II
111th CONGRESS
1st Session
S. 2731
IN THE SENATE OF THE UNITED STATES
November 5, 2009
Ms. Landrieu (for herself and Mr. Nelson of Florida) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship
A BILL
To improve disaster assistance provided by the Small Business Administration, and for other purposes.
Short title
This Act may be cited as
the Small Business Administration
Disaster Recovery and Reform Act of 2009
.
Definitions
In this Act—
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively;
the term approved State Bridge Loan Program means a State Bridge Loan Program approved under section 203(b);
the term small business concern has the meaning given that term under section 3 of the Small Business Act; and
the term State means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, and any territory or possession of the United States.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Definitions.
Sec. 3. Table of contents.
TITLE I—Gulf Coast recovery and assistance for homeowners impacted by drywall manufactured in the People’s Republic of China
Sec. 101. Report on the Gulf Coast Disaster Loan Refinancing Program.
Sec. 102. Extension of participation term for victims of Hurricane Katrina or Hurricane Rita.
Sec. 103. Assistance for homeowners impacted by drywall manufactured in the People’s Republic of China.
TITLE II—Improvements to Administration disaster assistance programs
Sec. 201. Improvements to the Pioneer Business Recovery Program.
Sec. 202. Increased limits.
Sec. 203. State bridge loan guarantee.
Sec. 204. Modified collateral requirements.
Sec. 205. Aquaculture business disaster assistance.
Sec. 206. Regional outreach on disaster assistance programs.
Sec. 207. Duplication of benefits.
Sec. 208. Administration coordination on economic injury disaster declarations.
Sec. 209. Coordination between Small Business Administration and Department of Agriculture disaster programs.
Sec. 210. Technical and conforming amendment.
Gulf Coast recovery and assistance for homeowners impacted by drywall manufactured in the People’s Republic of China
Report on the Gulf Coast Disaster Loan Refinancing Program
Section 12086 of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 2184) is amended by adding at the end the following:
Report to Congress
In general
Not later than 30 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 making recommendations regarding improvements to the program.
Contents
The report under paragraph (1) may include recommendations relating to—
modifying the end of the deferment date of Gulf Coast disaster loans;
reducing interest payments on Gulf Coast disaster loans, subject to the availability of appropriations;
extending the term of Gulf Coast disaster loans to 35 years; and
any other modification to the program determined appropriate by the Administrator.
.
Extension of participation term for victims of Hurricane Katrina or Hurricane Rita
Retroactivity
If a small business concern, while participating in any program or activity under the authority of paragraph (10) of section 7(j) of the Small Business Act (15 U.S.C. 636(j)), was located in a parish or county described in subsection (b) of this section and was affected by Hurricane Katrina of 2005 or Hurricane Rita of 2005, the period during which that small business concern is permitted continuing participation and eligibility in that program or activity shall be extended for 24 months after the date such participation and eligibility would otherwise terminate.
Parishes and Counties covered
Subsection (a) applies to any parish in the State of Louisiana, or any county in the State of Mississippi or in the State of Alabama, that has been designated by the Administrator as a disaster area by reason of Hurricane Katrina of 2005 or Hurricane Rita of 2005 under disaster declaration 10176, 10177, 10178, 10179, 10180, 10181, 10205, or 10206.
Review and compliance
The Administrator shall ensure that the case of every small business concern participating before the date of enactment of this Act in a program or activity covered by subsection (a) is reviewed and brought into compliance with this section.
Assistance for homeowners impacted by drywall manufactured in the People’s Republic of China
Definitions
In this section, the term defective drywall means drywall board that the Administrator determines—
was manufactured in the People’s Republic of China;
was imported into the United States during the period beginning on January 1, 2004, and ending on December 31, 2008; and
is directly responsible for substantial metal corrosion or other property damage in the dwelling in which the drywall is installed.
Disaster assistance for homeowners impacted by defective drywall
In general
The Administrator may, upon request by a Governor that has declared a disaster as a result of property loss or damage as a result of defective drywall, declare a disaster under section 7(b) of the Small Business Act (15 U.S.C. 636(b)) relating to the defective drywall.
Uses
Assistance under a disaster declared under paragraph (1) may be used only for the repair or replacement of defective drywall.
Limitation
Assistance under a disaster declared under paragraph (1) may not—
provide compensation for losses or damage compensated for by insurance or other sources; and
exceed more than 25 percent of the funds appropriated to the Administration for disaster assistance during any fiscal year.
Improvements to Administration disaster assistance programs
Improvements to the Pioneer Business Recovery Program
In general
Section 12085 of the Food, Conservation, and Energy Act of 2008 (15 U.S.C. 636j) is amended—
in the section heading, by striking
Expedited disaster
assistance loan program
and inserting
Pioneer Business Recovery
Program
;
by striking expedited disaster
assistance business loan program
each place it appears and inserting
Pioneer Business Recovery Program
;
in subsection (b) by striking
paragraph (9)
and all that follows and inserting section
7(b) of the Small Business Act (15 U.S.C. 636(b)).
; and
in subsection
(d)(3)(A), by striking $150,000
and inserting
$250,000
.
Technical and conforming amendment
The table of contents in section 1(b) of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1651) is amended by striking the item relating to section 12085 and inserting the following:
Sec. 12085. Pioneer Business Recovery Program.
.
Increased limits
Section 7 of the Small Business Act (15 U.S.C. 636) is amended—
in subsection (d)(6)—
by striking $100,000
and
inserting $400,000
; and
by striking $20,000
and
inserting $80,000
;
by striking (e) [RESERVED].
;
and
by striking (f)
[RESERVED].
.
State bridge loan guarantee
Authorization
After issuing guidelines under subsection (c), the Administrator may guarantee loans made under an approved State Bridge Loan Program.
