II 

109TH CONGRESS 

2D SESSION S. 4097 

To improve the disaster loan program of the Small Business Administration, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 6, 2006 

Ms. SNOWE (for herself, Mr. KERRY, Ms. LANDRIEU, and Mr. VITTER) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship 

A BILL 

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, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Small Business Disaster Response and Loan Improve6 ments Act of 2006’’. 

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

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—PRIVATE DISASTER LOANS 


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Sec. 101. Private disaster loans. 

Sec. 102. Technical and conforming amendments. 

TITLE II—DISASTER RELIEF AND RECONSTRUCTION 

Sec. 201. Definition of disaster area. 

Sec. 202. Disaster loans to nonprofits. 

Sec. 203. Disaster loan amounts. 

Sec. 204. Small business development center portability grants. 

Sec. 205. Assistance to out-of-State businesses. 

Sec. 206. Outreach programs. 

Sec. 207. Small business bonding threshold. 

Sec. 208. Contracting priority for local small businesses. 

Sec. 209. Termination of program. 

Sec. 210. Increasing collateral requirements. 

TITLE III—DISASTER RESPONSE 

Sec. 301. Definitions. 

Sec. 302. Business expedited disaster assistance loan program. 

Sec. 303. Catastrophic national disasters. 

Sec. 304. Public awareness of disaster declaration and application periods. 

Sec. 305. Consistency between Administration regulations and standard operating procedures. 

Sec. 306. Processing disaster loans. 

Sec. 307. Development and implementation of major disaster response plan. 

Sec. 308. Congressional oversight. 

TITLE IV—ENERGY EMERGENCIES 

Sec. 401. Findings. 

Sec. 402. Small business energy emergency disaster loan program. 

Sec. 403. Agricultural producer emergency loans. 

Sec. 404. Guidelines and rulemaking. 

Sec. 405. Reports. 

1 SEC. 2. DEFINITIONS. 

2 In this Act— 

3 (1) the terms ‘‘Administration’’ and ‘‘Adminis4 trator’’ mean the Small Business Administration 

5 and the Administrator thereof, respectively; 

6 (2) the term ‘‘small business concern’’ has the 

7 same meaning as in section 3 of the Small Business 

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

9 (3) the term ‘‘small business concern owned 

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1 taged individuals’’ has the same meaning as in sec2 tion 8 of the Small Business Act (15 U.S.C. 637). 

3 TITLE I—PRIVATE DISASTER 

4 LOANS 

5 SEC. 101. PRIVATE DISASTER LOANS. 

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

7 Act (15 U.S.C. 636) is amended— 

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

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

10 (2) by inserting after subsection (b) the fol11 lowing: 

12 ‘‘(c) PRIVATE DISASTER LOANS.— 

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

14 ‘‘(A) the term ‘disaster area’ means a 

15 county, parish, or similar unit of general local 

16 government in which a disaster was declared 

17 under subsection (b); 

18 ‘‘(B) the term ‘eligible small business con19 cern’ means a business concern that is— 

20 ‘‘(i) a small business concern, as de21 fined in this Act; or 

22 ‘‘(ii) a small business concern, as de23 fined in section 103 of the Small Business 

24 Investment Act of 1958; and 


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

2 means any privately-owned bank or other lend3 ing institution that the Administrator deter4 mines meets the criteria established under para5 graph (9). 

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

7 guarantee timely payment of principal and interest, 

8 as scheduled on any loan issued by a qualified pri9 vate lender to an eligible small business concern lo10 cated in a disaster area. 

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

12 the Administrator under this subsection may be used 

13 for any purpose authorized under subsection (a) or 

14 (b). 

15 ‘‘(4) ONLINE APPLICATIONS.— 

16 ‘‘(A) ESTABLISHMENT.—The Adminis17 trator may establish, directly or through an 

18 agreement with another entity, an online appli19 cation process for loans guaranteed under this 

20 subsection. 

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

22 Administrator may coordinate with the head of 

23 any other appropriate Federal agency so that 

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1 graph may be considered for any other Federal 

2 assistance program for disaster relief. 

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

4 online application process under this paragraph, 

5 the Administrator shall consult with appro6 priate persons from the public and private sec7 tors, including private lenders. 

8 ‘‘(5) MAXIMUM AMOUNTS.— 

9 ‘‘(A) GUARANTEE PERCENTAGE.—The Ad10 ministrator may guarantee not more than 85 

11 percent of a loan under this subsection. 

12 ‘‘(B) LOAN AMOUNTS.—The maximum 

13 amount of a loan guaranteed under this sub14 section shall be $3,000,000. 

15 ‘‘(6) LOAN TERM.—The longest term of a loan 

16 for a loan guaranteed under this subsection shall 

17 be— 

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

19 without collateral; and 

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

21 with collateral. 

22 ‘‘(7) FEES.— 

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

24 may not collect a guarantee fee under this sub25 section. 


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1 ‘‘(B) ORIGINATION FEE.—The Adminis2 trator may pay a qualified private lender an 

3 origination fee for a loan guaranteed under this 

4 subsection in an amount agreed upon in ad5 vance between the qualified private lender and 

6 the Administrator. 

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

8 lender may use its own loan documentation for a 

9 loan guaranteed by the Administrator, to the extent 

10 authorized by the Administrator. The ability of a 

11 lender to use its own loan documentation for a loan 

12 offered under this subsection shall not be considered 

13 part of the criteria for becoming a qualified private 

14 lender under the regulations promulgated under 

15 paragraph (9). 

16 ‘‘(9) IMPLEMENTATION REGULATIONS.— 

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

18 after the date of enactment of the Small Busi19 ness Disaster Response and Loan Improve20 ments Act of 2006, the Administrator shall 

21 issue final regulations establishing permanent 

22 criteria for qualified private lenders. 

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

24 than 6 months after the date of enactment of 

25 the Small Business Disaster Response and 


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1 Loan Improvements Act of 2006, the Adminis2 trator shall submit a report on the progress of 

3 the regulations required by subparagraph (A) to 

4 the Committee on Small Business and Entre5 preneurship of the Senate and the Committee 

6 on Small Business of the House of Representa7 tives. 

8 ‘‘(10) AUTHORIZATION OF APPROPRIATIONS.— 

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

10 carry out this subsection shall be made avail11 able from amounts appropriated to the Admin12 istration under subsection (b). 

13 ‘‘(B) AUTHORITY TO REDUCE INTEREST

14 RATES.—Funds appropriated to the Adminis15 tration to carry out this subsection, may be 

16 used by the Administrator, to the extent avail17 able, to reduce the applicable rate of interest 

18 for a loan guaranteed under this subsection by 

19 not more than 3 percentage points.’’. 

