To provide assistance for small businesses damaged by Hurricane Katrina.

SA 1717. Ms. SNOWE (for herself and Mr. Vitter) submitted an
amendment intended to be proposed by her to the bill H.R. 2862, making
appropriations for Science, the Departments of State, Justice, and
Commerce, and related agencies for the fiscal year ending September 30,
2006, and for other purposes; which was ordered to lie on the table; as
follows:

At the end of title V, add the following:

SEC. 5__. SMALL BUSINESS, HOMEOWNERS, AND RENTERS DISASTER
RELIEF.

(a) Disaster Loans.--Section 7(b) of the Small Business Act
(15 U.S.C. 636(b)) is amended by inserting immediately after
paragraph (3) the following:
``(4) Disaster loans after hurricane katrina.--
``(A) Additional loan authority.--
``(i) Loans to small businesses.--In addition to any other
loan authorized by this subsection, the Administrator may
make such loans under this subsection (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 or small agricultural cooperative that
demonstrates a direct adverse economic impact caused by
Hurricane Katrina, based on such criteria as the
Administrator may set by rule, regulation, or order.
``(ii) Loans to nonprofits.--In addition to any other loan
authorized by this subsection, the Administrator may 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 non-profit
organization for purposes of repairing damage caused by
Hurricane Katrina or performing other hurricane relief
services in a damaged area.
``(B) Increased loan caps.--
``(i) Aggregate loan amounts.--Except as provided in clause
(ii), the aggregate loan amount outstanding and committed to
a qualified borrower in a damaged area under this paragraph
may not exceed $10,000,000.
``(ii) Waiver authority.--The Administrator may, at the
discretion of the Administrator, waive the aggregate loan
amount established under clause (i).
``(C) Deferment of disaster loan payments.--
``(i) In general.--Notwithstanding any other provision of
law, payments of principal and interest on a loan to a
qualified borrower located in a damaged area made under this
subsection before, on, or after the date of enactment of this
paragraph shall be deferred, and no interest shall accrue
with respect to such loan, during the time period described
in clause (ii).
``(ii) Time period.--The time period for purposes of clause
(i) shall be 1 year from the later of the date of enactment
of this paragraph or the date of issuance of a loan described
in clause (i), but may be extended to 2 years from such date,
at the discretion of the Administrator.
``(iii) Resumption of payments.--At the end of the time
period described in clause (ii), the payment of periodic
installments of principal and interest shall be required with
respect to such loan, in the same manner and subject to the
same terms and conditions as would otherwise be applicable to
any other loan made under this subsection.
``(D) Definitions.--In this paragraph, the following
definitions shall apply:
``(i) Damaged area.--The term `damaged area' means an area
which the President has designated as a disaster area as a
result of Hurricane Katrina of August 2005.
``(ii) Qualified borrower.--The term `qualified borrower'
means a small business concern or non-profit organization--

``(I) located in a damaged area; or
``(II) located in a State contiguous to a damaged area that
is using, or intends to use, a loan made under this
subsection for purposes of rebuilding or conducting
operations in a damaged area.''.

