RISE After Disaster Act of 2015

Bill: 114-hr-208
Sponsor: full_name: Rep. Velazquez, Nydia M. [D-NY-7]
Introduced: 2015-01-08
Policy area: Commerce
Subjects: Congressional oversight

Connecticut

Credit and credit markets

Disaster relief and insurance

Floods and storm protection

Government lending and loan guarantees

Housing finance and home ownership

Natural disasters

New Jersey

New York State

Residential rehabilitation and home repair

Rhode Island

Small business
Latest action: action_date: 2015-11-25
text: Became Public Law No: 114-88.

Summaries:
action_date: 2015-01-08
action_desc: Introduced in House
text: <p><b>Superstorm Sandy Relief Act of 2015</b></p> <p>Requires the Administrator of the Small Business Administration to establish a loan program under which, for at least one year, a small business, homeowner, or renter that was located within a declared major disaster area during Superstorm Sandy in 2012 may apply for a loan to: (1) repair, rehabilitate, or replace property damaged or destroyed because of the storm; or (2) assist a small business that suffered substantial economic injury because of it.</p>

action_date: 2015-06-25
action_desc: Reported to House with amendment(s)
text: <p><b>Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015</b></p> <p>(Sec. 3) This bill amends the Small Business Act to authorize a small business, homeowner, or renter that was located within a declared major disaster area during Superstorm Sandy in 2012 to apply for a Small Business Administration (SBA) loan to: (1) repair, rehabilitate, or replace property damaged or destroyed because of the storm; or (2) assist a small business that suffered substantial economic injury because of it.</p> <p>The SBA must select loan recipients and make such loans available for at least one year after the date on which it carries out this authority.</p> <p>(Sec. 4) SBA physical disaster loans may be used to construct a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters.</p> <p>(Sec. 5) In the case of an SBA disaster loan of up to $250,000, the SBA may not require a borrower to pledge his or her primary residence as collateral if: (1) other collateral exists, including assets related to a business's operation; and (2) such an option does not delay the SBA's processing of disaster applications.</p> <p>(Sec. 6) The SBA shall make a clear and concise notification on all application materials for SBA disaster loans and on relevant websites notifying an applicant that:</p> <ul> <li> he or she may submit all documentation necessary for the approval of the loan at the time of application, and</li> <li>failure to do so could delay the loan's approval and disbursement.</li> </ul> <p>(Sec. 7) The SBA must establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a SBA disaster loan.</p> <p>(Sec. 8) The SBA shall:</p> <ul> <li> establish requirements for the approval of economic injury disaster loan assistance that shall include the review of applicant eligibility and require that all supporting documentation is submitted before loan approval, and</li> <li> require that personnel involved in this approval be trained on these procedures.</li> </ul> <p>(Sec. 9) The SBA must report the average processing time for all other disaster loan applications, including disaggregated data on them that were declined by the SBA's automated disaster processing system and those in which the SBA performed loss verification. For each disaster loan the SBA shall report such average processing times on its website and to specified congressional committees.</p> <p>(Sec. 10) The SBA comprehensive written disaster response plan, and any successor, shall be revised to incorporate the SBA response to a situation in which an extreme volume of applications are received during the period of time immediately after a disaster. The revised plan must: (1) ensure that sufficient human and technological resources are made available, and (2) prevent delays in loan processing.</p> <p>(Sec. 11) The SBA must:</p> <ul> <li> report to Congress on the implementation and status of its private disaster loan program, Immediate Disaster Assistance program, and its expedited disaster assistance business loan program; and</li> <li> require the Associate Administrator for the Office of Disaster Assistance to consult with depository institutions and credit unions regarding their potential participation in any of these programs.</li></ul>

action_date: 2015-07-13
action_desc: Passed House amended
text: <p>(This measure has not been amended since it was reported to the House on June 25, 2015. The summary of that version is repeated here.)</p> <p><b>Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015</b></p> <p>(Sec. 3) This bill amends the Small Business Act to authorize a small business, homeowner, or renter that was located within a declared major disaster area during Superstorm Sandy in 2012 to apply for a Small Business Administration (SBA) loan to: (1) repair, rehabilitate, or replace property damaged or destroyed because of the storm; or (2) assist a small business that suffered substantial economic injury because of it.</p> <p>The SBA must select loan recipients and make such loans available for at least one year after the date on which it carries out this authority.</p> <p>(Sec. 4) SBA physical disaster loans may be used to construct a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters.</p> <p>(Sec. 5) In the case of an SBA disaster loan of up to $250,000, the SBA may not require a borrower to pledge his or her primary residence as collateral if: (1) other collateral exists, including assets related to a business's operation; and (2) such an option does not delay the SBA's processing of disaster applications.</p> <p>(Sec. 6) The SBA shall make a clear and concise notification on all application materials for SBA disaster loans and on relevant websites notifying an applicant that:</p> <ul> <li> he or she may submit all documentation necessary for the approval of the loan at the time of application, and</li> <li>failure to do so could delay the loan's approval and disbursement.</li> </ul> <p>(Sec. 7) The SBA must establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a SBA disaster loan.</p> <p>(Sec. 8) The SBA shall:</p> <ul> <li> establish requirements for the approval of economic injury disaster loan assistance that shall include the review of applicant eligibility and require that all supporting documentation is submitted before loan approval, and</li> <li> require that personnel involved in this approval be trained on these procedures.</li> </ul> <p>(Sec. 9) The SBA must report the average processing time for all other disaster loan applications, including disaggregated data on them that were declined by the SBA's automated disaster processing system and those in which the SBA performed loss verification. For each disaster loan the SBA shall report such average processing times on its website and to specified congressional committees.</p> <p>(Sec. 10) The SBA comprehensive written disaster response plan, and any successor, shall be revised to incorporate the SBA response to a situation in which an extreme volume of applications are received during the period of time immediately after a disaster. The revised plan must: (1) ensure that sufficient human and technological resources are made available, and (2) prevent delays in loan processing.</p> <p>(Sec. 11) The SBA must:</p> <ul> <li> report to Congress on the implementation and status of its private disaster loan program, Immediate Disaster Assistance program, and its expedited disaster assistance business loan program; and</li> <li> require the Associate Administrator for the Office of Disaster Assistance to consult with depository institutions and credit unions regarding their potential participation in any of these programs.</li></ul>

