Mr. President, I come to the floor today to speak on an issue that is of great importance to my home State of Louisiana: disaster recovery. As you know, along the Gulf Coast, we keep an eye trained…
Mr. President, I come to the floor today to speak on an issue that is of great importance to my home State of Louisiana: disaster recovery. As you know, along the Gulf Coast, we keep an eye trained on the Gulf of Mexico during hurricane season. This is following the devastating one-two punch of Hurricanes Katrina and Rita of 2005; Hurricanes Gustav and Ike in 2008; and more recently the Deepwater Horizon disaster. Our communities and businesses are still recovering from these disasters--some from a disaster that devastated the Gulf Coast over 6 years ago. For this reason, as Chair of the Senate Committee on Small Business and Entrepreneurship disaster preparedness is one of my top priorities. While the Gulf Coast is prone to hurricanes, other parts of the country are no strangers to disaster as we have seen recently. For example, we just saw an earthquake strike Washington, DC, and Hurricane Irene work its way up the East Coast. In general though, the Midwest also has annual tornadoes, California experiences earthquakes and wildfires, and the Northeast sees crippling snowstorms. So no part of our country is spared from disasters-- disasters which can and will strike at any moment. With this in mind, we must ensure that the Federal Government is better prepared and assist those businesses impacted by natural disasters.
As I mentioned, everyone around the country is familiar with the impact of Hurricanes Katrina and Rita on the New Orleans area and the southeast part of our State. Images from the devastation following these storms, and the subsequent Federal levee breaks, were transmitted around the country and around the world. This is because Katrina was the deadliest natural disaster in United States history, with 1,800 people killed--1,500 alone in Louisiana. Katrina was also the costliest natural disaster in United States history with over $81.2 billion in damage. In Louisiana, we had 18,000 businesses catastrophically destroyed and 81,000 businesses economically impacted. I believe that, across the entire Gulf Coast, some estimates ran as high as 125,000 businesses impacted by Katrina and Rita. While we have made significant progress in rebuilding infrastructure, housing, and our economy, I continue to hear from individual business owners who are struggling to fully recover. These business owners tell me that they have not been hit by one disaster but three: Hurricane Katrina in 2005, Hurricane Gustav in 2008, and the Deepwater Horizon disaster in 2010.
In order to help ongoing recovery efforts in the Gulf Coast, I am introducing today the Gulf Coast Disadvantaged Business Relief Act of 2011. This legislation is the Senate companion bill to H.R. 2808 introduced by my colleague Representative Cedric Richmond last month. I note that his legislation also had two original cosponsors from Alabama and Mississippi: Representative Terri Sewell and Representative Bennie Thompson.
This bill focuses on assisting minority businesses in the Gulf Coast that were impacted by Hurricanes Katrina and Rita. Everyone is familiar with the images and the cost of these storms,
but they may not be too familiar with the impact on individual businesses. In particular, I am speaking about the affects of Hurricanes Katrina and Rita on minority firms in the Gulf Coast. As a result of these storms, many minority firms in the Gulf Coast were disrupted and thus lost valuable time for participating in the 8(a) program. The 8(a) business development initiative, created under the Small Business Administration, helps minority entrepreneurs access Federal contracts and allows companies to be certified for increments of 3 years. These contracts are vital to the revival of these impacted areas. However, as currently structured the program allows businesses to participate for a limited length of time, 9 years, after which they can never re-apply nor get back into the program. It is imperative that we provide contracting assistance to our local minority businesses.
The bill includes a provision which would tackle this problem in three important ways. First, the bill extends 8(a) eligibility for program participants in Katrina/Rita-impacted areas in Louisiana, Mississippi, and Alabama by 24 months. The bill would also apply to any areas in the state of Louisiana, Mississippi and Alabama that have been designated by the administrator of the Small Business Administration as a disaster area as a result of Hurricanes Katrina or Rita. Lastly, the bill would require the administrator of the Small Business Administration to ensure that every small business participating in the 8(a) program before the date of enactment of the Act is reviewed and brought into compliance with this act. This requirement would ensure that any eligible previous 8(a) participants will be allowed back into the program. As such, these key provisions would ensure that these businesses continue to play a vital role in rebuilding their communities. I note that I introduced a similar provision as part of S. 3285, the disadvantaged Business Disaster Eligibility Act during the 110th Congress and as part of S. 2731 last Congress. During the 109th Congress, this proposal passed the House of Representatives but we were unable to pass the legislation here in the Senate before we adjourned for the year. I look forward to renewing my fight this Congress as I believe that this is a commonsense proposal which would not cost a great deal. It would, however, make a huge difference for these businesses impacted by Katrina and Rita.
Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.
