IB 
Union Calendar No. 47 
110TH CONGRESS 
1ST SESSION H. R. 1361 
[Report No. 110–82] 
To improve the disaster relief programs of the Small Business Administration, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 6, 2007 
Ms. VELA´ZQUEZ (for herself, Mr. BAKER, Mr. JEFFERSON, Mr. TAYLOR, Mr. 
MELANCON, Mr. GONZALEZ, Mr. GRIJALVA, Mr. LIPINSKI, Ms. MOORE 
of Wisconsin, Mr. BRALEY of Iowa, and Mr. JOHNSON of Georgia) intro-
duced the following bill; which was referred to the Committee on Small 
Business 
MARCH 30, 2007 
Additional sponsors: Mr. JINDAL and Ms. MILLENDER-MCDONALD 
MARCH 30, 2007 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on March 6, 2007] 
A BILL 
To improve the disaster relief programs of the Small 
Business Administration, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Re-
lief for Entrepreneurs: Coordination of Objectives and Val-
ues for Effective Recovery Act of 2007’’ or the ‘‘RECOVER 
Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—PLANNING 
Sec. 101. Comprehensive disaster response plan. 
Sec. 102. Annual disaster simulation exercise. 
Sec. 103. Disaster reserve corps. 
Sec. 104. Plans to secure additional office space. 
Sec. 105. Coordination of disaster assistance programs with FEMA. 
Sec. 106. Associate Administrator for Disaster Assistance. 
TITLE II—LENDING 
Sec. 201. Incidents of National Significance. 
Sec. 202. Information tracking and follow-up system. 
Sec. 203. Immediate Disaster Assistance program. 
Sec. 204. Increased deferment period. 
Sec. 205. Revised repayment terms. 
Sec. 206. Revised disbursement process. 
Sec. 207. Revised collateral requirements. 
Sec. 208. Enhanced lending authority for private lenders. 
Sec. 209. Disaster processing redundancy. 
Sec. 210. Grant program. 
Sec. 211. Waiver of prohibition on duplication of certain benefits. 
Sec. 212. Increase legislative limit. 
Sec. 213. Net earnings clauses prohibited. 
Sec. 214. Economic injury disaster loans to nonprofits. 
Sec. 215. Applicants that will constitute a major source of employment due to 
changed economic circumstances. 
Sec. 216. Preliminary application process for assistance for small business con-
cerns with essential employees ordered to serve on active duty in 
the Armed Forces. 
Sec. 217. Economic injury disaster loans in cases of ice storms and blizzards. 
Sec. 218. Economic injury disaster loans for businesses affected by lack of snow-
fall. 
TITLE III—OVERSIGHT 
Sec. 301. Reports on disaster assistance. 
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TITLE I—PLANNING 
SEC. 101. COMPREHENSIVE DISASTER RESPONSE PLAN. 
The Small Business Act is amended by redesignating 
section 37 as section 99 and by inserting after section 36 
the following: 
‘‘SEC. 37. COMPREHENSIVE DISASTER RESPONSE PLAN. 
‘‘(a) PLAN REQUIRED.—The Administrator shall de-
velop, implement, and maintain a comprehensive written 
disaster response plan. The plan shall include the following: 
‘‘(1) For each region of the Administration, a de-
scription of the disasters most likely to occur in that 
region. 
‘‘(2) For each disaster described under para-
graph (1)— 
‘‘(A) an assessment of the disaster; 
‘‘(B) an assessment of the demand for Ad-
ministration assistance most likely to occur in 
response to the disaster; 
‘‘(C) an assessment of the needs of the Ad-
ministration, with respect to such resources as 
information 
technology, 
telecommunications, 
human resources, and office space, to meet the 
demand referred to in subparagraph (B); and 
‘‘(D) guidelines pursuant to which the Ad-
ministration will coordinate with other Federal 
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agencies and with State and local authorities to 
best respond to the demand referred to in sub-
paragraph (B) and to best use the resources re-
ferred to in that subparagraph. 
‘‘(b) COMPLETION; REVISION.—The first plan required 
by subsection (a) shall be completed not later than 180 days 
after the date of the enactment of this section. Thereafter, 
the Administrator shall update the plan on an annual basis 
and following any incident of national significance (as de-
clared by the President or his designee). 
‘‘(c) KNOWLEDGE
REQUIRED.—The Administrator 
shall carry out subsections (a) and (b) through an indi-
vidual with substantial knowledge in the field of disaster 
readiness and emergency response. 
