To strengthen the loan, procurement assistance, and management education programs of the Small Business Administration in order to help small businesses and home owners hurt by Hurricane Katrina meet their existing obligations, finance their businesses, and maintain and create jobs, thereby providing stability to the national economy.

1. Adds SEC. 5___. SMALL BUSINESS EMERGENCY RELIEF at the end of title V

   Adds a section

   Inserted: SEC. 5___. SMALL BUSINESS EMERGENCY RELIEF.

   Inserted: (a) Definitions.--As used in this section--

   Inserted: (1) the term "covered loan" means a loan or loan guarantee by the Administration--

   Inserted: (A) under section 7(a) of the Small Business Act or section 503 of the Small Business Investment Act of 1958; and

   Inserted: (B) to a small business concern that--

   Inserted: (i) is located in a disaster area; and

   Inserted: (ii) has been adversely affected by Hurricane Katrina;

   Inserted: (2) the term "disaster area" means an area declared as a disaster area as a result of Hurricane Katrina of August 2005;

   Inserted: (3) the term "small business concern" has the same meaning as in section 3 of the Small Business Act; and

   Inserted: (4) the terms "Administration" and "Administrator" mean the Small Business Administration and the Administrator thereof, respectively.

   Inserted: (b) Temporary Deferment of Principal and Interest on Disaster Loans.--

   Inserted: (1) In general.--Notwithstanding any other provision of law, the Administration shall, during the 2-year period following the date of issuance of a loan issued under section 7(b) of the Small Business Act related to Hurricane Katrina, defer payments of principal and interest on the loan (and no interest shall accrue thereon during such period).

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   Inserted: (2) Resumption of payments.--Unless the Administrator finds an extension necessary or appropriate, at the end of the 2-year period described in paragraph (1), the payment of periodic installments of principal and interest shall be required with respect to a loan issued under section 7(b) of the Small Business Act, in the same manner and subject to the same terms and conditions as would otherwise be applicable to such loan.

   Inserted: (c) Disaster Loans Following Hurricane Katrina.--

   Inserted: (1) In general.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended by inserting immediately before the undesignated material following paragraph (3) the following:

   Inserted: "(4) Disaster loans after hurricane katrina.--

   Inserted: "(A) Refinancing disaster loans.--

   Inserted: "(i) In general.--Any loan made under this subsection that was outstanding as to principal or interest on August 24, 2005, may be refinanced by a small business concern that is located in an area designated as a disaster area as a result of Hurricane Katrina of 2005 (in this paragraph referred to as the 'disaster area') and that is adversely affected by Hurricane Katrina, and the refinanced amount shall be considered to be part of a new loan for purposes of this subparagraph.

   Inserted: "(ii) No effect on eligibility.--A refinancing under clause (i) by a small business concern shall be in addition to any other loan eligibility for that small business concern under this Act.

   Inserted: "(B) Refinancing business debt.--

   Inserted: "(i) In general.--Any business debt of a small business concern that was outstanding as to principal or interest on August 24, 2005, may be refinanced by the small business concern if it is located (or was located on August 24, 2005) in a disaster area and was adversely affected by Hurricane Katrina. With respect to a refinancing under this clause, payments of principal may be deferred, and interest may accrue, during the 1-year period following the date of refinancing.

   Inserted: "(ii) Resumption of payments.--At the end of the 1-year period described in clause (i), the payment of periodic installments of principal and interest on a refinancing under clause (i) shall be required with respect to such refinancing, in the same manner and subject to the same terms and conditions as would otherwise be applicable to any other loan made under this subsection.

   Inserted: "(C) Terms.--A loan under this paragraph shall be made at the same interest rate as economic injury loans under paragraph (2). Any reasonable doubt concerning the repayment ability of an applicant under this paragraph shall be resolved in favor of the applicant.

   Inserted: "(5) Increased loan caps.--

   Inserted: "(A) Aggregate loan amounts.--Except as provided in subparagraph (B), and in addition to amounts otherwise authorized by this Act, the loan amount outstanding and committed to a borrower under this subsection may not exceed $10,000,000, with respect to a small business concern that is located in an area designated as a disaster area following Hurricane Katrina of August 2005, and that has been adversely affected by Hurricane Katrina.

   Inserted: "(B) Waiver authority.--The Administrator may, at the discretion of the Administrator, waive the aggregate loan amount established under subparagraph (A).

