Topic: Domestic Commerce — Small Businesses
Subject: Commerce
Date: 2007-03-06 00:00:00

Relief for Entrepreneurs: Coordination of Objectives and Values for Effective Recovery Act of 2007 or RECOVER Act - Title I: Planning - (Sec. 101) Amends the Small Business Act to direct the Administrator of the Small Business Administration (SBA) to develop, implement, and maintain a comprehensive written disaster plan, which shall include, among other things, a description of disasters most likely to occur in each SBA region as well as an assessment of the needs to respond to each disaster. Requires the plan to be: (1) completed within 180 days after enactment of this Act; and (2) updated annually and following any incident of national significance (significant incident). Directs the Administrator to report to the congressional small business committees with respect to each update. (Sec. 102) Directs the Administrator to: (1) conduct a disaster simulation exercise at least once each fiscal year; and (2) report to the small business committees with respect to each exercise. (Sec. 103) Requires: (1) the Administrator to maintain a disaster reserve corps of at least 1,000 individuals to perform functions related to disaster response; (2) each such individual to be appropriately trained; and (3) the Administrator to report to the small business committees with respect to the corps. (Sec. 104) Directs the Administrator to: (1) develop long-term plans to secure additional office space to accommodate an expanded workforce in times of disaster; and (2) report such plans to the small business committees. (Sec. 105) Requires the Administrator to ensure that SBA disaster programs are coordinated, to the maximum extent practicable, with the disaster assistance programs of the Federal Emergency Management Agency (FEMA). Requires a report from the Administrator to the small business committees concerning SBA regulations to ensure that each application for SBA disaster assistance is submitted to the SBA as quickly as practicable or directed to the appropriate agency. (Sec. 106) Establishes in the SBA an Associate Administrator for Disaster Assistance to: (1) develop and implement the SBA's plans for disaster response; and (2) direct the SBA's training exercises with respect to disasters. Establishes a Director for Disaster Lending to direct all aspects of the SBA's disaster lending program. Title II: Lending - (Sec. 201) Authorizes the Administrator to: (1) provide disaster loans to certain private nonprofit organizations with respect to a significant incident; (2) make or guarantee a mitigation loan to a small business for damage or destruction due to a significant incident; and (3) provide or make such loans for FY2006 with respect to a nonprofit or small business located, as of August 28, 2005, in an area affected by Hurricanes Katrina, Rita, or Wilma. (Sec. 202) Directs the Administrator to: (1) develop, implement, and maintain a centralized information system to track communications between SBA personnel and applicants for disaster assistance; and (2) ensure that each applicant receives follow-up communications from the SBA at all critical stages of the application process. (Sec. 203) Requires the Administrator to carry out an Immediate Disaster Assistance program under which the SBA participates on a deferred basis in 85% of the balance of financing of a loan less than or equal to $25,000 for a business affected by a disaster. (Sec. 204) Authorizes the Administrator, in making disaster mitigation loans, to provide to the recipient an option to defer loan repayment for up to four years. Prohibits the Administrator from requiring repayment until 12 months after the final loan disbursement is made. (Sec. 206) Provides a process for the SBA disbursement of disaster mitigation loans, with separate processes for loans: (1) of up to $150,000; (2) from $150,000 to $500,000; and (3) greater than $500,000. (Sec. 207) Prohibits the Administrator, in making a business disaster mitigation loan of $100,000 or less, from requiring the borrower to use the borrower's home as collateral. (Sec. 208) Authorizes the Administrator to carry out a program to permit banks and other financial institutions to process, approve, close, and service disaster loans for a fee of up to 2% of the total loan amount. Allows such program during any period: (1) of a significant incident; or (2) which the average time for the SBA to approve disaster loans in response to any single disaster is 30 days or more. (Sec. 209) Directs the Administrator to ensure that SBA has in place a facility for disaster loan processing that, whenever the SBA's primary processing facility becomes unavailable, is able to take over such processing within two days. Authorizes appropriations. (Sec. 210) Authorizes the Administrator to make grants of up to $100,000 to small businesses located in disaster areas affected by Hurricanes Katrina, Rita, or Wilma that experienced specified housing and/or infrastructure losses, upon such businesses' certification to reestablish in the same areas. Authorizes appropriations. (Sec. 211) Authorizes the Administrator to carry out a program under which the Administrator makes grants to individuals who: (1) are victims of a declared disaster; (2) receive disaster assistance because of that disaster; (3) receive disaster benefits other than the SBA assistance; and (4) are required to remit those benefits to the SBA because of a duplication of benefits. Permits grants to be up to the amount required to be remitted by the individual. (Sec. 212) Increases from $1.5 million to $3 million the maximum disaster loan limit for individual borrowers. (Sec. 213) Prohibits the Administrator, in making disaster loans, from requiring the borrower to pay any non-amortized amount for the first five years after repayment begins. (Sec. 214) Authorizes the Administrator to make economic injury disaster loans to private nonprofit organizations. (Sec. 215) Allows the $3 million maximum disaster loan limit to be waived in the case of applicants that will constitute a major source of employment due to changed economic circumstances. (Sec. 216) Increases from 90 days to one year after an essential employee of a small business is released or discharged from active duty after required military service the period during which the affected small business may apply for economic injury assistance due to such employee's absence. Allows the Administrator, when appropriate, to waive such limit and provide a later ending date. Directs the Administrator to establish a process under which such a business may file a preliminary application for such assistance before the date on which the employee is ordered to active duty. (Sec. 217) Authorizes the Administrator to provide economic injury disaster loans under circumstances caused by ice storms and blizzards. (Sec. 218) Requires a report from the Administrator to the small business committees concerning the SBA's ability to provide disaster loans to small businesses that depend on high snowfall and sustain economic injury due to a lack of snowfall. (Sec. 219) Authorizes the Administrator to carry out a program to refinance Gulf Coast disaster loans by providing an option to defer loan repayment by up to four years after the original loan disbursement was made. Authorizes appropriations. Title III: Oversight - (Sec. 301) Requires, 45 days after the end of each fiscal year, a report from the Administrator to the small business committees on SBA disaster assistance operations for that fiscal year. Requires, during the period of a significant incident, the Administrator to report, on a monthly basis, on SBA disaster assistance operations with respect to that incident.