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subsection (b) except as provided in subsection
(c),’’ and inserting ‘‘Notwithstanding any other
provision of law, and except as provided in sub-
section (d), the interest rate on the Administra-
tion’s share of any loan made under subsection
(b)’’.
SEC. 11144. EXPEDITED DISASTER ASSISTANCE LOAN PRO-
GRAM.
(a) DEFINITIONS.—In this section—
(1) the term ‘‘immediate disaster assistance’’
means assistance provided during the period begin-
ning on the date on which the President makes a
Small Business Act catastrophic disaster declaration
under paragraph (11) of section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), as added by this
Act, and ending on the date that an impacted small
business concern is able to secure funding through in-
surance claims, Federal assistance programs, or other
sources; and
(2) the term ‘‘program’’ means the expedited dis-
aster assistance business loan program established
under subsection (b).
(b) CREATION OF PROGRAM.—The Administrator shall
take such administrative action as is necessary to establish
and implement an expedited disaster assistance business
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loan program to provide small business concerns with im-
mediate disaster assistance under paragraph (11) of section
7(b) of the Small Business Act (15 U.S.C. 636(b)), as added
by this Act.
(c) CONSULTATION REQUIRED.—In establishing the
program, the Administrator shall consult with—
(1) appropriate personnel of the Administration
(including District Office personnel of the Adminis-
tration);
(2) appropriate technical assistance providers
(including small business development centers);
(3) appropriate lenders and credit unions;
(4) the Committee on Small Business and Entre-
preneurship of the Senate; and
(5) the Committee on Small Business of the
House of Representatives.
(d) RULES.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Administrator
shall issue rules in final form establishing and imple-
menting the program in accordance with this section.
Such rules shall apply as provided for in this section,
beginning 90 days after their issuance in final form.
(2) CONTENTS.—The rules promulgated under
paragraph (1) shall—
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(A) identify whether appropriate uses of
funds under the program may include—
(i) paying employees;
(ii) paying bills and other financial
obligations;
(iii) making repairs;
(iv) purchasing inventory;
(v) restarting or operating a small
business concern in the community in
which it was conducting operations prior to
the declared disaster, or to a neighboring
area, county, or parish in the disaster area;
or
(vi) covering additional costs until the
small business concern is able to obtain
funding through insurance claims, Federal
assistance programs, or other sources; and
(B) set the terms and conditions of any
loan made under the program, subject to para-
graph (3).
(3) TERMS AND CONDITIONS.—A loan made by
the Administration under this section—
(A) shall be for not more than $150,000;
(B) shall be a short-term loan, not to exceed
180 days, except that the Administrator may ex-
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tend such term as the Administrator determines
necessary or appropriate on a case-by-case basis;
(C) shall have an interest rate not to exceed
1 percentage point above the prime rate of inter-
est that a private lender may charge;
(D) shall have no prepayment penalty;
(E) may only be made to a borrower that
meets the requirements for a loan under section
7(b) of the Small Business Act (15 U.S.C.
636(b));
(F) may be refinanced as part of any subse-
quent disaster assistance provided under section
7(b) of the Small Business Act;
(G) may receive expedited loss verification
and loan processing, if the applicant is—
(i) a major source of employment in
the disaster area (which shall be determined
in the same manner as under section
7(b)(3)(B) of the Small Business Act (15
U.S.C. 636(b)(3)(B))); or
(ii) vital to recovery efforts in the re-
gion (including providing debris removal
services, manufactured housing, or building
materials); and
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(H) shall be subject to such additional terms
as the Administrator determines necessary or ap-
propriate.
(e) REPORT TO CONGRESS.—Not later than 5 months
after the date of enactment of this Act, the Administrator
shall report to the Committee on Small Business and Entre-
preneurship of the Senate and the Committee on Small
Business of the House of Representatives on the progress
of the Administrator in establishing the program.
(f) AUTHORIZATION.—There are authorized to be ap-
propriated to the Administrator such sums as are necessary
to carry out this section.
SEC. 11145. HUBZONES.
(a) IN GENERAL.—Section 3(p) of the Small Business
Act (15 U.S.C. 632(p)) is amended—
(1) in paragraph (1)—
(A) in subparagraph (D), by striking ‘‘or’’;
(B) in subparagraph (E), by striking the
period at the end and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(F) areas in which the President has de-
clared 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)) as a result of Hurricane Katrina of Au-
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gust 2005 or Hurricane Rita of September 2005,
during the time period described in paragraph
(8); or
‘‘(G) Small Business Act catastrophic na-
tional disaster areas.’’;
(2) in paragraph (4), by adding at the end the
following:
‘‘(E) SMALL BUSINESS ACT CATASTROPHIC
NATIONAL DISASTER AREA.—
‘‘(i) IN
GENERAL.—The term ‘Small
Business Act catastrophic national disaster
area’ means an area—
‘‘(I) affected by a Small Business
Act catastrophic national disaster de-
clared under section 7(b)(11), during
the time period described in clause (ii);
and
‘‘(II) for which the Administrator
determines that designation as a
HUBZone would substantially con-
tribute to the reconstruction and recov-
ery effort in that area.
