Small Business Disaster Readiness and Reform Act of 2009 - (Sec. 2) Amends the Small Business Act to prohibit the Administrator of the Small Business Administration (SBA), in making a small business disaster loan of $250,000 or less, from requiring a borrower to use the borrower's home as collateral.
(Sec. 3) Increases the SBA disaster loan limit to $3 million. Prohibits the Administrator from requiring repayment on such loans until 12 months after final disbursement of the approved loan amount.
(Sec. 5) Provides specific disbursement directions for each of the following categories of loans: (1) $150,000 or less; (2) more than $150,000 up to $500,000; and (3) more than $500,000.
(Sec. 6) Authorizes the Administrator to make a disaster assistance grant of up to $100,000 to a small business that: (1) is located in an area affected by a major disaster; (2) certifies its intention to reestablish the business in the same county as originally located; (3) has applied and was rejected for a conventional disaster assistance loan; and (4) was in existence for at least two years before the disaster declaration. Provides a grant priority for small businesses determined to be economically viable but unable to meet short-term financial obligations. Authorizes grants of $100 million for each of FY2010-FY2011 and authorizes appropriations for such grants.
(Sec. 7) Directs the Administrator to develop a disaster preparedness and response plan for each SBA region. Requires each plan to identify the three disasters, natural or manmade, most likely to occur in such region.
(Sec. 8) Authorizes the Administrator to make outreach grants for loan application assistance to the following in areas affected by a disaster: (1) a women's business center; (2) a small business development center; (3) a veterans business outreach center; and (4) a chamber of commerce. Authorizes grants for each of FY2010-FY2011.
(Sec. 9) Authorizes the Administrator to make a loan to any homeowner whose primary residence has been adversely impacted by the installation of toxic drywall manufactured in China. Allows the loan to be used only for the repair or replacement of such drywall.
(Sec. 10) Authorizes appropriations for FY2010-FY2011 for administrative expenses and small business disaster assistance loans.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3743 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3743
To amend the Small Business Act to improve the disaster relief programs
of the Small Business Administration, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 7, 2009
Mr. Griffith introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to improve the disaster relief programs
of the Small Business Administration, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Disaster Readiness
and Reform Act of 2009''.
SEC. 2. REVISED COLLATERAL REQUIREMENTS.
Section 7 of the Small Business Act (15 U.S.C. 636) is amended--
(1) by striking ``(e) [RESERVED].'' and ``(f)
[RESERVED].''; and
(2) in subsection (f), as added by section 12068(a)(2) of
the Small Business Disaster Response and Loan Improvements Act
of 2008 (subtitle B of title XII of the Food, Conservation, and
Energy Act of 2008; Public Law 110-246), by adding at the end
the following:
``(2) Revised collateral requirements.--In making a loan
with respect to a business under subsection (b), if the total
approved amount of such loan is less than or equal to $250,000,
the Administrator may not require the borrower to use the
borrower's home as collateral.''.
SEC. 3. INCREASED LIMITS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended--
(1) in paragraph (3)(E) by striking ``$1,500,000'' each
place it appears and inserting ``$3,000,000''; and
(2) in paragraph (8)(A) by striking ``$2,000,000'' and
inserting ``$3,000,000''.
SEC. 4. REVISED REPAYMENT TERMS.
Section 7(f) of the Small Business Act (15 U.S.C. 636(f)) is
amended by adding at the end the following:
``(3) Revised repayment terms.--In making loans under
subsection (b), the Administrator--
``(A) may not require repayment to begin until the
date that is 12 months after the date on which the
final disbursement of approved amounts is made; and
``(B) shall calculate the amount of repayment based
solely on the amounts disbursed.''.
SEC. 5. REVISED DISBURSEMENT PROCESS.
Section 7(f) of the Small Business Act (15 U.S.C. 636(f)), as
amended by this Act, is further amended by adding at the end the
following:
``(4) Revised disbursement process.--In making a loan under
subsection (b), the Administrator shall disburse loan amounts
in accordance with the following:
``(A) If the total amount approved with respect to
such loan is less than or equal to $150,000--
``(i) the first disbursement with respect
to such loan shall consist of 40 percent of the
total loan amount, or a lesser percentage of
the total loan amount if the Administrator and
the borrower agree on such a lesser percentage;
``(ii) the second disbursement shall
consist of 50 percent of the loan amounts that
remain after the first disbursement, and shall
be made when the borrower has produced
satisfactory receipts to demonstrate the proper
use of 50 percent of the first disbursement;
and
``(iii) the third disbursement shall
consist of the loan amounts that remain after
the preceding disbursements, and shall be made
when the borrower has produced satisfactory
receipts to demonstrate the proper use of the
first disbursement and 50 percent of the second
disbursement.