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

21 this section shall apply to disasters declared under section 

22 7(b)(2) of the Small Business Act (631 U.S.C. 636(b)(2)) 

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


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1 SEC. 102. TECHNICAL AND CONFORMING AMENDMENTS. 

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

3 amended— 

4 (1) in section 4(c)— 

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

6 and inserting ‘‘7(d)(2)’’; and 

7 (B) in paragraph (2)— 

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

9 ‘‘7(d)(2)’’; and 

10 (ii) by striking ‘‘7(e),’’; and 

11 (2) in section 7(b), in the undesignated matter 

12 following paragraph (3)— 

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

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

15 ‘‘That the provisions of paragraph (1) of sub16 section (d)’’; and 

17 (B) by striking ‘‘Notwithstanding the pro18 visions of any other law the interest rate on the 

19 Administration’s share of any loan made under 

20 subsection (b) except as provided in subsection 

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

22 provision of law, and except as provided in sub23 section (d), the interest rate on the Administra24 tion’s share of any loan made under subsection 

25 (b)’’. 


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1 TITLE II—DISASTER RELIEF AND 

2 RECONSTRUCTION 

3 SEC. 201. DEFINITION OF DISASTER AREA. 

4 In this title, the term ‘‘disaster area’’ means an area 

5 affected by a natural or other disaster, as determined for 

6 purposes of paragraph (1) or (2) of section 7(b) of the 

7 Small Business Act (15 U.S.C. 636(b)), during the period 

8 of such declaration. 

9 SEC. 202. DISASTER LOANS TO NONPROFITS. 

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

11 636(b)) is amended by inserting immediately after para12 graph (3) the following: 

13 ‘‘(4) LOANS TO NONPROFITS.—In addition to 

14 any other loan authorized by this subsection, the Ad15 ministrator may make such loans (either directly or 

16 in cooperation with banks or other lending institu17 tions through agreements to participate on an imme18 diate or deferred basis) as the Administrator deter19 mines appropriate to a nonprofit organization lo20 cated or operating in an area affected by a natural 

21 or other disaster, as determined under paragraph 

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

23 evacuated from any such area.’’. 


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1 SEC. 203. DISASTER LOAN AMOUNTS. 

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

3 Small Business Act (15 U.S.C. 636(b)) is amended by in4 serting immediately after paragraph (4), as added by this 

5 title, the following: 

6 ‘‘(5) INCREASED LOAN CAPS.— 

7 ‘‘(A) AGGREGATE LOAN AMOUNTS.—Ex8 cept as provided in clause (ii), and notwith9 standing any other provision of law, the aggre10 gate loan amount outstanding and committed to 

11 a borrower under this subsection may not ex12 ceed $5,000,000. 

13 ‘‘(B) WAIVER AUTHORITY.—The Adminis14 trator may, at the discretion of the Adminis15 trator, waive the aggregate loan amount estab16 lished under clause (i).’’. 

17 (b) DISASTER MITIGATION.— 

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

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

20 amended by inserting ‘‘of the aggregate costs of 

21 such damage or destruction (whether or not com22 pensated for by insurance or otherwise)’’ after ‘‘20 

23 per centum’’. 

24 (2) EFFECTIVE DATE.—The amendment made 

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


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1 or guarantee made after the date of enactment of 

2 this Act. 

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

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

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

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

7 Administration’’; 

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

9 Relief and Emergency Assistance Act’’ and inserting 

10 ‘‘Robert T. Stafford Disaster Relief and Emergency 

11 Assistance Act (42 U.S.C. 5121 et seq.)’’; and 

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

13 (A) by striking ‘‘, (2), and (4)’’ and insert14 ing ‘‘and (2)’’; and 

15 (B) by striking ‘‘, (2), or (4)’’ and insert16 ing ‘‘(2)’’. 

17 SEC. 204. SMALL BUSINESS DEVELOPMENT CENTER PORT18 ABILITY GRANTS. 

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

20 (15 U.S.C. 648(a)(4)(C)(viii)) is amended— 

21 (1) in the first sentence, by striking ‘‘as a re22 sult of a business or government facility down sizing 

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

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


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1 events that have resulted or will result in, business 

2 or government facility downsizing or closing’’; and 

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

4 the Administrator, the Administrator may make an 

5 award greater than $100,000 to a recipient to ac6 commodate extraordinary occurrences having a cata7 strophic impact on the small business concerns in a 

8 community.’’. 

9 SEC. 205. ASSISTANCE TO OUT-OF-STATE BUSINESSES. 

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

11 U.S.C. 648(b)(3)) is amended— 

12 (1) by striking ‘‘At the discretion’’ and insert13 ing the following: ‘‘SMALL BUSINESS DEVELOPMENT

14 CENTERS.— 

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

16 and 

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

18 ‘‘(B) DURING DISASTERS.— 

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

20 of the Administrator, the Administrator 

21 may authorize a small business develop22 ment center to provide such assistance to 

23 small business concerns located outside of 

24 the State, without regard to geographic 

25 proximity, if the small business concerns 


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1 are located in a disaster area declared 

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

3 ‘‘(ii) CONTINUITY OF SERVICES.—A 

4 small business development center that 

5 provides counselors to an area described in 

6 clause (i) shall, to the maximum extent 

7 practicable, ensure continuity of services in 

8 any State in which such small business de9 velopment center otherwise provides serv10 ices. 

11 ‘‘(iii) ACCESS TO DISASTER RECOVERY

12 FACILITIES.—For purposes of providing 

13 disaster recovery assistance under this sub14 paragraph, the Administrator shall, to the 

15 maximum extent practicable, permit small 

16 business development center personnel to 

17 use any site or facility designated by the 

18 Administrator for use to provide disaster 

19 recovery assistance.’’. 

20 SEC. 206. OUTREACH PROGRAMS. 

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

22 date of the declaration of a disaster area, the Adminis23 trator may establish a contracting outreach and technical 

24 assistance program for small business concerns which have 


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

2 presence in, such disaster area. 

3 (b) ADMINISTRATOR ACTION.—The Administrator 

4 may fulfill the requirement of subsection (a) by acting 

5 through— 

6 (1) the Administration; 

7 (2) the Federal agency small business officials 

8 designated under section 15(k)(1) of the Small Busi9 ness Act (15 U.S.C. 644(k)(1)); or 

10 (3) any Federal, State, or local government en11 tity, higher education institution, procurement tech12 nical assistance center, or private nonprofit organi13 zation that the Administrator may determine appro14 priate, upon conclusion of a memorandum of under15 standing or assistance agreement, as appropriate, 

16 with the Administrator. 

