II 

109TH CONGRESS 

2D SESSION S. 3664 

To amend the Small Business Act to improve assistance after a major disaster, to authorize emergency bridge loans, bridge loan guarantees, and 

recovery grants, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 14, 2006 

Ms. LANDRIEU (for herself, Mr. KERRY, Mr. BAYH, and Mr. PRYOR) 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 improve assistance 

after a major disaster, to authorize emergency bridge 

loans, bridge loan guarantees, and recovery grants, 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 Recovery Assistance Improvements Act of 2006’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds that— 


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1 (1) 43 percent of businesses that close following 

2 a natural disaster never reopen; 

3 (2) an additional 29 percent of businesses close 

4 down permanently within 2 years of a natural dis5 aster; 

6 (3) businesses affected by a natural disaster re7 quire, within the first 60 days following the disaster, 

8 immediate access to capital and technical assistance 

9 to fully recover and prosper; 

10 (4) in the aftermath of Hurricanes Katrina and 

11 Rita of 2005, due to initial Administration response 

12 issues, as well as extensive destruction in the region 

13 and wide distribution of affected business owners 

14 around the country— 

15 (A) Administration loan approvals took 

16 longer than 3 months, on average, for home17 owner disaster loans, and longer than 2 

18 months, on average, for business disaster loans; 

19 and 

20 (B) closings on disaster loans added an ad21 ditional month to the process; 

22 (5) the Administration requires new tools and 

23 authority to be more effective in responding to major 

24 disasters and to be responsive to the needs of af25 fected small business concerns and homeowners; 


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1 (6) for major disasters, State-administered 

2 bridge loan programs can serve as an effective 

3 means of providing immediate capital, to allow busi4 nesses to make repairs, make payroll, and continue 

5 operations, as demonstrated by the fact that— 

6 (A) following the 2004 hurricanes in Flor7 ida, the Florida State Bridge Loan Program 

8 was a successful program in providing imme9 diate capital to struggling businesses, providing 

10 1,679 small business concerns with 

11 $35,400,000 in bridge loans; 

12 (B) following the 2005 impacts of Hurri13 canes Katrina and Rita on the Louisiana Gulf 

14 Coast, the Louisiana Bridge Loan Program was 

15 a successful program in providing immediate 

16 capital to struggling businesses, providing 407 

17 small business concerns with $9,750,000 in 

18 bridge loans; 

19 (C) following the 2005 impact of Hurri20 cane Katrina on the Mississippi Gulf Coast, the 

21 Mississippi Bridge Loan Program was a suc22 cessful program in providing immediate capital 

23 to struggling businesses, providing 464 small 

24 business concerns with $11,233,850 in bridge 

25 loans; and 


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1 (D) following the 2005 impact of Hurri2 cane Wilma on the Florida Gulf Coast, the 

3 Florida State Bridge Loan Program was a suc4 cessful program in providing immediate capital 

5 to struggling businesses, providing 593 small 

6 business concerns with $12,900,000 in bridge 

7 loans; 

8 (7) in the aftermath of Hurricane Katrina of 

9 2005 and Hurricane Rita of 2005, small business 

10 development centers had difficulties entering and 

11 utilizing disaster recovery centers of the Administra12 tion, resulting in delays of technical assistance serv13 ice to affected businesses; and 

14 (8) there is a need for greater cooperation be15 tween the Federal Government and State govern16 ments on bridge loans programs to respond to major 

17 disasters. 

18 SEC. 3. DEFINITIONS. 

19 In this Act— 

20 (1) the terms ‘‘Administration’’ and ‘‘Adminis21 trator’’ mean the Small Business Administration 

22 and the Administrator thereof, respectively; 

23 (2) the term ‘‘approved State Bridge Loan Pro24 gram’’ means a State Bridge Loan Program ap25 proved under section 5(b); 


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1 (3) the term ‘‘major disaster’’ has the meaning 

2 given the term in section 102 of the Robert T. Staf3 ford Disaster Relief and Emergency Assistance Act 

4 (42 U.S.C. 5122); 

5 (4) the term ‘‘small business concern’’ has the 

6 meaning given the term in section 3 of the Small 

7 Business Act; and 

8 (5) the term ‘‘State’’ means any State of the 

9 United States, the District of Columbia, the Com10 monwealth of Puerto Rico, the Northern Mariana Is11 lands, the Virgin Islands, Guam, American Samoa, 

12 and any territory or possession of the United States. 

