[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 208 Enrolled Bill (ENR)]
H.R.208
One Hundred Fourteenth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the sixth day of January, two thousand and fifteen
An Act
To improve the disaster assistance programs of the Small Business
Administration.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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(a) Short Title.--This Act may be cited as the ``Recovery
Improvements for Small Entities After Disaster Act of 2015'' or the
``RISE After Disaster Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

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1735accec93e47b6c0f4a43bafdf7619202b93066a248104a97813d2d923f0c8

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TITLE I

-DISASTER ASSISTANCE IMPROVEMENTS

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women's business centers, and SCORE for disaster recovery.

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-IMPROVEMENTS OF DISASTER RESPONSE AND LOANS

24dd663bdfd14592946c6c1e4540b64aea4261b5cd6e5047c3c45b462cf93642

TITLE III

-OTHER PROVISIONS

This division may be cited as the ``Superstorm Sandy Relief and
Disaster Loan Program Improvement Act of 2015''.

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Congress finds the following:
(1) In 2012, Superstorm Sandy caused substantial physical and
economic damage to the United States, and New York in particular.
(2) For businesses and homeowners, the primary means of
obtaining long-term Federal financial assistance in the wake of
disasters such as Superstorm Sandy is through the Small Business
Administration's Disaster Loan Program.
(3) With regard to the Small Business Administration's
operation of the Disaster Loan Program after Superstorm Sandy, the
Government Accountability Office found that the Administration did
not meet its timeliness goals for processing business loan
applications.
(4) According to the Government Accountability Office, the
Small Business Administration stated that it was challenged by an
unexpectedly high volume of loan applications that it received
early in its response to Superstorm Sandy.
(5) As a result, many businesses and homeowners affected by
Superstorm Sandy were unable to apply for financing from the Small
Business Administration.

4688ea945538960ea4f8dad890bff03d5dd318e53e79cd5f2d5eea094df14f59

Section 7(d) of the Small Business Act (15 U.S.C. 636(d)) is
amended by adding at the end the following:
``(8) Disaster loans for superstorm sandy.--
``(A) In general.--Notwithstanding any other provision of
law, and subject to the same requirements and procedures that
are used to make loans pursuant to subsection (b), a small
business concern, homeowner, nonprofit entity, or renter that
was located within an area and during the time period with
respect to which a major disaster was declared by the President
under section 401 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170) by reason of
Superstorm Sandy may apply to the Administrator--
``(i) for a loan to repair, rehabilitate, or replace
property damaged or destroyed by reason of Superstorm
Sandy; or
``(ii) if such a small business concern has suffered
substantial economic injury by reason of Superstorm Sandy,
for a loan to assist such a small business concern.
``(B) Timing.--The Administrator shall select loan
recipients and make available loans for a period of not less
than 1 year after the date on which the Administrator carries
out this authority.
``(C) Inspector general review.--Not later than 6 months
after the date on which the Administrator begins carrying out
this authority, the Inspector General of the Administration
shall initiate a review of the controls for ensuring applicant
eligibility for loans made under this paragraph.''.

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ROOMS.
Section 7(b)(1)(A) of the Small Business Act (15 U.S.C.
636(b)(1)(A)) is amended by striking ``mitigating measures'' and all
that follows through ``modifying structures'' and inserting the
following: ``mitigating measures, including--
``(i) construction of retaining walls and sea walls;
``(ii) grading and contouring land; and
``(iii) relocating utilities and modifying structures,
including construction of a safe room or similar storm shelter
designed to protect property and occupants from tornadoes or
other natural disasters, if such safe room or similar storm
shelter is constructed in accordance with applicable standards
issued by the Federal Emergency Management Agency''.

b1d7602bd460215f60eb913f75c8a66b790b8032d061f753733a961663186132

Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(9) the following:
``(10) Reducing closing and disbursement delays.--The
Administrator shall provide a clear and concise notification on all
application materials for loans made under this subsection and on
relevant websites notifying an applicant that the applicant may
submit all documentation necessary for the approval of the loan at
the time of application and that failure to submit all
documentation could delay the approval and disbursement of the
loan.''.

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IN LOAN APPROVALS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(10), as added by section 1103 of this Act, the following:
``(11) Increasing transparency in loan approvals.--The
Administrator shall establish and implement clear, written policies
and procedures for analyzing the ability of a loan applicant to
repay a loan made under this subsection.''.