(b) Development Company Debentures.--Section 503 of the
Small Business Investment Act of 1958 (15 U.S.C. 697) is
amended by adding at the end the following:
``(j) Debentures After Hurricane Katrina.--
``(1) Authority.--
``(A) In general.--In addition to any other guarantee
authorized by this section, the Administrator may guarantee
the timely payment of all principal and interest as scheduled
on any debenture issued for purposes of rebuilding or
resuming operations in a damaged area, as the Administrator
determines appropriate.
``(B) Terms.--The Administrator shall establish a fee for a
guarantee issued under subparagraph (A) that is lower than
that for other guarantees under this section.
``(2) Existing guarantees.--
``(A) In general.--Notwithstanding any other provision of
law, the Administrator may temporarily defer payments of
principal and interest on a guarantee made under this section
before the date of enactment of this subsection to a small
business concern in a damaged area, in any case in which the
payments are owed to the Administration.
``(B) Payments to other parties.--Notwithstanding any other
provision of law, the Administrator may temporarily make
payments of principal and interest on a loan made under this
section before the date of enactment of this subsection to a
small business concern in a damaged area, in any case in
which the payments are owed to a person other than the
Administration.
``(C) Termination of authority.--The authority to defer, or
make, payments under this paragraph shall terminate 1 year
after the date of enactment of this subsection.
``(3) Definitions.--In this subsection, the following
definitions shall apply:
``(A) Damaged area.--The term `damaged area' means an area
which the President has designated as a disaster area as a
result of Hurricane Katrina of August 2005.
``(B) Qualified borrower.--The term `qualified borrower'
means a small business concern--
``(i) located in a damaged area; or
``(ii) that demonstrates a direct adverse economic impact
caused by Hurricane Katrina, based on such criteria as the
Administrator may set by rule, regulation, or order.''.
(c) Small Business Emergency Relief.--
(1) Definitions.--As used in this subsection--
(A) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act; and
(B) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively.
(2) Business loan programs.--Section 20(e) of the Small
Business Act (15 U.S.C. 631 note) is amended--
(A) by striking ``$25,050,000,000'' and inserting
``$30,550,000,000''; and
(B) in paragraph (1)(B)--
(i) by striking ``$17,000,000,000'' and inserting
``$20,000,000,000'';
(ii) by striking ``$7,500,000,000'' and inserting
``$10,000,000,000''; and
(C) by striking ``25,050,000,000'' and inserting
``30,550,000,000''.
(3) Grants to states damaged by hurricane katrina.--There
is authorized to be appropriated, and there is appropriated,
to the Department of Commerce $400,000,000 to provide,
through appropriate government agencies in Louisiana,
Alabama, Mississippi, Texas, and Florida, to provide bridge
grants and loans to small business concerns located in the
area which the President has designated as a disaster area as
a result of Hurricane Katrina, to assist in covering costs of
such concerns until they are able to obtain loans through
Administration assistance programs or other sources.
(4) Disaster loan additional amounts.--In addition to any
other amounts otherwise appropriated for such purpose, there
is authorized to be appropriated, and there is appropriated,
to the Administration $86,000,000, to make loans under
section 7(b) of the Small Business Act.
(5) Other disaster loans following hurricane katrina.--
(A) In general.--Paragraph (4) of section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), as added by this Act, is
amended by adding at the end the following:
``(E) Refinancing disaster loans after hurricane katrina.--
``(i) In general.--Any loan made under this subsection that
was outstanding as to principal or interest on August 24,
2005, may be refinanced by a small business concern that is
located in an area designated by the President as a disaster
area as a result of Hurricane Katrina of 2005 (in this
paragraph referred to as the `disaster area'), and the
refinanced amount shall be considered to be part of the new
loan for purposes of this subparagraph.
``(ii) No effect on eligibility.--A refinancing under
clause (i) by a small business concern shall be in addition
to any other loan eligibility for that small business concern
under this Act.
``(F) Refinancing business debt.--
``(i) In general.--Any business debt of a small business
concern that was outstanding as to principal or interest on
August 24, 2005, may be refinanced by the small business
concern if it is located in the disaster area. With respect
to a refinancing under this clause, payments of principal
shall be deferred, and interest may accrue, during the 1-year
period following the date of refinancing, and the refinanced
amount shall be considered to be part of a new loan for
purposes of this subparagraph.
``(ii) Resumption of payments.--At the end of the 1-year
period described in clause (i), the payment of periodic
installments of

[[Page S10053]]