13 SEC. 4. EMERGENCY BRIDGE LOANS AND GRANTS AFTER 

14 MAJOR DISASTERS. 

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

16 636(b)) is amended by inserting immediately after para17 graph (3) the following: 

18 ‘‘(4) EMERGENCY BRIDGE LOANS AND BUSI19 NESS RECOVERY GRANTS AFTER MAJOR DISAS20 TERS.— 

21 ‘‘(A) DEFINITIONS.—In this paragraph— 

22 ‘‘(i) the term ‘disaster area’ means an 

23 area for which a major disaster was de24 clared, during the period of such declara25 tion; and 


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1 ‘‘(ii) the term ‘major disaster’ has the 

2 meaning given the term in section 102 of 

3 the Robert T. Stafford Disaster Relief and 

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

5 5122). 

6 ‘‘(B) BRIDGE LOANS.— 

7 ‘‘(i) DEFINITION.—In this subpara8 graph, the term ‘qualified small business 

9 concern’ means a small business concern— 

10 ‘‘(I) located in a disaster area; 

11 and 

12 ‘‘(II) that is directly adversely af13 fected by the major disaster for which 

14 such disaster area was declared. 

15 ‘‘(ii) LOAN AUTHORITY.—The Admin16 istrator shall make such loans under this 

17 subparagraph (either directly (including 

18 through a district office of the Administra19 tion located in a disaster area) or in co20 operation with banks or other lending in21 stitutions through agreements to partici22 pate on an immediate or deferred basis) as 

23 the Administrator determines appropriate 

24 to a qualified small business concern, to 

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1 ness concern is able to obtain funding 

2 through insurance claims, other Federal 

3 assistance programs, or other sources, 

4 based on such criteria as the Adminis5 trator may set by rule, regulation, or 

6 order. 

7 ‘‘(iii) LOAN TERMS.— 

8 ‘‘(I) PREPAYMENT.—A loan 

9 under this subparagraph may have no 

10 prepayment penalty. 

11 ‘‘(II) INTEREST.—For not more 

12 than 6 months after the date on 

13 which a loan is made under this sub14 paragraph, the interest rate on such a 

15 loan may be the same as for a loan 

16 under paragraph (2). 

17 ‘‘(III) TRANSFER.—A loan under 

18 this subparagraph may include as a 

19 term that such loan may be trans20 ferred to a local bank or other finan21 cial institution in a disaster area. 

22 ‘‘(IV) TECHNICAL ASSISTANCE.— 

23 The borrower for a loan under this 

24 subparagraph shall certify the intent 

25 of such borrower to participate in 


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1 technical assistance consultation (ei2 ther with a local small business devel3 opment center or other technical as4 sistance group approved by the Ad5 ministrator) before the borrower may 

6 utilize funds received under the loan. 

7 ‘‘(iv) USE OF FUNDS.—A loan under 

8 this subparagraph may be used for— 

9 ‘‘(I) paying salaries, bills, and 

10 other existing financial obligations; 

11 ‘‘(II) making minor repairs; 

12 ‘‘(III) purchasing inventory; or 

13 ‘‘(IV) paying other costs. 

14 ‘‘(v) MAXIMUM AMOUNT.—Notwith15 standing any other provision of law, the 

16 Administrator may make a loan under this 

17 subparagraph of not more than $150,000 

18 to a qualified small business concern. 

