SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Dis-
aster Readiness and Reform Act of 2009’’. 
SEC. 2. REVISED COLLATERAL REQUIREMENTS. 
Section 7 of the Small Business Act (15 U.S.C. 636) 
is amended— 
(1) by striking ‘‘(e) [RESERVED].’’ and ‘‘(f) 
[RESERVED].’’; and 
(2) in subsection (f), as added by section 
12068(a)(2) of the Small Business Disaster Re-
sponse and Loan Improvements Act of 2008 (sub-
title B of title XII of the Food, Conservation, and 
Energy Act of 2008; Public Law 110–246), by add-
ing at the end the following: 
‘‘(2) REVISED COLLATERAL REQUIREMENTS.— 
In making a loan with respect to a business under 
subsection (b), if the total approved amount of such 
loan is less than or equal to $250,000, the Adminis-
trator may not require the borrower to use the bor-
rower’s home as collateral.’’. 
SEC. 3. INCREASED LIMITS. 
Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended— 
(1) 
in 
paragraph 
(3)(E) 
by 
striking 
‘‘$1,500,000’’ each place it appears and inserting 
‘‘$3,000,000’’; and
(2) 
in 
paragraph 
(8)(A) 
by 
striking 
‘‘$2,000,000’’ and inserting ‘‘$3,000,000’’. 
SEC. 4. REVISED REPAYMENT TERMS. 
Section 7(f) of the Small Business Act (15 U.S.C. 
636(f)) is amended by adding at the end the following: 
‘‘(3) REVISED REPAYMENT TERMS.—In making 
loans under subsection (b), the Administrator— 
‘‘(A) may not require repayment to begin 
until the date that is 12 months after the date 
on which the final disbursement of approved 
amounts is made; and 
‘‘(B) shall calculate the amount of repay-
ment based solely on the amounts disbursed.’’. 
SEC. 5. REVISED DISBURSEMENT PROCESS. 
Section 7(f) of the Small Business Act (15 U.S.C. 
636(f)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(4) REVISED
DISBURSEMENT
PROCESS.—In 
making a loan under subsection (b), the Adminis-
trator shall disburse loan amounts in accordance 
with the following: 
‘‘(A) If the total amount approved with re-
spect to such loan is less than or equal to 
$150,000—
‘‘(i) the first disbursement with re-
spect to such loan shall consist of 40 per-
cent of the total loan amount, or a lesser 
percentage of the total loan amount if the 
Administrator and the borrower agree on 
such a lesser percentage; 
‘‘(ii) the second disbursement shall 
consist of 50 percent of the loan amounts 
that remain after the first disbursement, 
and shall be made when the borrower has 
produced satisfactory receipts to dem-
onstrate the proper use of 50 percent of 
the first disbursement; and 
‘‘(iii) the third disbursement shall 
consist of the loan amounts that remain 
after the preceding disbursements, and 
shall be made when the borrower has pro-
duced satisfactory receipts to demonstrate 
the proper use of the first disbursement 
and 50 percent of the second disburse-
ment. 
‘‘(B) If the total amount approved with re-
spect to such loan is more than $150,000 but 
less than or equal to $500,000—
‘‘(i) the first disbursement with re-
spect to such loan shall consist of 20 per-
cent of the total loan amount, or a lesser 
percentage of the total loan amount if the 
Administrator and the borrower agree on 
such a lesser percentage; 
‘‘(ii) the second disbursement shall 
consist of 30 percent of the loan amounts 
that remain after the first disbursement, 
and shall be made when the borrower has 
produced satisfactory receipts to dem-
onstrate the proper use of 50 percent of 
the first disbursement; 
‘‘(iii) the third disbursement shall 
consist of 25 percent of the loan amounts 
that remain after the first and second dis-
bursements, and shall be made when the 
borrower has produced satisfactory receipts 
to demonstrate the proper use of the first 
disbursement and 50 percent of the second 
disbursement; and 
‘‘(iv) the fourth disbursement shall 
consist of the loan amounts that remain 
after the preceding disbursements, and 
shall be made when the borrower has pro-
duced satisfactory receipts to demonstrate 
the proper use of the first and second dis-
bursements and 50 percent of the third 
disbursement. 
‘‘(C) If the total amount approved with re-
spect to such loan is more than $500,000— 
‘‘(i) the first disbursement with re-
spect to such loan shall consist of at least 
$100,000, or a lesser amount if the Ad-
ministrator and the borrower agree on 
such a lesser amount; and 
‘‘(ii) the number of disbursements 
after the first, and the amount of each 
such disbursement, shall be in the discre-
tion of the Administrator, but the amount 
of each such disbursement shall be at least 
$100,000.’’. 
SEC. 6. GRANT PROGRAM. 
Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)), as amended by this Act, is further amended by 
inserting after paragraph (9) the following: 
‘‘(10) GRANTS TO DISASTER-AFFECTED SMALL 
BUSINESSES.— 
‘‘(A) IN GENERAL.—If the Administrator 
declares eligibility for additional disaster assist-
ance under paragraph (9), the Administrator 
may make a grant, in an amount not exceeding 
$100,000, to a small business concern that— 
‘‘(i) is located in an area affected by 
the applicable major disaster; 
‘‘(ii) submits to the Administrator a 
certification by the owner of the concern 
that such owner intends to reestablish the 
concern in the same county in which the 
concern was originally located; 
‘‘(iii) has applied for, and was rejected 
for, a conventional disaster assistance loan 
under this subsection; and 
‘‘(iv) was in existence for at least 2 
years before the date on which the applica-
ble disaster declaration was made. 
‘‘(B) PRIORITY.—In making grants under 
this paragraph, the Administrator shall give 
priority to a small business concern that the 
Administrator determines is economically viable 
but unable to meet short-term financial obliga-
tions. 
‘‘(C) PROGRAM
LEVEL
AND
AUTHORIZA-
TION OF APPROPRIATIONS.—
‘‘(i) PROGRAM LEVEL.—The Adminis-
trator is authorized to make $100,000,000 
in grants under this paragraph for each of 
fiscal years 2010 and 2011. 
‘‘(ii) AUTHORIZATION OF APPROPRIA-
TIONS.—There are authorized to be appro-
priated to the Administrator such sums as 
may be necessary to carry out this para-
graph.’’. 
SEC. 7. REGIONAL DISASTER WORKING GROUPS. 
Section 40 of the Small Business Act (15 U.S.C. 
657l) is amended— 
(1) in subsection (a), in the matter preceding 
paragraph (1), by striking ‘‘or’’ and inserting ‘‘and’’; 
(2) by redesignating subsection (d) as sub-
section (e); and 
(3) by inserting after subsection (c) the fol-
lowing: 
‘‘(d) REGIONAL DISASTER WORKING GROUPS.—In 
carrying out the responsibilities pertaining to loan making 
activities under subsection (a), the Administrator, acting 
through the regional administrators of the regional offices 
of the Administration, shall develop a disaster prepared-
ness and response plan for each region of the Administra-
tion. Each such plan shall be developed in cooperation
with Federal, State, and local emergency response authori-
ties and representatives of businesses located in the region 
to which such plan applies. Each such plan shall identify 
and include a plan relating to the 3 disasters, natural or 
manmade, most likely to occur in the region to which such 
plan applies.’’. 
SEC. 8. OUTREACH GRANTS FOR LOAN APPLICANT ASSIST-
ANCE. 
Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)), as amended by this Act, is further amended by 
inserting after paragraph (10) the following: 
‘‘(11) OUTREACH
GRANTS
FOR
LOAN
APPLI-
CANT ASSISTANCE.— 
‘‘(A) IN GENERAL.—From amounts made 
available for administrative expenses relating to 
activities under this subsection, the Adminis-
trator is authorized to make grants to the fol-
lowing: 
‘‘(i) A women’s business center in an 
area affected by a disaster. 
‘‘(ii) A small business development 
center in an area affected by a disaster. 
‘‘(iii) A Veteran Business Outreach 
Center in an area affected by a disaster.
‘‘(iv) A chamber of commerce in an 
area affected by a disaster. 
‘‘(B) USE OF GRANT.—An entity specified 
under subparagraph (A) shall use a grant re-
ceived under this paragraph to provide applica-
tion preparation assistance to applicants for a 
loan under this subsection. 
‘‘(C) PROGRAM
LEVEL.—The Adminis-
trator is authorized to make $50,000,000 in 
grants under this paragraph for each of fiscal 
years 2010 and 2011.’’. 
SEC. 9. HOMEOWNERS IMPACTED BY TOXIC DRYWALL. 
Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)), as amended by this Act, is further amended by 
inserting after paragraph (11) the following: 
‘‘(12) HOMEOWNERS
IMPACTED
BY
TOXIC 
DRYWALL.—The Administrator may make a loan 
under this subsection to any homeowner if the pri-
mary residence of such homeowner has been ad-
versely impacted by the installation of toxic drywall 
manufactured in China. A loan under this paragraph 
may be used only for the repair or replacement of 
such toxic drywall.’’.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 
Section 20 of the Small Business Act (15 U.S.C. 631 
note) is amended by inserting after subsection (e) the fol-
lowing: 
‘‘(f) FISCAL YEARS 2010 AND 2011 WITH RESPECT 
TO SECTION 7(b).—There is authorized to be appropriated 
such sums as may be necessary for administrative ex-
penses and loans under section 7(b).’’. 
SEC. 11. REGULATIONS. 
Except as otherwise provided in this Act or in amend-
ments made by this Act, after an opportunity for notice 
and comment, but not later than 180 days after the date 
of the enactment of this Act, the Administrator shall issue 
regulations to carry out this Act and the amendments 
made by this Act. 
Passed the House of Representatives November 6, 
2009. 
Attest: 
Clerk.