176 
‘‘(4) Transfers under this subsection shall be made 
within 90 days after the date of enactment of this para-
graph. 
‘‘(5) STATE.—In this subsection, the term ‘State’ 
means Louisiana.’’. 
(b) LIMITATIONS ON TRANSFERS.—Subsection (b) of 
section 903(b) of the Social Security Act (42 U.S.C. 1103) 
shall apply to transfers under subsection (e) of such sec-
tion (as added by subsection (a)). For purposes of the pre-
ceding sentence, such subsection (b) shall be deemed to 
be amended as follows: 
(1) By substituting ‘‘the transfer date described 
in subsection (e)(4)’’ for ‘‘October 1 of any fiscal 
year’’. 
(2) By substituting ‘‘remain in the Federal un-
employment account’’ for ‘‘be transferred to the 
Federal unemployment account as of the beginning 
of such October 1’’. 
(3) By substituting ‘‘fiscal year 2006 (after the 
transfer date described in subsection (e)(4))’’ for 
‘‘the fiscal year beginning on such October 1’’. 
(4) By substituting ‘‘under subsection (e)’’ for 
‘‘as of October 1 of such fiscal year’’.
177 
(5) By substituting ‘‘(as of the close of fiscal 
year 2006)’’ for ‘‘(as of the close of such fiscal 
year)’’. 
(c) 
TECHNICAL
AMENDMENTS.—(1) 
Sections 
3304(a)(4)(B) and 3306(f)(2) of the Internal Revenue 
Code of 1986 are amended by striking ‘‘or 903(d)(4)’’ and 
inserting ‘‘, 903(d)(4), or 903(e)(3)’’. 
(2) Section 303(a)(5) of the Social Security Act (42 
U.S.C. 503(a)(5)) is amended in the second proviso by 
striking ‘‘or 903(d)(4)’’ and inserting ‘‘, 903(d)(4), or 
903(e)(3)’’. 
(d) REGULATIONS.—The Secretary of Labor may 
prescribe any operating instructions or regulations nec-
essary to carry out this section and the amendments made 
by this section. 
Subtitle G—Assistance for Military 
Personnel and Defense Civilian 
Employees 
SEC. 361. ASSISTANCE FOR MEMBERS OF THE UNIFORMED 
SERVICES FROM LOUISIANA. 
(a) DEPARTURE ALLOWANCES.—Funds available to 
the Department of Defense and Louisiana National Guard 
for the payment of departure allowances under section 
405a of title 37, United States Code, may be used to make 
payments of such allowances in connection with the reloca-
178 
tion, from residences in parishes in the State of Louisiana 
designated by the President as major disaster areas pursu-
ant to the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5121 et seq.) due to a 
natural disaster, of dependents of members of the uni-
formed services serving on active duty and dependents of 
members of reserve components deployed in State service. 
The allowances authorized by this subsection shall be ret-
roactive to August 28, 2005. 
(b) COMPENSATION
FOR UNINSURED LOSSES.— 
Funds available to the Department of Defense and the 
Louisiana National Guard shall be available, until Decem-
ber 31, 2006, for the payment of up to $50,000 per claim 
for personal property damage and losses incurred by mem-
bers of the uniformed services, including members of re-
serve components, on or after August 28, 2005, due to 
a natural disaster when those losses are incurred in par-
ishes in the State of Louisiana designated by the Presi-
dent as major disaster areas pursuant to the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 et seq.). 
SEC. 362. ASSISTANCE FOR CIVILIAN EMPLOYEES OF THE 
DEPARTMENT OF DEFENSE. 
The departure of civilian employees of the Depart-
ment of Defense and their dependents from parishes in
179 
the State of Louisiana designated by the President as 
major disaster areas pursuant to the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5121 et seq.) due to a natural disaster on or after August 
28, 2005, shall be considered an evacuation for the pur-
pose of section 5725 of title 5, United States Code. 