17 SEC. 207. SMALL BUSINESS BONDING THRESHOLD. 

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

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

20 any procurement related to a major disaster (as that term 

21 is defined in section 102 of the Robert T. Stafford Dis22 aster Relief and Emergency Assistance Act (42 U.S.C. 

23 5122)), the Administrator may, upon such terms and con24 ditions as the Administrator may prescribe, guarantee and 

25 enter into commitments to guarantee any surety against 


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1 loss resulting from a breach of the terms of a bid bond, 

2 payment bond, performance bond, or bonds ancillary 

3 thereto, by a principal on any total work order or contract 

4 amount at the time of bond execution that does not exceed 

5 $5,000,000. 

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

7 head of any Federal agency other than the Administration 

8 involved in reconstruction efforts in response to a major 

9 disaster, the Administrator may guarantee and enter into 

10 a commitment to guarantee any security against loss 

11 under subsection (a) on any total work order or contract 

12 amount at the time of bond execution that does not exceed 

13 $10,000,000. 

14 SEC. 208. CONTRACTING PRIORITY FOR LOCAL SMALL 

15 BUSINESSES. 

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

17 644(d)) is amended— 

18 (1) by striking ‘‘(d) For purposes’’ and insert19 ing the following: 

20 ‘‘(d) CONTRACTING PRIORITIES.— 

21 ‘‘(1) IN GENERAL.—For purposes’’; and 

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

23 ‘‘(2) DISASTER CONTRACTING PRIORITY IN

24 GENERAL.—The Administrator shall designate any 

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1 ment or underemployment, or a labor surplus area 

2 for purposes of paragraph (1). 

3 ‘‘(3) LOCAL SMALL BUSINESSES.— 

4 ‘‘(A) IN GENERAL.—The head of each ex5 ecutive agency shall give priority in the award6 ing of contracts and the placement of sub7 contracts for disaster relief to local small busi8 ness concerns by using, as appropriate— 

9 ‘‘(i) preferential factors in evaluations 

10 of contract bids and proposals; 

11 ‘‘(ii) competitions restricted to local 

12 small business concerns, where there is a 

13 reasonable expectation of receiving com14 petitive, reasonably priced bids or pro15 posals from not fewer than 2 local small 

16 business concerns; 

17 ‘‘(iii) requirements of preference for 

18 local small business concerns in subcon19 tracting plans; and 

20 ‘‘(iv) assessments of liquidated dam21 ages and other contractual penalties, in22 cluding contract termination. 

23 ‘‘(B) OTHER DISASTER ASSISTANCE.—Pri24 ority shall be given to local small business con25 cerns in the awarding of contracts and the 


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1 placement of subcontracts for disaster relief in 

2 any Federal procurement and any procurement 

3 by a State or local government made with Fed4 eral disaster assistance funds. 

5 ‘‘(4) DEFINITIONS.—In this subsection— 

6 ‘‘(A) the term ‘declared disaster’ means a 

7 disaster, as designated by the Administrator; 

8 ‘‘(B) the term ‘disaster area’ means any 

9 State or area affected by a declared disaster, as 

10 determined by the Administrator; 

11 ‘‘(C) the term ‘executive agency’ has the 

12 same meaning as in section 105 of title 5, 

13 United States Code; and 

14 ‘‘(D) the term ‘local small business con15 cern’ means a small business concern that— 

16 ‘‘(i) on the date immediately pre17 ceding the date on which a declared dis18 aster occurred— 

19 ‘‘(I) had a principal office in the 

20 disaster area for such declared dis21 aster; and 

22 ‘‘(II) employed a majority of the 

23 workforce of such small business con24 cern in the disaster area for such de25 clared disaster; and 


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1 ‘‘(ii) is capable of performing a sub2 stantial proportion of any contract or sub3 contract for disaster relief within the dis4 aster area for such declared disaster, as 

5 determined by the Administrator.’’. 

6 SEC. 209. TERMINATION OF PROGRAM. 

7 Section 711(c) of the Small Business Competitive 

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

9 is amended by inserting after ‘‘January 1, 1989’’ the fol10 lowing: ‘‘, and shall terminate on the date of enactment 

11 of the Small Business Disaster Response and Loan Im12 provements Act of 2006’’. 

13 SEC. 210. INCREASING COLLATERAL REQUIREMENTS. 

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

15 636), as so designated by section 101, is amended by 

16 striking ‘‘$10,000 or less’’ and inserting ‘‘$14,000 or less 

17 (or such higher amount as the Administrator determines 

18 appropriate in the event of a catastrophic national disaster 

19 declared under subsection (b)(6))’’. 

20 TITLE III—DISASTER RESPONSE 

21 SEC. 301. DEFINITIONS. 

22 In this title— 

23 (1) the term ‘‘catastrophic national disaster’’ 

24 has the meaning given the term in section 7(b)(6) 


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1 of the Small Business Act (15 U.S.C. 636(b)), as 

2 added by this Act; 

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

4 disaster or a catastrophic national disaster; 

5 (3) the term ‘‘disaster loan program of the Ad6 ministration’’ means assistance under section 7(b) of 

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

8 (4) the term ‘‘disaster update period’’ means 

9 the period beginning on the date on which the Presi10 dent declares a major disaster or a catastrophic na11 tional disaster and ending on the date on which such 

12 declaration terminates; 

13 (5) the term ‘‘major disaster’’ has the meaning 

14 given the term in section 102 of the Robert T. Staf15 ford Disaster Relief and Emergency Assistance Act 

16 (42 U.S.C. 5122); and 

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

18 United States, the District of Columbia, the Com19 monwealth of Puerto Rico, the Northern Mariana Is20 lands, the Virgin Islands, Guam, American Samoa, 

21 and any territory or possession of the United States. 

