matter relating to the application, the following informa-
tion is recorded: 
‘‘(1) The method of communication. 
‘‘(2) The date of communication. 
‘‘(3) The identity of the personnel. 
‘‘(4) A summary of the subject matter of the com-
munication. 
‘‘(b) FOLLOW-UP
REQUIRED.—The Administrator 
shall ensure that an applicant for disaster assistance re-
ceives, by telephone, mail, or electronic mail, follow-up com-
munications from the Administration at all critical stages 
of the application process, including the following: 
‘‘(1) When the Administration determines that 
additional information or documentation is required 
to process the application. 
‘‘(2) When the Administration determines wheth-
er to approve or deny the loan. 
‘‘(3) When the primary contact person managing 
the loan application has changed.’’. 
SEC. 203. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
The Small Business Act is amended by inserting after 
section 43 (as added by section 202) the following: 
‘‘SEC. 44. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
‘‘(a) PROGRAM REQUIRED.—The Administrator shall 
carry out a program, to be known as the Immediate Dis-
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aster Assistance program, under which the Administration 
participates on a deferred (guaranteed) basis in 85 percent 
of the balance of the financing outstanding at the time of 
disbursement of the loan if such balance is less than or equal 
to $25,000 for businesses affected by a disaster. 
‘‘(b) ELIGIBILITY REQUIREMENT.—To receive a loan 
guaranteed under subsection (a), the applicant must also 
apply for, and meet basic eligibility standards for, a loan 
under section 7(b). 
‘‘(c) USE OF PROCEEDS.—A person who receives a 
loan under section 7(b) must use the proceeds of that loan 
to repay all loans guaranteed under subsection (a), if any, 
before using the proceeds for any other purpose. 
‘‘(d) APPROVAL
OR DISAPPROVAL.—The Adminis-
trator shall ensure that each applicant for a loan under 
the program receives a decision approving or disapproving 
of the application within 36 hours after the Administration 
receives the application.’’. 
SEC. 204. INCREASED DEFERMENT PERIOD. 
Section 7 of the Small Business Act (15 U.S.C. 636) 
is amended by inserting after subsection (e) (as added by 
section 201(b)) the following: 
‘‘(f) ADDITIONAL REQUIREMENTS FOR 7(b) LOANS.— 
‘‘(1) INCREASED DEFERMENT AUTHORIZED.— 
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‘‘(A) IN GENERAL.—In making loans under 
section 7(b), the Administrator may provide, to 
the person receiving the loan, an option to defer 
repayment on the loan. 
‘‘(B) PERIOD.—A deferment under subpara-
graph (A) may not exceed 4 years.’’. 
SEC. 205. REVISED REPAYMENT TERMS. 
Section 7 of the Small Business Act (15 U.S.C. 636) 
is amended in subsection (f) by adding after paragraph (1) 
(as added by section 204) the following: 
‘‘(2) REVISED REPAYMENT TERMS.—In making 
loans under section 7(b), the Administrator— 
‘‘(A) shall not require repayment to be 
made until 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. 206. REVISED DISBURSEMENT PROCESS. 
Section 7 of the Small Business Act (15 U.S.C. 636) 
is amended in subsection (f) by adding after paragraph (2) 
(as added by section 205) the following: 
‘‘(3) REVISED
DISBURSEMENT
PROCESS.—In 
making loans under section 7(b), the Administrator 
shall disburse the loan amounts in stages as follows: 
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‘‘(A) LOANS UP TO $150,000.—If the total 
amount approved is less than or equal to 
$150,000— 
‘‘(i) the first disbursement shall consist 
of 40 percent 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 con-
sist of 50 percent of the amounts that re-
main after the first disbursement, and shall 
be made when the borrower has produced 
satisfactory receipts to demonstrate the 
proper use of the first half of the first dis-
bursement; and 
‘‘(iii) the third disbursement shall con-
sist of the amounts that remain after the 
preceding disbursements, and shall be made 
when the borrower has produced satisfactory 
receipts to demonstrate the proper use of the 
first disbursement and the first half of the 
second disbursement. 