principal and interest shall be required with respect to such
loan, in the same manner and subject to the same terms and
conditions as would otherwise be applicable to any other loan
made under this subsection.
``(G) Terms.--A loan under subparagraph (E) or (F) shall be
made at the same interest rate as economic injury loans under
paragraph (2).
``(H) Extended application period.--Notwithstanding any
other provision of law, the Administrator shall accept
applications for assistance under paragraphs (1) and (4)
until one year after the date on which the President
designated the area as a disaster area as a result of
Hurricane Katrina.
``(I) No sale.--No loan under this subsection made as a
result of Hurricane Katrina may be sold.''.
(B) 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--
(i) by striking ``, (2), and (4)'' and inserting ``and
(2)''; and
(ii) by striking ``, (2), or (4)'' and inserting ``(2)''.
(d) Entrepreneural Development.--In addition to any other
amounts authorized for any fiscal year, there are authorized
to be appropriated, and there is appropriated, to the
Administration, to remain available until expended, for
fiscal year 2006--
(1) $21,000,000, to be used for activities of small
business development centers 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 affected by Hurricane Katrina;
(2) $2,000,000, to be used for the 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 affected by Hurricane Katrina;
(3) $4,500,000, to be used for activities of women's
business centers authorized by section 29(b) of the Small
Business Act and for recipients of a grant under section
29(l) of that Act, $2,500,000 of which shall be non-matching
funds used to aid and assist small business concerns affected
by Hurricane Katrina, which may also be made available to a
women's business center whose 5-year project ended in fiscal
year 2004;
(4) $1,250,000, to be used for activities of the office of
veteran's business development pursuant to section 32 of the
Small Business Act, $750,000 of which shall be used to aid
and assist small business concerns affected by Hurricane
Katrina; and
(5) $5,000,000, to be used for activities of the microloan
program authorized by clauses (ii) and (iii) of section
7(m)(1)(G) of the Small Business Act to aid and assist small
business concerns adversely affected by Hurricane Katrina.
(e) Small Business Development Centers.--Section 21(a)(4)
of the Small Business Act (15 U.S.C. 648(a)(4)) is amended by
adding at the end the following:
``(D) Fiscal years 2005 and 2006.--For fiscal years 2005
and 2006, the Administrator has the authority to waive the
maximum amount of $100,000 for grants under paragraph
(C)(viii) for small business development centers assisting
small business concerns adversely affected by Hurricane
Katrina.''.
(f) HUBZones.--Section 3(p)(1) of the Small Business Act
(15 U.S.C. 632(p)(1)) is amended--
(1) in subparagraph (D), by striking ``or'';
(2) in subparagraph (E), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(F) the Hurricane Katrina disaster area, as designated by
the Administrator.''.
(g) Outreach Programs.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Administrator of the Small
Business Administration shall establish a contracting
outreach and technical assistance program for small business
concerns which have had a primary place of business in, or
other significant presence in the Hurricane Katrina disaster
area at any time following the 60 days prior to the
designation of such area by the Administrator.
(2) Administrator action.--The Administrator may fulfill
the requirement of paragraph (1) by acting through--
(A) the Small Business Administration;
(B) the Federal agency small business officials designated
under Section 15(k)(1) of the Small Business Act (15 U.S.C.
644(k)(1)); and
(C) any Federal, State, or local government entity, higher
education institution, or private nonprofit organization that
the Administrator may deem proper, upon conclusion of a
memorandum of understanding or assistance agreement, as
appropriate, with the Administrator.
(h) Small Business Bonding Threshold.--Notwithstanding any
other provision of law, for all procurements related to
Hurricane Katrina, the Administrator may, upon such terms and
conditions as it may prescribe, guarantee and enter into
commitments to guarantee any surety against loss resulting
from a breach of the terms of a bid bond, payment bond,
performance bond, or bonds ancillary thereto, by a principal
on any total work order or contract amount at the time of
bond execution that does not exceed $10,000,000.
(i) Supplemental Emergency Loans.--
(1) In general.--Section 7(a) of the Small Business Act (15
U.S.C. 636(a)) is amended by adding at the end the following:
``(32) Supplemental emergency loans after hurricane
katrina.--
``(A) Loan authority.--In addition to any other loan
authorized by this subsection, the Administrator shall make
such loans under 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).
``(B) Oversight protections.--In making any loan under
subparagraph (A)--
``(i) the borrower shall be made aware that such loans are
for those adversely affected by Hurricane Katrina; and
``(ii) for loans made in cooperation with a bank or other
lending institution--

``(I) lenders shall document for the Administrator how the
borrower was adversely affected by Hurricane Katrina, whether
directly, or indirectly; and
``(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 Comptroller General shall make a report
regarding such loans to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives, including
verification that such loans are being used for purposes
authorized by this paragraph.

``(C) Fees.--
``(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 1 year after the date of enactment of this
paragraph.
``(ii) Guarantee fees.--Notwithstanding any other provision
of law, the guarantee fee under paragraph (18)(A) for a
period of 1 year after the date of enactment of this
subparagraph shall be as follows:

``(I) A guarantee fee equal to 1 percent of the deferred
participation share of a total loan amount that is not more
than $150,000.
``(II) A guarantee fee equal to 2.5 percent of the deferred
participation share of a total loan amount that is more than
$150,000, but not more than $700,000.
``(III) A guarantee fee equal to 3.5 percent of the
deferred participation share of a total loan amount that is
more than $700,000.''.