22 SEC. 302. BUSINESS EXPEDITED DISASTER ASSISTANCE 

23 LOAN PROGRAM. 

24 (a) DEFINITIONS.—In this section— 


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

2 means assistance provided during the period begin3 ning on the date on which a disaster declaration is 

4 made and ending on the date that an impacted small 

5 business concern is able to secure funding through 

6 insurance claims, Federal assistance programs, or 

7 other sources; and 

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

9 disaster assistance business loan program estab10 lished under subsection (b); and 

11 (b) CREATION OF PROGRAM.—The Administrator 

12 shall take such administrative action as is necessary to 

13 establish and implement an expedited disaster assistance 

14 business loan program to provide small business concerns 

15 with immediate disaster assistance under section 7(b) of 

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

17 (c) CONSULTATION REQUIRED.—In establishing the 

18 program, the Administrator shall consult with— 

19 (1) appropriate personnel of the Administration 

20 (including District Office personnel of the Adminis21 tration); 

22 (2) appropriate technical assistance providers 

23 (including small business development centers); 

24 (3) appropriate lenders and credit unions; 


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1 (4) the Committee on Small Business and En2 trepreneurship of the Senate; and 

3 (5) the Committee on Small Business of the 

4 House of Representatives. 

5 (d) RULES.— 

6 (1) IN GENERAL.—Not later than 1 year after 

7 the date of enactment of this Act, the Administrator 

8 shall promulgate rules establishing and imple9 menting the program in accordance with this sec10 tion. Such rules shall apply as provided for in this 

11 section, beginning 90 days after their issuance in 

12 final form. 

13 (2) CONTENTS.—The rules promulgated under 

14 paragraph (1) shall— 

15 (A) identify whether appropriate uses of 

16 funds under the program may include— 

17 (i) paying employees; 

18 (ii) paying bills and other financial 

19 obligations; 

20 (iii) making repairs; 

21 (iv) purchasing inventory; 

22 (v) restarting or operating a small 

23 business concern in the community in 

24 which it was conducting operations prior to 

25 the declared disaster, or to a neighboring 


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1 area, county, or parish in the disaster 

2 area; or 

3 (vi) covering additional costs until the 

4 small business concern is able to obtain 

5 funding through insurance claims, Federal 

6 assistance programs, or other sources; and 

7 (B) set the terms and conditions of any 

8 loan made under the program, subject to para9 graph (3). 

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

11 the Administration under this section— 

12 (A) shall be a short-term loan, not to ex13 ceed 180 days, except that the Administrator 

14 may extend such term as the Administrator de15 termines necessary or appropriate on a case-by16 case basis; 

17 (B) shall have an interest rate not to ex18 ceed 1 percentage point above the prime rate of 

19 interest that a private lender may charge; 

20 (C) shall have no prepayment penalty; 

21 (D) may be refinanced as part of any sub22 sequent disaster assistance provided under sec23 tion 7(b) of the Small Business Act; and 


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1 (E) shall be subject to such additional 

2 terms as the Administrator determines nec3 essary or appropriate. 

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

5 months after the date of enactment of this Act, the Ad6 ministrator shall report to the Committee on Small Busi7 ness and Entrepreneurship of the Senate and the Com8 mittee on Small Business of the House of Representatives 

9 on the progress of the Administrator in establishing the 

10 program. 

11 (f) AUTHORIZATION.—There are authorized to be ap12 propriated to the Administrator such sums as are nec13 essary to carry out this section. 

14 SEC. 303. CATASTROPHIC NATIONAL 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 (5), as added by this Act, the following: 

18 ‘‘(6) CATASTROPHIC NATIONAL DISASTERS.— 

19 ‘‘(A) DEFINITION.—In this paragraph the 

20 term ‘catastrophic national disaster’ means a 

21 disaster, natural or other, that the President 

22 determines has caused significant adverse eco23 nomic conditions outside of the geographic 

24 reach of the disaster. 


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1 ‘‘(B) AUTHORIZATION.—The Adminis2 trator may make such loans under this para3 graph (either directly or in cooperation with 

4 banks or other lending institutions through 

5 agreements to participate on an immediate or 

6 deferred basis) as the Administrator determines 

7 appropriate to small business concerns located 

8 anywhere in the United States that are eco9 nomically adversely impacted as a result of a 

10 catastrophic national disaster. 

11 ‘‘(C) LOAN TERMS.—A loan under this 

12 paragraph shall be made on the same terms as 

13 a loan under paragraph (2).’’. 

14 SEC. 304. PUBLIC AWARENESS OF DISASTER DECLARATION 

15 AND APPLICATION PERIODS. 

16 (a) IN GENERAL.—Section 7(b) of the Small Busi17 ness Act (15 U.S.C. 636(b)) is amended by inserting im18 mediately after paragraph (6), as added by this Act, the 

19 following: 

20 ‘‘(7) COORDINATION WITH FEMA.— 

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

22 other provision of law, for any disaster (includ23 ing a catastrophic national disaster) declared 

24 under this subsection or major disaster (as that 

25 term is defined in section 102 of the Robert T. 


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1 Stafford Disaster Relief and Emergency Assist2 ance Act (42 U.S.C. 5122)), the Administrator, 

3 in consultation with the Director of the Federal 

4 Emergency Management Agency, shall ensure, 

5 to the maximum extent practicable, that all ap6 plication periods for disaster relief under this 

7 Act and the Robert T. Stafford Disaster Relief 

8 and Emergency Assistance Act (42 U.S.C. 5121 

9 et seq.) begin on the same date and end on the 

10 same date. 

11 ‘‘(B) DEADLINE EXTENSIONS.—Notwith12 standing any other provision of law— 

13 ‘‘(i) not later than 10 days before the 

14 closing date of an application period for 

15 disaster relief under this Act for any dis16 aster (including a catastrophic national 

17 disaster) declared under this subsection, 

18 the Administrator, in consultation with the 

19 Director of the Federal Emergency Man20 agement Agency, shall notify the Com21 mittee on Small Business and Entrepre22 neurship of the Senate and the Committee 

23 on Small Business of the House of Rep24 resentatives as to whether the AdminisVerDate Aug 31 2005 03:50 Dec 09, 2006 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S4097.IS S4097

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1 trator intends to extend such application 

2 period; and 

3 ‘‘(ii) not later than 10 days before the 

4 closing date of an application period for 

5 disaster relief under the Robert T. Staf6 ford Disaster Relief and Emergency Assist7 ance Act for any major disaster (as that 

8 term is defined in section 102 of the Rob9 ert T. Stafford Disaster Relief and Emer10 gency Assistance Act (42 U.S.C. 5122)) 

11 for which the President has declared a cat12 astrophic national disaster under para13 graph (6), the Director of the Federal 

14 Emergency Management Agency, in con15 sultation with the Administrator, shall no16 tify the Committee on Small Business and 

17 Entrepreneurship of the Senate and the 

18 Committee on Small Business of the 

19 House of Representatives as to whether 

20 the Director intends to extend such appli21 cation period. 