96e9db1e9d51937e9c539dcbf22c76f7f4184a1f28c2b00b38fa7860da9aeac5

The Administrator of the Small Business Administration shall revise
the comprehensive written disaster response plan required in section 40
of the Small Business Act (15 U.S.C. 657l), or any successor thereto,
to incorporate the Administration's response to a situation in which an
extreme volume of applications are received during the period of time
immediately after a disaster, which shall include a plan to ensure that
sufficient human and technological resources are made available and a
plan to prevent delays in loan processing.

60867dfef2d01545a7fe117a006784466caa3d2da6965fd859a9d2a93555437c

This division may be cited as the ``Recovery Improvements for Small
Entities After Disaster Act of 2015'' or the ``RISE After Disaster Act
of 2015''.

a1e7b703d500df40a20b55ac0f7011c6c37c37aea4ffb2af07737f9d8a22de08

WOMEN'S BUSINESS CENTERS, AND SCORE FOR DISASTER RECOVERY.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(11), as added by section 1104 of this Act, the following:
``(12) Additional awards to small business development centers,
women's business centers, and score for disaster recovery.--
``(A) In general.--The Administration may provide financial
assistance to a small business development center, a women's
business center described in section 29, the Service Corps of
Retired Executives, or any proposed consortium of such
individuals or entities to spur disaster recovery and growth of
small business concerns located in an area for which the
President has declared a major disaster.
``(B) Form of financial assistance.--Financial assistance
provided under this paragraph shall be in the form of a grant,
contract, or cooperative agreement.
``(C) No matching funds required.--Matching funds shall not
be required for any grant, contract, or cooperative agreement
under this paragraph.
``(D) Requirements.--A recipient of financial assistance
under this paragraph shall provide counseling, training, and
other related services, such as promoting long-term resiliency,
to small business concerns and entrepreneurs impacted by a
major disaster.
``(E) Performance.--
``(i) In general.--The Administrator, in cooperation
with the recipients of financial assistance under this
paragraph, shall establish metrics and goals for
performance of grants, contracts, and cooperative
agreements under this paragraph, which shall include
recovery of sales, recovery of employment, reestablishment
of business premises, and establishment of new small
business concerns.
``(ii) Use of estimates.--The Administrator shall base
the goals and metrics for performance established under
clause (i), in part, on the estimates of disaster impact
prepared by the Office of Disaster Assistance for purposes
of estimating loan-making requirements.
``(F) Term.--
``(i) In general.--The term of any grant, contract, or
cooperative agreement under this paragraph shall be for not
more than 2 years.
``(ii) Extension.--The Administrator may make 1
extension of a grant, contract, or cooperative agreement
under this paragraph for a period of not more than 1 year,
upon a showing of good cause and need for the extension.
``(G) Exemption from other program requirements.--Financial
assistance provided under this paragraph is in addition to, and
wholly separate from, any other form of assistance provided by
the Administrator under this Act.
``(H) Competitive basis.--The Administration shall award
financial assistance under this paragraph on a competitive
basis.''.

5d0c1b38e0eb892e7fde26ee983bca1b0d8f078ad509a687305b2604a2e2e813

(a) In General.--Section 7(d)(6) of the Small Business Act (15
U.S.C. 636(d)(6)) is amended in the third proviso--
(1) by striking ``$14,000'' and inserting ``$25,000''; and
(2) by striking ``major disaster'' and inserting ``disaster''.
(b) Sunset.--Effective on the date that is 3 years after the date
of enactment of this Act, section 7(d)(6) of the Small Business Act (15
U.S.C. 636(d)(6)) is amended in the third proviso--
(1) by striking ``$25,000'' and inserting ``$14,000''; and
(2) by inserting ``major'' before ``disaster''.
(c) Report.--Not later than 180 days before the date on which the
amendments made by subsection (b) are to take effect, the Administrator
of the Small Business Administration shall submit to Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report on the effects of the
amendments made by subsection (a), which shall include--
(1) an assessment of the impact and benefits resulting from the
amendments; and
(2) a recommendation as to whether the amendments should be
made permanent.