‘‘(ii) TIME PERIOD.—The time period
for the purposes of clause (i)—
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‘‘(I) shall be the 2-year period be-
ginning on the date that the applicable
Small Business Act catastrophic na-
tional disaster was declared under sec-
tion 7(b)(11); and
‘‘(II) may, at the discretion of the
Administrator, be extended to be the 3-
year period beginning on the date de-
scribed in subclause (I).’’; and
(3) by adding at the end the following:
‘‘(8) TIME
PERIOD.—The time period for the
purposes of paragraph (1)(F)—
‘‘(A) shall be the 2-year period beginning on
the later of the date of enactment of this para-
graph and August 29, 2007; and
‘‘(B) may, at the discretion of the Adminis-
trator, be extended to be the 3-year period begin-
ning on the later of the date of enactment of this
paragraph and August 29, 2007.’’.
(b) TOLLING OF GRADUATION.—Section 7(j)(10)(C) of
the Small Business Act (15 U.S.C. 636(j)(10)(C)) is amend-
ed by adding at the end the following:
‘‘(iii)(I) For purposes of this subparagraph,
if the Administrator designates an area as a
HUBZone under section 3(p)(4)(E)(i)(II), the
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Administrator shall not count the time period
described in subclause (II) of this clause for any
small business concern—
‘‘(aa) that is participating in any pro-
gram, activity, or contract under section
8(a); and
‘‘(bb) the principal place of business of
which is located in that area.
‘‘(II) The time period for purposes of sub-
clause (I)—
‘‘(aa) shall be the 2-year period begin-
ning on the date that the applicable Small
Business Act catastrophic national disaster
was declared under section 7(b)(11); and
‘‘(bb) may, at the discretion of the Ad-
ministrator, be extended to be the 3-year pe-
riod beginning on the date described in item
(aa).’’.
(c) STUDY
OF HUBZONE DISASTER AREAS.—Not
later than 1 year after the date of enactment of this Act,
the Comptroller General of the United States shall submit
a report to the Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on Small Busi-
ness of the House of Representatives evaluating the designa-
tion by the Administrator of Small Business Act cata-
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strophic national disaster areas, as that term is defined in
section 3(p)(4)(E) of the Small Business Act (as added by
this Act), as HUBZones.
PART III—DISASTER ASSISTANCE OVERSIGHT
SEC. 11161. CONGRESSIONAL OVERSIGHT.
(a) MONTHLY ACCOUNTING REPORT TO CONGRESS.—
(1) REPORTING REQUIREMENTS.—Not later than
the fifth business day of each month during the appli-
cable period for a major disaster, the Administrator
shall provide to the Committee on Small Business
and Entrepreneurship and the Committee on Appro-
priations of the Senate and to the Committee on
Small Business and the Committee on Appropriations
of the House of Representatives a report on the oper-
ation of the disaster loan program authorized under
section 7 of the Small Business Act (15 U.S.C. 636)
for that major disaster during the preceding month.
(2) CONTENTS.—Each report under paragraph
(1) shall include—
(A) the daily average lending volume, in
number of loans and dollars, and the percent by
which each category has increased or decreased
since the previous report under paragraph (1);
(B) the weekly average lending volume, in
number of loans and dollars, and the percent by
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which each category has increased or decreased
since the previous report under paragraph (1);
(C) the amount of funding spent over the
month for loans, both in appropriations and
program level, and the percent by which each
category has increased or decreased since the pre-
vious report under paragraph (1);
(D) the amount of funding available for
loans, both in appropriations and program level,
and the percent by which each category has in-
creased or decreased since the previous report
under paragraph (1), noting the source of any
additional funding;
(E) an estimate of how long the available
funding for such loans will last, based on the
spending rate;
(F) the amount of funding spent over the
month for staff, along with the number of staff,
and the percent by which each category has in-
creased or decreased since the previous report
under paragraph (1);
(G) the amount of funding spent over the
month for administrative costs, and the percent
by which such spending has increased or de-
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creased since the previous report under para-
graph (1);
(H) the amount of funding available for sal-
aries and expenses combined, and the percent by
which such funding has increased or decreased
since the previous report under paragraph (1),
noting the source of any additional funding; and
(I) an estimate of how long the available
funding for salaries and expenses will last, based
on the spending rate.
(b) DAILY DISASTER UPDATES TO CONGRESS FOR
PRESIDENTIALLY DECLARED DISASTERS.—
(1) IN GENERAL.—Each day during a disaster
update period, excluding Federal holidays and week-
ends, the Administration shall provide to the Com-
mittee on Small Business and Entrepreneurship of
the Senate and to the Committee on Small Business
of the House of Representatives a report on the oper-
ation of the disaster loan program of the Administra-
tion for the area in which the President declared a
major disaster.
(2) CONTENTS.—Each report under paragraph
(1) shall include—
(A) the number of Administration staff per-
forming loan processing, field inspection, and