   Inserted: "(6) Extended application period for hurricane katrina assistance.--Notwithstanding any other provision of law, the Administrator shall accept applications for a loan under this subsection by a small business concern that is located in an area designated as a disaster area as a result of Hurricane Katrina and that has been adversely affected by Hurricane Katrina, until 1 year after the date on which the area was designated as a disaster area.

   Inserted: "(7) Limitation on sales of loans.--No loan under this subsection, made as a result of Hurricane Katrina, may be sold.".

   Inserted: (2) Clerical amendments.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended in the undesignated matter at the end--

   Inserted: (A) by striking ", (2), and (4)" and inserting "and (2)"; and

   Inserted: (B) by striking ", (2), or (4)" and inserting "(2)".

   Inserted: (3) Disaster loan additional amounts.--In addition to any other amounts otherwise appropriated for such purpose, there is authorized to be appropriated to the Administration $117,000,000, to make covered loans under section 7(b) of the Small Business Act.

   Inserted: (d) Assumption of Payments for Existing SBA Loans.--

   Inserted: (1) In general.--Notwithstanding any other provision of law, the Administration shall, in the case of a covered loan issued before the date of enactment of this Act, make all periodic payments, including interest, with respect to such covered loan on behalf of the borrower during the time period described in paragraph (2).

   Inserted: (2) Time period.--The time period under paragraph (1) shall begin on the date of enactment of this Act and end on the earlier of the date on which the Administration determines the borrower can resume making payments or the date that is 2 years after the date of enactment of this Act.

   Inserted: (3) Resumption of payments.--Unless the Administrator finds an extension necessary or appropriate, at the end of the time period described in paragraph (2), no further payments shall be made on behalf of the borrower with respect to a covered loan.

   Inserted: (e) Supplemental Emergency Loans.--Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end the following:

   Inserted: "(32) Supplemental emergency loans after hurricane katrina.--

   Inserted: "(A) Loan authority.--In addition to any other loan authorized by this subsection, the Administrator shall make such loans under this subsection (either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis) as the Administrator determines appropriate to a small business concern adversely affected by Hurricane Katrina, subject to subparagraph (B).

   Inserted: "(B) Oversight protections.--In making any loan under subparagraph (A)--

   Inserted: "(i) the borrower shall be made aware that such loans are for those adversely affected by Hurricane Katrina; and

   Inserted: "(ii) for loans made in cooperation with a bank or other lending institution--

   Inserted: "(I) lenders shall document for the Administrator how the borrower was adversely affected by Hurricane Katrina, whether directly, or indirectly; and

   Inserted: "(II) not later than 6 months after the date of enactment of this paragraph, and every 6 months thereafter until the date that is 18 months after the date of enactment of this paragraph, the Administrator shall make a report regarding such loans to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives, including verification that such loans are being used for purposes authorized by this paragraph.

   Inserted: "(C) Fees.--

   Inserted: "(i) In general.--Notwithstanding any other provision of law, the Administrator shall, in lieu of the fee established under paragraph (23)(A), collect an annual fee of 0.25 percent of the outstanding balance of deferred participation loans made under this subsection to qualified borrowers for a period of 2 years after the date of enactment of this paragraph.

   Inserted: "(ii) Guarantee fees.--Notwithstanding any other provision of law, the guarantee fee under paragraph (18)(A) for a period of 2 years after the date of enactment of this subparagraph shall be as follows:

   Inserted: "(I) A guarantee fee equal to 1 percent of the deferred participation share of a total loan amount that is not more than $150,000.

   Inserted: "(II) A guarantee fee equal to 2.5 percent of the deferred participation share of a total loan amount that is more than $150,000, but not more than $700,000.

   Inserted: "(III) A guarantee fee equal to 3.5 percent of the deferred participation share of a total loan amount that is more than $700,000.".

   Inserted: (f) Lowering of Fees.--

   Inserted: (1) Appropriated amount.--There is authorized to be appropriated to the Administration $80,000,000, to remain available until expended, to carry out section 7(a)(23) of the Small Business Act, as amended by this subsection.

   Inserted: (2) Fees.--Section 7(a)(23) of the Small Business Act (15 U.S.C. 636(a)(23)) is amended by striking subparagraph (C) and inserting the following:

   Inserted: "(C) Lowering of fees.--

   Inserted: "(i) In general.--Subject to clauses (ii) and (iii)--

   Inserted: "(I) the Administrator shall reduce fees paid by small business borrowers and lenders under clauses (i) through (iv) of paragraph (18)(A) and subparagraph (A) of this paragraph; and

   Inserted: "(II) fees paid by small business borrowers and lenders shall not be increased above the levels in effect on the date of enactment of the Consolidated Appropriations Act, 2005.