TITLE 
IV—PUBLIC 
RELIEF, 
SMALL BUSINESS, AND AGRI-
CULTURE RECOVERY 
Subtitle A—Education Assistance 
SEC. 401. FEDERAL WORK STUDY. 
(a) WAIVER OF 7 PERCENT REQUIREMENT.—In ad-
ministering the Federal work-study program under part 
C of title IV of the Higher Education Act of 1965 (42 
U.S.C. 2751 et seq.), the Secretary of Education shall 
waive the requirement of section 443(b)(2)(B) of such Act 
(42 U.S.C. 2753) for fiscal year 2005 for an institution 
of higher education described in subsection (b), including 
waiving any penalty or reduction in funds associated with 
such section for such institution for academic years 2005– 
2006 and 2006–2007. 
(b) INSTITUTION OF HIGHER EDUCATION.—An insti-
tution of higher education described in this subsection is 
an institution of higher education, as defined in sections
180 
101 and 102 of the Higher Education Act of 1965 (20 
U.S.C. 1001, 1002), that— 
(1) is located in an area in which an emergency 
or major disaster was declared under section 401 of 
the Robert T. Stafford Disaster Relief and Emer-
gency Assistance Act (42 U.S.C. 5170) due to the 
effects of Hurricane Katrina; 
(2) entered into an agreement with the Sec-
retary under part C of title IV of such Act (42 
U.S.C. 2751 et seq.) for fiscal year 2005; and 
(3) failed to expend the required 7 percent of 
funds under section 443(b)(2)(B) of such Act (42 
U.S.C. 2753(b)(2)(B)) by August 29, 2005. 
SEC. 402. ELIGIBILITY OF HOSPITALS FOR ASSISTANCE. 
Title III of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5141 et seq.) 
is amended by adding at the end the following: 
‘‘SEC. 326. ELIGIBILITY OF HOSPITALS FOR ASSISTANCE. 
Notwithstanding any other provision of law, for any 
major disaster declared under section 401 on or after Au-
gust 1, 2005, the eligibility of a hospital to receive assist-
ance under this Act shall be determined without regard 
to whether the hospital is a private nonprofit facility.’’.
181 
SEC. 403. ASSISTANCE FOR STUDENTS AFFECTED BY HUR-
RICANE KATRINA. 
(a) DEFERMENT OF LOANS UNDER TITLE IV.—An 
affected student who was enrolled in an institution of 
higher education on August 29, 2005, and whose attend-
ance at such institution was interrupted because of the 
impact of Hurricane Katrina on the student or on the in-
stitution, shall be placed in deferment status with respect 
to loans made, insured, or guaranteed under title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.) for such student for the period beginning on August 
29, 2005, and ending on the date such student enrolls in 
an institution of higher education on not less than a half- 
time basis or the date that is 180 days after August 29, 
2005, whichever date is earlier. 
(b) RECALCULATION
OF
THE EXPECTED FAMILY 
CONTRIBUTION.—Notwithstanding part F of title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1087kk et 
seq.), for the 2005–2006 and 2006–2007 award years, the 
Secretary of Education shall calculate the amount of need 
of an affected student for financial assistance under title 
IV of such Act as if such student had an expected family 
contribution equal to zero. 
(c) AFFECTED STUDENT.—In this section, the term 
‘‘affected student’’ means a student who was residing in, 
employed in, or attending an institution of higher edu-
182 
cation that is located in, an area in which the President 
has declared that a major disaster exists, in accordance 
with section 401 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5170) due to 
the effects of Hurricane Katrina. 
Subtitle B—Small Business 
Recovery 
SEC. 411. DISASTER LOANS. 