‘‘(B) LOANS FROM $150,000 TO $500,000.—If 
the total amount approved is more than 
$150,000 but less than or equal to $500,000— 
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‘‘(i) the first disbursement shall consist 
of 20 percent of the total loan amount, or 
a lesser percentage if the Administrator and 
the borrower agree on such a lesser percent-
age; 
‘‘(ii) the second disbursement shall con-
sist of 30 percent of the total loan amount 
remaining after the first disbursement, and 
shall be made when the borrower has pro-
duced satisfactory receipts to demonstrate 
the proper use of the first half of the first 
disbursement; 
‘‘(iii) the third disbursement shall con-
sist of 25 percent of the total loan amount 
remaining 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 the first half of the second 
disbursement; and 
‘‘(iv) the fourth disbursement shall con-
sist of the amounts that remain after the 
preceding disbursements, and shall be made 
when the borrower has produced satisfactory 
receipts to demonstrate the proper use of the 
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first and second disbursements and the first 
half of the third disbursement. 
‘‘(C) LOANS GREATER THAN $500,000.—If the 
total amount approved is more than $500,000— 
‘‘(i) the first disbursement shall consist 
of at least $100,000, or a lesser amount if 
the Administrator and the borrower agree 
on such a lesser amount; and 
‘‘(ii) the number of disbursements after 
the first, and the amount of each such dis-
bursement, shall be in the discretion of the 
Administrator, but the amount of each such 
disbursement 
shall 
be 
not 
less 
than 
$100,000.’’. 
SEC. 207. REVISED COLLATERAL REQUIREMENTS. 
Section 7 of the Small Business Act is amended in sub-
section (f) by adding after paragraph (3) (as added by sec-
tion 206) the following: 
‘‘(4) REVISED COLLATERAL REQUIREMENTS.—In 
making a business loan under section 7(b), the total 
approved amount of which is less than or equal to 
$100,000, the Administrator shall not require the bor-
rower to use the borrower’s home as collateral.’’. 
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SEC. 208. ENHANCED LENDING AUTHORITY FOR PRIVATE 
LENDERS. 
The Small Business Act is amended by inserting after 
section 44 (as added by section 203) the following: 
‘‘SEC. 45. ENHANCED LENDING AUTHORITY FOR PRIVATE 
LENDERS. 
‘‘(a) PROGRAM
AUTHORIZED.—The Administrator 
may, and during a period specified in subsection (b) shall, 
carry out a program under which the Administrator per-
mits banks and other financial institutions to process, ap-
prove, close, and service disaster loans under section 7(b) 
for a fee not to exceed 2 percent of the total loan amount. 
‘‘(b) PERIODS DURING WHICH PROGRAM IS RE-
QUIRED.—The program under subsection (a) is required to 
be carried out during the following periods: 
‘‘(1) Any period of an incident of national sig-
nificance (as declared by the President or his des-
ignee). 
‘‘(2) Any period during which the average time 
for the Administration to approve disaster loans in 
response to any single disaster is 30 days or more. 
‘‘(c) EXCLUSION OF LENDERS.—If the number or rate 
of defaults on loans processed, approved, and closed by a 
lender under the program under subsection (a) are inordi-
nate, as determined by the Administrator, the Adminis-
trator may do any one or more of the following: 
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‘‘(1) Exclude the lender from participating in 
the program under subsection (a). 
‘‘(2) Exclude the lender from participating in 
the 
Preferred 
Lenders 
Program 
under 
section 
7(a)(2)(C)(ii). 
‘‘(d) FACTOR IN PREFERRED LENDERS PROGRAM.— 
In determining whether a lender is to be certified or recer-
tified to participate in the Preferred Lenders Program 
under section 7(a)(2)(C)(ii), the Administrator may con-
sider as a factor the following: 
‘‘(1) The loans processed, approved, and closed 
by the lender under the program under subsection (a). 
‘‘(2) The participation or non-participation of 
the lender in the program under subsection (a).’’. 
SEC. 209. DISASTER PROCESSING REDUNDANCY. 
The Small Business Act is amended by inserting after 
section 45 (as added by section 208) the following: 
‘‘SEC. 46. DISASTER PROCESSING REDUNDANCY. 
‘‘(a) IN GENERAL.—The Administrator shall ensure 
that the Administration has in place a facility for disaster 
loan processing that, whenever the Administration’s pri-
mary facility for disaster loan processing becomes unavail-
able, is able to take over all disaster loan processing from 
that primary facility within 2 days. 