   Inserted: "(ii) Determinations.--A reduction in fees under clause (i) shall occur in any case in which the fees paid by all small business borrowers and by lenders for guarantees under this subsection, or the sum of such fees plus any amount appropriated to carry out this subsection, as applicable, is more than the amount necessary to equal the cost to the Administration of making such guarantees.".

   Inserted: (g) Bridge Loans.--There is authorized to be appropriated $400,000,000 to provide, through appropriate government agencies in the affected States of Louisiana, Mississippi, and Alabama, bridge grants and loans to small business concerns that are located in a disaster area and that are adversely affected by Hurricane Katrina, until such business concerns are able to obtain loans through Administration assistance programs or other sources.

   Inserted: (h) Contracting Protection and Assistance.--

   Inserted: (1) Hubzones.--

   Inserted: (A) In general.--Notwithstanding any other provision of law, a small business concern that is located in a disaster area and that has been adversely affected by Hurricane Katrina shall be treated as being located in a HUBZone for purposes of the program under section 31 of the Small Business Act (15 U.S.C. 658).

   Inserted: (B) Termination.--Subparagraph (A) is repealed effective on the date that is 1 day after the date on which the declaration of the disaster area in response to Hurricane Katrina is lifted.

   Inserted: (2) Small business participation.--

   Inserted: (A) In general.--For any contract awarded by the Department of Homeland Security relating to the aftermath of Hurricane Katrina, the Secretary of Homeland Security (in this paragraph referred to as the "Secretary") shall--

   Inserted: (i) afford small business concerns the maximum practicable opportunity to participate in the performance of such contract; and

   Inserted: (ii) ensure that such contract complies with the subcontracting goals for small business concerns in the Small Business Act and the Federal Acquisition Regulations.

   Inserted: (B) Local presence.--The Secretary shall make a determination on the advisability of requiring a local presence for small business concerns selected as subcontractors under contracts described in subparagraph (A).

   Inserted: (C) Goal.--The Secretary shall set a goal of awarding not less than 30 percent of the funds awarded under Federal prime contracts and 40 percent of subcontracts described in paragraph (A) to small business concerns.

   Inserted: (3) Bonding thresholds.--For any contract awarded by the Department of Homeland Security relating to the aftermath of Hurricane Katrina, the Administrator--

   Inserted: (A) may, upon such terms and conditions as the Administrator may prescribe, guarantee and enter into commitments to guarantee any surety against loss resulting from a breach of terms of a bid bond, payment bond, performance bond, or bonds ancillary thereto, by a principal on any contract up to $5,000,000; and

   Inserted: (B) shall ensure such guarantee complies with subsection (a)(4) and subsections (b) through (e) of section 411 of the Small Business Investment Act of 1958 (15 U.S.C. 694b).

   Inserted: (4) Definition.--In this subsection, the term "small business concern" has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632).

   Inserted: (i) Authorizations of Appropriations.--

   Inserted: (1) Special authorizations of appropriations following hurricane katrina.--In addition to any other amounts authorized for any fiscal year, there are authorized to be appropriated to the Administration, to remain available until expended, for fiscal year 2006--

   Inserted: (A) $21,000,000, to be used for activities of small business development center pursuant to section 21 of the Small Business Act, $15,000,000 of which shall be non-matching funds and used to aid and assist small business concerns adversely affected by Hurricane Katrina;

   Inserted: (B) $2,000,000, to be used for SCORE program authorized by section 8(b)(1) of the Small Business Act, for the activities described in section 8(b)(1)(B)(ii) of that Act, $1,000,000 of which shall be used to aid and assist small business concerns adversely affected by Hurricane Katrina;

   Inserted: (C) $4,500,000, to be used for activities of women's business center authorized by section 29(b)(4) of the Small Business Act and for recipients of a grant under section 29(l) of that Act, whose 5-year project ended in fiscal year 2004, $2,500,000 of which shall be non-matching funds used to aid and assist small business concerns adversely affected by Hurricane Katrina;

   Inserted: (D) $1,250,000, to be used for activities of the office of veteran's business development pursuant to section 32 of the Small Business Act, $750,000 of which shall be used to aid and assist small business concerns adversely affected by Hurricane Katrina; and

   Inserted: (E) $5,000,000, to be used for activities of the microloan program authorized by clauses (ii) and (iii) of section 7(m)(1)(B) of the Small Business Act to aid and assist small business concerns adversely affected by Hurricane Katrina.