22 ‘‘(8) PUBLIC AWARENESS OF DISASTERS.—If a 

23 disaster (including a catastrophic national disaster) 

24 is declared under this subsection, the Administrator 

25 shall make every effort to communicate through 


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

2 relevant information needed by disaster loan appli3 cants, including— 

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

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

6 such declaration; 

7 ‘‘(C) loan application deadlines related to 

8 such disaster; 

9 ‘‘(D) all relevant contact information for 

10 victim services available through the Adminis11 tration (including links to small business devel12 opment center websites); 

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

14 disaster assistance websites; 

15 ‘‘(F) information on eligibility criteria for 

16 Federal Emergency Management Agency dis17 aster assistance applications, as well as for Ad18 ministration loan programs, including where 

19 such applications can be found; and 

20 ‘‘(G) application materials that clearly 

21 state the function of the Administration as the 

22 Federal source of disaster loans for homeowners 

23 and renters.’’. 

24 (b) COORDINATION OF AGENCIES AND OUTREACH.— 

25 Not later than 90 days after the date of enactment of this 


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1 Act, the Administrator and the Director of the Federal 

2 Emergency Management Agency shall enter into a memo3 randum of understanding that ensures, to the maximum 

4 extent practicable, adequate lodging and transportation 

5 for employees of the Administration, contract employees, 

6 and volunteers during a major disaster, if such staff are 

7 needed to assist businesses, homeowners, or renters in re8 covery. 

9 (c) MARKETING AND OUTREACH.—Not later than 90 

10 days after the date of enactment of this Act, the Adminis11 trator shall create a marketing and outreach plan that— 

12 (1) encourages a proactive approach to the dis13 aster relief efforts of the Administration; 

14 (2) distinguishes between disaster services pro15 vided by the Administration and disaster services 

16 provided by the Federal Emergency Management 

17 Agency, including contact information, application 

18 information, and timelines for submitting applica19 tions, the review of applications, and the disburse20 ment of funds; 

21 (3) describes the different disaster loan pro22 grams of the Administration, including how they are 

23 made available and what eligibility requirements 

24 exist for each loan program; 


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1 (4) provides for regional marketing, focusing on 

2 disasters occurring in each region before the date of 

3 enactment of this Act, and likely scenarios for disas4 ters in each such region; and 

5 (5) ensures that the marketing plan is made 

6 available at small business development centers and 

7 on the website of the Administration. 

8 SEC. 305. CONSISTENCY BETWEEN ADMINISTRATION REGU9 LATIONS AND STANDARD OPERATING PROCE10 DURES. 

11 (a) IN GENERAL.—The Administrator shall, prompt12 ly following the date of enactment of this Act, conduct 

13 a study of whether the standard operating procedures of 

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

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

16 with the regulations of the Administration for admin17 istering the disaster loan program. 

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

19 of enactment of this Act, the Administration shall submit 

20 to Congress a report containing all findings and rec21 ommendations of the study conducted under subsection 

22 (a). 

23 SEC. 306. PROCESSING DISASTER LOANS. 

24 (a) AUTHORITY FOR QUALIFIED PRIVATE CONTRAC25 TORS TO PROCESS DISASTER LOANS.—Section 7(b) of the 


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1 Small Business Act (15 U.S.C. 636(b)) is amended by in2 serting immediately after paragraph (8), as added by this 

3 Act, the following: 

4 ‘‘(9) AUTHORITY FOR QUALIFIED PRIVATE CON5 TRACTORS.— 

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

7 Administrator may enter into an agreement 

8 with a qualified private contractor, as deter9 mined by the Administrator, to process loans 

10 under this subsection in the event of a major 

11 disaster (as defined in section 102 of the Rob12 ert T. Stafford Disaster Relief and Emergency 

13 Assistance Act (42 U.S.C. 5122)) or a cata14 strophic national disaster declared under para15 graph (6), under which the Administrator shall 

16 pay the contractor a fee for each loan proc17 essed. 

18 ‘‘(B) LOAN LOSS VERIFICATION SERV19 ICES.—The Administrator may enter into an 

20 agreement with a qualified lender or loss 

21 verification professional, as determined by the 

22 Administrator, to verify losses for loans under 

23 this subsection in the event of a major disaster 

24 (as defined in section 102 of the Robert T. 

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1 ance Act (42 U.S.C. 5122)) or a catastrophic 

2 national disaster declared under paragraph (6), 

3 under which the Administrator shall pay the 

4 lender or verification professional a fee for each 

5 loan for which such lender or verification pro6 fessional verifies 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 (c) REPORT ON LOAN APPROVAL RATE.— 

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

17 after the date of enactment of this Act, the Adminis18 trator shall submit a report to the Committee on 

19 Small Business and Entrepreneurship of the Senate 

20 and the Committee on Small Business of the House 

21 of Representatives detailing how the Administration 

22 can improve the processing of applications under the 

23 disaster loan program of the Administration. 

24 (2) CONTENTS.—The report submitted under 

25 paragraph (1) shall include— 


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1 (A) recommendations, if any, regarding— 

2 (i) staffing levels during a major dis3 aster; 

4 (ii) how to improve the process for 

5 processing, approving, and disbursing 

6 loans under the disaster loan program of 

7 the Administration, to ensure that the 

8 maximum assistance is provided to victims 

9 in a timely manner; 

10 (iii) the viability of using alternative 

11 methods for assessing the ability of an ap12 plicant to repay a loan, including the credit 

13 score of the applicant on the day before 

14 the date on which the disaster for which 

15 the applicant is seeking assistance was de16 clared; 

17 (iv) methods, if any, for the Adminis18 tration to expedite loss verification and 

19 loan processing of disaster loans during a 

20 major disaster for businesses affected by, 

21 and located in the area for which the 

22 President declared, the major disaster that 

23 are a major source of employment in the 

24 area or are vital to recovery efforts in the 

25 region (including providing debris removal 


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1 services, manufactured housing, or building 

2 materials); 

3 (v) legislative changes, if any, needed 

4 to implement findings from the Adminis5 tration’s Accelerated Disaster Response 

6 Initiative; and 

7 (vi) a description of how the Adminis8 tration plans to integrate and coordinate 

9 the response to a major disaster with the 

10 technical assistance programs of the Ad11 ministration; and 

12 (B) the plans of the Administrator for im13 plementing any recommendation made under 

14 subparagraph (A). 

