I 
109TH CONGRESS 
1ST SESSION H. R. 4234 
To provide for the relief, recovery, and expansion of small business concerns 
affected by Hurricane Katrina through technical assistance, access to 
capital, and expanded Federal contracting opportunities, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 4, 2005 
Ms. VELA´ZQUEZ introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To provide for the relief, recovery, and expansion of small 
business concerns affected by Hurricane Katrina through 
technical assistance, access to capital, and expanded Fed-
eral contracting opportunities, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Gulf Coast Revitalization Act of 2005’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents.
Sec. 2. Definitions. 
TITLE I—FINANCIAL ASSISTANCE FOR SMALL BUSINESS 
CONCERNS AFFECTED BY HURRICANE KATRINA 
Sec. 101. Grants to Hurricane Katrina-affected small businesses. 
Sec. 102. Modifications to section 7(b) disaster loan program for Hurricane 
Katrina-affected small business concerns. 
Sec. 103. Gulf hurricane 7(b) loan guarantee program. 
Sec. 104. Gulf Region New Markets Venture Capital Company. 
Sec. 105. Increased assistance under PRIME program. 
Sec. 106. Guarantees for bank loans made to Hurricane Katrina-affected small 
business concerns receiving development company financing. 
TITLE II—REQUIRING AND ENSURING SMALL BUSINESS USE IN 
LEADING DEVELOPMENT 
Sec. 201. Small business access to Federal prime contracts for hurricane relief 
and recovery. 
Sec. 202. Preferences for Hurricane Katrina-affected small business concerns. 
Sec. 203. Small business access to subcontracts for hurricane relief and recov-
ery. 
Sec. 204. Extension of certain program participations and certifications. 
Sec. 205. Suspension of certain limitations on contract size. 
Sec. 206. Federal contracts in Hurricane Katrina-affected areas begun prior to 
August 28, 2005. 
TITLE III—ENTREPRENEURIAL ASSISTANCE FOR SMALL 
BUSINESSES AFFECTED BY KATRINA 
Sec. 301. Waiver of matching funds requirement for small business develop-
ment centers and women’s business centers located in Hurri-
cane Katrina-affected areas. 
Sec. 302. Authorization of additional funding for assistance for Hurricane 
Katrina-affected businesses. 
Sec. 303. Small business development center coordination. 
Sec. 304. Gulf Coast Incubator Revitalization Program. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Small Business Administration. 
(2) The term ‘‘Hurricane Katrina-affected 
area’’ means an area in a county or parish in Ala-
bama, Louisiana, or Mississippi, that on or after Au-
gust 28, 2005, has been designated by the Adminis-
trator as a disaster area by reason of Hurricane 
Katrina. 
(3) The term ‘‘Hurricane Katrina-affected 
small business concern’’ means a small business con-
cern that, as of August 28, 2005, was located in a 
Hurricane Katrina-affected area. 
(4) The term ‘‘small business concern’’ has the 
same meaning as under section 3 of the Small Busi-
ness Act (15 U.S.C. 632). 
(5) The term ‘‘small business concern owned 
and controlled by women’’ has the meaning given 
such term under section 3(n) of such Act (15 U.S.C. 
632(n)). 
(6) The term ‘‘small business development cen-
ter’’ has the same meaning as under section 21 of 
the Small Business Act (15 U.S.C. 648). 
(7) The term ‘‘socially and economically dis-
advantaged small business concern’’ has the same 
meaning given that term under section 8(a)(4) of 
such Act (15 U.S.C. 637(a)(4)) except that in addi-
tion to the requirements of that section, the concern 
shall be required to be certified by the Administrator 
or by the head of an appropriate Federal or State 
entity as a socially and economically disadvantaged 
small business concern.
TITLE 
I—FINANCIAL 
ASSIST-
ANCE FOR SMALL BUSINESS 
CONCERNS 
AFFECTED 
BY 
HURRICANE KATRINA 
SEC. 101. GRANTS TO HURRICANE KATRINA-AFFECTED 
SMALL BUSINESSES. 