19 ‘‘(vi) DEFERRED PAYMENT.— 

20 ‘‘(I) IN GENERAL.—The Admin21 istrator, or a bank or other lending 

22 institution, may defer payments of 

23 principal and interest on a loan under 

24 this subparagraph for not more than 


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1 180 days after the date on which the 

2 loan is made. 

3 ‘‘(II) CAPITALIZATION OF INTER4 EST.—If payments are deferred under 

5 subclause (I), any interest accrued 

6 during the period for which such pay7 ments are deferred shall be capital8 ized. 

9 ‘‘(vii) NOTICE TO BORROWERS.—In 

10 making any loan under this subpara11 graph— 

12 ‘‘(I) the borrower shall be made 

13 aware that such loans are for those 

14 directly adversely affected by the 

15 major disaster; and 

16 ‘‘(II) if such loans are made in 

17 cooperation with a bank or other lend18 ing institution, the lender shall docu19 ment for the Administrator how the 

20 borrower was directly adversely af21 fected by the major disaster. 

22 ‘‘(viii) REPORTS.— 

23 ‘‘(I) INSPECTOR GENERAL.—For 

24 any major disaster, not later than 6 

25 months after the date on which such 


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1 disaster is declared, and every 6 

2 months thereafter until the date that 

3 is 18 months after the date on which 

4 such disaster is declared, the Inspec5 tor General of the Administration 

6 shall submit a report to the Com7 mittee on Small Business and Entre8 preneurship of the Senate and the 

9 Committee on Small Business of the 

10 House of Representatives regarding 

11 loans described in clause (vii)(II), in12 cluding verification that the program 

13 is being administered appropriately 

14 and that such loans are being used for 

15 purposes authorized by this subpara16 graph. 

17 ‘‘(II) GAO.—Not later than 12 

18 months after the date on which a final 

19 report for a major disaster is sub20 mitted by the Inspector General under 

21 subclause (I), the Comptroller General 

22 of the United States shall conduct a 

23 review of the loan program authorized 

24 under this subparagraph and submit a 

25 report to the Committee on Small 


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1 Business and Entrepreneurship of the 

2 Senate and the Committee on Small 

3 Business of the House of Representa4 tives containing the findings of the re5 view and any recommendations. 

6 ‘‘(C) BUSINESS RECOVERY GRANTS.— 

7 ‘‘(i) DEFINITION.—In this subpara8 graph, the term ‘eligible small business 

9 concern’ means a small business concern— 

10 ‘‘(I) directly adversely affected by 

11 a major disaster; 

12 ‘‘(II) that has been declined for 

13 other assistance under this subsection 

14 and from private lending institutions 

15 and State-provided bridge loans; 

16 ‘‘(III) that certifies that it in17 tends— 

18 ‘‘(aa) to reopen in the dis19 aster area for which the major 

20 disaster described in subclause 

21 (I) was declared; and 

22 ‘‘(bb) to participate in tech23 nical assistance consultation (ei24 ther with a local small business 

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1 nical assistance group approved 

2 by the Administrator). 

3 ‘‘(ii) AUTHORIZATION.—The Adminis4 trator shall make such grants under this 

5 subparagraph as the Administrator deter6 mines appropriate to an eligible small busi7 ness concern, to assist such small business 

8 concern in recovery from a major disaster. 

9 ‘‘(iii) MAXIMUM AMOUNT.—The Ad10 ministrator may make a grant in an 

11 amount not more than $25,000 under this 

12 subparagraph. 

13 ‘‘(iv) DOCUMENTATION OF TECHNICAL

14 ASSISTANCE.—An eligible small business 

15 concern receiving a grant under this sub16 paragraph shall submit to the Adminis17 trator documentation indicating that such 

18 small business concern received technical 

19 assistance support through a small busi20 ness development center or other technical 

21 assistance provider determined appropriate 

22 by the Administrator. 

23 ‘‘(D) AUTHORIZATION OF APPROPRIA24 TIONS.—There are authorized to be approVerDate Aug 31 2005 17:00 Jul 15, 2006 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S3664.IS S3664

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1 priated to the Administration such sums as are 

2 necessary to carry out this paragraph.’’. 

