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‘‘(A) help to ensure coverage of the safety of
the food supply chain, including those establish-
ments regulated by the States and localities that
are not regulated under this Act; and
‘‘(B) reduce duplicative regulatory efforts.
‘‘(g) MAINTENANCE AND INSPECTION OF RECORDS.—
‘‘(1) IN GENERAL.—The responsible party shall
maintain records related to each report received, noti-
fication made, and report submitted to the Secretary
under this section for at least 2 years.
‘‘(2) INSPECTION.—A responsible party shall, at
the request of the Secretary, permit inspection of
records maintained under paragraph (1).
‘‘(h) REQUEST FOR INFORMATION.—Section 552 of
title 5, United States Code, shall apply to any request for
information regarding a record in the Registry.
‘‘(i) SAFETY REPORT.—A report or notification under
subsection (d) may be accompanied by a statement, which
shall be part of any report released for public disclosure,
that denies that the report or the notification constitutes
an admission that the product involved caused or contrib-
uted to a death, serious injury, or serious illness.
‘‘(j) ADMISSION.—A report or notification under this
section shall not be considered an admission that the report-
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able food involved is adulterated, misbranded, or caused or
contributed to a death, serious injury, or serious illness.
‘‘(k) HOMELAND SECURITY NOTIFICATION.—If, after
receiving a report under subsection (d), the Secretary be-
lieves the reportable food may have been deliberately adul-
terated or misbranded, the Secretary shall—
‘‘(1) immediately notify the Secretary of Home-
land Security; and
‘‘(2) make relevant information from the Reg-
istry available to the Secretary of Homeland Secu-
rity.
‘‘(l) PENALTIES.—A responsible party that fails to
comply with any requirement of this section shall be subject
to an appropriate penalty under section 12.’’.
(3) CONFORMING AMENDMENT.—Section 12(a) of
the Poultry Products Inspection Act (21 U.S.C.
461(a)) is amended by inserting ‘‘10A,’’ after ‘‘10,’’.
(4) EFFECTIVE DATE.—The amendments made
by the subsection take effect on the date that is 1 year
after the date of enactment of this Act.
(5) GUIDANCE.—Not later than 270 days after
the date of enactment of this Act, the Secretary shall
issue a guidance to industry relating to—
(A) the submission of reports to the reg-
istries established under section 411 of the Fed-
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eral Meat Inspection Act (as amended by para-
graph (1)) and section 10A of the Poultry Prod-
ucts Inspection Act (as amended by paragraph
(2)); and
(B) the provision of notification to other
persons in the supply chain of reportable food
under those sections.
(6) EFFECT.—Nothing in this subsection, or an
amendment made by this subsection, alters the juris-
diction between the Secretary and the Secretary of
Health and Human Services, under applicable law
(including regulations).
(b) SUPPLEMENTAL PLANS AND REASSESSMENTS.—
The Secretary shall require that each establishment required
by the Secretary to have a hazard analysis and critical con-
trol point plan in accordance with the final rule of the Sec-
retary (61 Fed. Reg. 38806 (July 25, 1996)) shall submit
to the Secretary, in writing—
(1) at a minimum, a recall plan described in
Directive 8080.1, Rev. 4 (May 24, 2004) of the Food
Safety and Inspection Service (or a successor direc-
tive); and
(2) for beef products, an E. coli reassessment de-
scribed in the supplementary information relating to
E. coli O157: H7 Contamination of Beef Products (67
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Fed. Reg. 62325 (October 7, 2002); part 417 of title
9, Code of Federal Regulations).
(c) SANITARY TRANSPORTATION OF FOOD.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Secretary of
Health and Human Services shall promulgate regula-
tions described in section 416(b) of the Federal Food,
Drug, and Cosmetic Act (21 U.S.C. 350e(b)).
(2) MEMORANDUM
OF
UNDERSTANDING.—Not
later than 180 days after the date of enactment of this
Act, the Secretary, the Secretary of Health and
Human Services, and the Secretary of Transportation
shall enter into a memorandum of understanding to
ensure that the Secretaries work together effectively to
ensure the safety and security of the food supply of
the United States, particularly in relation to dis-
tribution channels involving transportation (as de-
scribed in the withdrawal of notices of proposed rule-
making (70 Fed. Reg. 76228 (December 23, 2005))).
SEC. 11088. OFFICE OF SMALL FARMS AND BEGINNING
FARMERS AND RANCHERS.
(a) IN GENERAL.—Subtitle B of title II of the Depart-
ment of Agriculture Reorganization Act of 1994 (as amend-
ed by section 11059(a)) is amended by inserting after sec-
tion 226B the following:
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‘‘SEC. 226C. OFFICE OF SMALL FARMS AND BEGINNING
FARMERS AND RANCHERS.
‘‘(a) ESTABLISHMENT.—Not less than 180 days after
the date of enactment of this section, the Secretary shall
establish and maintain within the executive operations of
the Department an office, to be known as the ‘Office of
Small Farms and Beginning Farmers and Ranchers’ (re-
ferred to in this section as the ‘Office’).
‘‘(b) PURPOSES.—The purposes of the Office are—
‘‘(1) to ensure coordination across all agencies of
the Department—
‘‘(A) to improve use of the programs and
services of the Department; and
‘‘(B) to enhance the viability of small, be-
ginning, and socially disadvantaged farmers and
ranchers and others, as the Secretary determines
to be necessary;
‘‘(2) to ensure small, beginning, and socially dis-
advantaged farmers and ranchers access to, and equi-
table participation in, commodity, credit, risk man-
agement and disaster protection, conservation, mar-
keting, nutrition, value-added, rural development,
and other programs and services of the Department;
‘‘(3) to ensure that the number and economic
contributions of small, limited-resource, beginning,
and socially disadvantaged farmers and ranchers are
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accurately reflected in the Census of Agriculture and
in other reports; and
‘‘(4) to assess and enhance the effectiveness of
outreach and programs of the Department—
‘‘(A) to reduce barriers to program partici-
pation;
‘‘(B) to improve service provided through
programs of the Department to small, beginning,
and socially disadvantaged farmers and ranch-
ers; and
‘‘(C) by suggesting to the Secretary new ini-
tiatives and programs to better serve the needs of
small, socially disadvantaged, and beginning
farmers and ranchers.
‘‘(c) DIRECTOR.—
‘‘(1) IN GENERAL.—The Office shall be headed by
a Director.
‘‘(2) ASSUMPTION OF DUTIES.—Effective on the
date of establishment of the Office under subsection
(a), the Director shall assume the duties and per-
sonnel of the Director of Small Farms Coordination,
as in existence on the day before the date of enactment
of this section.