(a) AUTHORITY.—The Administrator may make a 
grant of up to $100,000 to an eligible small business con-
cern. 
(b) ELIGIBLE SMALL BUSINESS CONCERN.—For 
purposes of this section, an eligible small business concern 
is a small business concern that— 
(1) is a Hurricane Katrina-affected small busi-
ness concern; and 
(2) submits to the Administrator a certification 
by the owner of such concern of intent to reestablish 
the concern in a Hurricane Katrina-affected area. 
(c) PRIORITY FOR CERTAIN SMALL BUSINESS CON-
CERNS.—In making grants under this section, the Admin-
istrator shall give priority to an eligible small business 
concern that the Administrator determines is economically 
viable but unable to meet short-term financial obligations. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for grants under this section 
$500,000,000 to remain available until expended.
SEC. 102. MODIFICATIONS TO SECTION 7(b) DISASTER LOAN 
PROGRAM 
FOR 
HURRICANE 
KATRINA-AF-
FECTED SMALL BUSINESS CONCERNS. 
(a) PROGRAM MODIFICATIONS FOR ALL HURRICANE 
KATRINA-AFFECTED SMALL BUSINESS CONCERNS.—In 
the case of a Hurricane Katrina-affected small business 
concern, the Administrator shall apply section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) with the following 
modifications: 
(1) The Administrator may refinance the exist-
ing debt of such a business concern under such sec-
tion. 
(2) The Administrator shall, for a period of 36 
months, suspend the obligation of such a business 
concern to make a payment of principal or interest 
on loan under such section. 
(b) REDUCTION OF INTEREST RATES FOR SMALL 
BUSINESS CONCERNS UNABLE TO OBTAIN CREDIT ELSE-
WHERE.—In the case of a Hurricane Katrina-affected 
small business concern that the Administrator finds is not 
able to obtain credit elsewhere, the annual interest rate 
on a loan made or guaranteed under such section shall 
not exceed 3 percent. 
(c) EXTENSION OF TERMS FOR LOANS TO SMALL 
BUSINESS CONCERNS ABLE TO OBTAIN CREDIT ELSE-
WHERE.—In the case of a Hurricane Katrina-affected
small business concern that the Administrator finds is able 
to obtain credit elsewhere the period for which a loan may 
be made or guaranteed under such section shall not exceed 
15 years. 
SEC. 103. GULF HURRICANE 7(b) LOAN GUARANTEE PRO-
GRAM. 
(a) AUTHORITY.—The Administrator may enter into 
an agreement with a preferred lender (as described in sec-
tion 5(b)(7) of the Small Business Act (15 U.S.C. 634)) 
to participate on a deferred basis in a loan made by the 
preferred lender to a Hurricane Katrina-affected small 
business concern under section 7(b) of such Act (15 
U.S.C. 636(b)) in accordance with this section. 
(b) ADMINISTRATION GUARANTEE.—The Adminis-
tration shall guarantee 100 percent of any loan covered 
by an agreement with a participating lender under sub-
section (a). 
(c) GUARANTEE FEES.—With respect to each loan 
guaranteed under this section (other than a loan that is 
repayable in one year of less), the Administrator shall pay 
to the preferred lender a guarantee fee of 2 percent of 
the deferred participation share of the total loan amount. 
(d) ANNUAL FEES.—With respect to a loan guaran-
teed under this section, the Administrator shall pay to the 
preferred lender an annual fee of 0.5 percent per year of
the outstanding balance of the deferred participation share 
of the loan. 
(e) CONDITIONS.—A loan under this section shall be 
made under the following conditions: 
(1) The borrower shall be made aware that the 
loan is for a Hurricane Katrina-affected small busi-
ness concern; and 
(2) In the case of a loan made in cooperation 
with a bank or other lending institution, the lender 
shall submit to the Administrator documentation es-
tablishing that the borrower is a Hurricane Katrina- 
affected small business concern. 
