648(b)(3)(B)), as added by this Act. 

Æ 


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