‘‘(d) DUTIES.—The Office shall—
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‘‘(1) in collaboration with such other agencies
and offices of the Department as the Secretary deter-
mines to be necessary, develop and implement a plan
to coordinate the activities established under Depart-
mental Regulation 9700–1 (August 3, 2006), includ-
ing activities of the Small and Beginning Farmers
and Ranchers Council and services provided by the
Department to small farms and beginning farmers
and ranchers;
‘‘(2) coordinate with the Office of Outreach to
provide consultation, training, and liaison activities
with eligible entities (as defined in section 2501(e) of
the Food, Agriculture, Conservation, and Trade Act of
1990 7 U.S.C. 2279(e));
‘‘(3) cooperate with, and monitor, agencies and
offices of the Department to ensure that the Depart-
ment is meeting the needs of small farms and of be-
ginning farmers and ranchers;
‘‘(4) establish cross-cutting and strategic depart-
mental goals and objectives for small farms and be-
ginning farmers and ranchers and for each associated
program;
‘‘(5) provide input to agencies and offices of the
Department on program and policy decisions to en-
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sure that the interests of small farms and of begin-
ning farmers and ranchers are represented;
‘‘(6) measure outcomes of all small farm pro-
grams and beginning farmer and rancher programs
and track progress made in achieving the goals of the
programs;
‘‘(7) supervise data collection by agencies and of-
fices of the Department regarding characteristics of
small farms and beginning farmers and ranchers to
ensure that the goals and objectives, and measures
carried out to achieve those goals and objectives, can
be measured and evaluated; and
‘‘(8) carry out any other related duties that the
Secretary determines to be appropriate.
‘‘(e) OUTREACH.—The Office shall establish and main-
tain an Internet website—
‘‘(1) to share information with interested pro-
ducers; and
‘‘(2) to collect and respond to comments from
small and beginning farmers and ranchers, including
comments of the Small and Beginning Farmers and
Ranchers Council.
‘‘(f) RESOURCES.—Using funds made available to the
Secretary in appropriations Acts, the Secretary shall pro-
vide to the Office such human and capital resources as are
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sufficient to allow the Office to carry out the duties of the
Office under this section in a timely and efficient manner.
‘‘(g) ANNUAL REPORT.—The Secretary shall submit to
the Committee on Agriculture of the House of Representa-
tives and the Committee on Agriculture, Nutrition, and
Forestry of the Senate annual reports that describe actions
taken by the Office during the preceding calendar year to
advance the interests of small farms and beginning farmers
and ranchers.’’.
(b) CONFORMING AMENDMENT.—Section 296(b) of the
Department of Agriculture Reorganization Act of 1994 (7
U.S.C. 7014(b)) is amended—
(1) in paragraph (6) (as added by section
7401(c)(1)), by striking ‘‘or’’ at the end;
(2) in paragraph (7) (as added by section
11059(b)), by striking the period at the end and in-
serting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(8) the authority of the Secretary to establish in
the Department the Office of Small Farms and Begin-
ning Farmers and Ranchers in accordance with sec-
tion 226C.’’.
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SEC. 11089. STUDY OF IMPACTS OF LOCAL FOOD SYSTEMS
AND COMMERCE.
(a) STUDY.—The Secretary shall conduct a study on
the impacts of local food systems and commerce that shall,
at a minimum—
(1) develop a working definition of local food
systems and commerce; and
(2) identify indicators, and include an assess-
ment of—
(A) the market share of local food systems
and commerce throughout the United States and
by region;
(B) the potential community, economic,
health and nutrition, environmental, food safety,
and food security impacts of advancing local
food systems and commerce;
(C) the potential energy, transportation,
water resource, and climate change impacts of
local food systems and commerce;
(D) the structure of agricultural consider-
ations and impacts throughout the United States
and by region;
(E) the interest of agricultural producers in
diversifying to access local markets and the bar-
riers and opportunities confronted by agricul-
tural producers in the process of diversification;
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(F) the current availability and present and
future need of independent processing plants that
cater to local food commerce, including difficulty
in meeting regulatory requirements;
(G) the key gaps in food processing, dis-
tribution, marketing, and economic development,
including regional differences in infrastructure
gaps and other barriers;
(H) the role of public and private institu-
tions and institutional and governmental buying
systems and procurement policies in purchasing
products through local food systems;
(I) the benefits and challenges for children
and families in the most vulnerable rural and
urban sectors of the United States; and
(J) the challenges that prevent local foods
from comprising a larger share of the per capita
food consumption in the United States, and ex-
isting and potential strategies, policies, and pro-
grams to address those challenges.
(b) COLLABORATION.—
(1) IN GENERAL.—The Secretary shall appoint a
collaborative study team to oversee and conduct the
research necessary to conduct the study described in
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subsection (a) and the case studies described in sub-
section (c).
(2) MEMBERSHIP.—The study team shall include
representatives of—
(A) the Economic Research Service, Agricul-
tural Marketing Service, and other appropriate
agencies of the Department of Agriculture or
other Federal agencies;
(B) the Environmental Protection Agency;
(C) institutions of higher education, includ-
ing at least 1 institution of higher education rep-
resentative from each of the regions studied;
(D) small farmers;
(E) nongovernmental organizations with
appropriate expertise; and
(F) State and local governments.
(c) CASE STUDIES.—
(1) IN GENERAL.—The study team appointed by
the Secretary under subsection (b) shall carry out case
studies in representative production and marketing
regions in the United States to address the issues
being studied under subsection (a).
(2) REQUIREMENTS.—In carrying out case stud-
ies, the study team shall—
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(A) identify opportunities for primary re-
search; and
(B) to the maximum extent practicable, use
existing surveys, data, and research.
(3) COMPONENTS.—Each case study shall—
(A) identify and, to the maximum extent
practicable, evaluate the success of relevant Fed-
eral, State, and local policies that are intended
to induce local food purchasing and commerce;
(B) examine the agricultural structure in
each region to account for the impact of farm
size and type of production on local economies
and barriers to accessing local markets;
(C) determine regional market trends and
the share of the market supplied by current agri-
cultural producers in the region; and
(D) assess the potential for local food system
value chains and supply networks and map the
supply chain factors in each region involved in
agricultural production, processing, and dis-
tribution of locally grown produce, meat, dairy,
and other products.
(d) REPORTS.—Not later than 2 years after the date
of enactment of this Act, and thereafter as the Secretary
considers appropriate, the Secretary shall submit to the
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Committee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and Forestry
of the Senate a report that—
(1) describes the results of the study conducted
under subsection (a) and the case studies under sub-
section (c); and
(2) includes such recommendations for legislative
action as the Secretary considers appropriate.
SEC. 11090. INVASIVE SPECIES REVOLVING LOAN FUND.
(a) DEFINITIONS.—In this section:
(1) AUTHORIZED EQUIPMENT.—
(A) IN
GENERAL.—The term ‘‘authorized
equipment’’ means any equipment necessary for
the management of forest land.
(B) INCLUSIONS.—The term ‘‘authorized
equipment’’includes—
(i) cherry pickers;
(ii) equipment necessary for—
(I) the construction of staging and
marshalling areas;
(II) the planting of trees; and
(III) the surveying of forest land;
(iii) vehicles capable of transporting
harvested trees;
(iv) wood chippers; and
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(v) any other appropriate equipment,
as determined by the Secretary.
(2) FUND.—The term ‘‘Fund’’ means the
Invasive Species Revolving Loan Fund established by
subsection (b).
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Agriculture, acting through the Dep-
uty Chief of the State and Private Forestry organiza-
tion.
(b) ESTABLISHMENT OF FUND.—There is established
in the Treasury of the United States a revolving fund, to
be known as the ‘‘Invasive Species Revolving Loan Fund’’,
consisting of such amounts as are appropriated to the Fund
under subsection (f).