(f) SALE OF LOANS ON SECONDARY MARKET.—A 
loan guaranteed under this section may be sold on the sec-
ondary market under the terms and conditions of section 
5 of the Small Business Act (15 U.S.C. 634). 
(g) INTEREST RATE REDUCTION.— 
(1) IN GENERAL.—The Administrator shall re-
duce the interest rates of certain loans guaranteed 
under this section in accordance with this sub-
section. 
(2) CONTRACTS WITH LENDERS.—In carrying 
out paragraph (1), the Administrator shall enter 
into a contract with, and make payments to, a pre-
ferred lender to reduce during the term of such con-
tract the interest rate paid by a Hurricane Katrina- 
affected small business concern on a loan made by 
such preferred lender and guaranteed under this sec-
tion if the interest rate charged on such loan would 
otherwise exceed the interest rate charged by the 
Administrator on loans made under section 7(b) of 
the Small Business Act (15 U.S.C. 636(b)). 
(3) PAYMENTS TO LENDERS.—In return for a 
contract entered into by a preferred lender under 
paragraph (2), the Administrator shall make pay-
ments to the preferred lender in an amount equal to 
not more than 100 percent of the cost of reducing 
the annual rate of interest on such loan to a rate 
equal to the rate of interest charged by the Adminis-
trator on loans made under such section, except that 
such payments may not exceed the cost of reducing 
such rate by more than 4 percent. 
(4) DURATION OF CONTRACTS.—The term of a 
contract entered into under this subsection to reduce 
the interest rate on a guaranteed loan may not ex-
ceed the outstanding term of such loan. 
(h) REPORT.—Not later than 6 months after the date 
of enactment of this Act, and every 6 months thereafter 
until the date that is 18 months after the date of enact-
ment of this Act, the Inspector General of the Small Busi-
ness Administration shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Rep-
resentatives a report on loans made under this section, 
including verification that such loans have not been made 
to business concerns other than Hurricane Katrina-af-
fected small business concerns. 
(i) TERMINATION.—The authority to guarantee a 
new loan under this section shall terminate on the date 
that is three years after the date of the enactment of this 
Act. 
SEC. 104. GULF REGION NEW MARKETS VENTURE CAPITAL 
COMPANY. 
(a) SOLICITATION OF APPLICATIONS.—The Adminis-
trator shall solicit applications from companies that are 
eligible to apply to participate in the New Markets Ven-
ture Capital Program under section 354 of the Small 
Business Investment Act of 1958 (15 U.S.C. 689c) and 
shall select from among the applicants, a company as a 
new markets venture capital company (as that term is de-
fined in section 351(5) of such Act (15 U.S.C. 689(5)) 
to be known as the ‘‘Gulf Region New Markets Venture 
Capital Company’’.
(b) QUALIFICATION.—The company selected under 
subsection (a) shall have a primary objective of economic 
development in Hurricane Katrina-affected areas. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated, to remain available until 
expended, the following sums: 
(1) Such subsidy budget authority as may be 
necessary to guarantee, under part B of title III of 
the Small Business Investment Act of 1958 (15 
U.S.C. 689 et seq.), $50,000,000 of debentures 
issued by the Gulf Region New Markets Venture 
Capital Company, as established pursuant to this 
section. 
(2) $10,000,000 for grants to the Gulf Region 
New Markets Venture Capital Company under such 
part. 
SEC. 105. INCREASED ASSISTANCE UNDER PRIME PRO-
GRAM. 
(a) INCREASE IN ASSISTANCE.—The Administrator 
shall make grants under the microenterprise technical as-
sistance and capacity building grant program under sub-
title C of title I of the Riegle Community Development 
and Regulatory Improvement Act of 1994 (15 U.S.C. 
6901 et seq.) to qualified organizations (as that term is
defined in section 175 of such Act) that provide assistance 
to Hurricane Katrina-affected small business concerns. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $5,000,000 to carry out this 
section. 
