I 
111TH CONGRESS 
1ST SESSION H. R. 3743 
To amend the Small Business Act to improve the disaster relief programs 
of the Small Business Administration, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 7, 2009 
Mr. GRIFFITH introduced the following bill; which was referred to the 
Committee on Small Business 
A BILL 
To amend the Small Business Act to improve the disaster 
relief programs of the Small Business Administration, 
and for other purposes. 
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 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 
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(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— 
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‘‘(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 
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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, 
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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-
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