‘‘(d) REPORT.—The Administrator shall include a re-
port on the plan whenever the Administrator submits the 
report required by section 47(a).’’. 
SEC. 102. ANNUAL DISASTER SIMULATION EXERCISE. 
The Small Business Act is amended by inserting after 
section 37 (as added by section 101) the following: 
‘‘SEC. 38. ANNUAL DISASTER SIMULATION EXERCISE. 
‘‘(a) EXERCISE REQUIRED.—The Administrator shall 
conduct a disaster simulation exercise at least once each 
fiscal year. The exercise shall include the participation of, 
at a minimum, not less than half of the individuals in the 
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disaster reserve corps and shall test, at maximum capacity, 
all of the information technology and telecommunications 
systems of the Administration that are vital to the activities 
of the Administration during such a disaster. 
‘‘(b) REPORT.—The Administrator shall include a re-
port on the disaster simulation exercise whenever the Ad-
ministration submits the report required by section 47(a).’’. 
SEC. 103. DISASTER RESERVE CORPS. 
The Small Business Act is amended by inserting after 
section 38 (as added by section 102) the following: 
‘‘SEC. 39. DISASTER RESERVE CORPS. 
‘‘(a) CORPS REQUIRED.—The Administrator shall 
maintain within the Administration a disaster reserve 
corps, the purpose of which is to perform the functions of 
the Administration related to disaster response. The corps 
shall consist of at least 1,000 individuals, each of whom— 
‘‘(1) does not ordinarily have the duties of a full- 
time officer or employee of the Administration; but 
‘‘(2) is able to assume duties related to disaster 
response when the Administrator so requires. 
‘‘(b) TRAINING.—The Administrator shall ensure that 
each individual in the corps receives training each year in 
one or more functions relating to disaster response. To the 
maximum extent practicable, the function in which an in-
dividual is trained in one year shall be different from the 
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function in which the individual was trained in prior 
years. 
‘‘(c) GEOGRAPHIC DISTRIBUTION.—The Administrator 
shall ensure that not more than 30 percent of the individ-
uals in the corps reside in any one region of the Adminis-
tration. 
‘‘(d) REPORT.—The Administrator shall include a re-
port on the corps whenever the Administration submits the 
report required by section 47(a).’’. 
SEC. 104. PLANS TO SECURE ADDITIONAL OFFICE SPACE. 
The Small Business Act is amended by inserting after 
section 39 (as added by section 103) the following: 
‘‘SEC. 40. PLANS TO SECURE ADDITIONAL OFFICE SPACE. 
‘‘(a) PLANS REQUIRED.—The Administrator shall de-
velop long-term plans to secure additional office space to 
accommodate an expanded workforce in times of disaster. 
‘‘(b) REPORT.—The Administrator shall include a re-
port on the plans whenever the Administration submits the 
report required by section 47(a).’’. 
SEC. 105. COORDINATION OF DISASTER ASSISTANCE PRO-
GRAMS WITH FEMA. 
The Small Business Act is amended by inserting after 
section 40 (as added by section 104) the following: 
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‘‘SEC. 41. COORDINATION OF DISASTER ASSISTANCE PRO-
GRAMS WITH FEMA. 
‘‘(a) COORDINATION REQUIRED.—The Administrator 
shall ensure that the disaster assistance programs of the Ad-
ministration are coordinated, to the maximum extent prac-
ticable, with the disaster assistance programs of the Federal 
Emergency Management Agency. 
‘‘(b) REGULATIONS REQUIRED.—The Administrator, 
in consultation with the Director of the Federal Emergency 
Management Agency, shall establish regulations to ensure 
that each application for disaster assistance is submitted 
as quickly as practicable to the Administration or directed 
to the appropriate agency under the circumstances. 
‘‘(c) COMPLETION; REVISION.—The initial regulations 
shall be completed not later than 270 days after the date 
of the enactment of this section. Thereafter, the regulations 
shall be revised on an annual basis. 
‘‘(d) REPORT.—The Administrator shall include a re-
port on the regulations whenever the Administration sub-
mits the report required by section 47(a).’’. 
SEC. 106. ASSOCIATE ADMINISTRATOR FOR DISASTER AS-
SISTANCE. 
The Small Business Act is amended by inserting after 
section 41 (as added by section 105) the following: 
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‘‘SEC. 42. ASSOCIATE ADMINISTRATOR FOR DISASTER AS-
SISTANCE. 