action_date: 2015-10-21
action_desc: Passed Senate amended
text: <p><b>Recovery Improvements for Small Entities After Disaster Act of 2015 or the RISE After Disaster Act of 2015</b></p> <p>DIVISION A--SUPERSTORM SANDY RELIEF AND DISASTER LOAN PROGRAM IMPROVEMENTS</p> <p><i>Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015</i></p> <p>TITLE I--DISASTER ASSISTANCE IMPROVEMENTS</p> <p>(Sec. 1101) This bill amends the Small Business Act to authorize a small business, homeowner, nonprofit entity, or renter that was located within a declared major disaster area during Superstorm Sandy in 2012 to apply for a Small Business Administration (SBA) loan to: (1) repair, rehabilitate, or replace property damaged or destroyed because of the storm; or (2) assist a small business that suffered substantial economic injury because of it.</p> <p>The SBA must select loan recipients and make such loans available for at least one year after the date on which it carries out this authority.</p> <p>The SBA Inspector General must review the controls for ensuring applicant eligibility for these loans.</p> <p>(Sec. 1102) SBA physical disaster loans may be used to construct a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters, if they are constructed in accordance with Federal Emergency Management Agency (FEMA) standards.</p> <p>(Sec. 1103) The SBA shall make a clear and concise notification on all application materials for SBA disaster loans and on relevant websites notifying an applicant that:</p> <ul> <li> he or she may submit all documentation necessary for the approval of the loan at the time of application, and</li> <li>failure to do so could delay the loan's approval and disbursement.</li></ul> <p>(Sec. 1104) The SBA must establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a SBA disaster loan.</p> <p>(Sec. 1105) The SBA shall revise the comprehensive written disaster response plan, and any successor response plan, to incorporate the SBA response to a situation in which an extreme volume of applications are received during the period of time immediately after a disaster. The revised plan must: (1) ensure that sufficient human and technological resources are made available, and (2) prevent delays in loan processing.</p> <p>DIVISION B--RECOVERY IMPROVEMENTS FOR SMALL ENTITIES</p> <p><i>Recovery Improvements for Small Entities After Disaster Act of 2015 or the RISE After Disaster Act of 2015</i></p> <p>TITLE I--IMPROVEMENTS OF DISASTER RESPONSE AND LOANS</p> <p>(Sec. 2101) This title amends the Small Business Act to authorize the Small Business Administration (SBA), in order to spur disaster recovery and growth of small businesses located in a declared major disaster area, to provide up to two years of additional financial assistance, on a competitive basis, to a small business development center (SBDC), an SBA women's business center, the Service Corps of Retired Executives, or any proposed consortium of such individuals or entities. <p> No matching funds shall be required for any grant, contract, or cooperative agreement relating to such financial assistance.</p> <p> Recipients of this assistance must provide counseling, training, and other related services, such as promoting long-term resiliency, to small businesses and entrepreneurs impacted by a major disaster.</p> <p> The SBA shall establish performance metrics and goals for grants, contracts, and cooperative agreements, including recovery of sales, recovery of employment, reestablishment of business premises, and establishment of new small business concerns.</p> <p> The SBA may make one extension of a grant, contract, or cooperative agreement for up to one year, upon a showing of good cause and need.</p> <p> (Sec. 2102) The minimum disaster loan amount for which the SBA may require collateral is increased, for a 3-year period only, from $14,000 to $25,000 (or, as under existing law, any higher amount the SBA determines appropriate in the event of a disaster). Three years after enactment of this Act the minimum disaster loan threshold shall revert to $14,000.</p> <p> The SBA must assess for Congress the impact and benefits resulting from the increase to $25,000, and recommend whether it should be made permanent.</p> <p> (Sec. 2103) The SBA may authorize an SBDC to provide advice, information, and assistance to small businesses outside the SBDC's state, without regard to geographical proximity to the SBDC, if the small business is in a declared major disaster area.</p> <p> It is the sense of Congress that the SBA shall ensure that an SBDC is appropriately reimbursed for any legitimate expenses in carrying out such activities.</p> <p> (Sec. 2104) The Small Business Act is further amended to:</p> <ul> <li> require special consideration of federal and state technology (FAST) partnership program applications for awards or cooperative agreements from applicants located in an area affected by a major disaster comparable to the description of a catastrophic incident in the SBA National Response Plan; and</li> <li> waive matching requirements for such awards or cooperative agreements.</li> </ul> <p> (Sec. 2105) The SBA may transfer, on a priority basis, federal technology or surplus property to certain small businesses in major disaster areas. Such property may not be sold or transferred to any non-federal party during the two-year period of the declared major disaster area.</p> <p> (Sec. 2106) The SBA may guarantee up to 85% of an express recovery opportunity loan of up to $150,000 to a small business located in a disaster area if the concern has the capacity to repay it. The guarantee fee, unless waived, and except in certain cost circumstances, shall be the same as the one the SBA would collect if the guarantee rate were 50%.</p> <p> (Sec. 2107) The SBA may provide supplemental assistance for contractor malfeasance in the form of an increased disaster loan to cover the cost of any repairs, rehabilitation, or replacement of real or personal property needed to address economic damage or health or safety risks caused by the malfeasance of a contractor or other person.</p> <p> (Sec. 2108) Federal agencies shall establish contracting preferences and incentives for small businesses located in disaster areas if they will perform the work required under the contract. The value of the contract shall be doubled if SBA goals for procurement contracts are met.</p> <p> (Sec. 2109) In obtaining the best available collateral for a disaster loan of up to $200,000 relating to damage to or destruction of the property of, or economic injury to, a small business, the SBA may not require the small business owner to use his or her primary residence as collateral if the owner has other assets with a value equal to or greater than the amount of the loan that could be used.</p> <p> TITLE II--DISASTER PLANNING AND MITIGATION</p> <p> (Sec. 2201) This title amends the Small Business Act to require SBA district offices to identify locations that may be used as SBA recovery centers in the event of a natural or a major disaster.</p> <p> TITLE III--OTHER PROVISIONS</p> <p> (Sec. 2301) This title requires the SBA to increase oversight of small businesses receiving economic injury disaster loans, and may consider random site visits and random review of loan usage.</p> <p> It is the sense of Congress that no additional federal funds should be made available to provide this oversight.</p> <p> (Sec. 2302) The Government Accountability Office shall evaluate and report to specified congressional committees on steps the SBA has taken, with respect to SBA applications for disaster assistance, to comply with the Paper Reduction Act and related guidance.</p> <p> (Sec. 2303) The SBA must report to specified congressional committees on creation of a web portal to track the status of disaster loan applications.</p>

action_date: 2015-11-25
action_desc: Public Law
text: <p>(This measure has not been amended since it was passed by the Senate on October 21, 2015. The summary of that version is repeated here.)</p> <p><b>Recovery Improvements for Small Entities After Disaster Act of 2015 or the RISE After Disaster Act of 2015</b></p> <p>DIVISION A--SUPERSTORM SANDY RELIEF AND DISASTER LOAN PROGRAM IMPROVEMENTS</p> <p><i>Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015</i></p> <p>TITLE I--DISASTER ASSISTANCE IMPROVEMENTS</p> <p>(Sec. 1101) This bill amends the Small Business Act to authorize a small business, homeowner, nonprofit entity, or renter that was located within a declared major disaster area during Superstorm Sandy in 2012 to apply for a Small Business Administration (SBA) loan to: (1) repair, rehabilitate, or replace property damaged or destroyed because of the storm; or (2) assist a small business that suffered substantial economic injury because of it.</p> <p>The SBA must select loan recipients and make such loans available for at least one year after the date on which it carries out this authority.</p> <p>The SBA Inspector General must review the controls for ensuring applicant eligibility for these loans.</p> <p>(Sec. 1102) SBA physical disaster loans may be used to construct a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters, if they are constructed in accordance with Federal Emergency Management Agency (FEMA) standards.</p> <p>(Sec. 1103) The SBA shall make a clear and concise notification on all application materials for SBA disaster loans and on relevant websites notifying an applicant that:</p> <ul> <li> he or she may submit all documentation necessary for the approval of the loan at the time of application, and</li> <li>failure to do so could delay the loan's approval and disbursement.</li></ul> <p>(Sec. 1104) The SBA must establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a SBA disaster loan.</p> <p>(Sec. 1105) The SBA shall revise the comprehensive written disaster response plan, and any successor response plan, to incorporate the SBA response to a situation in which an extreme volume of applications are received during the period of time immediately after a disaster. The revised plan must: (1) ensure that sufficient human and technological resources are made available, and (2) prevent delays in loan processing.</p> <p>DIVISION B--RECOVERY IMPROVEMENTS FOR SMALL ENTITIES</p> <p><i>Recovery Improvements for Small Entities After Disaster Act of 2015 or the RISE After Disaster Act of 2015</i></p> <p>TITLE I--IMPROVEMENTS OF DISASTER RESPONSE AND LOANS</p> <p>(Sec. 2101) This title amends the Small Business Act to authorize the Small Business Administration (SBA), in order to spur disaster recovery and growth of small businesses located in a declared major disaster area, to provide up to two years of additional financial assistance, on a competitive basis, to a small business development center (SBDC), an SBA women's business center, the Service Corps of Retired Executives, or any proposed consortium of such individuals or entities. <p> No matching funds shall be required for any grant, contract, or cooperative agreement relating to such financial assistance.</p> <p> Recipients of this assistance must provide counseling, training, and other related services, such as promoting long-term resiliency, to small businesses and entrepreneurs impacted by a major disaster.</p> <p> The SBA shall establish performance metrics and goals for grants, contracts, and cooperative agreements, including recovery of sales, recovery of employment, reestablishment of business premises, and establishment of new small business concerns.</p> <p> The SBA may make one extension of a grant, contract, or cooperative agreement for up to one year, upon a showing of good cause and need.</p> <p> (Sec. 2102) The minimum disaster loan amount for which the SBA may require collateral is increased, for a 3-year period only, from $14,000 to $25,000 (or, as under existing law, any higher amount the SBA determines appropriate in the event of a disaster). Three years after enactment of this Act the minimum disaster loan threshold shall revert to $14,000.</p> <p> The SBA must assess for Congress the impact and benefits resulting from the increase to $25,000, and recommend whether it should be made permanent.</p> <p> (Sec. 2103) The SBA may authorize an SBDC to provide advice, information, and assistance to small businesses outside the SBDC's state, without regard to geographical proximity to the SBDC, if the small business is in a declared major disaster area.</p> <p> It is the sense of Congress that the SBA shall ensure that an SBDC is appropriately reimbursed for any legitimate expenses in carrying out such activities.</p> <p> (Sec. 2104) The Small Business Act is further amended to:</p> <ul> <li> require special consideration of federal and state technology (FAST) partnership program applications for awards or cooperative agreements from applicants located in an area affected by a major disaster comparable to the description of a catastrophic incident in the SBA National Response Plan; and</li> <li> waive matching requirements for such awards or cooperative agreements.</li> </ul> <p> (Sec. 2105) The SBA may transfer, on a priority basis, federal technology or surplus property to certain small businesses in major disaster areas. Such property may not be sold or transferred to any non-federal party during the two-year period of the declared major disaster area.</p> <p> (Sec. 2106) The SBA may guarantee up to 85% of an express recovery opportunity loan of up to $150,000 to a small business located in a disaster area if the concern has the capacity to repay it. The guarantee fee, unless waived, and except in certain cost circumstances, shall be the same as the one the SBA would collect if the guarantee rate were 50%.</p> <p> (Sec. 2107) The SBA may provide supplemental assistance for contractor malfeasance in the form of an increased disaster loan to cover the cost of any repairs, rehabilitation, or replacement of real or personal property needed to address economic damage or health or safety risks caused by the malfeasance of a contractor or other person.</p> <p> (Sec. 2108) Federal agencies shall establish contracting preferences and incentives for small businesses located in disaster areas if they will perform the work required under the contract. The value of the contract shall be doubled if SBA goals for procurement contracts are met.</p> <p> (Sec. 2109) In obtaining the best available collateral for a disaster loan of up to $200,000 relating to damage to or destruction of the property of, or economic injury to, a small business, the SBA may not require the small business owner to use his or her primary residence as collateral if the owner has other assets with a value equal to or greater than the amount of the loan that could be used.</p> <p> TITLE II--DISASTER PLANNING AND MITIGATION</p> <p> (Sec. 2201) This title amends the Small Business Act to require SBA district offices to identify locations that may be used as SBA recovery centers in the event of a natural or a major disaster.</p> <p> TITLE III--OTHER PROVISIONS</p> <p> (Sec. 2301) This title requires the SBA to increase oversight of small businesses receiving economic injury disaster loans, and may consider random site visits and random review of loan usage.</p> <p> It is the sense of Congress that no additional federal funds should be made available to provide this oversight.</p> <p> (Sec. 2302) The Government Accountability Office shall evaluate and report to specified congressional committees on steps the SBA has taken, with respect to SBA applications for disaster assistance, to comply with the Paper Reduction Act and related guidance.</p> <p> (Sec. 2303) The SBA must report to specified congressional committees on creation of a web portal to track the status of disaster loan applications.</p>

tv_txt: I 114th CONGRESS 1st Session H. R. 208 IN THE HOUSE OF REPRESENTATIVES January 8, 2015 Ms. Velázquez (for herself, Mr. Nadler , Mr. Rangel , Ms. Meng , and Mr. Crowley ) introduced the following bill; which was referred to the Committee on Small Business A BILL To require the Administrator of the Small Business Administration to establish a program to make loans to certain businesses, homeowners, and renters affected by Superstorm Sandy.