(c) EXPENDITURES FROM FUND.—
(1) IN GENERAL.—Subject to paragraph (2), on
request by the Secretary, the Secretary of the Treas-
ury shall transfer from the Fund to the Secretary
such amounts as the Secretary determines are nec-
essary to provide loans under subsection (e).
(2) ADMINISTRATIVE
EXPENSES.—An amount
not exceeding 10 percent of the amounts in the Fund
shall be available for each fiscal year to pay the ad-
ministrative expenses necessary to carry out this sec-
tion.
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(d) TRANSFERS OF AMOUNTS.—
(1) IN GENERAL.—The amounts required to be
transferred to the Fund under this section shall be
transferred at least monthly from the general fund of
the Treasury to the Fund on the basis of estimates
made by the Secretary of the Treasury.
(2) ADJUSTMENTS.—Proper adjustment shall be
made in amounts subsequently transferred to the ex-
tent prior estimates were in excess of or less than the
amounts required to be transferred.
(e) USES OF FUND.—
(1) LOANS.—
(A) IN GENERAL.—The Secretary shall use
amounts in the Fund to provide loans to eligible
units of local government to finance purchases of
authorized equipment to monitor, remove, dis-
pose of, and replace infested trees that are
located—
(i) on land under the jurisdiction of
the eligible units of local government; and
(ii) within the borders of quarantine
areas infested by invasive species.
(B) MAXIMUM
AMOUNT.—The maximum
amount of a loan that may be provided by the
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Secretary to an eligible unit of local government
under this subsection shall be the lesser of—
(i) the amount that the eligible unit of
local government has appropriated—
(I) to finance purchases of author-
ized equipment to monitor, remove,
dispose of, and replace infested trees
that are located—
(aa) on land under the juris-
diction of the eligible unit of local
government; and
(bb) within the borders of a
quarantine 
area 
infested 
by
invasive species; and
(II) to enter into contracts with
appropriate individuals and entities to
monitor, remove, dispose of, and re-
place infested trees that are located in
each area described in subclause (I); or
(ii) $5,000,000.
(C) INTEREST RATE.—The interest rate on
any loan made by the Secretary under this para-
graph shall be a rate equal to 2 percent.
(D) REPORT.—Not later than 180 days
after the date on which an eligible unit of local
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government receives a loan provided by the Sec-
retary under subparagraph (A), the eligible unit
of local government shall submit to the Secretary
a report that describes each purchase made by
the eligible unit of local government using assist-
ance provided through the loan.
(2) LOAN REPAYMENT SCHEDULE.—
(A) IN GENERAL.—To be eligible to receive
a loan from the Secretary under paragraph (1),
in accordance with each requirement described
in subparagraph (B), an eligible unit of local
government shall enter into an agreement with
the Secretary to establish a loan repayment
schedule relating to the repayment of the loan.
(B) REQUIREMENTS RELATING TO LOAN RE-
PAYMENT SCHEDULE.—A loan repayment sched-
ule established under subparagraph (A) shall re-
quire the eligible unit of local government—
(i) to repay to the Secretary of the
Treasury, not later than 1 year after the
date on which the eligible unit of local gov-
ernment receives a loan under paragraph
(1), 
and 
semiannually 
thereafter, 
an
amount equal to the quotient obtained by
dividing—
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(I) the principal amount of the
loan (including interest); by
(II) the total quantity of pay-
ments that the eligible unit of local
government is required to make during
the repayment period of the loan; and
(ii) not later than 20 years after the
date on which the eligible unit of local gov-
ernment receives a loan under paragraph
(1), to complete repayment to the Secretary
of the Treasury of the loan made under this
section (including interest).
(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Fund such sums as
are necessary to carry out this section.
SEC. 11091. COOPERATIVE AGREEMENTS RELATING TO
INVASIVE SPECIES PREVENTION ACTIVITIES.
Any cooperative agreement entered into after the date
of enactment of this Act between the Secretary and a State
relating to the prevention of invasive species infestation
shall allow the State to provide any cost-sharing assistance
or financing mechanism provided to the State under the
cooperative agreement to a unit of local government of the
State that—
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(1) is engaged in any activity relating to the
prevention of invasive species infestation; and
(2) is capable of documenting each invasive spe-
cies infestation prevention activity generally carried
out by—
(A) the Department of Agriculture; or
(B) the State department of agriculture that
has jurisdiction over the unit of local govern-
ment.
SEC. 11092. SOUTHWEST REGIONAL DAIRY, ENVIRONMENT,
AND PRIVATE LAND PROGRAM.
(a) DEFINITIONS.—In this section:
(1) ELIGIBLE
INSTITUTION
OF
HIGHER
EDU-
CATION.—The term ‘‘eligible institution of higher edu-
cation’’ means an institution of higher education
that—
(A) is located in—
(i) the State of Arizona;
(ii) the State of Colorado;
(iii) the State of New Mexico;
(iv) the State of Oklahoma; and
(v) the State of Texas;
(B) has facilities that are necessary for the
facilitation of research on issues relating to the
dairy industry in a practical setting;
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(C) has a dairy research program and an
institution for applied environmental research;
(D) has a university laboratory that is—
(i) located on the campus of the insti-
tution of higher education; and
(ii) accredited by the National Envi-
ronmental Laboratory Accreditation Coun-
cil to ensure the quality of any proposed re-
search activities;
(E) has the capability to enter into a part-
nership with representatives of the dairy indus-
try and other public and private entities and in-
stitutions of higher education;
(F) has experience in conducting watershed
modeling (including the conduct of cost-benefit
analyses, policy applications, and long-term wa-
tershed monitoring); and
(G) works with—
(i) producer-run advocacy groups (in-
cluding Industry-Led Solutions); and
(ii) private land coalitions.
(2) PROGRAM.—The term ‘‘program’’ means the
Southwest regional dairy, environment, and private
land program established under subsection (b).
(b) ESTABLISHMENT.—
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(1) IN GENERAL.—As soon as practicable after
the date of enactment of this Act, the Secretary shall
establish a Southwest regional dairy, environment,
and private land program.
(2) REQUIRED ACTIVITIES.—In carrying out the
program, the Secretary shall—
(A) identify challenges and develop solu-
tions to enhance the economic and environmental
sustainability, growth, and expansion of the
dairy industry in the Southwest region of the
United States;
(B) 
research, 
develop, 
and 
implement
programs—
(i) to recover energy and other useful
products from dairy waste;
(ii) to identify best management prac-
tices; and
(iii) to assist the dairy industry in en-
suring that animal waste emissions and
discharges of the dairy industry are main-
tained at levels below applicable regulatory
standards;
(C) offer technical assistance (including re-
search activities conducted by a university lab-
oratory that is accredited by the National Envi-
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ronmental Laboratory Accreditation Council),
training, applied research, and watershed water
quality programs monitoring to applicable enti-
ties;
(D) develop—
(i) watershed modeling through the de-
velopment of innovative modeling tools and
data mining to develop cost-efficient and
environmentally effective programs in the
dairy industry; and
(ii) an international modeling applica-
tion clearinghouse to coordinate watershed
modeling tools in the United States and in
other countries, to be carried out by the Sec-
retary; and
(E) collaborate with a private land coali-
tion to use input gathered from landowners in
the United States through a program of industry
led solutions to work with the Federal Govern-
ment (including Federal agencies) in the devel-
opment of conservation, environmental credit
trading, and watershed programs to help private
landowners and agricultural producers meet ap-
plicable water quality standards.