15 SEC. 307. DEVELOPMENT AND IMPLEMENTATION OF 

16 MAJOR DISASTER RESPONSE PLAN. 

17 (a) IN GENERAL.—Not later than March 15, 2007, 

18 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 catastrophic 

23 national disasters, consistent with this Act and the 

24 amendments made by this Act; and 


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

2 Business and Entrepreneurship of the Senate and 

3 the Committee on Small Business of the House of 

4 Representatives detailing the amendments to the dis5 aster response plan. 

6 (b) CONTENTS.—The amended report required under 

7 subsection (a)(2) shall include— 

8 (1) any updates or modifications made to the 

9 disaster response plan since the report regarding the 

10 disaster response plan submitted on July 14, 2006; 

11 (2) a description of how the Administrator 

12 plans to utilize and integrate District Office per13 sonnel of the Administration in the response to a 

14 major disaster, including information on the utiliza15 tion of personnel for loan processing and loan dis16 bursement; 

17 (3) a description of the disaster scalability 

18 model of the Administration and on what basis or 

19 function the plan is scaled; 

20 (4) a description of how the agency-wide Dis21 aster Oversight Council is structured, which offices 

22 comprise its membership, and whether the Associate 

23 Deputy Administrator for Entrepreneurial Develop24 ment of the Administration is a member; 


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1 (5) a description of how the Administrator 

2 plans to coordinate the disaster efforts of the Ad3 ministration with State and local government offi4 cials, including recommendations on how to better 

5 incorporate State initiatives or programs, such as 

6 State-administered bridge loan programs, into the 

7 disaster response of the Administration; 

8 (6) recommendations, if any, on how the Ad9 ministrator can better coordinate its disaster re10 sponse operations with the operations of other Fed11 eral, State, and local entities; 

12 (7) any surge plan for the system in effect on 

13 or after August 29, 2005 (including surge plans for 

14 loss verification, loan processing, mailroom, cus15 tomer service or call center operations, and a con16 tinuity of operations plan); 

17 (8) the number of full-time equivalent employ18 ees and job descriptions for the planning and dis19 aster response staff of the Administration; 

20 (9) the in-service and preservice training proce21 dures for disaster response staff of the Administra22 tion; 

23 (10) information on the logistical support plans 

24 of the Administration (including equipment and 

25 staffing needs, and detailed information on how such 


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1 plans will be scalable depending on the size and 

2 scope of the major disaster; 

3 (11) a description of the findings and rec4 ommendations of the Administrator, if any, based on 

5 a review of the response of the Administration to 

6 Hurricane Katrina of 2005, Hurricane Rita of 2005, 

7 and Hurricane Wilma of 2005; and 

8 (12) a plan for how the Administrator, in co9 operation with the Director of the Federal Emer10 gency Management Agency, will coordinate the pro11 vision of accommodations and necessary resources 

12 for disaster assistance personnel to effectively per13 form their responsibilities in the aftermath of a 

14 major disaster. 

15 (c) EXERCISES.—Not later than May 31, 2007, the 

16 Administrator shall develop and execute simulation exer17 cises to demonstrate the effectiveness of the amended dis18 aster response plan required under this section. 

19 SEC. 308. CONGRESSIONAL OVERSIGHT. 

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

22 (1) DEFINITION.—In this subsection the term 

23 ‘‘applicable period’’ means the period beginning on 

24 the date on which the President declares a major 

25 disaster and ending on the date that is 30 days after 


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1 the later of the closing date for applications for 

2 physical disaster loans for such disaster and the 

3 closing date for applications for economic injury dis4 aster loans for such disaster. 

5 (2) REPORTING REQUIREMENTS.—Not later 

6 than the fifth business day of each month during the 

7 applicable period for a major disaster, the Adminis8 trator shall provide to the Committee on Small Busi9 ness and Entrepreneurship and the Committee on 

10 Appropriations of the Senate and to the Committee 

11 on Small Business and the Committee on Appropria12 tions of the House of Representatives a report on 

13 the operation of the disaster loan program author14 ized under section 7 of the Small Business Act (15 

15 U.S.C. 636) for such disaster during the preceding 

16 month. 

17 (3) CONTENTS.—Each report under paragraph 

18 (2) shall include— 

19 (A) the daily average lending volume, in 

20 number of loans and dollars, and the percent by 

21 which each category has increased or decreased 

22 since the previous report under paragraph (2); 

23 (B) the weekly average lending volume, in 

24 number of loans and dollars, and the percent by 


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1 which each category has increased or decreased 

2 since the previous report under paragraph (2); 

3 (C) the amount of funding spent over the 

4 month for loans, both in appropriations and 

5 program level, and the percent by which each 

6 category has increased or decreased since the 

7 previous report under paragraph (2); 

8 (D) the amount of funding available for 

9 loans, both in appropriations and program level, 

10 and the percent by which each category has in11 creased or decreased, noting the source of any 

12 additional funding; 

13 (E) an estimate of how long the available 

14 funding for such loans will last, based on the 

15 spending rate; 

16 (F) the amount of funding spent over the 

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

18 and the percent by which each category has in19 creased or decreased since the previous report 

20 under paragraph (2); 

21 (G) the amount of funding spent over the 

22 month for administrative costs, and the percent 

23 by which such spending has increased or de24 creased since the previous report under para25 graph (2); 


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1 (H) the amount of funding available for 

2 salaries and expenses combined, and the per3 cent by which such funding has increased or de4 creased, noting the source of any additional 

5 funding; and 

6 (I) an estimate of how long the available 

7 funding for salaries and expenses will last, 

8 based on the spending rate. 

9 (b) DAILY DISASTER UPDATES TO CONGRESS FOR

10 PRESIDENTIALLY DECLARED DISASTERS.— 

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

12 update period, excluding Federal holidays and week13 ends, the Administration shall provide to the Com14 mittee on Small Business and Entrepreneurship of 

15 the Senate and to the Committee on Small Business 

16 of the House of Representatives a report on the op17 eration of the disaster loan program of the Adminis18 tration for the area in which the President declared 

19 a major disaster or a catastrophic national disaster, 

20 as the case may be. 

21 (2) CONTENTS.—Each report under paragraph 

22 (1) shall include— 

23 (A) the number of Administration staff 

24 performing loan processing, field inspection, 

25 and other duties for the declared disaster, and 


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1 the allocations of such staff in the disaster field 

2 offices, disaster recovery centers, workshops, 

3 and other Administration offices nationwide; 

4 (B) the daily number of applications re5 ceived from applicants in the relevant area, as 

6 well as a breakdown of such figures by State; 

7 (C) the daily number of applications pend8 ing application entry from applicants in the rel9 evant area, as well as a breakdown of such fig10 ures by State; 

11 (D) the daily number of applications with12 drawn by applicants in the relevant area, as 

13 well as a breakdown of such figures by State; 

14 (E) the daily number of applications sum15 marily declined by the Administration from ap16 plicants in the relevant area, as well as a break17 down of such figures by State; 

18 (F) the daily number of applications de19 clined by the Administration from applicants in 

20 the relevant area, as well as a breakdown of 

21 such figures by State; 