1. Short title This Act may be cited as the Superstorm Sandy Relief Act of 2015 . 2. Findings Congress finds the following: (1) In 2012, Superstorm Sandy caused substantial physical and economic damage to the United States, and New York in particular. (2) For businesses and homeowners, the primary means of obtaining long-term Federal financial assistance in the wake of disasters such as Superstorm Sandy is through the Small Business Administration’s Disaster Loan Program. (3) With regard to the Small Business Administration’s operation of the Disaster Loan Program after Superstorm Sandy, the Government Accountability Office found that the Administration did not meet its timeliness goals for processing business loan applications. (4) According to the Government Accountability Office, the Small Business Administration stated that it was challenged by an unexpectedly high volume of loan applications that it received early in its response to Superstorm Sandy. (5) As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing from the Small Business Administration. 3. Disaster loans for businesses, homeowners, and renters affected by Superstorm Sandy (a) Establishment Not later than 45 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall establish and carry out a loan program under which a small business concern, homeowner, or renter that was located within an area and during the time period with respect to which a major disaster was declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ) by reason of Superstorm Sandy may apply— (1) for a loan to repair, rehabilitate, or replace property damaged or destroyed by reason of Superstorm Sandy; or (2) if such a small business concern has suffered substantial economic injury by reason of Superstorm Sandy, for a loan to assist such a small business concern. (b) Requirements To carry out the program described in subsection (a), the Administrator shall use the same application, selection, and notice requirements and procedures that are used under section 7(b) of the Small Business Act Section 7(b) (15 U.S.C. 636(b)). (c) Timing The Administrator shall select loan recipients and make available loans under this Act for a period of not less than 1 year after the date on which the Administrator establishes the program.

tv_txt: IB Union Calendar No. 138 114th CONGRESS 1st Session H. R. 208 [Report No. 114–186] IN THE HOUSE OF REPRESENTATIVES January 8, 2015 Ms. Velázquez (for herself, Mr. Nadler , Mr. Rangel , Ms. Meng , and Mr. Crowley ) introduced the following bill; which was referred to the Committee on Small Business June 25, 2015 Additional sponsor: Mr. Serrano June 25, 2015 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on January 8, 2015 A BILL To require the Administrator of the Small Business Administration to establish a program to make loans to certain businesses, homeowners, and renters affected by Superstorm Sandy.

1. Short title This Act may be cited as the Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015 . 2. Findings Congress finds the following: (1) In 2012, Superstorm Sandy caused substantial physical and economic damage to the United States, and New York in particular. (2) For businesses and homeowners, the primary means of obtaining long-term Federal financial assistance in the wake of disasters such as Superstorm Sandy is through the Small Business Administration’s Disaster Loan Program. (3) With regard to the Small Business Administration’s operation of the Disaster Loan Program after Superstorm Sandy, the Government Accountability Office found that the Administration did not meet its timeliness goals for processing business loan applications. (4) According to the Government Accountability Office, the Small Business Administration stated that it was challenged by an unexpectedly high volume of loan applications that it received early in its response to Superstorm Sandy. (5) As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing from the Small Business Administration. 3. Revised disaster deadline Section 7(d) of the Small Business Act ( 15 U.S.C. 636(d) ) is amended by adding at the end the following: (8) Disaster loans for Superstorm Sandy (A) In general Notwithstanding any other provision of law, and subject to the same requirements and procedures that are used to make loans pursuant to subsection (b), a small business concern, homeowner, or renter that was located within an area and during the time period with respect to which a major disaster was declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ) by reason of Superstorm Sandy may apply to the Administrator— (i) for a loan to repair, rehabilitate, or replace property damaged or destroyed by reason of Superstorm Sandy; or (ii) if such a small business concern has suffered substantial economic injury by reason of Superstorm Sandy, for a loan to assist such a small business concern. (B) Timing The Administrator shall select loan recipients and make available loans for a period of not less than 1 year after the date on which the Administrator carries out this authority. . 4. Use of physical damage disaster loans to construct safe rooms Section 7(b)(1)(A) of the Small Business Act ( 15 U.S.C. 636(b)(1)(A) ) is amended by striking mitigating measures and all that follows through modifying structures and inserting the following: mitigating measures, including— (i) construction of retaining walls and sea walls; (ii) grading and contouring land; and (iii) relocating utilities and modifying structures, including construction of a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters . 5. Collateral requirements for small business concerns Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting after paragraph (9) the following: (10) Collateral requirements for small businesses In the case of a loan made pursuant to this subsection in an amount not greater than $250,000, the Administrator may not require a borrower to pledge his or her primary residence as collateral if— (A) other collateral exists, including assets related to the operation of a business; and (B) such an option does not delay the Administrator’s processing of disaster applications for a disaster. . 6. Reducing delays on closing and disbursement of loans Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (10) (as added by section 5) the following: (11) Reducing closing and disbursement delays The Administrator shall provide a clear and concise notification on all application materials for loans made under this subsection and on relevant websites notifying an applicant that the applicant may submit all documentation necessary for the approval of the loan at the time of application and that failure to submit all documentation could delay the approval and disbursement of the loan. . 7. Increasing transparency in loan approvals Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (11) (as added by section 6) the following: (12) Increasing transparency in loan approvals The Administrator shall establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a loan made under this subsection. . 8. Safeguarding taxpayers’ interests Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (12) (as added by section 7) the following: (13) Ensuring accountability in loan approvals The Administrator shall establish requirements for the approval of economic injury disaster loan assistance made available pursuant to paragraph (2), which shall include the review of applicant eligibility and shall require that all supporting documentation is submitted prior to loan approval. The Administrator shall require that personnel involved in the approval of such loans be trained on such procedures. . 9. Disaster performance measures Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (13) (as added by section 8) the following: (14) Reporting on disaster performance measures The Administrator shall report the average processing time for all other disaster loan applications, including disaggregated data on disaster loan applications that were declined by the Administration’s automated disaster processing system and applications in which the Administrator performed loss verification. For each disaster described in paragraph (2), the Administrator shall report such average processing times on its website and to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate. . 10. Disaster plan improvements The Administrator of the Small Business Administration shall revise the comprehensive written disaster response plan required in section 40 of the Small Business Act ( 15 U.S.C. 657l ), or any successor thereto, to incorporate the Administration’s response to a situation in which an extreme volume of applications are received during the period of time immediately after a disaster, which shall include a plan to ensure that sufficient human and technological resources are made available and a plan to prevent delays in loan processing. 11. Report to Congress on implementation of certain programs (a) Initial report The Administrator of the Small Business Administration shall report to Congress not later than 30 days after the date of enactment of this Act on the implementation and status of the private disaster loan program established in section 7(c) of the Small Business Act ( 15 U.S.C. 636(c) ), the Immediate Disaster Assistance program established in section 42 of such Act ( 15 U.S.C. 657n ), and the expedited disaster assistance business loan program established in section 12085 of the Small Business Disaster Response and Loan Improvements Act of 2008 ( 15 U.S.C. 636j ). (b) Required consultation with depository institutions and credit unions The Administrator shall require the Associate Administrator for the Office of Disaster Assistance to consult with depository institutions (as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )) and credit unions regarding their potential participation in any of the programs described in subsection (a). (c) Report on consultation Not later than 6 months after date of enactment of this Act, the Administrator shall report to Congress on the consultation required under subsection (b).

Amend the title so as to read: A bill to improve the disaster assistance programs of the Small Business Administration. .

June 25, 2015 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: IIB 114th CONGRESS 1st Session H. R. 208 IN THE SENATE OF THE UNITED STATES July 14, 2015 Received; read twice and referred to the Committee on Small Business and Entrepreneurship AN ACT To improve the disaster assistance programs of the Small Business Administration.