(c) CONTRACTS.—
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(1) IN GENERAL.—In carrying out the program,
the Secretary shall offer to enter into contracts with
eligible institutions of higher education.
(2) APPLICATION.—
(A) 
SUBMISSION
OF
APPLICATION.—To
enter into a contract with the Secretary under
paragraph (1), an eligible institution of higher
education shall submit to the Secretary an appli-
cation at such time, in such manner, and con-
taining such information as the Secretary may
require.
(B) GUIDELINES.—As soon as practicable
after the date of enactment of this Act, the Sec-
retary shall promulgate guidelines describing
each requirement of the Secretary with respect to
the application requirements described in sub-
paragraph (A).
(d) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section for each of fiscal years 2008
through 2012, to remain available until expended.
SEC. 11093. ENFORCEMENT OF UNITED STATES-CANADA
SOFTWOOD LUMBER AGREEMENT.
(a) FINDINGS.—The Senate finds that—
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(1) the Federal Government has repeatedly found
that Canadian softwood lumber shipped to the United
States is unfairly subsidized and dumped into the
United States market and materially injures softwood
lumber producers in the United States;
(2) in September 2006, the United States and
Canada entered into the United States-Canada
Softwood Lumber Agreement (referred to in this sec-
tion as the ‘‘Agreement’’) to address Canada’s unfair
lumber trade practices;
(3) the Agreement obligates Canada to apply ex-
port taxes and quotas to Canadian softwood lumber
exports to the United States and to forego new sub-
sidies to Canadian lumber producers;
(4) Canada has consistently violated the Agree-
ment, including by failing to apply export taxes and
quotas as required by the Agreement and by pro-
viding new subsidies to Canadian lumber companies;
(5) Canadian violations of the Agreement are
contributing to market conditions that are resulting
in significant job losses in the United States lumber
mills;
(6) the United States is challenging some of the
Canadian violations of the Agreement through arbi-
tral proceedings;
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(7) as of the date of enactment of this Act, Fed-
eral enforcement of the Agreement has not resulted;
and
(8) Federal executive agencies have been consid-
ering proposals to enforce the Agreement.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that the President should take all actions necessary to
ensure that imports of Canadian softwood lumber are con-
sistent with the provisions of the United States-Canada
Softwood Lumber Agreement.
Subtitle C—DOMESTIC PET
TURTLE MARKET ACCESS
SEC. 11101. SHORT TITLE.
This title may be cited as the ‘‘Domestic Pet Turtle
Equality Act’’.
SEC. 11102. FINDINGS.
Congress makes the following findings:
(1) Pet turtles less than 10.2 centimeters in di-
ameter have been banned for sale in the United States
by the Food and Drug Administration since 1975 due
to health concerns.
(2) The Food and Drug Administration does not
ban the sale of iguanas or other lizards, snakes, frogs,
or other amphibians or reptiles that are sold as pets
in the United States that carry salmonella bacteria.
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The Food and Drug Administration also does not re-
quire that these animals be treated for salmonella bac-
teria before being sold as pets.
(3) The technology to treat turtles for salmonella,
and make them safe for sale, has greatly advanced
since 1975. Treatments exist that can eradicate sal-
monella from turtles up until the point of sale, and
individuals are more aware of the causes of sal-
monella, how to treat salmonella poisoning, and the
seriousness associated with salmonella poisoning.
(4) University research has shown that these tur-
tles can be treated in such a way that they can be
raised, shipped, and distributed without having a re-
colonization of salmonella.
(5) University research has also shown that pet
owners can be equipped with a treatment regimen
that allows the turtle to be maintained safe from sal-
monella.
(6) The Food and Drug Administration and the
Department of Agriculture should allow the sale of
turtles less than 10.2 centimeters in diameter as pets
as long as the sellers are required to use proven meth-
ods to treat these turtles for salmonella.
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SEC. 11103. REVIEW, REPORT, AND ACTION ON THE SALE OF
BABY TURTLES.
(a) PET TURTLE.—In this section, the term ‘‘pet tur-
tle’’ means a turtle that is less than 10.2 centimeters in
diameter.
(b) PREVALENCE OF SALMONELLA.—Not later than 60
days after the date of enactment of this title, the Secretary
of Health and Human Services, acting through the Com-
missioner of Food and Drugs, shall determine the preva-
lence of salmonella in each species of reptile and amphibian
sold legally as a pet in the United States in order to deter-
mine whether the prevalence of salmonella in reptiles and
amphibians sold legally as pets in the United States on av-
erage is not more than 10 percent less than the percentage
of salmonella in pet turtles.
(c) ACTION IF PREVALENCE IS SIMILAR.—If the preva-
lence of salmonella in reptiles and amphibians sold legally
as pets in the United States on average is not more than
10 percent less than the percentage of salmonella in pet
turtles—
(1) the Secretary of Agriculture shall—
(A) conduct a study to determine how pet
turtles can be sold safely as pets in the United
States and provide recommendations to Congress
not later than 150 days after the date of such de-
termination;
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(B) in conducting such study, consult with
all relevant stakeholders, such as the Centers for
Disease Control and Prevention, the turtle farm-
ing industry, academia, and the American Acad-
emy of Pediatrics; and
(C) examine the safety measures taken to
protect individuals from salmonella-related dan-
gers involved with reptiles and amphibians sold
legally in the United States that contain a simi-
lar or greater presence of salmonella than that of
pet turtles; and
(2) the Secretary of Agriculture—
(A) may not prohibit the sale of pet turtles
in the United States; or
(B) shall prohibit the sale in the United
States of any reptile or amphibian that contains
a similar or greater prevalence of salmonella
than that of pet turtles.
Subtitle D—Disaster Loan Program
SEC. 11111. SHORT TITLE.
This subtitle may be cited as the ‘‘Small Business Dis-
aster Response and Loan Improvements Act of 2007’’.
SEC. 11112. DEFINITIONS.
In this subtitle—
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(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ mean the Small Business Administration and
the Administrator thereof, respectively;
(2) the term ‘‘Small Business Act catastrophic
national disaster’’ means a Small Business Act cata-
strophic national disaster declared under section
7(b)(11) of the Small Business Act (15 U.S.C.
636(b)), as added by this Act;
(3) the term ‘‘declared disaster’’ means a major
disaster or a Small Business Act catastrophic na-
tional disaster;
(4) the term ‘‘disaster area’’ means an area af-
fected by a natural or other disaster, as determined
for purposes of paragraph (1) or (2) of section 7(b)
of the Small Business Act (15 U.S.C. 636(b)), during
the period of such declaration;
(5) the term ‘‘disaster loan program of the Ad-
ministration’’ means assistance under section 7(b) of
the Small Business Act (15 U.S.C. 636(b));
(6) the term ‘‘disaster update period’’ means the
period beginning on the date on which the President
declares a major disaster or a Small Business Act
catastrophic national disaster and ending on the date
on which such declaration terminates;
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(7) the term ‘‘major disaster’’ has the meaning
given that term in section 102 of the Robert T. Staf-
ford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5122);
(8) the term ‘‘small business concern’’ has the
same meaning as in section 3 of the Small Business
Act (15 U.S.C. 632); and
(9) the term ‘‘State’’ means any State of the
United States, the District of Columbia, the Common-
wealth of Puerto Rico, the Northern Mariana Islands,
the Virgin Islands, Guam, American Samoa, and any
territory or possession of the United States.
