II
110th CONGRESS
1st Session
S. 715
IN THE SENATE OF THE UNITED STATES
February 28, 2007
Ms. Landrieu (for herself, Mr. Kerry, Ms. Snowe, and Mr. Vitter) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship
A BILL
To amend the Small Business Act to provide expedited disaster assistance, and for other purposes.
Short title
This Act may be cited as
the Small Business Disaster Recovery
Assistance Improvement Act of 2007
.
Business expedited disaster assistance loan program
Definitions
In this section—
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively;
the term immediate disaster assistance means assistance provided during the period beginning on the date on which a disaster declaration is made and ending on the date that an impacted small business concern is able to secure funding through insurance claims, Federal assistance programs, or other sources;
the term program means the expedited disaster assistance business loan program established under subsection (b); and
the term small business concern has the meaning given that term in section 3 of the Small Business Act (15 U.S.C. 632).
Creation of program
The Administrator shall take such administrative action as is necessary to establish and implement an expedited disaster assistance business loan program to provide small business concerns with immediate disaster assistance under section 7(b) of the Small Business Act (15 U.S.C. 636(b)).
Consultation required
In establishing the program, the Administrator shall consult with—
appropriate personnel of the Administration (including District Office personnel of the Administration);
appropriate technical assistance providers (including small business development centers);
appropriate lenders and credit unions;
the Committee on Small Business and Entrepreneurship of the Senate; and
the Committee on Small Business of the House of Representatives.
Rules
In general
Not later than 1 year after the date of enactment of this Act, the Administrator shall promulgate rules establishing and implementing the program in accordance with this section. Such rules shall apply as provided for in this section, beginning 90 days after their issuance in final form.
Contents
The rules promulgated under paragraph (1) shall—
identify whether appropriate uses of funds under the program may include—
paying employees;
paying bills and other financial obligations;
making repairs;
purchasing inventory;
restarting or operating a small business concern in the community in which it was conducting operations prior to the declared disaster, or to a neighboring area, county, or parish in the disaster area; or
covering additional costs until the small business concern is able to obtain funding through insurance claims, Federal assistance programs, or other sources; and
set the terms and conditions of any loan made under the program, subject to paragraph (3).
Terms and conditions
A loan made by the Administration under this section—
shall be a short-term loan, not to exceed 180 days, except that the Administrator may extend such term as the Administrator determines necessary or appropriate on a case-by-case basis;
shall have an interest rate not to exceed 1 percentage point above the prime rate of interest that a private lender may charge;
shall have no prepayment penalty;
may be refinanced as part of any subsequent disaster assistance provided under section 7(b) of the Small Business Act; and
shall be subject to such additional terms as the Administrator determines necessary or appropriate.
Report to congress
Not later than 5 months after the date of enactment of this Act, the Administrator shall report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives on the progress of the Administrator in establishing the program.
Authorization
There are authorized to be appropriated to the Administrator such sums as are necessary to carry out this section.