1. Short title This Act may be cited as the Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015 . 2. Findings Congress finds the following: (1) In 2012, Superstorm Sandy caused substantial physical and economic damage to the United States, and New York in particular. (2) For businesses and homeowners, the primary means of obtaining long-term Federal financial assistance in the wake of disasters such as Superstorm Sandy is through the Small Business Administration’s Disaster Loan Program. (3) With regard to the Small Business Administration’s operation of the Disaster Loan Program after Superstorm Sandy, the Government Accountability Office found that the Administration did not meet its timeliness goals for processing business loan applications. (4) According to the Government Accountability Office, the Small Business Administration stated that it was challenged by an unexpectedly high volume of loan applications that it received early in its response to Superstorm Sandy. (5) As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing from the Small Business Administration. 3. Revised disaster deadline Section 7(d) of the Small Business Act ( 15 U.S.C. 636(d) ) is amended by adding at the end the following: (8) Disaster loans for Superstorm Sandy (A) In general Notwithstanding any other provision of law, and subject to the same requirements and procedures that are used to make loans pursuant to subsection (b), a small business concern, homeowner, or renter that was located within an area and during the time period with respect to which a major disaster was declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ) by reason of Superstorm Sandy may apply to the Administrator— (i) for a loan to repair, rehabilitate, or replace property damaged or destroyed by reason of Superstorm Sandy; or (ii) if such a small business concern has suffered substantial economic injury by reason of Superstorm Sandy, for a loan to assist such a small business concern. (B) Timing The Administrator shall select loan recipients and make available loans for a period of not less than 1 year after the date on which the Administrator carries out this authority. . 4. Use of physical damage disaster loans to construct safe rooms Section 7(b)(1)(A) of the Small Business Act ( 15 U.S.C. 636(b)(1)(A) ) is amended by striking mitigating measures and all that follows through modifying structures and inserting the following: mitigating measures, including— (i) construction of retaining walls and sea walls; (ii) grading and contouring land; and (iii) relocating utilities and modifying structures, including construction of a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters . 5. Collateral requirements for small business concerns Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting after paragraph (9) the following: (10) Collateral requirements for small businesses In the case of a loan made pursuant to this subsection in an amount not greater than $250,000, the Administrator may not require a borrower to pledge his or her primary residence as collateral if— (A) other collateral exists, including assets related to the operation of a business; and (B) such an option does not delay the Administrator’s processing of disaster applications for a disaster. . 6. Reducing delays on closing and disbursement of loans Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (10) (as added by section 5) the following: (11) Reducing closing and disbursement delays The Administrator shall provide a clear and concise notification on all application materials for loans made under this subsection and on relevant websites notifying an applicant that the applicant may submit all documentation necessary for the approval of the loan at the time of application and that failure to submit all documentation could delay the approval and disbursement of the loan. . 7. Increasing transparency in loan approvals Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (11) (as added by section 6) the following: (12) Increasing transparency in loan approvals The Administrator shall establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a loan made under this subsection. . 8. Safeguarding taxpayers’ interests Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (12) (as added by section 7) the following: (13) Ensuring accountability in loan approvals The Administrator shall establish requirements for the approval of economic injury disaster loan assistance made available pursuant to paragraph (2), which shall include the review of applicant eligibility and shall require that all supporting documentation is submitted prior to loan approval. The Administrator shall require that personnel involved in the approval of such loans be trained on such procedures. . 9. Disaster performance measures Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (13) (as added by section 8) the following: (14) Reporting on disaster performance measures The Administrator shall report the average processing time for all other disaster loan applications, including disaggregated data on disaster loan applications that were declined by the Administration’s automated disaster processing system and applications in which the Administrator performed loss verification. For each disaster described in paragraph (2), the Administrator shall report such average processing times on its website and to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate. . 10. Disaster plan improvements The Administrator of the Small Business Administration shall revise the comprehensive written disaster response plan required in section 40 of the Small Business Act ( 15 U.S.C. 657l ), or any successor thereto, to incorporate the Administration’s response to a situation in which an extreme volume of applications are received during the period of time immediately after a disaster, which shall include a plan to ensure that sufficient human and technological resources are made available and a plan to prevent delays in loan processing. 11. Report to Congress on implementation of certain programs (a) Initial report The Administrator of the Small Business Administration shall report to Congress not later than 30 days after the date of enactment of this Act on the implementation and status of the private disaster loan program established in section 7(c) of the Small Business Act ( 15 U.S.C. 636(c) ), the Immediate Disaster Assistance program established in section 42 of such Act ( 15 U.S.C. 657n ), and the expedited disaster assistance business loan program established in section 12085 of the Small Business Disaster Response and Loan Improvements Act of 2008 ( 15 U.S.C. 636j ). (b) Required consultation with depository institutions and credit unions The Administrator shall require the Associate Administrator for the Office of Disaster Assistance to consult with depository institutions (as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )) and credit unions regarding their potential participation in any of the programs described in subsection (a). (c) Report on consultation Not later than 6 months after date of enactment of this Act, the Administrator shall report to Congress on the consultation required under subsection (b).

Passed the House of Representatives July 13, 2015. Karen L. Haas, Clerk

tv_txt: IB 114th CONGRESS 1st Session H. R. 208 IN THE HOUSE OF REPRESENTATIVES AN ACT To improve the disaster assistance programs of the Small Business Administration.

1. Short title This Act may be cited as the Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015 . 2. Findings Congress finds the following: (1) In 2012, Superstorm Sandy caused substantial physical and economic damage to the United States, and New York in particular. (2) For businesses and homeowners, the primary means of obtaining long-term Federal financial assistance in the wake of disasters such as Superstorm Sandy is through the Small Business Administration’s Disaster Loan Program. (3) With regard to the Small Business Administration’s operation of the Disaster Loan Program after Superstorm Sandy, the Government Accountability Office found that the Administration did not meet its timeliness goals for processing business loan applications. (4) According to the Government Accountability Office, the Small Business Administration stated that it was challenged by an unexpectedly high volume of loan applications that it received early in its response to Superstorm Sandy. (5) As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing from the Small Business Administration. 3. Revised disaster deadline Section 7(d) of the Small Business Act ( 15 U.S.C. 636(d) ) is amended by adding at the end the following: (8) Disaster loans for Superstorm Sandy (A) In general Notwithstanding any other provision of law, and subject to the same requirements and procedures that are used to make loans pursuant to subsection (b), a small business concern, homeowner, or renter that was located within an area and during the time period with respect to which a major disaster was declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ) by reason of Superstorm Sandy may apply to the Administrator— (i) for a loan to repair, rehabilitate, or replace property damaged or destroyed by reason of Superstorm Sandy; or (ii) if such a small business concern has suffered substantial economic injury by reason of Superstorm Sandy, for a loan to assist such a small business concern. (B) Timing The Administrator shall select loan recipients and make available loans for a period of not less than 1 year after the date on which the Administrator carries out this authority. . 4. Use of physical damage disaster loans to construct safe rooms Section 7(b)(1)(A) of the Small Business Act ( 15 U.S.C. 636(b)(1)(A) ) is amended by striking mitigating measures and all that follows through modifying structures and inserting the following: mitigating measures, including— (i) construction of retaining walls and sea walls; (ii) grading and contouring land; and (iii) relocating utilities and modifying structures, including construction of a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters . 5. Collateral requirements for small business concerns Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting after paragraph (9) the following: (10) Collateral requirements for small businesses In the case of a loan made pursuant to this subsection in an amount not greater than $250,000, the Administrator may not require a borrower to pledge his or her primary residence as collateral if— (A) other collateral exists, including assets related to the operation of a business; and (B) such an option does not delay the Administrator’s processing of disaster applications for a disaster. . 6. Reducing delays on closing and disbursement of loans Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (10) (as added by section 5) the following: (11) Reducing closing and disbursement delays The Administrator shall provide a clear and concise notification on all application materials for loans made under this subsection and on relevant websites notifying an applicant that the applicant may submit all documentation necessary for the approval of the loan at the time of application and that failure to submit all documentation could delay the approval and disbursement of the loan. . 7. Increasing transparency in loan approvals Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (11) (as added by section 6) the following: (12) Increasing transparency in loan approvals The Administrator shall establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a loan made under this subsection. . 8. Safeguarding taxpayers’ interests Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (12) (as added by section 7) the following: (13) Ensuring accountability in loan approvals The Administrator shall establish requirements for the approval of economic injury disaster loan assistance made available pursuant to paragraph (2), which shall include the review of applicant eligibility and shall require that all supporting documentation is submitted prior to loan approval. The Administrator shall require that personnel involved in the approval of such loans be trained on such procedures. . 9. Disaster performance measures Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is further amended by inserting after paragraph (13) (as added by section 8) the following: (14) Reporting on disaster performance measures The Administrator shall report the average processing time for all other disaster loan applications, including disaggregated data on disaster loan applications that were declined by the Administration’s automated disaster processing system and applications in which the Administrator performed loss verification. For each disaster described in paragraph (2), the Administrator shall report such average processing times on its website and to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate. . 10. Disaster plan improvements The Administrator of the Small Business Administration shall revise the comprehensive written disaster response plan required in section 40 of the Small Business Act ( 15 U.S.C. 657l ), or any successor thereto, to incorporate the Administration’s response to a situation in which an extreme volume of applications are received during the period of time immediately after a disaster, which shall include a plan to ensure that sufficient human and technological resources are made available and a plan to prevent delays in loan processing. 11. Report to Congress on implementation of certain programs (a) Initial report The Administrator of the Small Business Administration shall report to Congress not later than 30 days after the date of enactment of this Act on the implementation and status of the private disaster loan program established in section 7(c) of the Small Business Act ( 15 U.S.C. 636(c) ), the Immediate Disaster Assistance program established in section 42 of such Act ( 15 U.S.C. 657n ), and the expedited disaster assistance business loan program established in section 12085 of the Small Business Disaster Response and Loan Improvements Act of 2008 ( 15 U.S.C. 636j ). (b) Required consultation with depository institutions and credit unions The Administrator shall require the Associate Administrator for the Office of Disaster Assistance to consult with depository institutions (as defined in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 )) and credit unions regarding their potential participation in any of the programs described in subsection (a). (c) Report on consultation Not later than 6 months after date of enactment of this Act, the Administrator shall report to Congress on the consultation required under subsection (b).

