II 

111TH CONGRESS 

1ST SESSION S. 2731 

To improve disaster assistance provided by the Small Business 

Administration, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 5, 2009 

Ms. LANDRIEU (for herself and Mr. NELSON of Florida) introduced the following bill; which was read twice and referred to the Committee on Small 

Business and Entrepreneurship 

A BILL 

To improve disaster assistance provided by 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. 

4 This Act may be cited as the ‘‘Small Business Admin5 istration Disaster Recovery and Reform Act of 2009’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 

8 (1) the terms ‘‘Administration’’ and ‘‘Adminis9 trator’’ mean the Small Business Administration 

10 and the Administrator thereof, respectively; 


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1 (2) the term ‘‘approved State Bridge Loan Pro2 gram’’ means a State Bridge Loan Program ap3 proved under section 203(b); 

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

5 meaning given that term under section 3 of the 

6 Small Business Act; and 

7 (4) the term ‘‘State’’ means any State of the 

8 United States, the District of Columbia, the Com9 monwealth of Puerto Rico, the Northern Mariana Is10 lands, the Virgin Islands, Guam, American Samoa, 

11 and any territory or possession of the United States. 

12 SEC. 3. TABLE OF CONTENTS. 

13 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Definitions. 

Sec. 3. Table of contents. 

TITLE I—GULF COAST RECOVERY AND ASSISTANCE FOR HOMEOWNERS IMPACTED BY DRYWALL MANUFACTURED IN THE 

PEOPLE’S REPUBLIC OF CHINA 

Sec. 101. Report on the Gulf Coast Disaster Loan Refinancing Program. 

Sec. 102. Extension of participation term for victims of Hurricane Katrina or 

Hurricane Rita. 

Sec. 103. Assistance for homeowners impacted by drywall manufactured in the 

People’s Republic of China. 

TITLE II—IMPROVEMENTS TO ADMINISTRATION DISASTER 

ASSISTANCE PROGRAMS 

Sec. 201. Improvements to the Pioneer Business Recovery Program. 

Sec. 202. Increased limits. 

Sec. 203. State bridge loan guarantee. 

Sec. 204. Modified collateral requirements. 

Sec. 205. Aquaculture business disaster assistance. 

Sec. 206. Regional outreach on disaster assistance programs. 

Sec. 207. Duplication of benefits. 

Sec. 208. Administration coordination on economic injury disaster declarations. 

Sec. 209. Coordination between Small Business Administration and Department of Agriculture disaster programs. 

Sec. 210. Technical and conforming amendment. 


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1 TITLE I—GULF COAST RECOV2 ERY AND ASSISTANCE FOR 

3 HOMEOWNERS IMPACTED BY 

4 DRYWALL MANUFACTURED 

5 IN THE PEOPLE’S REPUBLIC 

6 OF CHINA 

7 SEC. 101. REPORT ON THE GULF COAST DISASTER LOAN 

8 REFINANCING PROGRAM. 

9 Section 12086 of the Food, Conservation, and En10 ergy Act of 2008 (Public Law 110–246; 122 Stat. 2184) 

11 is amended by adding at the end the following: 

12 ‘‘(g) REPORT TO CONGRESS.— 

13 ‘‘(1) IN GENERAL.—Not later than 30 days 

14 after the date of enactment of this subsection, the 

15 Administrator shall submit to the Committee on 

16 Small Business and Entrepreneurship of the Senate 

17 and the Committee on Small Business of the House 

18 of Representatives a report making recommenda19 tions regarding improvements to the program. 

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

21 (1) may include recommendations relating to— 

22 ‘‘(A) modifying the end of the deferment 

23 date of Gulf Coast disaster loans; 


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1 ‘‘(B) reducing interest payments on Gulf 

2 Coast disaster loans, subject to the availability 

3 of appropriations; 

4 ‘‘(C) extending the term of Gulf Coast dis5 aster loans to 35 years; and 

6 ‘‘(D) any other modification to the pro7 gram determined appropriate by the Adminis8 trator.’’. 

9 SEC. 102. EXTENSION OF PARTICIPATION TERM FOR VIC10 TIMS OF HURRICANE KATRINA OR HURRI11 CANE RITA. 

12 (a) RETROACTIVITY.—If a small business concern, 

13 while participating in any program or activity under the 

14 authority of paragraph (10) of section 7(j) of the Small 

15 Business Act (15 U.S.C. 636(j)), was located in a parish 

16 or county described in subsection (b) of this section and 

17 was affected by Hurricane Katrina of 2005 or Hurricane 

18 Rita of 2005, the period during which that small business 

19 concern is permitted continuing participation and eligi20 bility in that program or activity shall be extended for 24 

21 months after the date such participation and eligibility 

22 would otherwise terminate. 