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) DISASTER
LOANS
AFTER
HURRICANE 
KATRINA.— 
‘‘(A) ADDITIONAL LOAN AUTHORITY.— 
‘‘(i) LOANS TO SMALL BUSINESSES.— 
In addition to any other loan authorized by 
this subsection, the Administrator may 
make such loans under this subsection (ei-
ther directly or in cooperation with banks 
or other lending institutions through agree-
ments to participate on an immediate or 
deferred basis) as the Administrator deter-
mines appropriate to a small business con-
cern or small agricultural cooperative that 
demonstrates a direct adverse economic
183 
impact caused by Hurricane Katrina, 
based on such criteria as the Adminis-
trator may set by rule, regulation, or 
order. 
‘‘(ii) LOANS TO NONPROFITS.—In ad-
dition to any other loan authorized by this 
subsection, the Administrator may make 
such loans under this subsection (either di-
rectly or in cooperation with banks or 
other lending institutions through agree-
ments to participate on an immediate or 
deferred basis) as the Administrator deter-
mines appropriate to a non-profit organiza-
tion for purposes of repairing damage 
caused by Hurricane Katrina or per-
forming other hurricane relief services in a 
damaged area. 
‘‘(B) INCREASED LOAN CAPS.— 
‘‘(i) AGGREGATE
LOAN
AMOUNTS.— 
Except as provided in clause (ii), the ag-
gregate loan amount outstanding and com-
mitted to a qualified borrower under this 
paragraph may not exceed $10,000,000. 
‘‘(ii) WAIVER AUTHORITY.—The Ad-
ministrator may, at the discretion of the
184 
Administrator, waive the aggregate loan 
amount established under clause (i). 
‘‘(C) DEFERMENT OF DISASTER LOAN PAY-
MENTS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of law, payments of 
principal and interest on a loan to a quali-
fied borrower made under this subsection 
before, on, or after the date of enactment 
of this paragraph shall be deferred, and no 
interest shall accrue with respect to such 
loan, during the time period described in 
clause (ii). 
‘‘(ii) TIME PERIOD.—The time period 
for purposes of clause (i) shall be 1 year 
from the later of the date of enactment of 
this paragraph or the date of issuance of 
a loan described in clause (i), but may be 
extended to 2 years from such date, at the 
discretion of the Administrator. 
‘‘(iii) RESUMPTION OF PAYMENTS.— 
At the end of the time period described in 
clause (ii), the payment of periodic install-
ments of principal and interest shall be re-
quired with respect to such loan, in the
185 
same manner and subject to the same 
terms and conditions as would otherwise be 
applicable to any other loan made under 
this subsection. 
‘‘(D) DEFINITIONS.—In this paragraph, 
the following definitions shall apply: 
‘‘(i) 
DAMAGED
AREA.—The 
term 
‘damaged area’ means an area which the 
President has designated as a disaster area 
as a result of Hurricane Katrina of August 
2005. 
‘‘(ii) 
QUALIFIED
BORROWER.—The 
term ‘qualified borrower’ means a small 
business concern or non-profit organiza-
tion— 
‘‘(I) located in a damaged area; 
or 
‘‘(II) located in a State contig-
uous to a damaged area that is using, 
or intends to use, a loan made under 
this subsection for purposes of re-
building or conducting operations in a 
damaged area.’’.
186 
SEC. 412. DEVELOPMENT COMPANY DEBENTURES. 
Section 503 of the Small Business Investment Act 
of 1958 (15 U.S.C. 697) is amended by adding at the end 
the following: 
‘‘(j) DEBENTURES AFTER HURRICANE KATRINA.— 
‘‘(1) AUTHORITY.— 
‘‘(A) IN
GENERAL.—In addition to any 
other guarantee authorized by this section, the 
Administrator may guarantee the timely pay-
ment of all principal and interest as scheduled 
on any debenture issued to a qualified borrower 
for purposes of rebuilding or resuming oper-
ations in a damaged area, as the Administrator 
determines appropriate. 
‘‘(B) TERMS.—The Administrator shall es-
tablish a fee for a guarantee issued under sub-
paragraph (A) that is lower than that for other 
guarantees under this section. 