Passed the House of Representatives July 13, 2015. Karen L. Haas, Clerk.

tv_txt: 114th CONGRESS 1st Session H.R. 208 In the Senate of the United States, October 21, 2015. Amendments:

That the bill from the House of Representatives (H.R. 208) entitled An Act to improve the disaster assistance programs of the Small Business Administration. , do pass with the following (1) On page 2, strike lines 1 through 5 and insert the following: 1. Short title; table of contents (a) Short title This Act may be cited as the Recovery Improvements for Small Entities After Disaster Act of 2015 or the RISE After Disaster Act of 2015 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. DIVISION A—SUPERSTORM SANDY RELIEF AND DISASTER LOAN PROGRAM IMPROVEMENTS Sec. 1001. Short title. Sec. 1002. Findings. TITLE I—Disaster assistance improvements 1101. Revised disaster deadline. 1102. Use of physical damage disaster loans to construct safe rooms. 1103. Reducing delays on closing and disbursement of loans. 1104. Safeguarding taxpayer interests and increasing transparency in loan approvals. 1105. Disaster plan improvements. DIVISION B—RECOVERY IMPROVEMENTS FOR SMALL ENTITIES Sec. 2001. Short title. TITLE I—Improvements of disaster response and loans Sec. 2101. Additional awards to small business development centers, women's business centers, and SCORE for disaster recovery. Sec. 2102. Collateral requirements for disaster loans. Sec. 2103. Assistance to out-of-State business concerns to aid in disaster recovery. Sec. 2104. FAST program. Sec. 2105. Use of Federal surplus property in disaster areas. Sec. 2106. Recovery opportunity loans. Sec. 2107. Contractor malfeasance. Sec. 2108. Local contracting preferences and incentives. Sec. 2109. Clarification of collateral requirements. TITLE II—Disaster planning and mitigation Sec. 2201. Business recovery centers. TITLE III—Other provisions Sec. 2301. Increased oversight of economic injury disaster loans. Sec. 2302. GAO report on paperwork reduction. Sec. 2303. Report on web portal for disaster loan applicants. A Superstorm Sandy Relief and Disaster Loan Program Improvements 1001. Short title This division may be cited as the Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015 . 1002. Findings (2) On page 3, strike line 5 and insert the following: I Disaster assistance improvements 1101. Revised disaster deadline (3) On page 3, line 14, insert nonprofit entity, after homeowner, . (4) On page 4, line 9, strike the quotation marks and the second period and insert the following: (C) Inspector General review Not later than 6 months after the date on which the Administrator begins carrying out this authority, the Inspector General of the Administration shall initiate a review of the controls for ensuring applicant eligibility for loans made under this paragraph. . (5) On page 4, line 10, strike Sec. 4. and insert Sec. 1102. . (6) On page 4, line 24, insert , if such safe room or similar storm shelter is constructed in accordance with applicable standards issued by the Federal Emergency Management Agency after disasters . (7) On page 5, strike lines 1 through 21 and insert the following: 1103. Reducing delays on closing and disbursement of loans Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (9) the following: (8) On page 5, line 22, strike (11) and insert (10) . (9) On page 6, strike lines 5 through 8 and insert the following: 1104. Safeguarding taxpayer interests and increasing transparency in loan approvals Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (10), as added by section 1103 of this Act, the following: (10) On page 6, line 9, strike (12) and insert (11) . (11) Beginning on page 6, strike line 14 and all that follows through page 7, line 20, and insert the following: 1105. Disaster plan improvements (12) Beginning on page 8, strike line 6 and all that follows through page 9, line 6, and insert the following: B Recovery improvements for small entities 2001. Short title This division may be cited as the Recovery Improvements for Small Entities After Disaster Act of 2015 or the RISE After Disaster Act of 2015 . I Improvements of disaster response and loans 2101. Additional awards to small business development centers, women's business centers, and SCORE for disaster recovery Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (11), as added by section 1104 of this Act, the following: (12) Additional awards to small business development centers, women's business centers, and SCORE for disaster recovery (A) In general The Administration may provide financial assistance to a small business development center, a women’s business center described in section 29, the Service Corps of Retired Executives, or any proposed consortium of such individuals or entities to spur disaster recovery and growth of small business concerns located in an area for which the President has declared a major disaster. (B) Form of financial assistance Financial assistance provided under this paragraph shall be in the form of a grant, contract, or cooperative agreement. (C) No matching funds required Matching funds shall not be required for any grant, contract, or cooperative agreement under this paragraph. (D) Requirements A recipient of financial assistance under this paragraph shall provide counseling, training, and other related services, such as promoting long-term resiliency, to small business concerns and entrepreneurs impacted by a major disaster. (E) Performance (i) In general The Administrator, in cooperation with the recipients of financial assistance under this paragraph, shall establish metrics and goals for performance of grants, contracts, and cooperative agreements under this paragraph, which shall include recovery of sales, recovery of employment, reestablishment of business premises, and establishment of new small business concerns. (ii) Use of estimates The Administrator shall base the goals and metrics for performance established under clause (i), in part, on the estimates of disaster impact prepared by the Office of Disaster Assistance for purposes of estimating loan-making requirements. (F) Term (i) In general The term of any grant, contract, or cooperative agreement under this paragraph shall be for not more than 2 years. (ii) Extension The Administrator may make 1 extension of a grant, contract, or cooperative agreement under this paragraph for a period of not more than 1 year, upon a showing of good cause and need for the extension. (G) Exemption from other program requirements Financial assistance provided under this paragraph is in addition to, and wholly separate from, any other form of assistance provided by the Administrator under this Act. (H) Competitive basis The Administration shall award financial assistance under this paragraph on a competitive basis. . 2102. Collateral requirements for disaster loans (a) In general Section 7(d)(6) of the Small Business Act ( 15 U.S.C. 636(d)(6) ) is amended in the third proviso— (1) by striking $14,000 and inserting $25,000 ; and (2) by striking major disaster and inserting disaster . (b) Sunset Effective on the date that is 3 years after the date of enactment of this Act, section 7(d)(6) of the Small Business Act ( 15 U.S.C. 636(d)(6) ) is amended in the third proviso— (1) by striking $25,000 and inserting $14,000 ; and (2) by inserting major before disaster . (c) Report Not later than 180 days before the date on which the amendments made by subsection (b) are to take effect, the Administrator of the Small Business Administration shall submit to Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the effects of the amendments made by subsection (a), which shall include— (1) an assessment of the impact and benefits resulting from the amendments; and (2) a recommendation as to whether the amendments should be made permanent. 2103. Assistance to out-of-State business concerns to aid in disaster recovery (a) In general Section 21(b)(3) of the Small Business Act ( 15 U.S.C. 648(b)(3) ) is amended— (1) by striking (3) At the discretion and inserting the following: (3) Assistance to out-of-state small business concerns (A) In general At the discretion ; and (2) by adding at the end the following: (B) Disaster recovery assistance (i) In general At the discretion of the Administrator, the Administrator may authorize a small business development center to provide advice, information, and assistance, as described in subsection (c), to a small business concern located outside of the State, without regard to geographic proximity to the small business development center, if the small business concern is located in an area for which the President has declared a major disaster. (ii) Term (I) In general A small business development center may provide advice, information, and assistance to a small business concern under clause (i) for a period of not more than 2 years after the date on which the President declared a major disaster for the area in which the small business concern is located. (II) Extension The Administrator may, at the discretion of the Administrator, extend the period described in subclause (I). (iii) Continuity of services A small business development center that provides counselors to an area described in clause (i) shall, to the maximum extent practicable, ensure continuity of services in any State in which the small business development center otherwise provides services. (iv) Access to disaster recovery facilities For purposes of this subparagraph, the Administrator shall, to the maximum extent practicable, permit the personnel of a small business development center to use any site or facility designated by the Administrator for use to provide disaster recovery assistance. . (b) Sense of Congress It is the sense of Congress that, subject to the availability of funds, the Administrator of the Small Business Administration should, to the extent practicable, ensure that a small business development center is appropriately reimbursed for any legitimate expenses incurred in carrying out activities under section 21(b)(3)(B) of the Small Business Act, as added by subsection (a). 2104. FAST program (a) Definitions Section 34(a) of the Small Business Act ( 15 U.S.C. 657d(a) ) is amended— (1) by redesignating paragraphs (3) through (9) as paragraphs (4) through (10), respectively; and (2) by inserting after paragraph (2) the following: (3) Catastrophic incident The term catastrophic incident means a major disaster that is comparable to the description of a catastrophic incident in the National Response Plan of the Administration, or any successor thereto. . (b) Priority Section 34(c)(2) of the Small Business Act ( 15 U.S.C. 657d(c)(2) ) is amended— (1) in subparagraph (A), by striking and at the end; (2) in subparagraph (B)(vi)(III), by striking the period at the end and inserting ; and ; and (3) by adding at the end the following: (C) shall give special consideration to an applicant that is located in an area affected by a catastrophic incident. . (c) Additional assistance Section 34(c) of the Small Business Act ( 15 U.S.C. 657d(c) ) is amended by adding at the end the following: (5) Additional assistance for catastrophic incidents Upon application by an applicant that receives an award or has in effect a cooperative agreement under this section and that is located in an area affected by a catastrophic incident, the Administrator may— (A) provide additional assistance to the applicant; and (B) waive the matching requirements under subsection (e)(2). . 