23 (b) PARISHES AND COUNTIES COVERED.—Sub24 section (a) applies to any parish in the State of Louisiana, 

25 or any county in the State of Mississippi or in the State 


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1 of Alabama, that has been designated by the Adminis2 trator as a disaster area by reason of Hurricane Katrina 

3 of 2005 or Hurricane Rita of 2005 under disaster declara4 tion 10176, 10177, 10178, 10179, 10180, 10181, 10205, 

5 or 10206. 

6 (c) REVIEW AND COMPLIANCE.—The Administrator 

7 shall ensure that the case of every small business concern 

8 participating before the date of enactment of this Act in 

9 a program or activity covered by subsection (a) is reviewed 

10 and brought into compliance with this section. 

11 SEC. 103. ASSISTANCE FOR HOMEOWNERS IMPACTED BY 

12 DRYWALL MANUFACTURED IN THE PEOPLE’S 

13 REPUBLIC OF CHINA. 

14 (a) DEFINITIONS.—In this section, the term ‘‘defec15 tive drywall’’ means drywall board that the Administrator 

16 determines— 

17 (1) was manufactured in the People’s Republic 

18 of China; 

19 (2) was imported into the United States during 

20 the period beginning on January 1, 2004, and end21 ing on December 31, 2008; and 

22 (3) is directly responsible for substantial metal 

23 corrosion or other property damage in the dwelling 

24 in which the drywall is installed. 


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1 (b) DISASTER ASSISTANCE FOR HOMEOWNERS IM2 PACTED BY DEFECTIVE DRYWALL.— 

3 (1) IN GENERAL.—The Administrator may, 

4 upon request by a Governor that has declared a dis5 aster as a result of property loss or damage as a re6 sult of defective drywall, declare a disaster under 

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

8 636(b)) relating to the defective drywall. 

9 (2) USES.—Assistance under a disaster de10 clared under paragraph (1) may be used only for the 

11 repair or replacement of defective drywall. 

12 (3) LIMITATION.—Assistance under a disaster 

13 declared under paragraph (1) may not— 

14 (A) provide compensation for losses or 

15 damage compensated for by insurance or other 

16 sources; and 

17 (B) exceed more than 25 percent of the 

18 funds appropriated to the Administration for 

19 disaster assistance during any fiscal year. 


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1 TITLE II—IMPROVEMENTS TO 

2 ADMINISTRATION DISASTER 

3 ASSISTANCE PROGRAMS 

4 SEC. 201. IMPROVEMENTS TO THE PIONEER BUSINESS RE5 COVERY PROGRAM. 

6 (a) IN GENERAL.—Section 12085 of the Food, Con7 servation, and Energy Act of 2008 (15 U.S.C. 636j) is 

8 amended— 

9 (1) in the section heading, by striking ‘‘EXPE10 DITED DISASTER ASSISTANCE LOAN PRO11 GRAM’’ and inserting ‘‘PIONEER BUSINESS RE12 COVERY PROGRAM’’; 

13 (2) by striking ‘‘expedited disaster assistance 

14 business loan program’’ each place it appears and 

15 inserting ‘‘Pioneer Business Recovery Program’’; 

16 (3) in subsection (b) by striking ‘‘paragraph 

17 (9)’’ and all that follows and inserting ‘‘section 7(b) 

18 of the Small Business Act (15 U.S.C. 636(b)).’’; and 

19 (4) in subsection (d)(3)(A), by striking 

20 ‘‘$150,000’’ and inserting ‘‘$250,000’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

22 The table of contents in section 1(b) of the Food, Con23 servation, and Energy Act of 2008 (Public Law 110–246; 


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1 122 Stat. 1651) is amended by striking the item relating 

2 to section 12085 and inserting the following: 

‘‘Sec. 12085. Pioneer Business Recovery Program.’’. 

3 SEC. 202. INCREASED LIMITS. 

4 Section 7 of the Small Business Act (15 U.S.C. 636) 

5 is amended— 

6 (1) in subsection (d)(6)— 

7 (A) by striking ‘‘$100,000’’ and inserting 

8 ‘‘$400,000’’; and 

9 (B) by striking ‘‘$20,000’’ and inserting 

10 ‘‘$80,000’’; 

11 (2) by striking ‘‘(e) [RESERVED].’’; and 

12 (3) by striking ‘‘(f) [RESERVED].’’. 

13 SEC. 203. STATE BRIDGE LOAN GUARANTEE. 

14 (a) AUTHORIZATION.—After issuing guidelines under 

15 subsection (c), the Administrator may guarantee loans 

16 made under an approved State Bridge Loan Program. 

17 (b) APPROVAL.— 

18 (1) APPLICATION.—A State desiring approval 

19 of a State Bridge Loan Program shall submit an ap20 plication to the Administrator at such time, in such 

21 manner, and accompanied by such information as 

22 the Administrator may require. 