PART I—DISASTER PLANNING AND RESPONSE
SEC. 11121. DISASTER LOANS TO NONPROFITS.
Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended by inserting immediately after para-
graph (3) the following:
‘‘(4) LOANS
TO
NONPROFITS.—In addition to
any other loan authorized by this subsection, the Ad-
ministrator may make such loans (either directly or
in cooperation with banks or other lending institu-
tions through agreements to participate on an imme-
diate or deferred basis) as the Administrator deter-
mines appropriate to a nonprofit organization located
or operating in an area affected by a natural or other
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disaster, as determined under paragraph (1) or (2),
or providing services to persons who have evacuated
from any such area.’’.
SEC. 11122. DISASTER LOAN AMOUNTS.
(a) INCREASED LOAN CAPS.—Section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) is amended by in-
serting immediately after paragraph (4), as added by this
Act, the following:
‘‘(5) INCREASED LOAN CAPS.—
‘‘(A) AGGREGATE LOAN AMOUNTS.—Except
as provided in subparagraph (B), and notwith-
standing any other provision of law, the aggre-
gate loan amount outstanding and committed to
a borrower under this subsection may not exceed
$2,000,000.
‘‘(B) WAIVER
AUTHORITY.—The Adminis-
trator may, at the discretion of the Adminis-
trator, increase the aggregate loan amount under
subparagraph (A) for loans relating to a disaster
to a level established by the Administrator, based
on appropriate economic indicators for the re-
gion in which that disaster occurred.’’.
(b) DISASTER MITIGATION.—
(1) IN
GENERAL.—Section 7(b)(1)(A) of the
Small Business Act (15 U.S.C. 636(b)(1)(A)) is
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amended by inserting ‘‘of the aggregate costs of such
damage or destruction (whether or not compensated
for by insurance or otherwise)’’ after ‘‘20 per cen-
tum’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall apply with respect to a loan or
guarantee made after the date of enactment of this
Act.
(c) TECHNICAL AMENDMENTS.—Section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘the, Administration’’ and inserting ‘‘the Ad-
ministration’’;
(2) in paragraph (2)(A), by striking ‘‘Disaster
Relief and Emergency Assistance Act’’ and inserting
‘‘Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5121 et seq.) (in this sub-
section referred to as a ‘major disaster’)’’; and
(3) in the undesignated matter at the end—
(A) by striking ‘‘, (2), and (4)’’ and insert-
ing ‘‘and (2)’’; and
(B) by striking ‘‘, (2), or (4)’’ and inserting
‘‘(2)’’.
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SEC. 11123. SMALL BUSINESS DEVELOPMENT CENTER
PORTABILITY GRANTS.
Section 21(a)(4)(C)(viii) of the Small Business Act (15
U.S.C. 648(a)(4)(C)(viii)) is amended—
(1) in the first sentence, by striking ‘‘as a result
of a business or government facility down sizing or
closing, which has resulted in the loss of jobs or small
business instability’’ and inserting ‘‘due to events that
have resulted or will result in, business or government
facility downsizing or closing’’; and
(2) by adding at the end ‘‘At the discretion of the
Administrator, the Administrator may make an
award greater than $100,000 to a recipient to accom-
modate extraordinary occurrences having a cata-
strophic impact on the small business concerns in a
community.’’.
SEC. 11124. ASSISTANCE TO OUT-OF-STATE BUSINESSES.
Section 21(b)(3) of the Small Business Act (15 U.S.C.
648(b)(3)) is amended—
(1) by striking ‘‘At the discretion’’ and inserting
the following: ‘‘SMALL BUSINESS DEVELOPMENT CEN-
TERS.—
‘‘(A) IN GENERAL.—At the discretion’’; and
(2) by adding at the end the following:
‘‘(B) DURING DISASTERS.—
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‘‘(i) IN GENERAL.—At the discretion of
the Administrator, the Administrator may
authorize a small business development cen-
ter to provide such assistance to small busi-
ness concerns located outside of the State,
without regard to geographic proximity, if
the small business concerns are located in a
disaster 
area 
declared 
under 
section
7(b)(2)(A).
‘‘(ii) CONTINUITY
OF
SERVICES.—A
small business development center that pro-
vides counselors to an area described in
clause (i) shall, to the maximum extent
practicable, ensure continuity of services in
any State in which such small business de-
velopment center otherwise provides services.
‘‘(iii) ACCESS TO DISASTER RECOVERY
FACILITIES.—For purposes of providing dis-
aster recovery assistance under this sub-
paragraph, the Administrator shall, to the
maximum extent practicable, permit small
business development center personnel to use
any site or facility designated by the Ad-
ministrator for use to provide disaster re-
covery assistance.’’.
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SEC. 11125. OUTREACH PROGRAMS.
(a) IN GENERAL.—Not later than 30 days after the
date of the declaration of a disaster area, the Administrator
may establish a contracting outreach and technical assist-
ance program for small business concerns which have had
a primary place of business in, or other significant presence
in, such disaster area.
(b) ADMINISTRATOR
ACTION.—The Administrator
may carry out subsection (a) by acting through—
(1) the Administration;
(2) the Federal agency small business officials
designated under section 15(k)(1) of the Small Busi-
ness Act (15 U.S.C. 644(k)(1)); or
(3) any Federal, State, or local government enti-
ty, higher education institution, procurement tech-
nical assistance center, or private nonprofit organiza-
tion that the Administrator may determine appro-
priate, upon conclusion of a memorandum of under-
standing or assistance agreement, as appropriate,
with the Administrator.
SEC. 11126. SMALL BUSINESS BONDING THRESHOLD.
(a) IN GENERAL.—Except as provided in subsection
(b), and notwithstanding any other provision of law, for
any procurement related to a major disaster, the Adminis-
trator may, upon such terms and conditions as the Admin-
istrator may prescribe, guarantee and enter into commit-
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ments to guarantee any surety against loss resulting from
a breach of the terms of a bid bond, payment bond, perform-
ance bond, or bonds ancillary thereto, by a principal on
any total work order or contract amount at the time of bond
execution that does not exceed $5,000,000.
(b) INCREASE OF AMOUNT.—Upon request of the head
of any Federal agency other than the Administration in-
volved in reconstruction efforts in response to a major dis-
aster, the Administrator may guarantee and enter into a
commitment to guarantee any security against loss under
subsection (a) on any total work order or contract amount
at the time of bond execution that does not exceed
$10,000,000.
SEC. 11127. TERMINATION OF PROGRAM.
Section 711(c) of the Small Business Competitive
Demonstration Program Act of 1988 (15 U.S.C. 644 note)
is amended by inserting after ‘‘January 1, 1989’’ the fol-
lowing: ‘‘, and shall terminate on the date of enactment of
the Small Business Disaster Response and Loan Improve-
ments Act of 2007’’.
SEC. 11128. INCREASING COLLATERAL REQUIREMENTS.