‘‘(2) EXISTING GUARANTEES.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, the Administrator may 
temporarily defer payments of principal and in-
terest on a guarantee made to a qualified bor-
rower under this section before the date of en-
actment of this subsection to a small business 
concern in a damaged area, in any case in
187 
which the payments are owed to the Adminis-
tration. 
‘‘(B) PAYMENTS
TO
OTHER
PARTIES.— 
Notwithstanding any other provision of law, the 
Administrator may temporarily make payments 
of principal and interest on a loan made under 
this section before the date of enactment of this 
subsection to a qualified borrower, in any case 
in which the payments are owed to a person 
other than the Administration. 
‘‘(C) TERMINATION OF AUTHORITY.—The 
authority to defer, or make, payments under 
this paragraph shall terminate 1 year after the 
date of enactment of this subsection. 
‘‘(3) DEFINITIONS.—In this subsection, the fol-
lowing definitions shall apply: 
‘‘(A) DAMAGED
AREA.—The term ‘dam-
aged area’ means an area which the President 
has designated as a disaster area as a result of 
Hurricane Katrina of August 2005. 
‘‘(B) QUALIFIED
BORROWER.—The term 
‘qualified borrower’ means a small business con-
cern— 
‘‘(i) located in a damaged area; or
188 
‘‘(ii) that demonstrates a direct ad-
verse economic impact caused by Hurri-
cane Katrina, based on such criteria as the 
Administrator may set by rule, regulation, 
or order.’’. 
SEC. 413. SMALL BUSINESS EMERGENCY RELIEF. 
(a) DEFINITIONS.—As used in this subtitle— 
(1) the term ‘‘small business concern’’ has the 
same meaning as in section 3 of the Small Business 
Act; and 
(2) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ mean the Small Business Administration 
and the Administrator thereof, respectively. 
(b) 
BUSINESS
LOAN
PROGRAMS.—Section 
20(e)(1)(B) of the Small Business Act (15 U.S.C. 631 
note) is amended— 
(1) by striking ‘‘$25,050,000,000’’ and insert-
ing ‘‘$30,550,000,000’’; 
(2) in clause (i), by striking ‘‘$17,000,000,000’’ 
and inserting ‘‘$20,000,000,000’’; and 
(3) in clause (ii), by striking ‘‘$7,500,000,000’’ 
and inserting ‘‘$10,000,000,000’’. 
(c) APPROPRIATION.— 
(1) IN GENERAL.—There is authorized to be 
appropriated, and there is appropriated, to the De-
189 
partment of Commerce $150,000,000 to provide, 
through the Louisiana Department of Economic De-
velopment, bridge grants and loans to small business 
concerns located in the area which the President has 
designated as a disaster area as a result of Hurri-
cane Katrina, to assist in covering costs of such con-
cerns until they are able to obtain loans through Ad-
ministration assistance programs or other sources. 
(2) TERMS.—For a loan made with funds ap-
propriated under paragraph (1)— 
(A) such a loan shall initially be a 
noncollateralized, low-interest loan; 
(B) the first payment on such a loan shall 
be deferred for at least 1 year after the date on 
which the loan is made; 
(C) the balance remaining on such a loan 
5 years after the date on which the loan is 
made shall be forgiven entirely by the Louisiana 
Department of Economic Development if the 
borrower has continued to operate in the area 
which the President has designated as a dis-
aster area as a result of Hurricane Katrina 
during that 5-year period; and 
(D) such a loan may be forgiven by the 
Louisiana Department of Economic Develop-
190 
ment, under such terms as it may set, if the 
borrower cannot repay such loan. 
(d) DISASTER LOAN ADDITIONAL AMOUNTS.—In ad-
dition to any other amounts otherwise appropriated for 
such purpose, there is authorized to be appropriated, and 
there is appropriated, to the Administration $86,000,000, 
to make loans under section 7(b) of the Small Business 
Act. 