3 SEC. 5. STATE BRIDGE LOAN GUARANTEE. 

4 (a) AUTHORIZATION.—After issuing guidelines under 

5 subsection (c), the Administrator may guarantee loans 

6 made under an approved State Bridge Loan Program. 

7 (b) APPROVAL.— 

8 (1) APPLICATION.—A State desiring approval 

9 of a State Bridge Loan Program shall submit an ap10 plication to the Administrator at such time, in such 

11 manner, and accompanied by such information as 

12 the Administrator may require. 

13 (2) CRITERIA.—The Administrator may ap14 prove an application submitted under paragraph (1) 

15 based on such criteria as the Administrator may es16 tablish under this section. 

17 (c) GUIDELINES.— 

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

19 the date of enactment of this Act, the Administrator 

20 shall issue to the appropriate economic development 

21 officials in each State, the Committee on Small 

22 Business and Entrepreneurship of the Senate, and 

23 the Committee on Small Business of the House of 

24 Representatives, guidelines regarding approved State 

25 Bridge Loan Programs. 


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1 (2) CONTENTS.—The guidelines issued under 

2 paragraph (1) shall— 

3 (A) identify appropriate uses of funds 

4 under an approved State Bridge loan Program; 

5 (B) set terms and conditions for loans 

6 under an approved State Bridge loan Program; 

7 (C) address whether— 

8 (i) an approved State Bridge Loan 

9 Program may charge administrative fees; 

10 and 

11 (ii) loans under an approved State 

12 Bridge Loan Program shall be disbursed 

13 through local banks and other financial in14 stitutions; and 

15 (D) establish the percentage of a loan the 

16 Administrator will guarantee under an approved 

17 State Bridge Loan Program. 

18 SEC. 6. AUTHORITY TO MAKE EXPEDITED 7(A) DISASTER 

19 LOANS TO SMALL BUSINESS CONCERNS. 

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

21 636(a)) is amended by adding at the end the following: 

22 ‘‘(32) EXPEDITED LOANS.— 

23 ‘‘(A) DEFINITIONS.—In this paragraph— 

24 ‘‘(i) the term ‘disaster area’ means an 

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1 clared, during the period of such declara2 tion; 

3 ‘‘(ii) the term ‘major disaster’ has the 

4 meaning given the term in section 102 of 

5 the Robert T. Stafford Disaster Relief and 

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

7 5122); and 

8 ‘‘(iii) the term ‘essential small busi9 ness concern in good standing’ means a 

10 small business concern that the Adminis11 trator, in consultation with appropriate of12 ficials in district offices of the Administra13 tion determines has the ability to repay the 

14 subject loan, and— 

15 ‘‘(I) is in good standing and has 

16 a history of compliance with the terms 

17 of a program of the Administration 

18 (including having repaid, or being in 

19 the process of repaying, a loan under 

20 a program of the Administration, as 

21 required under the terms of such 

22 loan); or 

23 ‘‘(II) has a bona fide reason for 

24 receiving an expedited loan under this 

25 paragraph (including being a major 


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1 source of employment in a disaster 

2 area or essential to economic recovery 

3 of the area, such as by supplying 

4 building materials, housing, or debris 

5 removal services). 

6 ‘‘(B) LOAN AUTHORIZATION.—Notwith7 standing any other provision of law, the Admin8 istrator may make a loan under this subsection 

9 to an essential small business concern in good 

10 standing under expedited procedures, including 

11 expedited loss verification, loan processing, and 

12 approval. 

13 ‘‘(C) AUTHORIZATION OF APPROPRIA14 TIONS.—There are authorized to be appro15 priated to the Administrator, such sums as are 

16 necessary to carry out this paragraph.’’. 

