I 
110TH CONGRESS 
1ST SESSION 
H. R. 565 
To amend the Small Business Act to improve the availability of disaster 
loans to individuals and businesses affected by catastrophic incidents. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 18, 2007 
Mr. JEFFERSON introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To amend the Small Business Act to improve the availability 
of disaster loans to individuals and businesses affected 
by catastrophic incidents. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Dis-
aster Loan Improvement Act of 2007’’. 
SEC. 2. AVAILABILITY OF DISASTER LOANS FOR CATA-
STROPHIC INCIDENTS. 
Section 7 of the Small Business Act (15 U.S.C. 636) 
is amended by adding at the end the following new sub-
section: 
VerDate Aug 31 2005 
17:53 Jan 20, 2007
Jkt 059196
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H565.IH
H565
rwilkins on PROD1PC63 with BILLS
‘‘(o) IMPROVEMENTS TO DISASTER LOAN PROGRAM 
WITH RESPECT TO CATASTROPHIC INCIDENTS.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘catastrophic incident’ means a disaster that— 
‘‘(A) results in extraordinary levels of mass 
casualties, damage, or disruption severely af-
fecting the population, infrastructure, environ-
ment, economy, national morale, or government 
functions; 
‘‘(B) has the potential to result in sus-
tained national impacts over a prolonged period 
of time; 
‘‘(C) almost immediately exceeds resources 
normally available to State, local, tribal, and 
private-sector authorities in the impacted area; 
and 
‘‘(D) significantly interrupts governmental 
operations and emergency services to such an 
extent that national security could be threat-
ened. 
‘‘(2) AVAILABILITY
OF
DISASTER
LOANS.—In 
carrying out the disaster loan program under sub-
section (b) with respect to a catastrophic incident, 
the Administrator shall not, in determining whether 
a person is eligible for such a loan or in determining 
VerDate Aug 31 2005 
17:53 Jan 20, 2007
Jkt 059196
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H565.IH
H565
rwilkins on PROD1PC63 with BILLS
the amount of such a loan, consider the extent to 
which— 
‘‘(A) the loss or damage or injury of the 
person is compensated for by insurance or oth-
erwise; or 
‘‘(B) the person paid, voluntarily or invol-
untarily, insurance proceeds to a recorded 
lienholder.’’. 
SEC. 3. RETROACTIVITY FOR VICTIMS OF HURRICANES 
KATRINA, RITA, AND WILMA. 
(a) RETROACTIVITY.—Subsection (o) of the Small 
Business Act, as added by section 2 of this Act, applies 
to all catastrophic incidents occurring on or after August 
29, 2005. 
(b) HURRICANES KATRINA, RITA, AND WILMA.—For 
purposes of subsection (o) of such Act, Hurricanes 
Katrina, Rita, and Wilma of 2005 are hereby deemed to 
be catastrophic incidents. 
(c) REVIEW AND COMPLIANCE.—The Administrator 
of the Small Business Administration shall ensure that all 
applications, and all loans, under the disaster loan pro-
gram before the date of the enactment of this Act are re-
viewed and brought into compliance with this section. 
Æ 
VerDate Aug 31 2005 
17:53 Jan 20, 2007
Jkt 059196
PO 00000
Frm 00003
Fmt 6652
Sfmt 6301
E:\BILLS\H565.IH
H565
rwilkins on PROD1PC63 with BILLS