(e) OTHER DISASTER LOANS FOLLOWING HURRI-
CANE KATRINA.— 
(1) IN
GENERAL.—Paragraph (4) of section 
7(b) of the Small Business Act (15 U.S.C. 636(b)), 
as added by this subtitle, is amended by adding at 
the end the following: 
‘‘(E) 
REFINANCING
DISASTER
LOANS 
AFTER HURRICANE KATRINA.— 
‘‘(i) IN
GENERAL.—Any loan made 
under this subsection that was outstanding 
as to principal or interest on August 24, 
2005, may be refinanced by a small busi-
ness concern that is located in an area des-
ignated by the President as a disaster area 
as a result of Hurricane Katrina of 2005 
(in this paragraph referred to as the ‘dis-
aster area’), and the refinanced amount
191 
shall be considered to be part of the new 
loan for purposes of this subparagraph. 
‘‘(ii) NO EFFECT ON ELIGIBILITY.—A 
refinancing under clause (i) by a small 
business concern shall be in addition to 
any other loan eligibility for that small 
business concern under this Act. 
‘‘(F) REFINANCING BUSINESS DEBT.— 
‘‘(i) IN GENERAL.—Any business debt 
of a small business concern that was out-
standing as to principal or interest on Au-
gust 24, 2005, may be refinanced by the 
small business concern if it is, or was on 
that date, located in the disaster area. 
With respect to a refinancing under this 
clause, payments of principal shall be de-
ferred, and interest may accrue, during the 
1-year period following the date of refi-
nancing, and the refinanced amount shall 
be considered to be part of a new loan for 
purposes of this subparagraph. 
‘‘(ii) RESUMPTION OF PAYMENTS.—At 
the end of the 1-year period described in 
clause (i), the payment of periodic install-
ments of principal and interest shall be re-
192 
quired with respect to such loan, in the 
same manner and subject to the same 
terms and conditions as would otherwise be 
applicable to any other loan made under 
this subsection. 
‘‘(G) TERMS.—A loan under subparagraph 
(E) or (F) shall be made at the same interest 
rate as economic injury loans under paragraph 
(2). 
‘‘(H) EXTENDED APPLICATION PERIOD.— 
Notwithstanding any other provision of law, the 
Administrator shall accept applications for as-
sistance under paragraphs (1) and (4) until 1 
year after the date on which the President des-
ignated the area as a disaster area as a result 
of Hurricane Katrina. 
‘‘(I) NO SALE.—No loan under this sub-
section made as a result of Hurricane Katrina 
may be sold.’’. 
(2) CLERICAL AMENDMENTS.—Section 7(b) of 
the Small Business Act (15 U.S.C. 636(b)) is 
amended in the undesignated matter at the end— 
(A) by striking ‘‘, (2), and (4)’’ and insert-
ing ‘‘and (2)’’; and
193 
(B) by striking ‘‘, (2), or (4)’’ and insert-
ing ‘‘(2)’’. 
SEC. 414. ENTREPRENEURIAL DEVELOPMENT. 