Approval
Application
A State desiring approval of a State Bridge Loan Program shall submit an application to the Administrator at such time, in such manner, and accompanied by such information as the Administrator may require.
Criteria
The Administrator may approve an application submitted under paragraph (1) based on such criteria as the Administrator may establish under this section.
Guidelines
In general
Not later than 180 days after the date of enactment of this Act, the Administrator shall issue to the appropriate economic development officials in each State, the Committee on Small Business and Entrepreneurship of the Senate, and the Committee on Small Business of the House of Representatives, guidelines regarding approved State Bridge Loan Programs.
Contents
The guidelines issued under paragraph (1) shall—
identify appropriate uses of funds under an approved State Bridge loan Program;
set terms and conditions for loans under an approved State Bridge loan Program;
address whether—
an approved State Bridge Loan Program may charge administrative fees; and
loans under an approved State Bridge Loan Program shall be disbursed through local banks and other financial institutions; and
establish the percentage of a loan the Administrator will guarantee under an approved State Bridge Loan Program.
Modified 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 shall not require
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 property of, or economic
injury to, a small business concern
.
Aquaculture business disaster assistance
Section 18(b)(1) of the Small Business Act (15 U.S.C. 647(b)(1)) is amended—
by striking
aquaculture,
; and
by inserting
before the semicolon , and does not include aquaculture
.
Regional outreach on disaster assistance programs
Report
In accordance with sections 7(b)(4) and 40(a) of the Small Business Act (15 U.S.C. 636(b)(4) and 657l(a)) and not later than 60 days after the date of enactment of this Act, 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 detailing—
information on the disasters, manmade or natural, most likely to occur in each region of the Administration and likely scenarios for each disaster in each region;
information on plans of the Administration, if any, to conduct annual disaster outreach seminars, including events with resource partners of the Administration, in each region before periods of predictable disasters described in paragraph (1);
information on plans of the Administration for satisfying the requirements under section 40(a) of the Small Business Act not satisfied on the date of enactment of this Act; and
such additional information as determined necessary by the Administrator.
Availability of information
The Administrator shall—
post the disaster information provided under subsection (a) on the website of the Administration; and
make the information provided under subsection (a) available, upon request, at each regional and district office of the Administration.
Duplication of benefits
Findings
Congress finds the following:
Section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5155) states the following:
The
President, in consultation with the head of each Federal agency administering
any program providing financial assistance to persons, business concerns, or
other emergency, shall assure that no such person, business concern, or other
entity will receive such assistance with respect to any part of such loss as to
which he has received financial assistance under any other program or from
insurance or any other source.
.
Receipt of
partial benefits for a major disaster or emergency shall not preclude provision
of additional Federal assistance for any part of a loss or need for which
benefits have not been provided.
.
A recipient of
Federal assistance will be liable to the United States to the extent
that such assistance duplicates benefits available to the person for the same
purpose from another source.
.
The Administrator should make every effort to ensure that disaster recovery needs unmet by Federal and private sources are not overlooked in determining duplication of benefits for disaster victims.
Revised duplication of benefits calculations
The Administrator may, after consultation with other relevant Federal agencies, determine whether benefits are duplicated after a person receiving assistance under section 7(b) of the Small Business Act (15 U.S.C. 636(b)) receives other Federal disaster assistance by a disaster victim.
Administration coordination on economic injury disaster declarations
Not later than 180 days after the date of enactment of this Act, 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 providing—
information on economic injury disaster declarations under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) made by the Administrator during the 10-year period ending on the date of enactment of this Act based on a natural disaster declaration by the Secretary of Agriculture;
information on economic injury disaster declarations under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) made by the Administrator during the 10-year period ending on the date of enactment of this Act based on a fishery resource disaster declaration from the Secretary of Commerce;
information on whether the disaster response plan of the Administration under section 40 of the Small Business Act (15 U.S.C. 657l) adequately addresses coordination with the Secretary of Agriculture and the Secretary of Commerce on economic injury disaster assistance under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2));
recommended legislative changes, if any, for improving agency coordination on economic injury disaster declarations under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)); and
such additional information as determined necessary by the Administrator.
Coordination between Small Business Administration and Department of Agriculture disaster programs
Definitions
In this section—
the term agricultural small business concern means a small business concern that is an agricultural enterprise, as defined in section 18(b)(1) of the Small Business Act (15 U.S.C. 647(b)(1)), as amended by this Act; and
the term rural small business concern means a small business concern located in a rural area, as that term is defined in section 1393(a)(2) of the Internal Revenue Code of 1986.
Report
Not later than 120 days after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Agriculture, 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 detailing—
information on disaster assistance programs of the Administration for rural small business concerns and agricultural small business concerns;
information on industries or small business concerns excluded from programs described in paragraph (1);
information on disaster assistance programs of the Department of Agriculture to rural small business concerns and agricultural small business concerns;
information on industries or small business concerns excluded from programs described in paragraph (3);
information on disaster assistance programs of the Administration that are duplicative of disaster assistance programs of the Department of Agriculture;
information on coordination between the two agencies on implementation of disaster assistance provisions of the Food, Conservation, and Energy Act of 2008 (Public Law 110–246; 122 Stat. 1651), and the amendments made by that Act;
recommended legislative or administrative changes, if any, for improving coordination of disaster assistance programs, in particular relating to removing gaps in eligibility for disaster assistance programs by rural small business concerns and agricultural small business concerns; and
such additional information as determined necessary by the Administrator.
Technical and conforming amendment
Section
7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended in the matter
following paragraph (9), by striking section 312(a) of the Disaster
Relief and Emergency Assistance Act
and inserting section 312(a)
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5155(a))
.