2105. Use of Federal surplus property in disaster areas Section 7(j)(13)(F) of the Small Business Act ( 15 U.S.C. 636(j)(13)(F) ) is amended— (1) by inserting (i) after (F) ; and (2) by adding at the end the following: (ii) (I) In this clause— (aa) the term covered period means the 2-year period beginning on the date on which the President declared the applicable major disaster; and (bb) the term disaster area means the area for which the President has declared a major disaster, during the covered period. (II) The Administrator may transfer technology or surplus property under clause (i) on a priority basis to a small business concern located in a disaster area if— (aa) the small business concern meets the requirements for such a transfer, without regard to whether the small business concern is a Program Participant; and (bb) for a small business concern that is a Program Participant, on and after the date on which the President declared the applicable major disaster, the small business concern has not received property under this subparagraph on the basis of the status of the small business concern as a Program Participant. (III) For any transfer of property under this clause to a small business concern, the terms and conditions shall be the same as a transfer to a Program Participant, except that the small business concern shall agree not to sell or transfer the property to any party other than the Federal Government during the covered period. (IV) A small business concern that receives a transfer of property under this clause may not receive a transfer of property under clause (i) during the covered period. (V) If a small business concern sells or transfers property in violation of the agreement described in subclause (III), the Administrator may initiate proceedings to prohibit the small business concern from receiving a transfer of property under this clause or clause (i), in addition to any other remedy available to the Administrator. . 2106. Recovery opportunity loans Section 7(a)(31) of the Small Business Act ( 15 U.S.C. 636(a)(31) ) is amended— (1) in subparagraph (A)— (A) by redesignating clauses (i), (ii), and (iii) as clauses (ii), (iii), and (iv), respectively; and (B) by inserting before clause (ii), as so redesignated, the following: (i) The term disaster area means the area for which the President has declared a major disaster, during the 5-year period beginning on the date of the declaration. ; and (2) by adding at the end the following: (H) Recovery opportunity loans (i) In general The Administrator may guarantee an express loan to a small business concern located in a disaster area in accordance with this subparagraph. (ii) Maximums For a loan guaranteed under clause (i)— (I) the maximum loan amount is $150,000; and (II) the guarantee rate shall be not more than 85 percent. (iii) Overall cap A loan guaranteed under clause (i) shall not be counted in determining the amount of loans made to a borrower for purposes of subparagraph (D). (iv) Operations A small business concern receiving a loan guaranteed under clause (i) shall certify that the small business concern was in operation on the date on which the applicable major disaster occurred as a condition of receiving the loan. (v) Repayment ability A loan guaranteed under clause (i) may only be made to a small business concern that demonstrates, to the satisfaction of the Administrator, sufficient capacity to repay the loan. (vi) Timing of payment of guarantees (I) In general Not later than 90 days after the date on which a request for purchase is filed with the Administrator, the Administrator shall determine whether to pay the guaranteed portion of the loan. (II) Recapture Notwithstanding any other provision of law, unless there is a subsequent finding of fraud by a court of competent jurisdiction relating to a loan guaranteed under clause (i), on and after the date that is 6 months after the date on which the Administrator determines to pay the guaranteed portion of the loan, the Administrator may not attempt to recapture the paid guarantee. (vii) Fees (I) In general Unless the Administrator has waived the guarantee fee that would otherwise be collected by the Administrator under paragraph (18) for a loan guaranteed under clause (i), and except as provided in subclause (II), the guarantee fee for the loan shall be equal to the guarantee fee that the Administrator would collect if the guarantee rate for the loan was 50 percent. (II) Exception Subclause (I) shall not apply if the cost of carrying out the program under this subsection in a fiscal year is more than zero and such cost is directly attributable to the cost of guaranteeing loans under clause (i). (viii) Rules Not later than 270 days after the date of enactment of this subparagraph, the Administrator shall promulgate rules to carry out this subparagraph. . 2107. Contractor malfeasance Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (12), as added by section 2101 of this Act, the following: (13) Supplemental assistance for contractor malfeasance (A) In general If a contractor or other person engages in malfeasance in connection with repairs to, rehabilitation of, or replacement of real or personal property relating to which a loan was made under this subsection and the malfeasance results in substantial economic damage to the recipient of the loan or substantial risks to health or safety, upon receiving documentation of the substantial economic damage or the substantial risk to health and safety from an independent loss verifier, and subject to subparagraph (B), the Administrator may increase the amount of the loan under this subsection, as necessary for the cost of repairs, rehabilitation, or replacement needed to address the cause of the economic damage or health or safety risk. (B) Requirements The Administrator may only increase the amount of a loan under subparagraph (A) upon receiving an appropriate certification from the borrower and person performing the mitigation attesting to the reasonableness of the mitigation costs and an assignment of any proceeds received from the person engaging in the malfeasance. The assignment of proceeds recovered from the person engaging in the malfeasance shall be equal to the amount of the loan under this section. Any mitigation activities shall be subject to audit and independent verification of completeness and cost reasonableness. . 2108. Local contracting preferences and incentives Section 15 of the Small Business Act ( 15 U.S.C. 644 ) is amended by inserting after subsection (e) the following: (f) Contracting preference for small business concerns in a major disaster area (1) Definition In this subsection, the term disaster area means the area for which the President has declared a major disaster, during the period of the declaration. (2) Contracting preference An agency shall provide a contracting preference for a small business concern located in a disaster area if the small business concern will perform the work required under the contract in the disaster area. (3) Credit for meeting contracting goals If an agency awards a contract to a small business concern under the circumstances described in paragraph (2), the value of the contract shall be doubled for purposes of determining compliance with the goals for procurement contracts under subsection (g)(1)(A). . 2109. Clarification of collateral requirements Section 7(d)(6) of the Small Business Act ( 15 U.S.C. 636(d)(6) ) is amended by inserting after which are made under paragraph (1) of subsection (b) the following: : Provided further , That the Administrator, in obtaining the best available collateral for a loan of not more than $200,000 under paragraph (1) or (2) of subsection (b) relating to damage to or destruction of the property of, or economic injury to, a small business concern, shall not require the owner of the small business concern to use the primary residence of the owner as collateral if the Administrator determines that the owner has other assets of equal quality and with a value equal to or greater than the amount of the loan that could be used as collateral for the loan: Provided further , That nothing in the preceding proviso may be construed to reduce the amount of collateral required by the Administrator in connection with a loan described in the preceding proviso or to modify the standards used to evaluate the quality (rather than the type) of such collateral . II Disaster planning and mitigation 2201. Business recovery centers Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (13), as added by section 2108 of this Act, the following: (14) Business recovery centers (A) In general The Administrator, acting through the district offices of the Administration, shall identify locations that may be used as recovery centers by the Administration in the event of a disaster declared under this subsection or a major disaster. (B) Requirements for identification Each district office of the Administration shall— (i) identify a location described in subparagraph (A) in each county, parish, or similar unit of general local government in the area served by the district office; and (ii) ensure that the locations identified under subparagraph (A) may be used as a recovery center without cost to the Government, to the extent practicable. . III Other provisions 2301. Increased oversight of economic injury disaster loans (a) In general Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (14), as added by section 2201 of this Act, the following: (15) Increased oversight of economic injury disaster loans The Administrator shall increase oversight of entities receiving loans under paragraph (2), and may consider— (A) scheduled site visits to ensure borrower eligibility and compliance with requirements established by the Administrator; and (B) reviews of the use of the loan proceeds by an entity described in paragraph (2) to ensure compliance with requirements established by the Administrator. . (b) Sense of Congress relating To using existing funds It is the sense of Congress that no additional Federal funds should be made available to carry out the amendments made by this section. 2302. GAO report on paperwork reduction Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report evaluating steps that the Small Business Administration has taken, with respect to the application for disaster assistance under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ), to comply with subchapter I of chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act ) and related guidance. 2303. Report on web portal for disaster loan applicants Section 38 of the Small Business Act ( 15 U.S.C. 657j ) is amended by adding at the end the following: (c) Report on web portal for disaster loan application status (1) In general Not later than 90 days after the date of enactment of this subsection, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report relating to the creation of a web portal to the track the status of applications for disaster assistance under section 7(b). (2) Contents The report under paragraph (1) shall include— (A) information on the progress of the Administration in implementing the information system under subsection (a); (B) recommendations from the Administration relating to the creation of a web portal for applicants to check the status of an application for disaster assistance under section 7(b), including a review of best practices and web portal models from the private sector; (C) information on any related costs or staffing needed to implement such a web portal; (D) information on whether such a web portal can maintain high standards for data privacy and data security; (E) information on whether such a web portal will minimize redundancy among Administration disaster programs, improve management of the number of inquiries made by disaster applicants to employees located in the area affected by the disaster and to call centers, and reduce paperwork burdens on disaster victims; and (F) such additional information as is determined necessary by the Administrator. .