(2) Appropriation.--There is authorized to be appropriated,
and there is appropriated, $75,000,000 to carry out the
amendment made by paragraph (1).
(j) Small Business Participation.--In order to facilitate
the maximum practicable participation of small business
concerns in activities related to relief and recovery from
Hurricane Katrina, the Administrator and the head of any
Federal agency making procurements related to the aftermath
of Hurricane Katrina, shall set a goal, to be met within a
reasonable time, of awarding to small business concerns not
less than 30 percent of amounts expended for prime contracts
and not less than 40 percent of amounts expended for
subcontracts on procurements such agency related to the
aftermath of Hurricane Katrina.
(k) Energy Emergency Relief.--
(1) Small business and farm energy emergency disaster loan
program.--
(A) 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 (4), as added by this Act, the
following:
``(5)(A) For purposes of this paragraph--
``(i) the term `base price index' means the moving average
of the closing unit price on the New York Mercantile Exchange
for heating oil, natural gas, gasoline, or propane for the 10
days, in each of the most recent 2 preceding years, which
correspond to the trading days described in clause (ii);
``(ii) the term `current price index' means the moving
average of the closing unit price on the New York Mercantile
Exchange, for the 10 most recent trading days, for contracts
to purchase heating oil, natural gas, gasoline, or propane
during the subsequent calendar month, commonly known as the
`front month';
``(iii) the term `significant increase' means--
``(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
``(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
``(iv) a small business concern engaged in the heating oil
business is eligible for a loan, if the small business
concern sells not more than 10,000,000 gallons of heating oil
per year.
``(B) The Administration may make such loans, either
directly or in cooperation with banks or other lending
institutions through agreements to 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.

[[Page S10054]]

``(C) Any loan or guarantee extended pursuant to this
paragraph shall be made at the same interest rate as economic
injury loans under paragraph (2).
``(D) No loan may be made under this 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.
``(E) For purposes of assistance under this paragraph--
``(i) a declaration of a disaster area based on conditions
specified in this paragraph shall be required, and shall be
made by the President or the Administrator; or
``(ii) if no declaration has been made 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.
``(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.''.
(B) Conforming amendments.--Section 3(k) of the Small
Business Act (15 U.S.C. 632(k)) is amended--
(i) by inserting ``, significant increase in the price of
heating oil, natural gas, gasoline, propane, or kerosene''
after ``civil disorders''; and
(ii) by inserting ``other'' before ``economic''.
(C) Report.--Not later than 12 months after the date on
which the Administrator of the Small Business Administration
issues guidelines under paragraph (3)(A), 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)(5) of the Small Business Act, as
added by this subsection, including--
(i) the number of small business concerns that applied for
a loan under that section 7(b)(5) and the number of those
that received such loans;
(ii) the dollar value of those loans;
(iii) the States in which the small business concerns that
received such loans are located;
(iv) the type of energy that caused the significant
increase in the cost for the participating small business
concerns; and
(v) recommendations for ways to improve the assistance
provided under that section 7(b)(5), if any.
(D) 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
paragraph (3), or 30 days after the date of enactment of this
Act, with respect to assistance under section 7(b)(5) of the
Small Business Act, as added by this subsection.
(2) Farm energy emergency relief.--
(A) In general.--Section 321(a) of the Consolidated Farm
and Rural Development Act (7 U.S.C. 1961(a)) is amended--
(i) in the first sentence--

(I) by striking ``operations have'' and inserting
``operations (i) have''; and
(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'';

(ii) 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
(iii) in the fourth sentence--

(I) by inserting ``or energy emergency'' after ``natural
disaster'' each place that term appears; and
(II) by inserting ``or declaration'' after ``emergency
designation''.

(B) 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.
(C) Report.--Not later than 12 months after the date on
which the Secretary of Agriculture issues guidelines under
paragraph (3)(A), 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--
(i) 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
(ii) contains recommendations for ways to improve the
assistance provided under such section 321(a).
(D) 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 paragraph (3), 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.
(3) Guidelines and rulemaking.--
(A) 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 paragraphs (1) and
(2), respectively, and the amendments made thereby, which
guidelines shall become effective on the date of their
issuance.
(B) 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)(5)(A)(iii)(II) of the
Small Business Act, as added by this Act.
(l) Budgetary Treatment of Loans and Financings.--
(1) In general.--Assistance made available under any loan
made or approved by the Administration under this section,
subsections (a) or (b) of section 7 of the Small Business Act
(15 U.S.C. 636(a)), as amended by this section, 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 section, 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.
(2) Use of funds.--Assistance under this section and the
amendments made by this section 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.
(m) Emergency Spending.--Appropriations under this section
are designated as emergency spending, as provided under
section 402 of H. Con. Res. 95 (109th Congress).

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