In addition to any other amounts authorized for any 
fiscal year, there is authorized to be appropriated, and 
there is appropriated, to the Administration, to remain 
available until expended— 
(1) $21,000,000, to be used for activities of 
small business development centers pursuant to sec-
tion 21 of the Small Business Act, $15,000,000 of 
which shall be non-matching funds and used to aid 
and assist small business concerns affected by Hur-
ricane Katrina; 
(2) $2,000,000, to be used for the SCORE pro-
gram authorized by section 8(b)(1) of the Small 
Business Act, for the activities described in section 
8(b)(1)(B)(ii) of that Act, $1,000,000 of which shall 
be used to aid and assist small business concerns af-
fected by Hurricane Katrina; 
(3) $4,500,000, to be used for activities of 
women’s business centers authorized by section 
29(b) of the Small Business Act and for recipients 
of a grant under section 29(l) of that Act, 
$2,500,000 of which shall be non-matching funds 
used to aid and assist small business concerns af-
194 
fected by Hurricane Katrina, which may also be 
made available to a women’s business center whose 
5-year project ended in fiscal year 2004; 
(4) $1,250,000, to be used for activities of the 
office of veteran’s business development pursuant to 
section 32 of the Small Business Act, $750,000 of 
which shall be used to aid and assist small business 
concerns affected by Hurricane Katrina; and 
(5) $5,000,000, to be used for activities of the 
microloan program authorized by clauses (ii) and 
(iii) of section 7(m)(1)(G) of the Small Business Act 
to aid and assist small business concerns adversely 
affected by Hurricane Katrina. 
SEC. 415. SMALL BUSINESS DEVELOPMENT CENTERS. 
Section 21(a)(4) of the Small Business Act (15 
U.S.C. 648(a)(4)) is amended by adding at the end the 
following: 
‘‘(D) FISCAL YEARS 2005 AND 2006.—For 
fiscal years 2005 and 2006, the Administrator 
has the authority to waive the maximum 
amount of $100,000 for grants under subpara-
graph (C)(viii) for small business development 
centers assisting small business concerns ad-
versely affected by Hurricane Katrina.’’.
195 
SEC. 416. HUBZONES. 
Section 3(p)(1) of the Small Business Act (15 U.S.C. 
632(p)(1)) is amended— 
(1) in subparagraph (D), by striking ‘‘or’’; 
(2) in subparagraph (E), by striking the period 
and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(F) the Hurricane Katrina disaster area, 
as designated by the Administrator.’’. 
SEC. 417. OUTREACH PROGRAMS. 
(a) IN GENERAL.—Not later than 90 days after the 
date of enactment of this Act, the Administrator shall es-
tablish a contracting outreach and technical assistance 
program for small business concerns which have had a pri-
mary place of business in, or other significant presence 
in the Hurricane Katrina disaster area at any time fol-
lowing the 60 days prior to the designation of such area 
by the Administrator. 
(b) ADMINISTRATOR ACTION.—The Administrator 
may fulfill the requirement of subsection (a) by acting 
through— 
(1) the Administration; 
(2) the Federal agency small business officials 
designated under section 15(k)(1) of the Small Busi-
ness Act (15 U.S.C. 644(k)(1)); or
196 
(3) any Federal, State, or local government en-
tity, higher education institution, or private non-
profit organization that the Administrator may deem 
appropriate, upon conclusion of a memorandum of 
understanding or assistance agreement, as appro-
priate, with the Administrator. 
SEC. 418. SMALL BUSINESS BONDING THRESHOLD. 
Notwithstanding any other provision of law, for all 
procurements related to Hurricane Katrina, the Adminis-
trator may, upon such terms and conditions as it may pre-
scribe, guarantee and enter into commitments to guar-
antee any surety against loss resulting from a breach of 
the terms of a bid bond, payment bond, performance bond, 
or bonds ancillary thereto, by a principal on any total work 
order or contract amount at the time of bond execution 
that does not exceed $10,000,000. 
SEC. 419. SUPPLEMENTAL EMERGENCY LOANS. 
(a) IN GENERAL.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)) is amended by adding at the 
end the following: 
‘‘(32) 
SUPPLEMENTAL
EMERGENCY
LOANS 
AFTER HURRICANE KATRINA.— 
‘‘(A) LOAN
AUTHORITY.—In addition to 
any other loan authorized by this subsection, 
the Administrator shall make such loans under
197 
this subsection (either directly or in cooperation 
with banks or other lending institutions through 
agreements to participate on an immediate or 
deferred basis) as the Administrator determines 
appropriate to a small business concern ad-
versely affected by Hurricane Katrina, subject 
to subparagraph (B). 