‘‘(a) IN GENERAL.—There is established in the Admin-
istration an Associate Administrator for Disaster Assist-
ance, appointed by the President by and with the advice 
and consent of the Senate, from among individuals who 
have— 
‘‘(1) proven management ability; and 
‘‘(2) substantial knowledge in the field of disaster 
readiness and emergency response. 
‘‘(b) DIRECTOR OF DISASTER PLANNING.— 
‘‘(1) APPOINTMENT.—There is established in the 
Administration a Director for Disaster Planning, ap-
pointed by the Administrator from among the per-
sonnel of the Administration. 
‘‘(2) DUTIES.—Subject to the authority, direc-
tion, and control of the Associate Administrator for 
Disaster Assistance, the Director shall— 
‘‘(A) develop and implement the Adminis-
tration’s plans for responding to disasters; and 
‘‘(B) direct the Administration’s training 
exercises with respect to disasters. 
‘‘(3) COORDINATION.—In carrying out the duties 
under paragraph (2), the Director shall coordinate 
with— 
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‘‘(A) the Associate Administrator for the Of-
fice of Disaster Assistance of the Administration; 
‘‘(B) the Director of the Federal Emergency 
Management Agency; and 
‘‘(C) other Federal, State, and local disaster 
planning offices, as necessary. 
‘‘(c) DIRECTOR OF DISASTER LENDING.— 
‘‘(1) APPOINTMENT.—There is established in the 
Administration a Director for Disaster Lending, ap-
pointed by the Administrator from among the per-
sonnel of the Administration. 
‘‘(2) DUTIES.—Subject to the authority, direc-
tion, and control of the Associate Administrator for 
Disaster Assistance, the Director shall direct all as-
pects of the disaster lending program under section 
7(b). 
‘‘(d) RESOURCES.—The Administrator shall ensure 
that the Associate Administrator for Disaster Assistance, 
the Director of Disaster Planning, and the Director of Dis-
aster Lending have adequate resources to carry out the du-
ties under this section.’’. 
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TITLE II—LENDING 
SEC. 201. INCIDENTS OF NATIONAL SIGNIFICANCE. 
(a) DISASTER LOANS TO PRIVATE NONPROFIT ORGA-
NIZATIONS.—Section 7(b)(2) of the Small Business Act (15 
U.S.C. 636(b)(2)) is amended— 
(1) in subparagraph (D) by striking the period 
at the end and inserting ‘‘; or’’; and 
(2) by inserting after subparagraph (D) the fol-
lowing: 
‘‘(E) an incident of national significance, 
as declared by the President or his designee, in 
which case assistance under this paragraph may 
be provided, subject to the other applicable re-
quirements of this paragraph, to a private non-
profit organization (as that term is defined in 
section 29(a)(2)) that is located in an area af-
fected by the incident of national significance.’’. 
(b) MITIGATION LOANS TO SMALL BUSINESS CON-
CERNS.—Section 7 of the Small Business Act (15 U.S.C. 
636) is amended by inserting after subsection (d) the fol-
lowing: 
‘‘(e) DISASTER MITIGATION LOANS.— 
‘‘(1) 
AUTHORITY.—The 
Administrator 
may 
make or guarantee a mitigation loan to a small busi-
ness concern that receives a loan under section 
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7(b)(1)(A) for the damage or destruction, by reason of 
an incident of national significance (as declared by 
the President or his designee), of property owned by 
the small business concern. 
‘‘(2) AMOUNT OF LOAN.—The amount of a loan 
under paragraph (1) shall not exceed 20 percent of 
the total amount of the cost of the damage or destruc-
tion referred to in paragraph (1). The total amount 
shall be calculated without regard for any costs for 
which the small business concern is reimbursed under 
any insurance policy or otherwise.’’. 
(c) APPLICABILITY FOR FISCAL YEAR 2006 TO HURRI-
CANES KATRINA, RITA, AND WILMA.— 
(1) IN GENERAL.—For fiscal year 2006, the Ad-
ministrator— 
(A) may carry out subsection (e) of section 
7 of the Small Business Act (as added by sub-
section (b) of this section) with respect to a pri-
vate nonprofit organization that was located, as 
of August 28, 2005, in a hurricane-affected area; 
and 
(B) may carry out such subsection (e) with 
respect to a small business concern that was lo-
cated, as of August 28, 2005, in a hurricane-af-
fected area, for damage or destruction by reason 
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