22 (G) the daily number of applications in 

23 process from applicants in the relevant area, as 

24 well as a breakdown of such figures by State; 


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1 (H) the daily number of applications ap2 proved by the Administration from applicants in 

3 the relevant area, as well as a breakdown of 

4 such figures by State; 

5 (I) the daily dollar amount of applications 

6 approved by the Administration from applicants 

7 in the relevant area, as well as a breakdown of 

8 such figures by State; 

9 (J) the daily amount of loans dispersed, 

10 both partially and fully, by the Administration 

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

12 breakdown of such figures by State; 

13 (K) the daily dollar amount of loans dis14 persed, both partially and fully, from the rel15 evant area, as well as a breakdown of such fig16 ures by State; 

17 (L) the number of applications approved, 

18 including dollar amount approved, as well as 

19 applications partially and fully dispersed, in20 cluding dollar amounts, since the last report 

21 under paragraph (1); and 

22 (M) the declaration date, physical damage 

23 closing date, economic injury closing date, and 

24 number of counties included in the declaration 

25 of a major disaster. 


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1 (c) NOTICE OF THE NEED FOR SUPPLEMENTAL

2 FUNDS.—On the same date that the Administrator noti3 fies any committee of the Senate or the House of Rep4 resentatives that supplemental funding is necessary for 

5 the disaster loan program of the Administration in any 

6 fiscal year, the Administrator shall notify in writing the 

7 Committee on Small Business and Entrepreneurship of 

8 the Senate and to the Committee on Small Business of 

9 the House of Representatives regarding the need for sup10 plemental funds for such loan program. 

11 (d) REPORT ON CONTRACTING.— 

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

13 after the date on which the President declares a de14 clared disaster, and every 6 months thereafter until 

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

16 the declared disaster was declared, the Adminis17 trator shall submit a report to the Committee on 

18 Small Business and Entrepreneurship of the Senate 

19 and to the Committee on Small Business of the 

20 House of Representatives regarding Federal con21 tracts awarded as a result of the declared disaster. 

22 (2) CONTENTS.—Each report submitted under 

23 paragraph (1) shall include— 

24 (A) the total number of contracts awarded 

25 as a result of the declared disaster; 


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1 (B) the total number of contracts awarded 

2 to small business concerns as a result of the de3 clared disaster; 

4 (C) the total number of contracts awarded 

5 to women and minority-owned businesses as a 

6 result of the declared disaster; and 

7 (D) the total number of contracts awarded 

8 to local businesses as a result of the declared 

9 disaster. 

10 TITLE IV—ENERGY 

11 EMERGENCIES 

12 SEC. 401. FINDINGS. 

13 Congress finds that— 

14 (1) a significant number of small business con15 cerns in the United States, nonfarm as well as agri16 cultural producers, use heating oil, natural gas, pro17 pane, or kerosene to heat their facilities and for 

18 other purposes; 

19 (2) a significant number of small business con20 cerns in the United States sell, distribute, market, 

21 or otherwise engage in commerce directly related to 

22 heating oil, natural gas, propane, and kerosene; and 

23 (3) significant increases in the price of heating 

24 oil, natural gas, propane, or kerosene— 


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1 (A) disproportionately harm small business 

2 concerns dependent on those fuels or that use, 

3 sell, or distribute those fuels in the ordinary 

4 course of their business, and can cause them 

5 substantial economic injury; 

6 (B) can negatively affect the national econ7 omy and regional economies; 

8 (C) have occurred in the winters of 1983 

9 to 1984, 1988 to 1989, 1996 to 1997, 1999 to 

10 2000, 2000 to 2001, and 2004 to 2005; and 

11 (D) can be caused by a host of factors, in12 cluding international conflicts, global or re13 gional supply difficulties, weather conditions, 

14 insufficient inventories, refinery capacity, trans15 portation, and competitive structures in the 

16 markets, causes that are often unforeseeable to, 

17 and beyond the control of, those who own and 

18 operate small business concerns. 

19 SEC. 402. SMALL BUSINESS ENERGY EMERGENCY DISASTER 

20 LOAN PROGRAM. 

21 (a) IN GENERAL.—Section 7(b) of the Small Busi22 ness Act (15 U.S.C. 636(b)) is amended by inserting after 

23 paragraph (9), as added by this Act, the following: 

24 ‘‘(10) ENERGY EMERGENCIES.— 

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


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1 ‘‘(i) the term ‘base price index’ means 

2 the moving average of the closing unit 

3 price on the New York Mercantile Ex4 change for heating oil, natural gas, or pro5 pane for the 10 days, in each of the most 

6 recent 2 preceding years, which correspond 

7 to the trading days described in clause (ii); 

8 ‘‘(ii) the term ‘current price index’ 

9 means the moving average of the closing 

10 unit price on the New York Mercantile Ex11 change, for the 10 most recent trading 

12 days, for contracts to purchase heating oil, 

13 natural gas, or propane during the subse14 quent calendar month, commonly known as 

15 the ‘front month’; 

16 ‘‘(iii) the term ‘heating fuel’ means 

17 heating oil, natural gas, propane, or ker18 osene; and 

19 ‘‘(iv) the term ‘significant increase’ 

20 means— 

21 ‘‘(I) with respect to the price of 

22 heating oil, natural gas, or propane, 

23 any time the current price index ex24 ceeds the base price index by not less 

25 than 40 percent; and 


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1 ‘‘(II) with respect to the price of 

2 kerosene, any increase which the Ad3 ministrator, in consultation with the 

4 Secretary of Energy, determines to be 

5 significant. 

6 ‘‘(B) AUTHORIZATION.—The Administra7 tion may make such loans, either directly or in 

8 cooperation with banks or other lending institu9 tions through agreements to participate on an 

10 immediate or deferred basis, to assist a small 

11 business concern that has suffered or that is 

12 likely to suffer substantial economic injury as 

13 the result of a significant increase in the price 

14 of heating fuel occurring on or after October 1, 

15 2004. 

16 ‘‘(C) INTEREST RATE.—Any loan or guar17 antee extended under this paragraph shall be 

18 made at the same interest rate as economic in19 jury loans under paragraph (2). 

20 ‘‘(D) MAXIMUM AMOUNT.—No loan may 

21 be made under this paragraph, either directly 

22 or in cooperation with banks or other lending 

23 institutions through agreements to participate 

24 on an immediate or deferred basis, if the total 

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1 rower under this subsection would exceed 

2 $1,500,000, unless such borrower constitutes a 

3 major source of employment in its surrounding 

4 area, as determined by the Administrator, in 

5 which case the Administrator, in the discretion 

6 of the Administrator, may waive the $1,500,000 

7 limitation. 