Secretary

tv_txt: IB One Hundred Fourteenth Congress of the United States of America At the First Session Begun and held at the City of Washington on Tuesday, the sixth day of January, two thousand and fifteen H. R. 208 AN ACT To improve the disaster assistance programs of the Small Business Administration.

1. Short title; table of contents (a) Short title This Act may be cited as the Recovery Improvements for Small Entities After Disaster Act of 2015 or the RISE After Disaster Act of 2015 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Division A—Superstorm Sandy Relief and Disaster Loan Program Improvements Sec. 1001. Short title. Sec. 1002. Findings. Title I—Disaster assistance improvements Sec. 1101. Revised disaster deadline. Sec. 1102. Use of physical damage disaster loans to construct safe rooms. Sec. 1103. Reducing delays on closing and disbursement of loans. Sec. 1104. Safeguarding taxpayer interests and increasing transparency in loan approvals. Sec. 1105. Disaster plan improvements. Division B—Recovery improvements for small entities Sec. 2001. Short title. Title I—Improvements of disaster response and loans Sec. 2101. Additional awards to small business development centers, women's business centers, and SCORE for disaster recovery. Sec. 2102. Collateral requirements for disaster loans. Sec. 2103. Assistance to out-of-State business concerns to aid in disaster recovery. Sec. 2104. FAST program. Sec. 2105. Use of Federal surplus property in disaster areas. Sec. 2106. Recovery opportunity loans. Sec. 2107. Contractor malfeasance. Sec. 2108. Local contracting preferences and incentives. Sec. 2109. Clarification of collateral requirements. Title II—Disaster planning and mitigation Sec. 2201. Business recovery centers. Title III—Other provisions Sec. 2301. Increased oversight of economic injury disaster loans. Sec. 2302. GAO report on paperwork reduction. Sec. 2303. Report on web portal for disaster loan applicants. A Superstorm Sandy Relief and Disaster Loan Program Improvements 1001. Short title This division may be cited as the Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015 . 1002. Findings Congress finds the following: (1) In 2012, Superstorm Sandy caused substantial physical and economic damage to the United States, and New York in particular. (2) For businesses and homeowners, the primary means of obtaining long-term Federal financial assistance in the wake of disasters such as Superstorm Sandy is through the Small Business Administration’s Disaster Loan Program. (3) With regard to the Small Business Administration’s operation of the Disaster Loan Program after Superstorm Sandy, the Government Accountability Office found that the Administration did not meet its timeliness goals for processing business loan applications. (4) According to the Government Accountability Office, the Small Business Administration stated that it was challenged by an unexpectedly high volume of loan applications that it received early in its response to Superstorm Sandy. (5) As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing from the Small Business Administration. I Disaster assistance improvements 1101. Revised disaster deadline Section 7(d) of the Small Business Act ( 15 U.S.C. 636(d) ) is amended by adding at the end the following: (8) Disaster loans for Superstorm Sandy (A) In general Notwithstanding any other provision of law, and subject to the same requirements and procedures that are used to make loans pursuant to subsection (b), a small business concern, homeowner, nonprofit entity, or renter that was located within an area and during the time period with respect to which a major disaster was declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 ) by reason of Superstorm Sandy may apply to the Administrator— (i) for a loan to repair, rehabilitate, or replace property damaged or destroyed by reason of Superstorm Sandy; or (ii) if such a small business concern has suffered substantial economic injury by reason of Superstorm Sandy, for a loan to assist such a small business concern. (B) Timing The Administrator shall select loan recipients and make available loans for a period of not less than 1 year after the date on which the Administrator carries out this authority. (C) Inspector General review Not later than 6 months after the date on which the Administrator begins carrying out this authority, the Inspector General of the Administration shall initiate a review of the controls for ensuring applicant eligibility for loans made under this paragraph. . 1102. Use of physical damage disaster loans to construct safe rooms Section 7(b)(1)(A) of the Small Business Act ( 15 U.S.C. 636(b)(1)(A) ) is amended by striking mitigating measures and all that follows through modifying structures and inserting the following: mitigating measures, including— (i) construction of retaining walls and sea walls; (ii) grading and contouring land; and (iii) relocating utilities and modifying structures, including construction of a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters, if such safe room or similar storm shelter is constructed in accordance with applicable standards issued by the Federal Emergency Management Agency . 1103. Reducing delays on closing and disbursement of loans Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (9) the following: (10) Reducing closing and disbursement delays The Administrator shall provide a clear and concise notification on all application materials for loans made under this subsection and on relevant websites notifying an applicant that the applicant may submit all documentation necessary for the approval of the loan at the time of application and that failure to submit all documentation could delay the approval and disbursement of the loan. . 1104. Safeguarding taxpayer interests and increasing transparency in loan approvals Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (10), as added by section 1103 of this Act, the following: (11) Increasing transparency in loan approvals The Administrator shall establish and implement clear, written policies and procedures for analyzing the ability of a loan applicant to repay a loan made under this subsection. . 1105. Disaster plan improvements The Administrator of the Small Business Administration shall revise the comprehensive written disaster response plan required in section 40 of the Small Business Act ( 15 U.S.C. 657l ), or any successor thereto, to incorporate the Administration’s response to a situation in which an extreme volume of applications are received during the period of time immediately after a disaster, which shall include a plan to ensure that sufficient human and technological resources are made available and a plan to prevent delays in loan processing. B Recovery improvements for small entities 2001. Short title This division may be cited as the Recovery Improvements for Small Entities After Disaster Act of 2015 or the RISE After Disaster Act of 2015 . I Improvements of disaster response and loans 2101. Additional awards to small business development centers, women's business centers, and SCORE for disaster recovery Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (11), as added by section 1104 of this Act, the following: (12) Additional awards to small business development centers, women's business centers, and SCORE for disaster recovery (A) In general The Administration may provide financial assistance to a small business development center, a women’s business center described in section 29, the Service Corps of Retired Executives, or any proposed consortium of such individuals or entities to spur disaster recovery and growth of small business concerns located in an area for which the President has declared a major disaster. (B) Form of financial assistance Financial assistance provided under this paragraph shall be in the form of a grant, contract, or cooperative agreement. (C) No matching funds required Matching funds shall not be required for any grant, contract, or cooperative agreement under this paragraph. (D) Requirements A recipient of financial assistance under this paragraph shall provide counseling, training, and other related services, such as promoting long-term resiliency, to small business concerns and entrepreneurs impacted by a major disaster. (E) Performance (i) In general The Administrator, in cooperation with the recipients of financial assistance under this paragraph, shall establish metrics and goals for performance of grants, contracts, and cooperative agreements under this paragraph, which shall include recovery of sales, recovery of employment, reestablishment of business premises, and establishment of new small business concerns. (ii) Use of estimates The Administrator shall base the goals and metrics for performance established under clause (i), in part, on the estimates of disaster impact prepared by the Office of Disaster Assistance for purposes of estimating loan-making requirements. (F) Term (i) In general The term of any grant, contract, or cooperative agreement under this paragraph shall be for not more than 2 years. (ii) Extension The Administrator may make 1 extension of a grant, contract, or cooperative agreement under this paragraph for a period of not more than 1 year, upon a showing of good cause and need for the extension. (G) Exemption from other program requirements Financial assistance provided under this paragraph is in addition to, and wholly separate from, any other form of assistance provided by the Administrator under this Act. (H) Competitive basis The Administration shall award financial assistance under this paragraph on a competitive basis. . 2102. Collateral requirements for disaster loans (a) In general Section 7(d)(6) of the Small Business Act ( 15 U.S.C. 636(d)(6) ) is amended in the third proviso— (1) by striking $14,000 and inserting $25,000 ; and (2) by striking major disaster and inserting disaster . (b) Sunset Effective on the date that is 3 years after the date of enactment of this Act, section 7(d)(6) of the Small Business Act ( 15 U.S.C. 636(d)(6) ) is amended in the third proviso— (1) by striking $25,000 and inserting $14,000 ; and (2) by inserting major before disaster . (c) Report Not later than 180 days before the date on which the amendments made by subsection (b) are to take effect, the Administrator of the Small Business Administration shall submit to Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the effects of the amendments made by subsection (a), which shall include— (1) an assessment of the impact and benefits resulting from the amendments; and (2) a recommendation as to whether the amendments should be made permanent. 2103. Assistance to out-of-State business concerns to aid in disaster recovery (a) In general Section 21(b)(3) of the Small Business Act ( 15 U.S.C. 648(b)(3) ) is amended— (1) by striking (3) At the discretion and inserting the following: (3) Assistance to out-of-state small business concerns (A) In general At the discretion ; and (2) by adding at the end the following: (B) Disaster recovery assistance (i) In general At the discretion of the Administrator, the Administrator may authorize a small business development center to provide advice, information, and assistance, as described in subsection (c), to a small business concern located outside of the State, without regard to geographic proximity to the small business development center, if the small business concern is located in an area for which the President has declared a major disaster. (ii) Term (I) In general A small business development center may provide advice, information, and assistance to a small business concern under clause (i) for a period of not more than 2 years after the date on which the President declared a major disaster for the area in which the small business concern is located. (II) Extension The Administrator may, at the discretion of the Administrator, extend the period described in subclause (I). (iii) Continuity of services A small business development center that provides counselors to an area described in clause (i) shall, to the maximum extent practicable, ensure continuity of services in any State in which the small business development center otherwise provides services. (iv) Access to disaster recovery facilities For purposes of this subparagraph, the Administrator shall, to the maximum extent practicable, permit the personnel of a small business development center to use any site or facility designated by the Administrator for use to provide disaster recovery assistance. . (b) Sense of Congress It is the sense of Congress that, subject to the availability of funds, the Administrator of the Small Business Administration should, to the extent practicable, ensure that a small business development center is appropriately reimbursed for any legitimate expenses incurred in carrying out activities under section 21(b)(3)(B) of the Small Business Act, as added by subsection (a). 