SEC. 106. GUARANTEES FOR BANK LOANS MADE TO HURRI-
CANE KATRINA-AFFECTED SMALL BUSINESS 
CONCERNS RECEIVING DEVELOPMENT COM-
PANY FINANCING. 
(a) AUTHORITY.—The Administrator may guarantee 
a portion not to exceed 75 percent of a loan made by a 
financial institution to a Hurricane Katrina-affected small 
business concern that receives financing through a devel-
opment company under title V of the Small Business In-
vestment Act of 1958 (15 U.S.C. 695 et seq.). 
(b) TERMS
OF GUARANTEE.—A guarantee made 
under subsection (a) shall be made under the same terms 
and conditions as a guarantee under section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)). 
(c) TERMINATION.—The authority to guarantee a 
new loan under this section shall terminate on the date 
that is three years after the date of the enactment of this 
Act.
TITLE II—REQUIRING AND EN-
SURING 
SMALL 
BUSINESS 
USE IN LEADING DEVELOP-
MENT 
SEC. 201. SMALL BUSINESS ACCESS TO FEDERAL PRIME 
CONTRACTS FOR HURRICANE RELIEF AND 
RECOVERY. 
(a) SMALL
BUSINESS
CONTRACTING
REQUIRE-
MENT.—Not less than 30 percent of the total value of all 
prime contracts awarded by Federal agencies for recovery 
or reconstruction activities related to Hurricane Katrina 
shall be awarded to small business concerns that, as of 
August 28, 2005, were located in the State of Alabama, 
Mississippi, or Louisiana. 
(b) RESTRICTED COMPETITION
FOR HURRICANE 
KATRINA-AFFECTED SMALL BUSINESS CONCERNS.—A 
contracting officer of a Federal agency that awards a con-
tract for recovery or reconstruction activities to be carried 
out in a Hurricane Katrina-affected area may award such 
contract on the basis of competition restricted to Hurri-
cane Katrina-affected small business concerns if the con-
tracting officer has a reasonable expectation that two or 
more Hurricane Katrina-affected small business concerns 
will submit offers and that the award can be made at a
fair and reasonable price that offers best value to the 
United States. 
(c) RESTRICTED COMPETITION FOR SOCIALLY AND 
ECONOMICALLY DISADVANTAGED SMALL BUSINESS CON-
CERNS.—A contracting officer of a Federal agency that 
awards a contract for recovery or reconstruction activities 
to be carried out in a Hurricane Katrina-affected area 
may award such contract on the basis of competition re-
stricted to socially and economically disadvantaged small 
business concerns if the contracting officer has a reason-
able expectation that two or more socially and economi-
cally disadvantaged small business concerns will submit of-
fers and that the award can be made at a fair and reason-
able price that offers best value to the United States. 
(d) RESERVATION OF CERTAIN SMALL CONTRACTS 
FOR SMALL BUSINESS CONCERNS.— 
(1) RESERVATION.—Notwithstanding section 
15(j) of the Small Business Act (15 U.S.C. 644(j)), 
each Federal contract for recovery or reconstruction 
activities to be carried out in a Hurricane Katrina- 
affected area that has an anticipated value greater 
than $2,500 but not greater than $1,000,000 shall 
be reserved exclusively for Hurricane Katrina-af-
fected small business concerns unless the contracting 
officer is unable to obtain offers with respect to such
contract from two or more Hurricane Katrina-af-
fected small business concerns that are competitive 
with market prices and with regard to the quality 
and delivery of the goods or services being pur-
chased. 
(2) CONSIDERATION OF OFFERS.— In carrying 
out paragraph (1), a Federal contracting officer 
shall consider a responsive offer timely received from 
a Hurricane Katrina-affected small business con-
cern. 
