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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 organiza-
tion— 
‘‘(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 con-
cern— 
‘‘(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-