Equity for Disaster Victims Act of 2016

To amend the Small Business Act to allow small business concerns, homeowners, or nonprofit entities to use certain Superstorm Sandy grant funds or other disaster assistance received to repay certain disaster assistance provided by the Small Business Administration. 1. Short title This Act may be cited as the Equity for Disaster Victims Act of 2016 2. Use of certain Superstorm Sandy grant funds for repayment of certain disaster assistance provided by the Small Business Administration Section 7(f) of the Small Business Act ( 15 U.S.C. 636(f) (2) Superstorm Sandy CDBG–DR grant funds (A) In general (i) Loans to repair, rehabilitate, or replace real property A small business concern, homeowner, or nonprofit entity that received a loan pursuant to subsection (b)(1)(A) for the purpose of repairing, rehabilitating, or replacing real property damaged or destroyed by or as a result of Superstorm Sandy may receive Superstorm Sandy CDBG–DR grant funds only if such grant funds will be used to repay the principal and any interest accrued on the loan. (ii) Loans to refinance a mortgage A small business concern, homeowner, or nonprofit entity that received a loan pursuant to subsection (b)(1)(B) to refinance a mortgage or other lien against a home or business concern that was totally destroyed or substantially damaged by or as a result of Superstorm Sandy may receive Superstorm Sandy CDBG–DR grant funds only if the amount of such grant funds will be used to repay the amount received under such subsection (b)(1)(B). (iii) Additional disaster assistance A small business concern, homeowner, or nonprofit entity that received additional disaster assistance pursuant to subsection (b)(9) for a loan described in clause (i) or the refinancing described in clause (ii) may receive Superstorm Sandy CDBG–DR grant funds only if such grant funds will be used— (I) to repay the principal and any interest accrued on a loan described in clause (i); or (II) to repay the amount received from a loan described in clause (ii). (B) Definition The term Superstorm Sandy CDBG–DR grant funds Public Law 113–2 42 U.S.C. 5121 et seq. 42 U.S.C. 5301 et seq. . 3. Use of other disaster assistance for repayment of certain disaster assistance provided by the Small Business Administration Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (16) Use of other disaster assistance As determined by the Administrator, a small business concern, homeowner, or nonprofit entity who receives assistance pursuant to any other law to repair, rehabilitate, or replace real property damaged or destroyed by or as a result of a major disaster declared by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5121 et seq. .

Summary: Equity for Disaster Victims Act of 2016 This bill amends the Small Business Act to allow a small business concern, homeowner, or nonprofit entity that received a Small Business Administration (SBA) disaster loan for repairing, rehabilitating, or replacing real property damaged or destroyed by or because of Superstorm Sandy or that received such an SBA loan to refinance a mortgage or other lien against a home or business concern totally destroyed or substantially damaged by or because of the storm to receive Superstorm Sandy CDBG-DR grant funds only if they will be used to repay: the principal and any interest accrued on the loan for such repair, rehabilitation, or replacement; or the loan received to refinance the mortgage or other lien. The bill allows these recipients of additional SBA disaster assistance resulting from a declared major disaster to use CDBG-DR grant funds only if they are used for such repayments. The term Superstorm Sandy CDBG-DR grant funds means mandatory amounts made available by the Department of Housing and Urban Development only for impacted and distressed areas resulting from a declared major disaster due to Superstorm Sandy for activities authorized under the Housing and Community Development Act of 1974. A small business concern, homeowner, or nonprofit entity who receives assistance pursuant to any other law to repair, rehabilitate, or replace real property damaged or destroyed by or as a result of a declared major disaster on or after enactment of this bill may use such assistance to repay the principal and any interest accrued on a loan or the amount of other assistance received under it.