   Inserted: (2) Business loan programs.--Section 20(e) of the Small Business Act (15 U.S.C. 631 note) is amended--

   Inserted: (A) by striking "$25,050,000,000" and inserting "$30,550,000,000"; and

   Inserted: (B) in paragraph (1)(B)--

   Inserted: (i) by striking "$17,000,000,000" and inserting "$20,000,000,000"; and

   Inserted: (ii) by striking "$7,500,000,000" and inserting "$10,000,000,000".

   Inserted: (j) Small Business and Farm Energy Emergency Disaster Loan Program.--

   Inserted: (1) Small business disaster loan authority.--Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended by inserting after paragraph (7), as added by this section, the following:

   Inserted: "(8)(A) For purposes of this paragraph--

   Inserted: "(i) the term 'base price index' means the moving average of the closing unit price on the New York Mercantile Exchange for heating oil, natural gas, gasoline, or propane for the 10 days, in each of the most recent 2 preceding years, which correspond to the trading days described in clause (ii);

   Inserted: "(ii) the term 'current price index' means the moving average of the closing unit price on the New York Mercantile Exchange, for the 10 most recent trading days, for contracts to purchase heating oil, natural gas, gasoline, or propane during the subsequent calendar month, commonly known as the 'front month';

   Inserted: "(iii) the term 'significant increase' means--

   Inserted: "(I) with respect to the price of heating oil, natural gas, gasoline, or propane, any time the current price index exceeds the base price index by not less than 40 percent; and

   Inserted: "(II) with respect to the price of kerosene, any increase which the Administrator, in consultation with the Secretary of Energy, determines to be significant; and

   Inserted: "(iv) a small business concern engaged in the heating oil business is eligible for a loan, if the small business concern sells not more than 10,000,000 gallons of heating oil per year.

   Inserted: "(B) The Administration may make such loans, either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis, to assist a small business concern that has suffered or that is likely to suffer substantial economic injury on or after January 1, 2005, as the result of a significant increase in the price of heating oil, natural gas, gasoline, propane, or kerosene occurring on or after January 1, 2005.

   Inserted: "(C) Any loan or guarantee extended pursuant to this paragraph shall be made at the same interest rate as economic injury loans under paragraph (2).

   Inserted: "(D) No loan may be made under this paragraph, either directly or in cooperation with banks or other lending institutions through agreements to participate on an immediate or deferred basis, if the total amount outstanding and committed to the borrower under this subsection would exceed $1,500,000, unless such borrower constitutes a major source of employment in its surrounding area, as determined by the Administration, in which case the Administration, in its discretion, may waive the $1,500,000 limitation.

   Inserted: "(E) For purposes of assistance under this paragraph--

   Inserted: "(i) a declaration of a disaster area based on conditions specified in this paragraph shall be required, and shall be made by the President or the Administrator; or

   Inserted: "(ii) if no declaration has been made pursuant to clause (i), the Governor of a State in which a significant increase in the price of heating oil, natural gas, gasoline, propane, or kerosene has occurred may certify to the Administration that small business concerns have suffered economic injury as a result of such increase and are in need of financial assistance which is not otherwise available on reasonable terms in that State, and upon receipt of such certification, the Administration may make such loans as would have been available under this paragraph if a disaster declaration had been issued.

   Inserted: "(F) Notwithstanding any other provision of law, loans made under this paragraph may be used by a small business concern described in subparagraph (B) to convert from the use of heating oil, natural gas, gasoline, propane, or kerosene to a renewable or alternative energy source, including agriculture and urban waste, geothermal energy, cogeneration, solar energy, wind energy, or fuel cells.".

   Inserted: (2) Conforming amendments.--Section 3(k) of the Small Business Act (15 U.S.C. 632(k)) is amended--

   Inserted: (A) by inserting ", significant increase in the price of heating oil, natural gas, gasoline, propane, or kerosene" after "civil disorders"; and

   Inserted: (B) by inserting "other" before "economic".