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DISASTER RECOVERY.
(a) In General.--Section 21(b)(3) of the Small Business Act (15
U.S.C. 648(b)(3)) is amended--
(1) by striking ``(3) At the discretion'' and inserting the
following:
``(3) Assistance to out-of-state small business concerns.--
``(A) In general.--At the discretion''; and
(2) by adding at the end the following:
``(B) Disaster recovery assistance.--
``(i) In general.--At the discretion of the
Administrator, the Administrator may authorize a small
business development center to provide advice, information,
and assistance, as described in subsection (c), to a small
business concern located outside of the State, without
regard to geographic proximity to the small business
development center, if the small business concern is
located in an area for which the President has declared a
major disaster.
``(ii) Term.--
``(I) In general.--A small business development
center may provide advice, information, and assistance
to a small business concern under clause (i) for a
period of not more than 2 years after the date on which
the President declared a major disaster for the area in
which the small business concern is located.
``(II) Extension.--The Administrator may, at the
discretion of the Administrator, extend the period
described in subclause (I).
``(iii) Continuity of services.--A small business
development center that provides counselors to an area
described in clause (i) shall, to the maximum extent
practicable, ensure continuity of services in any State in
which the small business development center otherwise
provides services.
``(iv) Access to disaster recovery facilities.--For
purposes of this subparagraph, the Administrator shall, to
the maximum extent practicable, permit the personnel of a
small business development center to use any site or
facility designated by the Administrator for use to provide
disaster recovery assistance.''.
(b) Sense of Congress.--It is the sense of Congress that, subject
to the availability of funds, the Administrator of the Small Business
Administration should, to the extent practicable, ensure that a small
business development center is appropriately reimbursed for any
legitimate expenses incurred in carrying out activities under section
21(b)(3)(B) of the Small Business Act, as added by subsection (a).

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(a) Definitions.--Section 34(a) of the Small Business Act (15
U.S.C. 657d(a)) is amended--
(1) by redesignating paragraphs (3) through (9) as paragraphs
(4) through (10), respectively; and
(2) by inserting after paragraph (2) the following:
``(3) Catastrophic incident.--The term `catastrophic incident'
means a major disaster that is comparable to the description of a
catastrophic incident in the National Response Plan of the
Administration, or any successor thereto.''.
(b) Priority.--Section 34(c)(2) of the Small Business Act (15
U.S.C. 657d(c)(2)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B)(vi)(III), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(C) shall give special consideration to an applicant that
is located in an area affected by a catastrophic incident.''.
(c) Additional Assistance.--Section 34(c) of the Small Business Act
(15 U.S.C. 657d(c)) is amended by adding at the end the following:
``(5) Additional assistance for catastrophic incidents.--Upon
application by an applicant that receives an award or has in effect
a cooperative agreement under this section and that is located in
an area affected by a catastrophic incident, the Administrator
may--
``(A) provide additional assistance to the applicant; and
``(B) waive the matching requirements under subsection
(e)(2).''.

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Section 7(j)(13)(F) of the Small Business Act (15 U.S.C.
636(j)(13)(F)) is amended--
(1) by inserting ``(i)'' after ``(F)''; and
(2) by adding at the end the following:
``(ii)(I) In this clause--
``(aa) the term `covered period' means the 2-year
period beginning on the date on which the President
declared the applicable major disaster; and
``(bb) the term `disaster area' means the area for
which the President has declared a major disaster, during
the covered period.
``(II) The Administrator may transfer technology or surplus
property under clause (i) on a priority basis to a small
business concern located in a disaster area if--
``(aa) the small business concern meets the
requirements for such a transfer, without regard to whether
the small business concern is a Program Participant; and
``(bb) for a small business concern that is a Program
Participant, on and after the date on which the President
declared the applicable major disaster, the small business
concern has not received property under this subparagraph
on the basis of the status of the small business concern as
a Program Participant.
``(III) For any transfer of property under this clause to a
small business concern, the terms and conditions shall be the
same as a transfer to a Program Participant, except that the
small business concern shall agree not to sell or transfer the
property to any party other than the Federal Government during
the covered period.
``(IV) A small business concern that receives a transfer of
property under this clause may not receive a transfer of
property under clause (i) during the covered period.
``(V) If a small business concern sells or transfers
property in violation of the agreement described in subclause
(III), the Administrator may initiate proceedings to prohibit
the small business concern from receiving a transfer of
property under this clause or clause (i), in addition to any
other remedy available to the Administrator.''.