23 (2) CRITERIA.—The Administrator may ap24 prove an application submitted under paragraph (1) 


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1 based on such criteria as the Administrator may es2 tablish under this section. 

3 (c) GUIDELINES.— 

4 (1) IN GENERAL.—Not later than 180 days 

5 after the date of enactment of this Act, the Adminis6 trator shall issue to the appropriate economic devel7 opment officials in each State, the Committee on 

8 Small Business and Entrepreneurship of the Senate, 

9 and the Committee on Small Business of the House 

10 of Representatives, guidelines regarding approved 

11 State Bridge Loan Programs. 

12 (2) CONTENTS.—The guidelines issued under 

13 paragraph (1) shall— 

14 (A) identify appropriate uses of funds 

15 under an approved State Bridge loan Program; 

16 (B) set terms and conditions for loans 

17 under an approved State Bridge loan Program; 

18 (C) address whether— 

19 (i) an approved State Bridge Loan 

20 Program may charge administrative fees; 

21 and 

22 (ii) loans under an approved State 

23 Bridge Loan Program shall be disbursed 

24 through local banks and other financial in25 stitutions; and 


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1 (D) establish the percentage of a loan the 

2 Administrator will guarantee under an approved 

3 State Bridge Loan Program. 

4 SEC. 204. MODIFIED COLLATERAL REQUIREMENTS. 

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

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

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

8 Provided further, That the Administrator shall not require 

9 collateral for a loan of not more than $200,000 under 

10 paragraph (1) or (2) of subsection (b) relating to damage 

11 to or destruction of property of, or economic injury to, 

12 a small business concern’’. 

13 SEC. 205. AQUACULTURE BUSINESS DISASTER ASSISTANCE. 

14 Section 18(b)(1) of the Small Business Act (15 

15 U.S.C. 647(b)(1)) is amended— 

16 (1) by striking ‘‘aquaculture,’’; and 

17 (2) by inserting before the semicolon ‘‘, and 

18 does not include aquaculture’’. 

19 SEC. 206. REGIONAL OUTREACH ON DISASTER ASSISTANCE 

20 PROGRAMS. 

21 (a) REPORT.—In accordance with sections 7(b)(4) 

22 and 40(a) of the Small Business Act (15 U.S.C. 636(b)(4) 

23 and 657l(a)) and not later than 60 days after the date 

24 of enactment of this Act, the Administrator shall submit 

25 to the Committee on Small Business and EntrepreneurVerDate Nov 24 2008 05:58 Nov 06, 2009 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2731.IS S2731

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1 ship of the Senate and the Committee on Small Business 

2 of the House of Representatives, a report detailing— 

3 (1) information on the disasters, manmade or 

4 natural, most likely to occur in each region of the 

5 Administration and likely scenarios for each disaster 

6 in each region; 

7 (2) information on plans of the Administration, 

8 if any, to conduct annual disaster outreach semi9 nars, including events with resource partners of the 

10 Administration, in each region before periods of pre11 dictable disasters described in paragraph (1); 

12 (3) information on plans of the Administration 

13 for satisfying the requirements under section 40(a) 

14 of the Small Business Act not satisfied on the date 

15 of enactment of this Act; and 

16 (4) such additional information as determined 

17 necessary by the Administrator. 

18 (b) AVAILABILITY OF INFORMATION.—The Adminis19 trator shall— 

20 (1) post the disaster information provided 

21 under subsection (a) on the website of the Adminis22 tration; and 

23 (2) make the information provided under sub24 section (a) available, upon request, at each regional 

25 and district office of the Administration. 


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1 SEC. 207. DUPLICATION OF BENEFITS. 

2 (a) FINDINGS.—Congress finds the following: 

3 (1) Section 312 of the Robert T. Stafford Dis4 aster Relief and Emergency Assistance Act (42 

5 U.S.C. 5155) states the following: 

6 (A) ‘‘The President, in consultation with 

7 the head of each Federal agency administering 

8 any program providing financial assistance to 

9 persons, business concerns, or other emergency, 

10 shall assure that no such person, business con11 cern, or other entity will receive such assistance 

12 with respect to any part of such loss as to 

13 which he has received financial assistance under 

14 any other program or from insurance or any 

15 other source.’’. 

16 (B) ‘‘Receipt of partial benefits for a 

17 major disaster or emergency shall not preclude 

18 provision of additional Federal assistance for 

19 any part of a loss or need for which benefits 

20 have not been provided.’’. 

21 (C) A recipient of Federal assistance will 

22 be liable to the United States ‘‘to the extent 

23 that such assistance duplicates benefits avail24 able to the person for the same purpose from 

25 another source.’’. 