Section 7(c)(6) of the Small Business Act (15 U.S.C.
636(c)(6)) is amended by striking ‘‘$10,000 or less’’ and
inserting ‘‘$14,000 or less (or such higher amount as the
Administrator determines appropriate in the event of a
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Small Business Act catastrophic national disaster declared
under subsection (b)(11))’’.
SEC. 11129. PUBLIC AWARENESS OF DISASTER DECLARA-
TION AND APPLICATION PERIODS.
(a) IN GENERAL.—Section 7(b) of the Small Business
Act (15 U.S.C. 636(b)) is amended by inserting imme-
diately after paragraph (5), as added by this Act, the fol-
lowing:
‘‘(6) COORDINATION WITH FEMA.—
‘‘(A) IN
GENERAL.—Notwithstanding any
other provision of law, for any disaster (includ-
ing a Small Business Act catastrophic national
disaster) declared under this subsection or major
disaster, the Administrator, in consultation with
the Administrator of the Federal Emergency
Management Agency, shall ensure, to the max-
imum extent practicable, that all application pe-
riods for disaster relief under this Act correspond
with application deadlines established under the
Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.), or
as extended by the President.
‘‘(B) DEADLINES.—Notwithstanding any
other provision of law, not later than 10 days be-
fore the closing date of an application period for
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a major disaster (including a Small Business
Act catastrophic national disaster), the Adminis-
trator, in consultation with the Administrator of
the Federal Emergency Management Agency,
shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the
Committee on Small Business of the House of
Representatives a report that includes—
‘‘(i) the deadline for submitting appli-
cations for assistance under this Act relat-
ing to that major disaster;
‘‘(ii) information regarding the num-
ber of loan applications and disbursements
processed by the Administrator relating to
that major disaster for each day during the
period beginning on the date on which that
major disaster was declared and ending on
the date of that report; and
‘‘(iii) an estimate of the number of po-
tential applicants that have not submitted
an application relating to that major dis-
aster.
‘‘(7) PUBLIC AWARENESS OF DISASTERS.—If a
disaster (including a Small Business Act catastrophic
national disaster) is declared under this subsection,
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the Administrator shall make every effort to commu-
nicate through radio, television, print, and web-based
outlets, all relevant information needed by disaster
loan applicants, including—
‘‘(A) the date of such declaration;
‘‘(B) cities and towns within the area of
such declaration;
‘‘(C) loan application deadlines related to
such disaster;
‘‘(D) all relevant contact information for
victim services available through the Administra-
tion (including links to small business develop-
ment center websites);
‘‘(E) links to relevant Federal and State
disaster assistance websites, including links to
websites providing information regarding assist-
ance available from the Federal Emergency Man-
agement Agency;
‘‘(F) information on eligibility criteria for
Administration loan programs, including where
such applications can be found; and
‘‘(G) application materials that clearly
state the function of the Administration as the
Federal source of disaster loans for homeowners
and renters.’’.
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(b) MARKETING AND OUTREACH.—Not later than 90
days after the date of enactment of this Act, the Adminis-
trator shall create a marketing and outreach plan that—
(1) encourages a proactive approach to the dis-
aster relief efforts of the Administration;
(2) makes clear the services provided by the Ad-
ministration, including contact information, applica-
tion information, and timelines for submitting appli-
cations, the review of applications, and the disburse-
ment of funds;
(3) describes the different disaster loan programs
of the Administration, including how they are made
available and the eligibility requirements for each
loan program;
(4) provides for regional marketing, focusing on
disasters occurring in each region before the date of
enactment of this Act, and likely scenarios for disas-
ters in each such region; and
(5) ensures that the marketing plan is made
available at small business development centers and
on the website of the Administration.
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SEC. 11130. CONSISTENCY BETWEEN ADMINISTRATION REG-
ULATIONS AND STANDARD OPERATING PRO-
CEDURES.
(a) IN GENERAL.—The Administrator shall, promptly
following the date of enactment of this Act, conduct a study
of whether the standard operating procedures of the Admin-
istration for loans offered under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)) are consistent with the reg-
ulations of the Administration for administering the dis-
aster loan program.
(b) REPORT.—Not later than 180 days after the date
of enactment of this Act, the Administration shall submit
to Congress a report containing all findings and rec-
ommendations of the study conducted under subsection (a).
SEC. 11131. PROCESSING DISASTER LOANS.
(a) AUTHORITY FOR QUALIFIED PRIVATE CONTRAC-
TORS TO PROCESS DISASTER LOANS.—Section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) is amended by in-
serting immediately after paragraph (7), as added by this
Act, the following:
‘‘(8) AUTHORITY FOR QUALIFIED PRIVATE CON-
TRACTORS.—
‘‘(A) DISASTER
LOAN
PROCESSING.—The
Administrator may enter into an agreement with
a qualified private contractor, as determined by
the Administrator, to process loans under this
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subsection in the event of a major disaster or a
Small Business Act catastrophic national dis-
aster declared under paragraph (11), under
which the Administrator shall pay the contractor
a fee for each loan processed.
‘‘(B) LOAN LOSS VERIFICATION SERVICES.—
The Administrator may enter into an agreement
with a qualified lender or loss verification pro-
fessional, as determined by the Administrator, to
verify losses for loans under this subsection in
the event of a major disaster or a Small Business
Act catastrophic national disaster declared under
paragraph (11), under which the Administrator
shall pay the lender or verification professional
a fee for each loan for which such lender or
verification professional verifies losses.’’.
(b) COORDINATION OF EFFORTS BETWEEN THE AD-
MINISTRATOR AND THE INTERNAL REVENUE SERVICE TO
EXPEDITE LOAN PROCESSING.—The Administrator and the
Commissioner of Internal Revenue shall, to the maximum
extent practicable, ensure that all relevant and allowable
tax records for loan approval are shared with loan proc-
essors in an expedited manner, upon request by the Admin-
istrator.
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SEC. 11132. DEVELOPMENT AND IMPLEMENTATION OF
MAJOR DISASTER RESPONSE PLAN.
(a) IN GENERAL.—Not later than 3 months after the
date of enactment of this Act, the Administrator shall—
(1) by rule, amend the 2006 Atlantic hurricane
season disaster response plan of the Administration
(in this section referred to as the ‘‘disaster response
plan’’) to apply to major disasters; and
(2) submit a report to the Committee on Small
Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Rep-
resentatives detailing the amendments to the disaster
response plan.