17 SEC. 7. MAXIMUM LOAN AMOUNTS. 

18 (a) IN GENERAL.—Section 7(a)(3)(A) of the Small 

19 Business Act is amended by striking ‘‘$1,500,000 (or if 

20 the gross loan amount would exceed $2,000,000’’ and in21 serting ‘‘$2,250,000 (or if the gross loan amount would 

22 exceed $3,000,000’’. 

23 (b) DISASTER LOANS.—Section 7(c)(6) of the Small 

24 Business Act (15 U.S.C. 636(c)(6)) is amended— 


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1 (1) by striking ‘‘$500,000’’ each place such 

2 term appears and inserting ‘‘$2,250,000’’; 

3 (2) by striking ‘‘$100,000’’ and inserting 

4 ‘‘$250,000’’; and 

5 (3) by striking ‘‘$20,000’’ and inserting 

6 ‘‘$50,000’’. 

7 (c) CONFORMING AMENDMENT.—Chapter I of the 

8 Emergency Supplemental Appropriations for Relief From 

9 the Major, Widespread Flooding in the Midwest Act of 

10 1993 (Public Law 103-75; 107 Stat. 740) is amended by 

11 striking ‘‘: Provided further, That notwithstanding any 

12 other provision of law, the $500,000 limitation on the 

13 amounts outstanding and committed to a borrower pro14 vided in paragraph 7(c)(6) of the Small Business Act shall 

15 be increased to $1,500,000 for disasters commencing on 

16 or after April 1, 1993’’. 

17 SEC. 8. INCREASING COLLATERAL REQUIREMENTS. 

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

19 636(c)(6)) is amended by striking ‘‘$10,000’’ and insert20 ing ‘‘$20,000’’. 

21 SEC. 9. CATASTROPHIC REGIONAL OR NATIONAL DISAS22 TERS. 

23 Section 7(b)(2) of the Small Business Act (15 U.S.C. 

24 636(b)(2)) is amended— 


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1 (1) by redesignating subparagraphs (A), (B), 

2 (C), and (D) as clauses (i), (ii), (iii), and (v), respec3 tively; 

4 (2) by striking ‘‘(2) to make such loans’’ and 

5 inserting ‘‘(2)(A) to make such loans’’; 

6 (3) in subparagraph (A), as so designated by 

7 this section— 

8 (A) by striking ‘‘or’’ at the end of each of 

9 clauses (i), (ii), and (iii), as so redesignated by 

10 paragraph (1) of this section; 

11 (B) by inserting after clause (iii), as so re12 designated by paragraph (1) of this section, the 

13 following: 

14 ‘‘(iv) a catastrophic regional or national 

15 disaster, as declared by the Secretary of Home16 land Security, that is an actual or potential 

17 high-impact event that requires a coordinated 

18 and effective response by an appropriate com19 bination of Federal, State, local, tribal, non20 governmental, or private-sector entities in order 

21 to save lives and minimize damage and provide 

22 the basis for long-term community recovery and 

23 mitigation activities; or’’; and 

24 (C) in clause (v), as so redesignated by 

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1 paragraph (A), (B), or (C)’’ and inserting 

2 ‘‘clause (i), (ii), (iii), or (iv)’’; and 

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

4 ‘‘(B) Notwithstanding subsection (c)(6), in the 

5 case of a catastrophic regional or national disaster 

6 declared under subparagraph (A)(iv) of this para7 graph, the Administrator may increase the max8 imum amount that may be outstanding and com9 mitted to borrower under this paragraph to 

10 $10,000,000.’’. 

11 SEC. 10. FULL-TIME DISASTER PLANNING STAFF. 

12 (a) INCREASE IN SMALL BUSINESS ADMINISTRATION

13 FULL-TIME DISASTER PLANNING STAFF.—The Adminis14 trator shall hire a full-time disaster planning specialist in 

15 the Office of Disaster Assistance of the Administration. 