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Section 7(a)(31) of the Small Business Act (15 U.S.C. 636(a)(31))
is amended--
(1) in subparagraph (A)--
(A) by redesignating clauses (i), (ii), and (iii) as
clauses (ii), (iii), and (iv), respectively; and
(B) by inserting before clause (ii), as so redesignated,
the following:
``(i) The term `disaster area' means the area for which
the President has declared a major disaster, during the 5-
year period beginning on the date of the declaration.'';
and
(2) by adding at the end the following:
``(H) Recovery opportunity loans.--
``(i) In general.--The Administrator may guarantee an
express loan to a small business concern located in a
disaster area in accordance with this subparagraph.
``(ii) Maximums.--For a loan guaranteed under clause
(i)--
``(I) the maximum loan amount is $150,000; and
``(II) the guarantee rate shall be not more than 85
percent.
``(iii) Overall cap.--A loan guaranteed under clause
(i) shall not be counted in determining the amount of loans
made to a borrower for purposes of subparagraph (D).
``(iv) Operations.--A small business concern receiving
a loan guaranteed under clause (i) shall certify that the
small business concern was in operation on the date on
which the applicable major disaster occurred as a condition
of receiving the loan.
``(v) Repayment ability.--A loan guaranteed under
clause (i) may only be made to a small business concern
that demonstrates, to the satisfaction of the
Administrator, sufficient capacity to repay the loan.
``(vi) Timing of payment of guarantees.--
``(I) In general.--Not later than 90 days after the
date on which a request for purchase is filed with the
Administrator, the Administrator shall determine
whether to pay the guaranteed portion of the loan.
``(II) Recapture.--Notwithstanding any other
provision of law, unless there is a subsequent finding
of fraud by a court of competent jurisdiction relating
to a loan guaranteed under clause (i), on and after the
date that is 6 months after the date on which the
Administrator determines to pay the guaranteed portion
of the loan, the Administrator may not attempt to
recapture the paid guarantee.
``(vii) Fees.--
``(I) In general.--Unless the Administrator has
waived the guarantee fee that would otherwise be
collected by the Administrator under paragraph (18) for
a loan guaranteed under clause (i), and except as
provided in subclause (II), the guarantee fee for the
loan shall be equal to the guarantee fee that the
Administrator would collect if the guarantee rate for
the loan was 50 percent.
``(II) Exception.--Subclause (I) shall not apply if
the cost of carrying out the program under this
subsection in a fiscal year is more than zero and such
cost is directly attributable to the cost of
guaranteeing loans under clause (i).
``(viii) Rules.--Not later than 270 days after the date
of enactment of this subparagraph, the Administrator shall
promulgate rules to carry out this subparagraph.''.

09022dc8a939f5c9bf2af32d42cb435cea0f92db55786b18410b37dc69f2ceb7

Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(12), as added by section 2101 of this Act, the following:
``(13) Supplemental assistance for contractor malfeasance.--
``(A) In general.--If a contractor or other person engages
in malfeasance in connection with repairs to, rehabilitation
of, or replacement of real or personal property relating to
which a loan was made under this subsection and the malfeasance
results in substantial economic damage to the recipient of the
loan or substantial risks to health or safety, upon receiving
documentation of the substantial economic damage or the
substantial risk to health and safety from an independent loss
verifier, and subject to subparagraph (B), the Administrator
may increase the amount of the loan under this subsection, as
necessary for the cost of repairs, rehabilitation, or
replacement needed to address the cause of the economic damage
or health or safety risk.
``(B) Requirements.--The Administrator may only increase
the amount of a loan under subparagraph (A) upon receiving an
appropriate certification from the borrower and person
performing the mitigation attesting to the reasonableness of
the mitigation costs and an assignment of any proceeds received
from the person engaging in the malfeasance. The assignment of
proceeds recovered from the person engaging in the malfeasance
shall be equal to the amount of the loan under this section.
Any mitigation activities shall be subject to audit and
independent verification of completeness and cost
reasonableness.''.

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Section 15 of the Small Business Act (15 U.S.C. 644) is amended by
inserting after subsection (e) the following:
``(f) Contracting Preference for Small Business Concerns in a Major
Disaster Area.--
``(1) Definition.--In this subsection, the term `disaster area'
means the area for which the President has declared a major
disaster, during the period of the declaration.
``(2) Contracting preference.--An agency shall provide a
contracting preference for a small business concern located in a
disaster area if the small business concern will perform the work
required under the contract in the disaster area.
``(3) Credit for meeting contracting goals.--If an agency
awards a contract to a small business concern under the
circumstances described in paragraph (2), the value of the contract
shall be doubled for purposes of determining compliance with the
goals for procurement contracts under subsection (g)(1)(A).''.