(b) CONTENTS.—The report required under subsection
(a)(2) shall include—
(1) any updates or modifications made to the
disaster response plan since the report regarding the
disaster response plan submitted to Congress on July
14, 2006;
(2) a description of how the Administrator plans
to utilize and integrate District Office personnel of
the Administration in the response to a major dis-
aster, including information on the utilization of per-
sonnel for loan processing and loan disbursement;
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(3) a description of the disaster scalability model
of the Administration and on what basis or function
the plan is scaled;
(4) a description of how the agency-wide Dis-
aster Oversight Council is structured, which offices
comprise its membership, and whether the Associate
Deputy Administrator for Entrepreneurial Develop-
ment of the Administration is a member;
(5) a description of how the Administrator plans
to coordinate the disaster efforts of the Administration
with State and local government officials, including
recommendations on how to better incorporate State
initiatives or programs, such as State-administered
bridge loan programs, into the disaster response of the
Administration;
(6) recommendations, if any, on how the Admin-
istration can better coordinate its disaster response
operations with the operations of other Federal, State,
and local entities;
(7) any surge plan for the disaster loan program
of the Administration in effect on or after August 29,
2005 (including surge plans for loss verification, loan
processing, mailroom, customer service or call center
operations, and a continuity of operations plan);
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(8) the number of full-time equivalent employees
and job descriptions for the planning and disaster re-
sponse staff of the Administration;
(9) the in-service and preservice training proce-
dures for disaster response staff of the Administra-
tion;
(10) information on the logistical support plans
of the Administration (including equipment and
staffing needs, and detailed information on how such
plans will be scalable depending on the size and scope
of the major disaster;
(11) a description of the findings and rec-
ommendations of the Administrator, if any, based on
a review of the response of the Administration to
Hurricane Katrina of 2005, Hurricane Rita of 2005,
and Hurricane Wilma of 2005; and
(12) a plan for how the Administrator, in con-
sultation with the Administrator of the Federal
Emergency Management Agency, will coordinate the
provision of accommodations and necessary resources
for disaster assistance personnel to effectively perform
their responsibilities in the aftermath of a major dis-
aster.
(c) EXERCISES.—Not later than 6 months after the
date of the submission of the report under subsection (a)(2),
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the Administrator shall develop and execute simulation ex-
ercises to demonstrate the effectiveness of the amended dis-
aster response plan required under this section.
SEC. 11133. DISASTER PLANNING RESPONSIBILITIES.
(a) ASSIGNMENT OF SMALL BUSINESS ADMINISTRA-
TION DISASTER PLANNING RESPONSIBILITIES.—The Ad-
ministrator shall specifically assign the disaster planning
responsibilities described in subsection (b) to an employee
of the Administration who—
(1) is not an employee of the Office of Disaster
Assistance of the Administration;
(2) shall report directly to the Administrator;
and
(3) has a background and expertise dem-
onstrating significant experience in the area of dis-
aster planning.
(b) RESPONSIBILITIES.—The responsibilities described
in this subsection are—
(1) creating and maintaining the comprehensive
disaster response plan of the Administration;
(2) ensuring in-service and pre-service training
procedures for the disaster response staff of the Ad-
ministration;
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(3) coordinating and directing Administration
training exercises, including mock disaster responses,
with other Federal agencies; and
(4) other responsibilities, as determined by the
Administrator.
(c) REPORT.—Not later than 30 days after the date
of enactment of this Act, the Administrator shall submit
to the Committee on Small Business and Entrepreneurship
of the Senate and the Committee on Small Business of the
House of Representatives a report containing—
(1) a description of the actions of the Adminis-
trator to assign an employee under subsection (a);
(2) information detailing the background and ex-
pertise of the employee assigned under subsection (a);
and
(3) information on the status of the implementa-
tion of the responsibilities described in subsection (b).
SEC. 11134. ADDITIONAL AUTHORITY FOR DISTRICT OF-
FICES OF THE ADMINISTRATION.
(a) IN GENERAL.—Section 7(b) of the Small Business
Act (15 U.S.C. 636(b)) is amended by inserting imme-
diately after paragraph (8), as added by this Act, the fol-
lowing:
‘‘(9) USE OF DISTRICT OFFICES.—In the event of
a major disaster, the Administrator may authorize a
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district office of the Administration to process loans
under paragraph (1) or (2).’’.
(b) DESIGNATION.—
(1) IN GENERAL.—The Administrator may des-
ignate an employee in each district office of the Ad-
ministration to act as a disaster loan liaison between
the disaster processing center and applicants under
the disaster loan program of the Administration.
(2) RESPONSIBILITIES.—Each employee des-
ignated under paragraph (1) shall—
(A) be responsible for coordinating and fa-
cilitating communications between applicants
under the disaster loan program of the Adminis-
tration and disaster loan processing staff regard-
ing documentation and information required for
completion of an application; and
(B) provide information to applicants
under the disaster loan program of the Adminis-
tration regarding additional services and bene-
fits that may be available to such applicants to
assist with recovery.
(3) OUTREACH.—In providing outreach to dis-
aster victims following a declared disaster, the Ad-
ministrator shall make disaster victims aware of—
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(A) any relevant employee designated under
paragraph (1); and
(B) how to contact that employee.
SEC. 11135. ASSIGNMENT OF EMPLOYEES OF THE OFFICE
OF DISASTER ASSISTANCE AND DISASTER
CADRE.
(a) IN GENERAL.—Section 7(b) of the Small Business
Act (15 U.S.C. 636(b)) is amended by inserting imme-
diately after paragraph (9), as added by this Act, the fol-
lowing:
‘‘(10) DISASTER ASSISTANCE EMPLOYEES.—
‘‘(A) IN
GENERAL.—In carrying out this
section, the Administrator may, where prac-
ticable, ensure that the number of full-time
equivalent employees—
‘‘(i) in the Office of the Disaster Assist-
ance is not fewer than 800; and
‘‘(ii) in the Disaster Cadre of the Ad-
ministration is not fewer than 750.
‘‘(B) REPORT.—In carrying out this sub-
section, if the number of full-time employees for
either the Office of Disaster Assistance or the
Disaster Cadre of the Administration is below
the level described in subparagraph (A) for that
office, not later than 21 days after the date on
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which that staffing level decreased below the level
described in subparagraph (A), the Adminis-
trator shall submit to the Committee on Appro-
priations and the Committee on Small Business
and Entrepreneurship of the Senate and the
Committee on Appropriations and Committee on
Small Business of the House of Representatives,
a report—
‘‘(i) detailing staffing levels on that
date;
‘‘(ii) requesting, if practicable and de-
termined appropriate by the Administrator,
additional funds for additional employees;
and
‘‘(iii) containing such additional infor-
mation, as determined appropriate by the
Administrator.’’.
PART II—DISASTER LENDING
SEC. 11141. SMALL BUSINESS ACT CATASTROPHIC NA-
TIONAL DISASTER DECLARATION.
Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended by inserting immediately after para-
graph (10), as added by this Act, the following:
‘‘(11) SMALL BUSINESS ACT CATASTROPHIC NA-
TIONAL DISASTERS.—
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‘‘(A) IN
GENERAL.—The President may
make a Small Business Act catastrophic na-
tional disaster declaration in accordance with
this paragraph.
‘‘(B) PROMULGATION OF RULES.—
‘‘(i) IN GENERAL.—Not later than 6
months after the date of enactment of this
paragraph, the Administrator, with the con-
currence of the Secretary of Homeland Se-
curity and the Administrator of the Federal
Emergency Management Agency, shall pro-
mulgate regulations establishing a threshold
for a Small Business Act catastrophic na-
tional disaster declaration.
