Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015

To require the Administrator of the Small Business Administration to establish a program to make loans to certain businesses, homeowners, and renters affected by Superstorm Sandy. 1. Short title This Act may be cited as the Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015 2. Findings Congress finds the following: (1) In 2012, Superstorm Sandy caused substantial physical and economic damage to the United States, and New York in particular. (2) For businesses and homeowners, the primary means of obtaining long-term Federal financial assistance in the wake of disasters such as Superstorm Sandy is through the Small Business Administration’s Disaster Loan Program. (3) With regard to the Small Business Administration’s operation of the Disaster Loan Program after Superstorm Sandy, the Government Accountability Office found that the Administration did not meet its timeliness goals for processing business loan applications. (4) According to the Government Accountability Office, the Small Business Administration stated that it was challenged by an unexpectedly high volume of loan applications that it received early in its response to Superstorm Sandy. (5) As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing from the Small Business Administration. 3. Revised disaster deadline Section 7(d) of the Small Business Act ( 15 U.S.C. 636(d) (8) Disaster loans for Superstorm Sandy (A) In general Notwithstanding any other provision of law, and subject to the same requirements and procedures that are used to make loans pursuant to subsection (b), a small business concern, homeowner, or renter that was located within an area and during the time period with respect to which a major disaster was declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 (i) for a loan to repair, rehabilitate, or replace property damaged or destroyed by reason of Superstorm Sandy; or (ii) if such a small business concern has suffered substantial economic injury by reason of Superstorm Sandy, for a loan to assist such a small business concern. (B) Timing The Administrator shall select loan recipients and make available loans for a period of not less than 1 year after the date on which the Administrator carries out this authority. . 4. Use of physical damage disaster loans to construct safe rooms Section 7(b)(1)(A) of the Small Business Act ( 15 U.S.C. 636(b)(1)(A) mitigating measures modifying structures mitigating measures, including— (i) construction of retaining walls and sea walls; (ii) grading and contouring land; and (iii) relocating utilities and modifying structures, including construction of a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters . 5. Collateral requirements for small business concerns Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (10) Collateral requirements for small businesses In the case of a loan made pursuant to this subsection in an amount not greater than $250,000, the Administrator may not require a borrower to pledge his or her primary residence as collateral if— (A) other collateral exists, including assets related to the operation of a business; and (B) such an option does not delay the Administrator’s processing of disaster applications for a disaster. . 6. Reducing delays on closing and disbursement of loans Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (11) Reducing closing and disbursement delays The Administrator shall provide a clear and concise notification on all application materials for loans made under this subsection and on relevant websites notifying an applicant that the applicant may submit all documentation necessary for the approval of the loan at the time of application and that failure to submit all documentation could delay the approval and disbursement of the loan. . 7. Increasing transparency in loan approvals Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (12) Increasing transparency in loan approvals The Administrator shall establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a loan made under this subsection. . 8. Safeguarding taxpayers’ interests Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (13) Ensuring accountability in loan approvals The Administrator shall establish requirements for the approval of economic injury disaster loan assistance made available pursuant to paragraph (2), which shall include the review of applicant eligibility and shall require that all supporting documentation is submitted prior to loan approval. The Administrator shall require that personnel involved in the approval of such loans be trained on such procedures. . 9. Disaster performance measures Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (14) Reporting on disaster performance measures The Administrator shall report the average processing time for all other disaster loan applications, including disaggregated data on disaster loan applications that were declined by the Administration’s automated disaster processing system and applications in which the Administrator performed loss verification. For each disaster described in paragraph (2), the Administrator shall report such average processing times on its website and to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate. . 10. Disaster plan improvements The Administrator of the Small Business Administration shall revise the comprehensive written disaster response plan required in section 40 of the Small Business Act ( 15 U.S.C. 657l 11. Report to Congress on implementation of certain programs (a) Initial report The Administrator of the Small Business Administration shall report to Congress not later than 30 days after the date of enactment of this Act on the implementation and status of the private disaster loan program established in section 7(c) of the Small Business Act ( 15 U.S.C. 636(c) 15 U.S.C. 657n 15 U.S.C. 636j (b) Required consultation with depository institutions and credit unions The Administrator shall require the Associate Administrator for the Office of Disaster Assistance to consult with depository institutions (as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 (c) Report on consultation Not later than 6 months after the date of enactment of this Act, the Administrator shall report to Congress on the consultation required under subsection (b).

Summary: Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015 (Sec. 3) This bill amends the Small Business Act to authorize a small business, homeowner, nonprofit entity, or renter that was located within a declared major disaster area during Superstorm Sandy in 2012 to apply for a Small Business Administration (SBA) loan to: (1) repair, rehabilitate, or replace property damaged or destroyed because of the storm; or (2) assist a small business that suffered substantial economic injury because of it. The SBA must select loan recipients and make such loans available for at least one year after the date on which it begins carrying out this authority. The SBA Inspector General must review the controls for ensuring applicant eligibility for these loans. (Sec. 4) SBA physical disaster loans may be used to construct a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters, if they are constructed in accordance with applicable standards issued by the Federal Emergency Management Agency (FEMA). (Sec. 5) The SBA shall make a clear and concise notification on all application materials for SBA disaster loans and on relevant websites notifying an applicant that: he or she may submit all documentation necessary for the approval of the loan at the time of application, and failure to do so could delay the loan's approval and disbursement. (Sec. 6) The SBA shall revise the comprehensive written disaster response plan, and any successor, to incorporate its response to a situation in which an extreme volume of applications are received during the period of time immediately after a disaster. The revised plan must: (1) ensure that sufficient human and technological resources are made available, and (2) prevent delays in loan processing.