(3) NO PRECLUSION OF CERTAIN OTHER CON-
TRACT AWARDS.—Nothing in paragraph (1) shall be 
construed as precluding an award of a contract with 
a value not greater than $1,000,000 under the au-
thority of— 
(A) section 8(a) of such Act; 
(B) section 2323 of title 10, United States 
Code; 
(C) section 712 of the Business Oppor-
tunity Development Reform Act of 1988 (Public 
Law 100–656; 15 U.S.C. 644 note); or 
(D) section 7102 of the Federal Acquisi-
tion Streamlining Act of 1994. 
(e) CONTRACTING PLAN REQUIRED.—The head of 
each Federal agency that awards a contract for recovery
or reconstruction activities to be carried out in a Hurri-
cane Katrina-affected area shall develop a contracting 
plan for such contracts awarded by that agency to maxi-
mize prime contracting opportunities for small business 
concerns. 
(f) CONTRACTING DATABASE.—If a Federal agency 
maintains a database of small business concerns for the 
purpose of entering into contracts for recovery or recon-
struction activities to be carried out in Hurricane Katrina- 
affected areas, the head of that agency shall, not later 
than 30 days after the date on which a small business 
concern is registered in the database, with respect to such 
contracts— 
(1) notify the small business concern whether or 
not a contracting opportunity with the agency exists 
for the provision of goods or services of the kind 
provided by the small business concern; 
(2) identify whether or not the small business 
concern is eligible to bid on a contract for which no-
tice has been provided under paragraph (1); and 
(3) if such a contracting opportunity exists, 
provide the small business concern with information 
about such opportunity.
SEC. 202. PREFERENCES FOR HURRICANE KATRINA-AF-
FECTED SMALL BUSINESS CONCERNS. 
(a) PREFERENCE
FOR HURRICANE KATRINA-AF-
FECTED SMALL BUSINESS CONCERNS.—For any Federal 
contract awarded for recovery or reconstruction activities 
to be carried out in a Hurricane Katrina-affected area, 
the Federal agency awarding the contract shall use— 
(1) in the case of contracts for activities other 
than construction activities, a price evaluation pref-
erence not in excess of 10 percent when evaluating 
an offer received from a Hurricane Katrina-affected 
small business concern; and 
(2) in the case of contracts for construction ac-
tivities, a price evaluation preference not in excess of 
5 percent when evaluating an offer received from 
such a small business concern. 
(b) PREFERENCE
FOR EXPERIENCED HURRICANE 
KATRINA-AFFECTED SMALL BUSINESS CONCERNS.—In 
the evaluation of any offer received for a Federal contract 
for recovery or reconstruction activities to be carried out 
in a Hurricane Katrina-affected area, the Federal agency 
evaluating the offers shall give a preference to Hurricane 
Katrina-affected small business concerns that have experi-
ence with the Federal agency as a prime contractor or a 
subcontractor under a prime contract with the agency.
SEC. 203. SMALL BUSINESS ACCESS TO SUBCONTRACTS 
FOR HURRICANE RELIEF AND RECOVERY. 
(a) SMALL BUSINESS SUBCONTRACTING REQUIRE-
MENT.— 
(1) REQUIREMENT.—As a condition of entering 
into a Federal prime contract for recovery or recon-
struction activities related to Hurricane Katrina, a 
large business contractor shall agree to award sub-
contracts, the aggregate value of which shall not be 
less than 30 percent of the value of the contract, to 
small business concerns that, as of August 28, 2005, 
were located in the State of Alabama, Mississippi, or 
Louisiana. Upon completion of each contract under 
the preceding sentence, the Administrator shall de-
termine whether or not the contractor complied with 
the small business award requirement. The deter-
mination of the Administrator shall be final. 
(2) FINES FOR NONCOMPLIANCE.— 
(A) FINES.—If a contractor fails to comply 
with the requirement under paragraph (1), the 
contractor shall pay to the Administrator a fine 
in an amount not less than 1 percent of the 
value of the contract. The Administrator shall 
enforce payment under the preceding sentence. 
(B) DEPOSIT OF AMOUNTS.—The Adminis-
trator shall deposit any amounts collected under