   Inserted: (3) Report.--Not later than 12 months after the date on which the Administrator of the Small Business Administration issues guidelines under subsection (l)(1), and annually thereafter, 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 on the effectiveness of the assistance made available under section 7(b)(8) of the Small Business Act, as added by this subsection, including--

   Inserted: (A) the number of small business concerns that applied for a loan under such section 7(b)(8) and the number of those that received such loans;

   Inserted: (B) the dollar value of those loans;

   Inserted: (C) the States in which the small business concerns that received such loans are located;

   Inserted: (D) the type of energy that caused the significant increase in the cost for the participating small business concerns; and

   Inserted: (E) recommendations for ways to improve the assistance provided under such section 7(b)(8), if any.

   Inserted: (4) Effective date.--The amendments made by this subsection shall apply during the 4-year period beginning on the earlier of the date on which guidelines are published by the Administrator of the Small Business Administration under subsection (l), or 30 days after the date of enactment of this Act, with respect to assistance under section 7(b)(8) of the Small Business Act, as added by this subsection.

   Inserted: (k) Farm Energy Emergency Relief.--

   Inserted: (1) In general.--Section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended--

   Inserted: (A) in the first sentence--

   Inserted: (i) by striking "operations have" and inserting "operations (i) have"; and

   Inserted: (ii) by inserting before ": Provided," the following: ", or (ii)(I) are owned or operated by such an applicant that is also a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)), and (II) have suffered or are likely to suffer substantial economic injury on or after January 1, 2005, as the result of a significant increase in energy costs or input costs from energy sources occurring on or after January 1, 2005, in connection with an energy emergency declared by the President or the Secretary";

   Inserted: (B) in the third sentence, by inserting before the period at the end the following: "or by an energy emergency declared by the President or the Secretary"; and

   Inserted: (C) in the fourth sentence--

   Inserted: (i) by inserting "or energy emergency" after "natural disaster" each place that term appears; and

   Inserted: (ii) by inserting "or declaration" after "emergency designation".

   Inserted: (2) Funding.--Funds available on the date of enactment of this Act for emergency loans under subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et seq.) shall be available to carry out the amendments made by subparagraph (A) to meet the needs resulting from natural disasters.

   Inserted: (3) Report.--Not later than 12 months after the date on which the Secretary of Agriculture issues guidelines under subsection (l)(1), and annually thereafter, the Secretary shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Agriculture, Nutrition, and Forestry of the Senate and to the Committee on Small Business and the Committee on Agriculture of the House of Representatives, a report that--

   Inserted: (A) describes the effectiveness of the assistance made available under section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)), as amended by this section; and

   Inserted: (B) contains recommendations for ways to improve the assistance provided under such section 321(a).

   Inserted: (4) Effective date.--The amendments made by this subsection shall apply during the 4-year period beginning on the earlier of the date on which guidelines are published by the Secretary of Agriculture under subsection (l), or 30 days after the date of enactment of this Act, with respect to assistance under section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)), as amended by this subsection.

   Inserted: (l) Guidelines and Rulemaking.--

   Inserted: (1) Guidelines.--Not later than 30 days after the date of enactment of this Act, the Administrator of the Small Business Administration and the Secretary of Agriculture shall each issue guidelines to carry out subsections (j) and (k) and the amendments made thereby, which guidelines shall become effective on the date of their issuance.

   Inserted: (2) Rulemaking.--Not later than 30 days after the date of enactment of this Act, the Administrator of the Small Business Administration, after consultation with the Secretary of Energy, shall promulgate regulations specifying the method for determining a significant increase in the price of kerosene under section 7(b)(8)(A)(iii)(II) of the Small Business Act (15 U.S.C. 636(b)), as added by subsection (j).

   Inserted: (m) Emergency Spending.--Appropriations under this section are emergency spending, as provided under section 402 of H. Con. Res. 95 (108th Congress).

   Inserted: (n) Budgetary Treatment of Loans and Financings.--

   Inserted: (1) In general.--Assistance made available under any loan made or approved by the Administration under this Act, subsections (a) or (b) of section 7 of the Small Business Act (15 U.S.C. 636(a)), as amended by this Act, except for subsection 7(a)(23)(C), or financings made under title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.), as amended by this Act, on and after the date of enactment of this Act, shall be treated as separate programs of the Small Business Administration for purposes of the Federal Credit Reform Act of 1990 only.

   Inserted: (2) Use of funds.--Assistance under this Act and the amendments made by this Act shall be available effective only to the extent that funds are made available under appropriations Acts, which funds shall be utilized to offset the cost (as such term is defined in section 502 of the Federal Credit Reform Act of 1990) of such assistance.

   Original wording

   At the end of title V, add the following:

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As printed