2104. FAST program (a) Definitions Section 34(a) of the Small Business Act ( 15 U.S.C. 657d(a) ) is amended— (1) by redesignating paragraphs (3) through (9) as paragraphs (4) through (10), respectively; and (2) by inserting after paragraph (2) the following: (3) Catastrophic incident The term catastrophic incident means a major disaster that is comparable to the description of a catastrophic incident in the National Response Plan of the Administration, or any successor thereto. . (b) Priority Section 34(c)(2) of the Small Business Act ( 15 U.S.C. 657d(c)(2) ) is amended— (1) in subparagraph (A), by striking and at the end; (2) in subparagraph (B)(vi)(III), by striking the period at the end and inserting ; and ; and (3) by adding at the end the following: (C) shall give special consideration to an applicant that is located in an area affected by a catastrophic incident. . (c) Additional assistance Section 34(c) of the Small Business Act ( 15 U.S.C. 657d(c) ) is amended by adding at the end the following: (5) Additional assistance for catastrophic incidents Upon application by an applicant that receives an award or has in effect a cooperative agreement under this section and that is located in an area affected by a catastrophic incident, the Administrator may— (A) provide additional assistance to the applicant; and (B) waive the matching requirements under subsection (e)(2). . 2105. Use of Federal surplus property in disaster areas Section 7(j)(13)(F) of the Small Business Act ( 15 U.S.C. 636(j)(13)(F) ) is amended— (1) by inserting (i) after (F) ; and (2) by adding at the end the following: (ii) (I) In this clause— (aa) the term covered period means the 2-year period beginning on the date on which the President declared the applicable major disaster; and (bb) the term disaster area means the area for which the President has declared a major disaster, during the covered period. (II) The Administrator may transfer technology or surplus property under clause (i) on a priority basis to a small business concern located in a disaster area if— (aa) the small business concern meets the requirements for such a transfer, without regard to whether the small business concern is a Program Participant; and (bb) for a small business concern that is a Program Participant, on and after the date on which the President declared the applicable major disaster, the small business concern has not received property under this subparagraph on the basis of the status of the small business concern as a Program Participant. (III) For any transfer of property under this clause to a small business concern, the terms and conditions shall be the same as a transfer to a Program Participant, except that the small business concern shall agree not to sell or transfer the property to any party other than the Federal Government during the covered period. (IV) A small business concern that receives a transfer of property under this clause may not receive a transfer of property under clause (i) during the covered period. (V) If a small business concern sells or transfers property in violation of the agreement described in subclause (III), the Administrator may initiate proceedings to prohibit the small business concern from receiving a transfer of property under this clause or clause (i), in addition to any other remedy available to the Administrator. . 2106. Recovery opportunity loans Section 7(a)(31) of the Small Business Act ( 15 U.S.C. 636(a)(31) ) is amended— (1) in subparagraph (A)— (A) by redesignating clauses (i), (ii), and (iii) as clauses (ii), (iii), and (iv), respectively; and (B) by inserting before clause (ii), as so redesignated, the following: (i) The term disaster area means the area for which the President has declared a major disaster, during the 5-year period beginning on the date of the declaration. ; and (2) by adding at the end the following: (H) Recovery opportunity loans (i) In general The Administrator may guarantee an express loan to a small business concern located in a disaster area in accordance with this subparagraph. (ii) Maximums For a loan guaranteed under clause (i)— (I) the maximum loan amount is $150,000; and (II) the guarantee rate shall be not more than 85 percent. (iii) Overall cap A loan guaranteed under clause (i) shall not be counted in determining the amount of loans made to a borrower for purposes of subparagraph (D). (iv) Operations A small business concern receiving a loan guaranteed under clause (i) shall certify that the small business concern was in operation on the date on which the applicable major disaster occurred as a condition of receiving the loan. (v) Repayment ability A loan guaranteed under clause (i) may only be made to a small business concern that demonstrates, to the satisfaction of the Administrator, sufficient capacity to repay the loan. (vi) Timing of payment of guarantees (I) In general Not later than 90 days after the date on which a request for purchase is filed with the Administrator, the Administrator shall determine whether to pay the guaranteed portion of the loan. (II) Recapture Notwithstanding any other provision of law, unless there is a subsequent finding of fraud by a court of competent jurisdiction relating to a loan guaranteed under clause (i), on and after the date that is 6 months after the date on which the Administrator determines to pay the guaranteed portion of the loan, the Administrator may not attempt to recapture the paid guarantee. (vii) Fees (I) In general Unless the Administrator has waived the guarantee fee that would otherwise be collected by the Administrator under paragraph (18) for a loan guaranteed under clause (i), and except as provided in subclause (II), the guarantee fee for the loan shall be equal to the guarantee fee that the Administrator would collect if the guarantee rate for the loan was 50 percent. (II) Exception Subclause (I) shall not apply if the cost of carrying out the program under this subsection in a fiscal year is more than zero and such cost is directly attributable to the cost of guaranteeing loans under clause (i). (viii) Rules Not later than 270 days after the date of enactment of this subparagraph, the Administrator shall promulgate rules to carry out this subparagraph. . 2107. Contractor malfeasance Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (12), as added by section 2101 of this Act, the following: (13) Supplemental assistance for contractor malfeasance (A) In general If a contractor or other person engages in malfeasance in connection with repairs to, rehabilitation of, or replacement of real or personal property relating to which a loan was made under this subsection and the malfeasance results in substantial economic damage to the recipient of the loan or substantial risks to health or safety, upon receiving documentation of the substantial economic damage or the substantial risk to health and safety from an independent loss verifier, and subject to subparagraph (B), the Administrator may increase the amount of the loan under this subsection, as necessary for the cost of repairs, rehabilitation, or replacement needed to address the cause of the economic damage or health or safety risk. (B) Requirements The Administrator may only increase the amount of a loan under subparagraph (A) upon receiving an appropriate certification from the borrower and person performing the mitigation attesting to the reasonableness of the mitigation costs and an assignment of any proceeds received from the person engaging in the malfeasance. The assignment of proceeds recovered from the person engaging in the malfeasance shall be equal to the amount of the loan under this section. Any mitigation activities shall be subject to audit and independent verification of completeness and cost reasonableness. . 2108. Local contracting preferences and incentives Section 15 of the Small Business Act ( 15 U.S.C. 644 ) is amended by inserting after subsection (e) the following: (f) Contracting preference for small business concerns in a major disaster area (1) Definition In this subsection, the term disaster area means the area for which the President has declared a major disaster, during the period of the declaration. (2) Contracting preference An agency shall provide a contracting preference for a small business concern located in a disaster area if the small business concern will perform the work required under the contract in the disaster area. (3) Credit for meeting contracting goals If an agency awards a contract to a small business concern under the circumstances described in paragraph (2), the value of the contract shall be doubled for purposes of determining compliance with the goals for procurement contracts under subsection (g)(1)(A). . 2109. Clarification of collateral requirements Section 7(d)(6) of the Small Business Act ( 15 U.S.C. 636(d)(6) ) is amended by inserting after which are made under paragraph (1) of subsection (b) the following: : Provided further , That the Administrator, in obtaining the best available collateral for a loan of not more than $200,000 under paragraph (1) or (2) of subsection (b) relating to damage to or destruction of the property of, or economic injury to, a small business concern, shall not require the owner of the small business concern to use the primary residence of the owner as collateral if the Administrator determines that the owner has other assets of equal quality and with a value equal to or greater than the amount of the loan that could be used as collateral for the loan: Provided further , That nothing in the preceding proviso may be construed to reduce the amount of collateral required by the Administrator in connection with a loan described in the preceding proviso or to modify the standards used to evaluate the quality (rather than the type) of such collateral . II Disaster planning and mitigation 2201. Business recovery centers Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (13), as added by section 2108 of this Act, the following: (14) Business recovery centers (A) In general The Administrator, acting through the district offices of the Administration, shall identify locations that may be used as recovery centers by the Administration in the event of a disaster declared under this subsection or a major disaster. (B) Requirements for identification Each district office of the Administration shall— (i) identify a location described in subparagraph (A) in each county, parish, or similar unit of general local government in the area served by the district office; and (ii) ensure that the locations identified under subparagraph (A) may be used as a recovery center without cost to the Government, to the extent practicable. . III Other provisions 2301. Increased oversight of economic injury disaster loans (a) In general Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended by inserting before the undesignated matter following paragraph (14), as added by section 2201 of this Act, the following: (15) Increased oversight of economic injury disaster loans The Administrator shall increase oversight of entities receiving loans under paragraph (2), and may consider— (A) scheduled site visits to ensure borrower eligibility and compliance with requirements established by the Administrator; and (B) reviews of the use of the loan proceeds by an entity described in paragraph (2) to ensure compliance with requirements established by the Administrator. . (b) Sense of Congress relating To using existing funds It is the sense of Congress that no additional Federal funds should be made available to carry out the amendments made by this section. 2302. GAO report on paperwork reduction Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report evaluating steps that the Small Business Administration has taken, with respect to the application for disaster assistance under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ), to comply with subchapter I of chapter 35 of title 44, United States Code (commonly known as the Paperwork Reduction Act ) and related guidance. 2303. Report on web portal for disaster loan applicants Section 38 of the Small Business Act ( 15 U.S.C. 657j ) is amended by adding at the end the following: (c) Report on web portal for disaster loan application status (1) In general Not later than 90 days after the date of enactment of this subsection, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report relating to the creation of a web portal to the track the status of applications for disaster assistance under section 7(b). (2) Contents The report under paragraph (1) shall include— (A) information on the progress of the Administration in implementing the information system under subsection (a); (B) recommendations from the Administration relating to the creation of a web portal for applicants to check the status of an application for disaster assistance under section 7(b), including a review of best practices and web portal models from the private sector; (C) information on any related costs or staffing needed to implement such a web portal; (D) information on whether such a web portal can maintain high standards for data privacy and data security; (E) information on whether such a web portal will minimize redundancy among Administration disaster programs, improve management of the number of inquiries made by disaster applicants to employees located in the area affected by the disaster and to call centers, and reduce paperwork burdens on disaster victims; and (F) such additional information as is determined necessary by the Administrator. .

Speaker of the House of Representatives. Vice President of the United States and President of the Senate.