8 ‘‘(E) DECLARATIONS.—For purposes of 

9 assistance under this paragraph— 

10 ‘‘(i) a declaration of a disaster area 

11 based on conditions specified in this para12 graph shall be required, and shall be made 

13 by the President or the Administrator; or 

14 ‘‘(ii) if no declaration has been made 

15 under clause (i), the Governor of a State 

16 in which a significant increase in the price 

17 of heating fuel has occurred may certify to 

18 the Administration that small business 

19 concerns have suffered economic injury as 

20 a result of such increase and are in need 

21 of financial assistance which is not other22 wise available on reasonable terms in that 

23 State, and upon receipt of such certifi24 cation, the Administration may make such 

25 loans as would have been available under 


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1 this paragraph if a disaster declaration 

2 had been issued. 

3 ‘‘(F) USE OF FUNDS.—Notwithstanding 

4 any other provision of law, loans made under 

5 this paragraph may be used by a small business 

6 concern described in subparagraph (B) to con7 vert from the use of heating fuel to a renewable 

8 or alternative energy source, including agri9 culture and urban waste, geothermal energy, co10 generation, solar energy, wind energy, or fuel 

11 cells.’’. 

12 (b) CONFORMING AMENDMENTS RELATING TO

13 HEATING FUEL.—Section 3(k) of the Small Business Act 

14 (15 U.S.C. 632(k)) is amended— 

15 (1) by inserting ‘‘, significant increase in the 

16 price of heating fuel’’ after ‘‘civil disorders’’; and 

17 (2) by inserting ‘‘other’’ before ‘‘economic’’. 

18 (c) EFFECTIVE PERIOD.—The amendments made by 

19 this section shall apply during the 4-year period beginning 

20 on the date on which guidelines are published by the Ad21 ministrator under section 404. 

22 SEC. 403. AGRICULTURAL PRODUCER EMERGENCY LOANS. 

23 (a) IN GENERAL.—Section 321(a) of the Consoli24 dated Farm and Rural Development Act (7 U.S.C. 

25 1961(a)) is amended— 


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1 (1) in the first sentence— 

2 (A) by striking ‘‘operations have’’ and in3 serting ‘‘operations (i) have’’; and 

4 (B) by inserting before ‘‘: Provided,’’ the 

5 following: ‘‘, or (ii)(I) are owned or operated by 

6 such an applicant that is also a small business 

7 concern (as defined in section 3 of the Small 

8 Business Act (15 U.S.C. 632)), and (II) have 

9 suffered or are likely to suffer substantial eco10 nomic injury on or after October 1, 2004, as 

11 the result of a significant increase in energy 

12 costs or input costs from energy sources occur13 ring on or after October 1, 2004, in connection 

14 with an energy emergency declared by the 

15 President or the Secretary’’; 

16 (2) in the third sentence, by inserting before 

17 the period at the end the following: ‘‘or by an energy 

18 emergency declared by the President or the Sec19 retary’’; and 

20 (3) in the fourth sentence— 

21 (A) by inserting ‘‘or energy emergency’’ 

22 after ‘‘natural disaster’’ each place that term 

23 appears; and 

24 (B) by inserting ‘‘or declaration’’ after 

25 ‘‘emergency designation’’. 


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1 (b) FUNDING.—Funds available on the date of enact2 ment of this Act for emergency loans under subtitle C of 

3 the Consolidated Farm and Rural Development Act (7 

4 U.S.C. 1961 et seq.) shall be available to carry out the 

5 amendments made by subsection (a) to meet the needs re6 sulting from energy emergencies. 

7 (c) EFFECTIVE PERIOD.—The amendments made by 

8 this section shall apply during the 4-year period beginning 

9 on the date on which guidelines are published by the Sec10 retary of Agriculture under section 404. 

11 SEC. 404. GUIDELINES AND RULEMAKING. 

12 (a) GUIDELINES.—Not later than 30 days after the 

13 date of enactment of this Act, the Administrator and the 

14 Secretary of Agriculture shall each issue such guidelines 

15 as the Administrator or the Secretary, as applicable, de16 termines to be necessary to carry out this title and the 

17 amendments made by this title. 

18 (b) RULEMAKING.—Not later than 30 days after the 

19 date of enactment of this Act, the Administrator, after 

20 consultation with the Secretary of Energy, shall promul21 gate regulations specifying the method for determining a 

22 significant increase in the price of kerosene under section 

23 7(b)(10)(A)(iv)(II) of the Small Business Act, as added 

24 by this Act. 


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1 SEC. 405. REPORTS. 

2 (a) SMALL BUSINESS ADMINISTRATION.—Not later 

3 than 12 months after the date on which the Administrator 

4 issues guidelines under section 404, and annually there5 after until the date that is 12 months after the end of 

6 the effective period of section 7(b)(10) of the Small Busi7 ness Act, as added by this Act, the Administrator shall 

8 submit to the Committee on Small Business and Entrepre9 neurship of the Senate and the Committee on Small Busi10 ness of the House of Representatives, a report on the ef11 fectiveness of the assistance made available under section 

12 7(b)(10) of the Small Business Act, as added by this Act, 

13 including— 

14 (1) the number of small business concerns that 

15 applied for a loan under such section and the num16 ber of those that received such loans; 

17 (2) the dollar value of those loans; 

18 (3) the States in which the small business con19 cerns that received such loans are located; 

20 (4) the type of heating fuel or energy that 

21 caused the significant increase in the cost for the 

22 participating small business concerns; and 

23 (5) recommendations for ways to improve the 

24 assistance provided under such section 7(b)(10), if 

25 any. 


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1 (b) DEPARTMENT OF AGRICULTURE.—Not later than 

2 12 months after the date on which the Secretary of Agri3 culture issues guidelines under section 404, and annually 

4 thereafter until the date that is 12 months after the end 

5 of the effective period of the amendments made to section 

6 321(a) of the Consolidated Farm and Rural Development 

7 Act (7 U.S.C. 1961(a)) by this title, the Secretary shall 

8 submit to the Committee on Small Business and Entrepre9 neurship and the Committee on Agriculture, Nutrition, 

10 and Forestry of the Senate and the Committee on Small 

11 Business and the Committee on Agriculture of the House 

12 of Representatives, a report that— 

13 (1) describes the effectiveness of the assistance 

14 made available under section 321(a) of the Consoli15 dated Farm and Rural Development Act (7 U.S.C. 

16 1961(a)); and 

17 (2) contains recommendations for ways to im18 prove the assistance provided under such section 

19 321(a), if any. 

Æ 


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