16 (b) RESPONSIBILITIES.—The disaster planning spe17 cialist hired under subsection (a) shall be responsible for— 

18 (1) creating and maintaining the comprehensive 

19 disaster response plan of the Administration; 

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

21 procedures for the disaster response staff of the Ad22 ministration; 

23 (3) coordinating Administration training exer24 cises, including mock disaster responses, with other 

25 Federal agencies; and 


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1 (4) other responsibilities, as determined by the 

2 Administrator. 

3 (c) AUTHORIZATION OF APPROPRIATIONS.— 

4 (1) IN GENERAL.—There are authorized to be 

5 appropriated to the Administration such sums as are 

6 necessary to carry out this section. 

7 (2) AVAILABILITY OF FUNDS.—Amounts made 

8 available under this section shall remain available 

9 until expended. 

10 SEC. 11. ADDITIONAL AUTHORITY FOR DISTRICT OFFICES 

11 OF THE ADMINISTRATION. 

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

13 636(b)) is amended by inserting immediately after para14 graph (4), as added by this Act, the following: 

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

16 of a major disaster (as that term is defined in sec17 tion 102 of the Robert T. Stafford Disaster Relief 

18 and Emergency Assistance Act (42 U.S.C. 5122)), 

19 the Administrator may authorize a district office of 

20 the Administration to process loans under paragraph 

21 (1) or (2).’’. 

22 SEC. 12. ECONOMIC INJURY DISASTER LOANS TO NON23 PROFITS. 

24 (a) IN GENERAL.—Section 7(b)(2)(A) of the Small 

25 Business Act, as redesignated by this Act, is amended— 


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1 (1) in the matter preceding clause (i)— 

2 (A) by inserting after ‘‘small business con3 cern’’ the following: ‘‘, private nonprofit organi4 zation,’’; and 

5 (B) by inserting after ‘‘the concern’’ the 

6 following: ‘‘, organization,’’; and 

7 (2) in clause (v), by inserting after ‘‘small busi8 ness concerns’’ the following: ‘‘, private nonprofit or9 ganizations,’’. 

10 (b) CONFORMING AMENDMENT.—Section 7(c) of the 

11 Small Business Act (15 U.S.C. 636(c)) is amended in 

12 paragraph (5)(C), by inserting ‘‘, organization,’’ after 

13 ‘‘business’’. 

14 SEC. 13. SMALL BUSINESS DEVELOPMENT CENTER PORT15 ABILITY GRANTS. 

16 Section 21(a)(4) of the Small Business Act (15 

17 U.S.C. 648(a)(4), as amended by this Act, is amended by 

18 adding at the end the following: 

19 ‘‘(E) WAIVER OF MAXIMUM AMOUNT.—In the 

20 event of a major disaster (as that term is defined in 

21 section 102 of the Robert T. Stafford Disaster Relief 

22 and Emergency Assistance Act (42 U.S.C. 5122)), 

23 the Administrator may waive the maximum amount 

24 of $100,000 for grants under subparagraph 

25 (C)(viii), and such grants shall be made available for 


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1 small business development centers assisting small 

2 business concerns adversely affected by such major 

3 disaster.’’. 

4 SEC. 14. DISASTER LOAN PROGRAM MONTHLY ACCOUNT5 ING REPORT. 

6 (a) DEFINITION.—In this section, the term ‘‘applica7 ble period’’ means the period beginning on the date on 

8 which the President declares a major disaster and ending 

9 on the date that is 30 days after the later of the closing 

10 date for applications for physical disaster loans for such 

11 disaster and the closing date for applications for economic 

12 injury disaster loans for such disaster. 

13 (b) REPORT TO CONGRESS.—Not later than the 5th 

14 business day of each month during the applicable period 

15 for a major disaster, the Administrator shall provide to 

16 the Committee on Small Business and Entrepreneurship 

17 and the Committee on Appropriations of the Senate and 

18 to the Committee on Small Business and the Committee 

19 on Appropriations of the House of Representatives a re20 port on the operation of the disaster loan program author21 ized under section 7 of the Small Business Act (15 U.S.C. 