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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, in obtaining the best available 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 the property of, or economic
injury to, a small business concern, shall not require the owner of the
small business concern to use the primary residence of the owner as
collateral if the Administrator determines that the owner has other
assets of equal quality and with a value equal to or greater than the
amount of the loan that could be used as collateral for the loan:
Provided further, That nothing in the preceding proviso may be
construed to reduce the amount of collateral required by the
Administrator in connection with a loan described in the preceding
proviso or to modify the standards used to evaluate the quality (rather
than the type) of such collateral''.

b1d8ecda0c56bc1429aa204eaa81f6589069d2645237a3134949100757f411b5

Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended by inserting before the undesignated matter following paragraph
(13), as added by section 2108 of this Act, the following:
``(14) Business recovery centers.--
``(A) In general.--The Administrator, acting through the
district offices of the Administration, shall identify
locations that may be used as recovery centers by the
Administration in the event of a disaster declared under this
subsection or a major disaster.
``(B) Requirements for identification.--Each district
office of the Administration shall--
``(i) identify a location described in subparagraph (A)
in each county, parish, or similar unit of general local
government in the area served by the district office; and
``(ii) ensure that the locations identified under
subparagraph (A) may be used as a recovery center without
cost to the Government, to the extent practicable.''.

2c0d43edbdfe1bd7a5505cc5dd8aef805b236c7c960e99b4a0b94125494ca0c3

TITLE II

-DISASTER PLANNING AND MITIGATION

(a) In General.--Section 7(b) of the Small Business Act (15 U.S.C.
636(b)) is amended by inserting before the undesignated matter
following paragraph (14), as added by section 2201 of this Act, the
following:
``(15) Increased oversight of economic injury disaster loans.--
The Administrator shall increase oversight of entities receiving
loans under paragraph (2), and may consider--
``(A) scheduled site visits to ensure borrower eligibility
and compliance with requirements established by the
Administrator; and
``(B) reviews of the use of the loan proceeds by an entity
described in paragraph (2) to ensure compliance with
requirements established by the Administrator.''.
(b) Sense of Congress Relating To Using Existing Funds.--It is the
sense of Congress that no additional Federal funds should be made
available to carry out the amendments made by this section.

dc04fdf2657a5aefcd2c23a0cf21cf6deb2d76c6907f60c5b589f974a09445c6

Not later than 1 year after the date of enactment of this Act, the
Comptroller General of the United States 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 evaluating
steps that the Small Business Administration has taken, with respect to
the application for disaster assistance under section 7(b) of the Small
Business Act (15 U.S.C. 636(b)), to comply with subchapter I of chapter
35 of title 44, United States Code (commonly known as the ``Paperwork
Reduction Act'') and related guidance.

292cc7c61e30fa8bbf86f2923a3df2e00265efd13ecc04f41089738589b5c60d

Section 38 of the Small Business Act (15 U.S.C. 657j) is amended by
adding at the end the following:
``(c) Report on Web Portal for Disaster Loan Application Status.--
``(1) In general.--Not later than 90 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 relating to the creation of a web portal to the track the
status of applications for disaster assistance under section 7(b).
``(2) Contents.--The report under paragraph (1) shall include--
``(A) information on the progress of the Administration in
implementing the information system under subsection (a);
``(B) recommendations from the Administration relating to
the creation of a web portal for applicants to check the status
of an application for disaster assistance under section 7(b),
including a review of best practices and web portal models from
the private sector;
``(C) information on any related costs or staffing needed
to implement such a web portal;
``(D) information on whether such a web portal can maintain
high standards for data privacy and data security;
``(E) information on whether such a web portal will
minimize redundancy among Administration disaster programs,
improve management of the number of inquiries made by disaster
applicants to employees located in the area affected by the
disaster and to call centers, and reduce paperwork burdens on
disaster victims; and
``(F) such additional information as is determined
necessary by the Administrator.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

f5829a3f9af166c3a73c246e4602e36c109d0f9afbe2a26cb1e68d9638faaf88

Recovery Improvements for Small Entities After Disaster Act of 2015 — HR. 208

Other Sections

DIVISION A / TITLE I

DIVISION B / TITLE I

DIVISION B / TITLE III

DIVISION A

DIVISION B

DIVISION B / TITLE II

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