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1 (2) The Administrator should make every effort 

2 to ensure that disaster recovery needs unmet by 

3 Federal and private sources are not overlooked in 

4 determining duplication of benefits for disaster vic5 tims. 

6 (b) REVISED DUPLICATION OF BENEFITS CALCULA7 TIONS.—The Administrator may, after consultation with 

8 other relevant Federal agencies, determine whether bene9 fits are duplicated after a person receiving assistance 

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

11 636(b)) receives other Federal disaster assistance by a dis12 aster victim. 

13 SEC. 208. ADMINISTRATION COORDINATION ON ECONOMIC 

14 INJURY DISASTER DECLARATIONS. 

15 Not later than 180 days after the date of enactment 

16 of this Act, the Administrator shall submit to the Com17 mittee on Small Business and Entrepreneurship of the 

18 Senate and the Committee on Small Business of the 

19 House of Representatives, a report providing— 

20 (1) information on economic injury disaster 

21 declarations under section 7(b)(2) of the Small Busi22 ness Act (15 U.S.C. 636(b)(2)) made by the Admin23 istrator during the 10-year period ending on the 

24 date of enactment of this Act based on a natural 

25 disaster declaration by the Secretary of Agriculture; 


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1 (2) information on economic injury disaster 

2 declarations under section 7(b)(2) of the Small Busi3 ness Act (15 U.S.C. 636(b)(2)) made by the Admin4 istrator during the 10-year period ending on the 

5 date of enactment of this Act based on a fishery re6 source disaster declaration from the Secretary of 

7 Commerce; 

8 (3) information on whether the disaster re9 sponse plan of the Administration under section 40 

10 of the Small Business Act (15 U.S.C. 657l) ade11 quately addresses coordination with the Secretary of 

12 Agriculture and the Secretary of Commerce on eco13 nomic injury disaster assistance under section 

14 7(b)(2) of the Small Business Act (15 U.S.C. 

15 636(b)(2)); 

16 (4) recommended legislative changes, if any, for 

17 improving agency coordination on economic injury 

18 disaster declarations under section 7(b)(2) of the 

19 Small Business Act (15 U.S.C. 636(b)(2)); and 

20 (5) such additional information as determined 

21 necessary by the Administrator. 

22 SEC. 209. COORDINATION BETWEEN SMALL BUSINESS AD23 MINISTRATION AND DEPARTMENT OF AGRI24 CULTURE DISASTER PROGRAMS. 

25 (a) DEFINITIONS.—In this section— 


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1 (1) the term ‘‘agricultural small business con2 cern’’ means a small business concern that is an ag3 ricultural enterprise, as defined in section 18(b)(1) 

4 of the Small Business Act (15 U.S.C. 647(b)(1)), as 

5 amended by this Act; and 

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

7 means a small business concern located in a rural 

8 area, as that term is defined in section 1393(a)(2) 

9 of the Internal Revenue Code of 1986. 

10 (b) REPORT.—Not later than 120 days after the date 

11 of enactment of this Act, the Administrator, in consulta12 tion with the Secretary of Agriculture, shall submit to the 

13 Committee on Small Business and Entrepreneurship of 

14 the Senate and the Committee on Small Business of the 

15 House of Representatives, a report detailing— 

16 (1) information on disaster assistance programs 

17 of the Administration for rural small business con18 cerns and agricultural small business concerns; 

19 (2) information on industries or small business 

20 concerns excluded from programs described in para21 graph (1); 

22 (3) information on disaster assistance programs 

23 of the Department of Agriculture to rural small 

24 business concerns and agricultural small business 

25 concerns; 


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1 (4) information on industries or small business 

2 concerns excluded from programs described in para3 graph (3); 

4 (5) information on disaster assistance programs 

5 of the Administration that are duplicative of disaster 

6 assistance programs of the Department of Agri7 culture; 

8 (6) information on coordination between the 

9 two agencies on implementation of disaster assist10 ance provisions of the Food, Conservation, and En11 ergy Act of 2008 (Public Law 110–246; 122 Stat. 

12 1651), and the amendments made by that Act; 

13 (7) recommended legislative or administrative 

14 changes, if any, for improving coordination of dis15 aster assistance programs, in particular relating to 

16 removing gaps in eligibility for disaster assistance 

17 programs by rural small business concerns and agri18 cultural small business concerns; and 

19 (8) such additional information as determined 

20 necessary by the Administrator. 

21 SEC. 210. TECHNICAL AND CONFORMING AMENDMENT. 

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

23 636(b)) is amended in the matter following paragraph (9), 

24 by striking ‘‘section 312(a) of the Disaster Relief and 

25 Emergency Assistance Act’’ and inserting ‘‘section 312(a) 


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1 of the Robert T. Stafford Disaster Relief and Emergency 

2 Assistance Act (42 U.S.C. 5155(a))’’. 

Æ 


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