I 
113TH CONGRESS 
1ST SESSION H. R. 1974 
To clarify the collateral requirement for certain loans under section 7(d) 
of the Small Business Act, to address assistance to out-of-State small 
business concerns, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 14, 2013 
Mr. MURPHY of Florida (for himself, Mr. MULVANEY, Ms. CHU, Mr. COFF-
MAN, Mr. DEUTCH, Mr. KING of New York, Mr. PAYNE, Mr. NUNNELEE, 
and Mr. RICHMOND) introduced the following bill; which was referred to 
the Committee on Small Business 
A BILL 
To clarify the collateral requirement for certain loans under 
section 7(d) of the Small Business Act, to address assist-
ance to out-of-State small business concerns, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Dis-
aster Reform Act of 2013’’. 
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SEC. 2. CLARIFICATION OF COLLATERAL REQUIREMENTS. 
Section 7(d)(6) of the Small Business Act (15 U.S.C. 
636(d)(6)) is amended by inserting after ‘‘which are made 
under paragraph (1) of subsection (b)’’ the following: ‘‘: 
Provided further, That the Administrator, in obtaining the 
best available collateral for a loan of not more than 
$200,000 under paragraph (1) or (2) of subsection (b) re-
lating to damage to or destruction of the property of, or 
economic injury to, a small business concern, shall not re-
quire the owner of the small business concern to use the 
primary residence of the owner as collateral if the Admin-
istrator determines that the owner has other assets with 
a value equal to or greater than the amount of the loan 
that could be used as collateral for the loan: Provided fur-
ther, That nothing in the preceding proviso may be con-
strued to reduce the amount of collateral required by the 
Administrator in connection with a loan described in the 
preceding proviso or to modify the standards used to 
evaluate the quality (rather than the type) of such collat-
eral’’. 
SEC. 3. ASSISTANCE TO OUT-OF-STATE SMALL BUSINESSES. 
Section 21(b)(3) of the Small Business Act (15 
U.S.C. 648(b)(3)) is amended— 
(1) by striking ‘‘(3) At the discretion’’ and in-
serting the following: 
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‘‘(3) ASSISTANCE
TO
OUT-OF-STATE
SMALL 
BUSINESSES.— 
‘‘(A) IN
GENERAL.—At the discretion’’; 
and 
(2) by adding at the end the following: 
‘‘(B) DISASTER RECOVERY ASSISTANCE.— 
‘‘(i) IN GENERAL.—At the discretion 
of the Administrator, the Administrator 
may authorize a small business develop-
ment center to provide assistance, as de-
scribed in subsection (c), to a small busi-
ness concern located outside of the State, 
without regard to geographic proximity, if 
the small business concern is located in an 
area for which the President has declared 
a major disaster under section 401 of the 
Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 
5170), during the period of the declara-
tion. 
‘‘(ii) CONTINUITY
OF
SERVICES.—A 
small business development center that 
provides counselors to an area described in 
clause (i) shall, to the maximum extent 
practicable, ensure continuity of services in 
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any State in which the small business de-
velopment center otherwise provides serv-
ices. 
‘‘(iii) ACCESS TO DISASTER RECOVERY 
FACILITIES.—For purposes of this sub-
paragraph, the Administrator shall, to the 
maximum extent practicable, permit the 
personnel of a small business development 
center to use any site or facility designated 
by the Administrator for use to provide 
disaster recovery assistance.’’. 
SEC. 4. SENSE OF CONGRESS. 
It is the sense of Congress that, subject to the avail-
ability of funds, the Administrator of the Small Business 
Administration shall, to the extent practicable, ensure that 
a small business development center is appropriately reim-
bursed for any legitimate expenses incurred in carrying 
out activities under section 21(b)(3)(B) of the Small Busi-
ness Act (15 U.S.C. 648(b)(3)(B)), as added by this Act. 
Æ 
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