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‘‘(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary.’’. 
SEC. 210. GRANT PROGRAM. 
Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after para-
graph (3) the following: 
‘‘(4) GRANTS
TO
DISASTER-AFFECTED
SMALL 
BUSINESSES.— 
‘‘(A) IN
GENERAL.—The Administrator 
may make a grant of up to $100,000 to a small 
business concern that— 
‘‘(i) was located in a designated dis-
aster area affected by disaster declaration 
10176, 10177, 10178, 10179, 10180, 10181, 
10203, 10204, 10205, 10206, 10222, or 
10233, and was located in a county or par-
ish that, as a result of Hurricanes Katrina, 
Rita, or Wilma of 2005, experienced a loss 
of at least 100 housing units, experienced a 
loss of at least 1 percent of available hous-
ing stock, and required Federal infrastruc-
ture assistance of a least $200,000; 
‘‘(ii) submits to the Administrator a 
certification by the owner of the concern of 
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intent to reestablish the concern in the same 
county or parish in which the business was 
originally located, or in any other county or 
parish described in clause (i); 
‘‘(iii) has applied for, and was rejected 
for, a conventional disaster assistance loan 
under section 7(b); 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 pri-
ority to a small business concern that the Ad-
ministrator determines is economically viable 
but unable to meet short-term financial obliga-
tions. 
‘‘(C) DEFINITION.—In this paragraph, the 
term ‘disaster-affected area’ means an area that 
has been designated by the Administrator as a 
disaster area. 
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appropriated 
for grants under this paragraph such funds as 
may be necessary.’’. 
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SEC. 211. WAIVER OF PROHIBITION ON DUPLICATION OF 
CERTAIN BENEFITS. 
Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after para-
graph (4) (as added by section 210) the following: 
‘‘(5) WAIVER OF PROHIBITION ON DUPLICATION 
OF
CERTAIN
BENEFITS.—For any disaster victim 
under disaster declaration 10176, 10177, 10178, 
10179, 10180, 10181, 10203, 10204, 10205, 10206, 
10222, or 10223, in providing assistance under para-
graph (1) or (2), the Administrator may waive, in 
whole or in part, the prohibition on the duplication 
of benefits, including whether damage or destruction 
has been compensated for by, credit is available from, 
activities are reimbursable through, or funds have 
been made available from any other source.’’. 
SEC. 212. INCREASE LEGISLATIVE LIMIT. 
Section 7(b)(3)(E) of the Small Business Act (15 
U.S.C. 636(b)(3)(E)) is amended by striking ‘‘$1,500,000’’ 
and inserting ‘‘$3,000,000’’ both places such term appears. 
SEC. 213. NET EARNINGS CLAUSES PROHIBITED. 
Section 7 of the Small Business Act is amended in sub-
section (f) by adding after paragraph (4) (as added by sec-
tion 207) the following: 
‘‘(5) NET EARNINGS CLAUSES PROHIBITED.—In 
making loans under section 7(b), the Administrator 
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shall not require the borrower to pay any non-amor-
tized amount for the first 5 years after repayment be-
gins.’’. 
SEC. 214. ECONOMIC INJURY DISASTER LOANS TO NON-
PROFITS. 
(a) IN GENERAL.—Section 7 of the Small Business Act 
(15 U.S.C. 636) is amended in subsection (b)(2)— 
(1) in the matter preceding subparagraph (A)— 
(A) by inserting after ‘‘small business con-
cern’’ the following: ‘‘, private nonprofit organi-
zation,’’; and 
(B) by inserting after ‘‘the concern’’ the fol-
lowing: ‘‘, organization,’’; and 
(2) in subparagraph (D) by inserting after 
‘‘small business concerns’’ the following: ‘‘, private 
nonprofit organizations,’’. 
(b) CONFORMING AMENDMENT.—Such section is fur-
ther amended in subsection (c)(5)(C) by inserting after 
‘‘business’’ the following: ‘‘, organization,’’. 
SEC. 215. APPLICANTS THAT WILL CONSTITUTE A MAJOR 
SOURCE OF EMPLOYMENT DUE TO CHANGED 
ECONOMIC CIRCUMSTANCES. 
Section 7(b)(3)(E) of the Small Business Act (15 
U.S.C. 636(b)(3)(E)) is amended by inserting after ‘‘con-
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