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‘‘(D) DEFINITIONS.—In this paragraph, the
following definitions shall apply:
‘‘(i) DAMAGED AREA.—The term ‘dam-
aged area’ means an area which the Presi-
dent has designated as a disaster area as a
result of Hurricane Katrina of August
2005.
‘‘(ii) 
QUALIFIED
BORROWER.—The
term ‘qualified borrower’ means a small
business 
concern 
or 
non-profit
organization—
‘‘(I) located in a damaged area;
or
‘‘(II) located in a State contig-
uous to a damaged area that is using,
or intends to use, a loan made under
this subsection for purposes of rebuild-
ing or conducting operations in a
damaged area.’’.
(b) DEVELOPMENT COMPANY DEBENTURES.—Section
503 of the Small Business Investment Act of 1958 (15
U.S.C. 697) is amended by adding at the end the following:
‘‘(j) DEBENTURES AFTER HURRICANE KATRINA.—
‘‘(1) AUTHORITY.—
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‘‘(A) IN
GENERAL.—In addition to any
other guarantee authorized by this section, the
Administrator may guarantee the timely pay-
ment of all principal and interest as scheduled
on any debenture issued for purposes of rebuild-
ing or resuming operations in a damaged area,
as the Administrator determines appropriate.
‘‘(B) TERMS.—The Administrator shall es-
tablish a fee for a guarantee issued under sub-
paragraph (A) that is lower than that for other
guarantees under this section.
‘‘(2) EXISTING GUARANTEES.—
‘‘(A) IN
GENERAL.—Notwithstanding any
other provision of law, the Administrator may
temporarily defer payments of principal and in-
terest on a guarantee made under this section be-
fore the date of enactment of this subsection to a
small business concern in a damaged area, in
any case in which the payments are owed to the
Administration.
‘‘(B) PAYMENTS TO OTHER PARTIES.—Not-
withstanding any other provision of law, the Ad-
ministrator may temporarily make payments of
principal and interest on a loan made under
this section before the date of enactment of this
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subsection to a small business concern in a dam-
aged area, in any case in which the payments
are owed to a person other than the Administra-
tion.
‘‘(C) TERMINATION
OF
AUTHORITY.—The
authority to defer, or make, payments under this
paragraph shall terminate 1 year after the date
of enactment of this subsection.
‘‘(3) DEFINITIONS.—In this subsection, the fol-
lowing definitions shall apply:
‘‘(A) DAMAGED AREA.—The term ‘damaged
area’ means an area which the President has
designated as a disaster area as a result of Hur-
ricane Katrina of August 2005.
‘‘(B) QUALIFIED
BORROWER.—The term
‘qualified borrower’ means a small business
concern—
‘‘(i) located in a damaged area; or
‘‘(ii) that demonstrates a direct adverse
economic impact caused by Hurricane
Katrina, based on such criteria as the Ad-
ministrator may set by rule, regulation, or
order.’’.
(c) SMALL BUSINESS EMERGENCY RELIEF.—
(1) DEFINITIONS.—As used in this subsection—
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(A) the term ‘‘small business concern’’ has
the same meaning as in section 3 of the Small
Business Act; and
(B) the terms ‘‘Administration’’ and ‘‘Ad-
ministrator’’ mean the Small Business Adminis-
tration and the Administrator thereof, respec-
tively.
(2) BUSINESS LOAN PROGRAMS.—Section 20(e)
of the Small Business Act (15 U.S.C. 631 note) is
amended—
(A) by striking ‘‘$25,050,000,000’’ and in-
serting ‘‘$30,550,000,000’’; and
(B) in paragraph (1)(B)—
(i) by striking ‘‘$17,000,000,000’’ and
inserting ‘‘$20,000,000,000’’;
(ii) by striking ‘‘$7,500,000,000’’ and
inserting ‘‘$10,000,000,000’’; and
(C) by striking ‘‘25,050,000,000’’ and in-
serting ‘‘30,550,000,000’’.
(3) GRANTS TO STATES DAMAGED BY HURRICANE
KATRINA.—There is authorized to be appropriated,
and there is appropriated, to the Department of Com-
merce $400,000,000 to provide, through appropriate
government agencies in Louisiana, Alabama, Mis-
sissippi, Texas, and Florida, to provide bridge grants
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and loans to small business concerns located in the
area which the President has designated as a disaster
area as a result of Hurricane Katrina, to assist in
covering costs of such concerns until they are able to
obtain loans through Administration assistance pro-
grams or other sources.
(4) DISASTER LOAN ADDITIONAL AMOUNTS.—In
addition to any other amounts otherwise appro-
priated for such purpose, there is authorized to be ap-
propriated, and there is appropriated, to the Admin-
istration $86,000,000, to make loans under section
7(b) of the Small Business Act.
(5) OTHER DISASTER LOANS FOLLOWING HURRI-
CANE KATRINA.—
(A) IN GENERAL.—Paragraph (4) of section
7(b) of the Small Business Act (15 U.S.C.
636(b)), as added by this Act, is amended by
adding at the end the following:
‘‘(E) REFINANCING DISASTER LOANS AFTER
HURRICANE KATRINA.—
‘‘(i) IN
GENERAL.—Any loan made
under this subsection that was outstanding
as to principal or interest on August 24,
2005, may be refinanced by a small busi-
ness concern that is located in an area des-