‘‘(ii) CONSIDERATIONS.—In promul-
gating the regulations required under clause
(i), the Administrator shall establish a
threshold that—
‘‘(I) requires that the incident for
which the President declares a Small
Business Act catastrophic national dis-
aster declaration under this paragraph
has resulted in extraordinary levels of
casualties or damage or disruption se-
verely affecting the population (includ-
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ing mass evacuations), infrastructure,
environment, economy, national mo-
rale, or government functions in an
area and the disaster should be similar
in size and scope to the events relating
to the terrorist attacks of September
11, 2001, and the Hurricane Katrina
of 2005;
‘‘(II) requires that the President
declares a major disaster before making
a Small Business Act catastrophic na-
tional disaster declaration under this
paragraph;
‘‘(III) requires consideration of—
‘‘(aa) the dollar amount per
capita of damage to the State, its
political subdivisions, or a region;
‘‘(bb) the number of small
business concerns damaged, phys-
ically or economically, as a direct
result of the event;
‘‘(cc) the number of individ-
uals and households displaced
from their predisaster residences
by the event;
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‘‘(dd) the severity of the im-
pact on employment rates in the
State, its political subdivisions, or
a region;
‘‘(ee) the anticipated length
and difficulty of the recovery
process;
‘‘(ff) whether the events lead-
ing to the relevant major disaster
declaration are of an unusually
large and calamitous nature that
is orders of magnitude larger than
for an average major disaster; and
‘‘(gg) any other factor deter-
mined relevant by the Adminis-
trator.
‘‘(C) AUTHORIZATION.—If the President
makes a Small Business Act catastrophic na-
tional disaster declaration under this paragraph,
the Administrator may make such loans under
this paragraph (either directly or in cooperation
with banks or other lending institutions through
agreements to participate on an immediate or
deferred basis) as the Administrator determines
appropriate to small business concerns located
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anywhere in the United States that are economi-
cally adversely impacted as a result of that
Small Business Act catastrophic national dis-
aster.
‘‘(D) LOAN
TERMS.—A loan under this
paragraph shall be made on the same terms as
a loan under paragraph (2).’’.
SEC. 11142. PRIVATE DISASTER LOANS.
(a) IN GENERAL.—Section 7 of the Small Business Act
(15 U.S.C. 636) is amended—
(1) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively; and
(2) by inserting after subsection (b) the fol-
lowing:
‘‘(c) PRIVATE DISASTER LOANS.—
‘‘(1) DEFINITIONS.—In this subsection—
‘‘(A) the term ‘disaster area’ means any
area for which the President declared a major
disaster (as that term is defined in section 102
of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5122))
that subsequently results in the President making
a Small Business Act catastrophic national dis-
aster declaration under subsection (b)(11);
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‘‘(B) the term ‘eligible small business con-
cern’ means a business concern that is—
‘‘(i) a small business concern, as de-
fined in this Act; or
‘‘(ii) a small business concern, as de-
fined in section 103 of the Small Business
Investment Act of 1958; and
‘‘(C) the term ‘qualified private lender’
means any privately-owned bank or other lend-
ing institution that the Administrator deter-
mines meets the criteria established under para-
graph (9).
‘‘(2) AUTHORIZATION.—The Administrator may
guarantee timely payment of principal and interest,
as scheduled on any loan issued by a qualified pri-
vate lender to an eligible small business concern lo-
cated in a disaster area.
‘‘(3) USE OF LOANS.—A loan guaranteed by the
Administrator under this subsection may be used for
any purpose authorized under subsection (b).
‘‘(4) ONLINE APPLICATIONS.—
‘‘(A) ESTABLISHMENT.—The Administrator
may establish, directly or through an agreement
with another entity, an online application proc-
ess for loans guaranteed under this subsection.
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‘‘(B) OTHER
FEDERAL
ASSISTANCE.—The
Administrator may coordinate with the head of
any other appropriate Federal agency so that
any application submitted through an online ap-
plication process established under this para-
graph may be considered for any other Federal
assistance program for disaster relief.
‘‘(C) CONSULTATION.—In establishing an
online application process under this paragraph,
the Administrator shall consult with appropriate
persons from the public and private sectors, in-
cluding private lenders.
‘‘(5) MAXIMUM AMOUNTS.—
‘‘(A) GUARANTEE
PERCENTAGE.—The Ad-
ministrator may guarantee not more than 85
percent of a loan under this subsection.
‘‘(B) 
LOAN
AMOUNTS.—The 
maximum
amount of a loan guaranteed under this sub-
section shall be $2,000,000.
‘‘(6) LOAN TERM.—The longest term of a loan for
a loan guaranteed under this subsection shall be—
‘‘(A) 15 years for any loan that is issued
without collateral; and
‘‘(B) 25 years for any loan that is issued
with collateral.
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‘‘(7) FEES.—
‘‘(A) IN
GENERAL.—The Administrator
may not collect a guarantee fee under this sub-
section.
‘‘(B) ORIGINATION
FEE.—The Adminis-
trator may pay a qualified private lender an
origination fee for a loan guaranteed under this
subsection in an amount agreed upon in advance
between the qualified private lender and the Ad-
ministrator.
‘‘(8) 
DOCUMENTATION.—A 
qualified 
private
lender may use its own loan documentation for a loan
guaranteed by the Administrator, to the extent au-
thorized by the Administrator. The ability of a lender
to use its own loan documentation for a loan guaran-
teed under this subsection shall not be considered part
of the criteria for becoming a qualified private lender
under the regulations promulgated under paragraph
(9).
‘‘(9) IMPLEMENTATION REGULATIONS.—
‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of the Small Business
Disaster Response and Loan Improvements Act
of 2007, the Administrator shall issue final regu-
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lations establishing permanent criteria for quali-
fied private lenders.
‘‘(B) REPORT
TO
CONGRESS.—Not later
than 6 months after the date of enactment of the
Small Business Disaster Response and Loan Im-
provements Act of 2007, the Administrator shall
submit a report on the progress of the regulations
required by subparagraph (A) to the Committee
on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of
the House of Representatives.
‘‘(10) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(A) IN GENERAL.—Amounts necessary to
carry out this subsection shall be made available
from amounts appropriated to the Administra-
tion to carry out subsection (b).
‘‘(B) AUTHORITY
TO
REDUCE
INTEREST
RATES.—Funds appropriated to the Administra-
tion to carry out this subsection, may be used by
the Administrator, to the extent available, to re-
duce the rate of interest for any loan guaranteed
under this subsection by not more than 3 per-
centage points.
‘‘(11) PURCHASE OF LOANS.—The Administrator
may enter into an agreement with a qualified private
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lender to purchase any loan issued under this sub-
section.’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to disasters declared under section
7(b)(2) of the Small Business Act (631 U.S.C. 636(b)(2))
before, on, or after the date of enactment of this Act.
SEC. 11143. TECHNICAL AND CONFORMING AMENDMENTS.
The Small Business Act (15 U.S.C. 631 et seq.) is
amended—
(1) in section 4(c)—
(A) in paragraph (1), by striking ‘‘7(c)(2)’’
and inserting ‘‘7(d)(2)’’; and
(B) in paragraph (2)—
(i) by striking ‘‘7(c)(2)’’ and inserting
‘‘7(d)(2)’’; and
(ii) by striking ‘‘7(e),’’; and
(2) in section 7(b), in the undesignated matter
following paragraph (3)—
(A) by striking ‘‘That the provisions of
paragraph (1) of subsection (c)’’ and inserting
‘‘That the provisions of paragraph (1) of sub-
section (d)’’; and
(B) by striking ‘‘Notwithstanding the provi-
sions of any other law the interest rate on the
Administration’s share of any loan made under