‘‘(B) OVERSIGHT PROTECTIONS.—In mak-
ing any loan under subparagraph (A)— 
‘‘(i) the borrower shall be made aware 
that such loans are for those adversely af-
fected by Hurricane Katrina; and 
‘‘(ii) if such loans are made in co-
operation with a bank or other lending in-
stitution— 
‘‘(I) lenders shall document for 
the Administrator how the borrower 
was adversely affected by Hurricane 
Katrina, whether directly, or indi-
rectly; and 
‘‘(II) not later than 6 months 
after the date of enactment of this 
paragraph, and every 6 months there-
after until the date that is 18 months 
after the date of enactment of this
198 
paragraph, the Comptroller General 
shall make a report regarding such 
loans to the Committee on Small 
Business and Entrepreneurship of the 
Senate and the Committee on Small 
Business of the House of Representa-
tives, including verification that such 
loans are being used for purposes au-
thorized by this paragraph. 
‘‘(C) FEES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of law, the Adminis-
trator shall, in lieu of the fee established 
under paragraph (23)(A), collect an annual 
fee of 0.25 percent of the outstanding bal-
ance of deferred participation loans made 
under this subsection to qualified bor-
rowers for a period of 1 year after the date 
of enactment of this paragraph. 
‘‘(ii) GUARANTEE
FEES.—Notwith-
standing any other provision of law, the 
guarantee fee under paragraph (18)(A) for 
a period of 1 year after the date of enact-
ment of this subparagraph shall be as fol-
lows:
199 
‘‘(I) A guarantee fee equal to 1 
percent of the deferred participation 
share of a total loan amount that is 
not more than $150,000. 
‘‘(II) A guarantee fee equal to 
2.5 percent of the deferred participa-
tion share of a total loan amount that 
is more than $150,000, but not more 
than $700,000. 
‘‘(III) A guarantee fee equal to 
3.5 percent of the deferred participa-
tion share of a total loan amount that 
is more than $700,000.’’. 
(b) APPROPRIATION.—There is authorized to be ap-
propriated, and there is appropriated, $75,000,000 to 
carry out section 7(a)(32) of the Small Business Act, as 
amended by subsection (a). 
SEC. 420. SMALL BUSINESS PARTICIPATION. 
In order to facilitate the maximum practicable par-
ticipation of small business concerns in activities related 
to relief and recovery from Hurricane Katrina, the Admin-
istrator and the head of any Federal agency making pro-
curements related to the aftermath of Hurricane Katrina, 
shall set a goal, to be met within a reasonable time, of 
awarding to small business concerns not less than 30 per-
200 
cent of amounts expended for prime contracts and not less 
than 40 percent of amounts expended for subcontracts on 
procurements by such agency related to the aftermath of 
Hurricane Katrina. 
SEC. 421. ENERGY EMERGENCY RELIEF. 
(a) SMALL BUSINESS AND FARM ENERGY EMER-
GENCY DISASTER LOAN PROGRAM.— 
(1) SMALL BUSINESS DISASTER LOAN AUTHOR-
ITY.—Section 7(b) of the Small Business Act (15 
U.S.C. 636(b)) is amended by inserting immediately 
after paragraph (4), as added by this subtitle, the 
following: 
‘‘(5)(A) For purposes of this paragraph— 
‘‘(i) the term ‘base price index’ means the 
moving average of the closing unit price on the 
New York Mercantile Exchange for heating oil, 
natural gas, gasoline, or propane for the 10 
days, in each of the most recent 2 preceding 
years, which correspond to the trading days de-
scribed in clause (ii); 
‘‘(ii) the term ‘current price index’ means 
the moving average of the closing unit price on 
the New York Mercantile Exchange, for the 10 
most recent trading days, for contracts to pur-
chase heating oil, natural gas, gasoline, or pro-
201 
pane during the subsequent calendar month, 
commonly known as the ‘front month’; 
‘‘(iii) 
the 
term 
‘significant 
increase’ 
means— 
‘‘(I) with respect to the price of heat-
ing oil, natural gas, gasoline, or propane, 
any time the current price index exceeds 
the base price index by not less than 40 
percent; and 
‘‘(II) with respect to the price of ker-
osene, any increase which the Adminis-
trator, in consultation with the Secretary 
of Energy, determines to be significant; 
and 
‘‘(iv) a small business concern engaged in 
the heating oil business is eligible for a loan, if 
the small business concern sells not more than 
10,000,000 gallons of heating oil per year. 