``(B) If the total amount approved with respect to
such loan is more than $150,000 but less than or equal
to $500,000--
``(i) the first disbursement with respect
to such loan shall consist of 20 percent of the
total loan amount, or a lesser percentage of
the total loan amount if the Administrator and
the borrower agree on such a lesser percentage;
``(ii) the second disbursement shall
consist of 30 percent of the loan amounts that
remain after the first disbursement, and shall
be made when the borrower has produced
satisfactory receipts to demonstrate the proper
use of 50 percent of the first disbursement;
``(iii) the third disbursement shall
consist of 25 percent of the loan amounts that
remain after the first and second
disbursements, and shall be made when the
borrower has produced satisfactory receipts to
demonstrate the proper use of the first
disbursement and 50 percent of the second
disbursement; and
``(iv) the fourth disbursement shall
consist of the loan amounts that remain after
the preceding disbursements, and shall be made
when the borrower has produced satisfactory
receipts to demonstrate the proper use of the
first and second disbursements and 50 percent
of the third disbursement.
``(C) If the total amount approved with respect to
such loan is more than $500,000--
``(i) the first disbursement with respect
to such loan shall consist of at least
$100,000, or a lesser amount if the
Administrator and the borrower agree on such a
lesser amount; and
``(ii) the number of disbursements after
the first, and the amount of each such
disbursement, shall be in the discretion of the
Administrator, but the amount of each such
disbursement shall be at least $100,000.''.
SEC. 6. GRANT PROGRAM.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)), as
amended by this Act, is further amended by inserting after paragraph
(9) the following:
``(10) Grants to disaster-affected small businesses.--
``(A) In general.--If the Administrator declares
eligibility for additional disaster assistance under
paragraph (9), the Administrator may make a grant, in
an amount not exceeding $100,000, to a small business
concern that--
``(i) is located in an area affected by the
applicable major disaster;
``(ii) submits to the Administrator a
certification by the owner of the concern that
such owner intends to reestablish the concern
in the same county in which the concern was
originally located;
``(iii) has applied for, and was rejected
for, a conventional disaster assistance loan
under this subsection; and
``(iv) was in existence for at least 2
years before the date on which the applicable
disaster declaration was made.
``(B) Priority.--In making grants under this
paragraph, the Administrator shall give priority to a
small business concern that the Administrator
determines is economically viable but unable to meet
short-term financial obligations.
``(C) Authorization of appropriations.--There are
authorized to be appropriated to the Administrator such
sums as may be necessary to carry out this
paragraph.''.
SEC. 7. REGIONAL DISASTER WORKING GROUPS.
Section 40 of the Small Business Act (15 U.S.C. 657l) is amended--
(1) in subsection (a), in the matter preceding paragraph
(1), by striking ``or'' and inserting ``and'';
(2) by redesignating subsection (d) as subsection (e); and
(3) by inserting after subsection (c) the following:
``(d) Regional Disaster Working Groups.--In carrying out subsection
(a), the Administrator, acting through the regional administrators of
the regional offices of the Administration, shall develop a disaster
preparedness and response plan for each region of the Administration.
Each such plan shall be developed in cooperation with Federal, State,
and local emergency response authorities and representatives of
businesses located in the region to which such plan applies. Each such
plan shall identify and include a plan relating to the 3 disasters,
natural or manmade, most likely to occur in the region to which such
plan applies.''.
SEC. 8. OUTREACH GRANTS FOR LOAN APPLICANT ASSISTANCE.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)), as
amended by this Act, is further amended by inserting after paragraph
(10) the following:
``(11) Outreach grants for loan applicant assistance.--
``(A) In general.--From amounts made available for
administrative expenses relating to activities under
this subsection, the Administrator is authorized to
make grants to the following:
``(i) A women's business center in an area
affected by a disaster.
``(ii) A small business development center
in an area affected by a disaster.
``(iii) A Veteran Business Outreach Center
in an area affected by a disaster.
``(iv) A chamber of commerce in an area
affected by a disaster.
``(B) Use of grant.--An entity specified under
subparagraph (A) shall use a grant received under this
paragraph to provide application preparation assistance
to applicants for a loan under this subsection.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
Referred to the Subcommittee on Finance and Tax.
Subcommittee Consideration and Mark-up Session Held.
Forwarded by Subcommittee to Full Committee by Voice Vote .
Provisions of Measure Incorporated into H.R. 3854.
Ms. Velazquez moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H12471-12473)
DEBATE - The House proceeded with forty minutes of debate on H.R. 3743.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H12471-12472)
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H12471-12472)
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Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.