22 636) for such disaster during the preceding month. 

23 (c) CONTENT OF REPORTS.—Each report under sub24 section (b) shall include— 


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1 (1) the daily average lending volume, in number 

2 of loans and dollars, and the percent by which each 

3 category has increased or decreased since the pre4 vious report under subsection (b); 

5 (2) the weekly average lending volume, in num6 ber of loans and dollars, and the percent by which 

7 each category has increased or decreased since the 

8 previous report under subsection (b); 

9 (3) the amount of funding spent over the month 

10 for loans, both in appropriations and program level, 

11 and the percent by which each category has in12 creased or decreased since the previous report under 

13 subsection (b); 

14 (4) the amount of funding available for loans, 

15 both in appropriations and program level, and the 

16 percent by which each category has increased or de17 creased, noting the source of any additional funding; 

18 (5) an estimate of how long the available fund19 ing for such loans will last, based on the spending 

20 rate; 

21 (6) the amount of funding spent over the month 

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

23 percent by which each category has increased or de24 creased since the previous report under subsection 

25 (b); 


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1 (7) the amount of funding spent over the month 

2 for administrative costs, and the percent by which 

3 such spending has increased or decreased since the 

4 previous report under subsection (b); 

5 (8) the amount of funding available for salaries 

6 and expenses combined, and the percent by which 

7 such funding has increased or decreased, noting the 

8 source of any additional funding; and 

9 (9) an estimate of how long the available fund10 ing for salaries and expenses will last, based on the 

11 spending rate. 

12 SEC. 15. DISASTER LOANS AFTER MAJOR DISASTERS. 

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

14 636(b)) is amended by inserting immediately after para15 graph (5), as added by this Act, the following: 

16 ‘‘(6) AUTHORITY FOR LENDERS TO PROCESS

17 DISASTER LOANS.—The Administrator may enter 

18 into an agreement with a qualified lender, as deter19 mined by the Administrator, to process loans under 

20 this section, under which the Administrator shall 

21 pay the lender a fee for each loan processed. 

22 ‘‘(7) AUTHORITY FOR THE ADMINISTRATOR TO

23 CONTRACT WITH LENDERS FOR LOAN LOSS

24 VERIFICATION SERVICES.—The Administrator may 

25 enter into an agreement with a qualified lender or 


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1 loss verification professional, as determined by the 

2 Administrator, to verify losses for loans under this 

3 section, under which the Administrator shall pay the 

4 lender or verification professional a fee for each loan 

5 for which such lender or verification professional 

6 verifies losses.’’. 

7 SEC. 16. WAIVER OF GEOGRAPHIC RESTRICTIONS ON SBDC 

8 COUNSELORS. 

9 Section 21(b) of the Small Business Act (15 U.S.C. 

10 648(b)) is amended by adding at the end the following: 

11 ‘‘(4) WAIVER OF GEOGRAPHIC RESTRICTIONS ON

12 SBDC COUNSELORS.— 

13 ‘‘(A) IN GENERAL.—The Administrator shall 

14 authorize any small business development center, re15 gardless of location, to provide advice, information, 

16 and assistance, as described in subsection (c), to a 

17 small business concern located in an area in which 

18 the President declared a major disaster (as defined 

19 in section 102 of the Robert T. Stafford Disaster 

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

21 5122)), during the period of such declaration. 

22 ‘‘(B) CONTINUITY OF SERVICES.—A small busi23 ness development center that provides counselors to 

24 an area described in subparagraph (A) shall, to the 


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26 

•S 3664 IS

1 maximum extent practicable, ensure continuity of 

2 services in the State it currently serves. 

3 ‘‘(C) ACCESS TO DISASTER RECOVERY FACILI4 TIES.—For purposes of providing recovery assistance 

5 under this paragraph, the Administrator shall per6 mit small business development center personnel to 

7 use any site or facility designated by the Administra8 tion for use for such purpose.’’. 

Æ 


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