‘‘(B) The Administration may make such loans, 
either directly or in cooperation with banks or other 
lending institutions through agreements to partici-
pate on an immediate or deferred basis, to assist a 
small business concern that has suffered or that is 
likely to suffer substantial economic injury on or 
after January 1, 2005, as the result of a significant
202 
increase in the price of heating oil, natural gas, gas-
oline, propane, or kerosene occurring on or after 
January 1, 2005. 
‘‘(C) Any loan or guarantee extended pursuant 
to this paragraph shall be made at the same interest 
rate as economic injury loans under paragraph (2). 
‘‘(D) No loan may be made under this para-
graph, either directly or in cooperation with banks 
or other lending institutions through agreements to 
participate on an immediate or deferred basis, if the 
total amount outstanding and committed to the bor-
rower 
under 
this 
subsection 
would 
exceed 
$1,500,000, unless such borrower constitutes a 
major source of employment in its surrounding area, 
as determined by the Administrator, in which case 
the Administrator, in its discretion, may waive the 
$1,500,000 limitation. 
‘‘(E) For purposes of assistance under this 
paragraph— 
‘‘(i) a declaration of a disaster area based 
on conditions specified in this paragraph shall 
be required, and shall be made by the President 
or the Administrator; or 
‘‘(ii) if no declaration has been made pur-
suant to clause (i), the Governor of a State in
203 
which a significant increase in the price of heat-
ing oil, natural gas, gasoline, propane, or ker-
osene has occurred may certify to the Adminis-
tration that small business concerns have suf-
fered economic injury as a result of such in-
crease and are in need of financial assistance 
which is not otherwise available on reasonable 
terms in that State, and upon receipt of such 
certification, the Administration may make such 
loans as would have been available under this 
paragraph if a disaster declaration had been 
issued. 
‘‘(F) Notwithstanding any other provision of 
law, loans made under this paragraph may be used 
by a small business concern described in subpara-
graph (B) to convert from the use of heating oil, 
natural gas, gasoline, propane, or kerosene to a re-
newable or alternative energy source, including agri-
culture and urban waste, geothermal energy, cogen-
eration, solar energy, wind energy, or fuel cells.’’. 
(2) CONFORMING AMENDMENTS.—Section 3(k) 
of the Small Business Act (15 U.S.C. 632(k)) is 
amended— 
(A) by inserting ‘‘, significant increase in 
the price of heating oil, natural gas, gasoline,
204 
propane, or kerosene’’ after ‘‘civil disorders’’; 
and 
(B) by inserting ‘‘other’’ before ‘‘eco-
nomic’’. 
(3) REPORT.—Not later than 12 months after 
the date on which the Administrator issues guide-
lines under subsection (c)(1), and annually there-
after, the Administrator shall submit to the Com-
mittee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of 
the House of Representatives, a report on the effec-
tiveness of the assistance made available under sec-
tion 7(b)(5) of the Small Business Act, as added by 
this subsection, including— 
(A) the number of small business concerns 
that applied for a loan under that section 
7(b)(5) and the number of those that received 
such loans; 
(B) the dollar value of those loans; 
(C) the States in which the small business 
concerns that received such loans are located; 
(D) the type of energy that caused the sig-
nificant increase in the cost for the partici-
pating small business concerns; and