H.R. 208 — what changed
Recovery Improvements for Small Entities After Disaster Act of 2015
From Introduced in House to Reported in House. 2 sections amended and 8 added between Introduced in House and Reported in House.
Section 1 Short title
changed This Act may be cited as the “Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015”.
Sec. 3 Revised disaster deadline
added Section 7(d) of the Small Business Act (15 U.S.C. 636(d)) is amended by adding at the end the following:
added “(8) Disaster loans for Superstorm Sandy
added “(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, 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—
added “(i) for a loan to repair, rehabilitate, or replace property damaged or destroyed by reason of Superstorm Sandy; or
added “(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.
added “(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.”
removed
Establishment— Not later than 45 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall establish and carry out a loan program under which a small business concern, homeowner, 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—
removed
for a loan to repair, rehabilitate, or replace property damaged or destroyed by reason of Superstorm Sandy; or
removed
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.
removed
Requirements— To carry out the program described in subsection (a), the Administrator shall use the same application, selection, and notice requirements and procedures that are used under section 7(b) of the Small Business Act Section 7(b) (15 U.S.C. 636(b)).
removed
Timing— The Administrator shall select loan recipients and make available loans under this Act for a period of not less than 1 year after the date on which the Administrator establishes the program.
Sec. 4 Use of physical damage disaster loans to construct safe rooms
addedadded 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:
added “(i) construction of retaining walls and sea walls;
added “(ii) grading and contouring land; and
added “(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”
Sec. 5 Collateral requirements for small business concerns
addedadded Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended by inserting after paragraph (9) the following:
added “(10) Collateral requirements for small businesses—In the case of a loan made pursuant to this subsection in an amount not greater than $250,000, the Administrator may not require a borrower to pledge his or her primary residence as collateral if—
added “(A) other collateral exists, including assets related to the operation of a business; and
added “(B) such an option does not delay the Administrator’s processing of disaster applications for a disaster.”
Sec. 6 Reducing delays on closing and disbursement of loans
addedadded Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is further amended by inserting after paragraph (10) (as added by section 5) the following:
added “(11) 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.”
Sec. 7 Increasing transparency in loan approvals
addedadded Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is further amended by inserting after paragraph (11) (as added by section 6) the following:
added “(12) 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.”
Sec. 8 Safeguarding taxpayers’ interests
addedadded Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is further amended by inserting after paragraph (12) (as added by section 7) the following:
added “(13) Ensuring accountability in loan approvals—The Administrator shall establish requirements for the approval of economic injury disaster loan assistance made available pursuant to paragraph (2), which shall include the review of applicant eligibility and shall require that all supporting documentation is submitted prior to loan approval. The Administrator shall require that personnel involved in the approval of such loans be trained on such procedures.”
Sec. 9 Disaster performance measures
addedadded Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is further amended by inserting after paragraph (13) (as added by section 8) the following:
added “(14) Reporting on disaster performance measures—The Administrator shall report the average processing time for all other disaster loan applications, including disaggregated data on disaster loan applications that were declined by the Administration’s automated disaster processing system and applications in which the Administrator performed loss verification. For each disaster described in paragraph (2), the Administrator shall report such average processing times on its website and to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate.”
Sec. 10 Disaster plan improvements
addedadded 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.
Sec. 11 Report to Congress on implementation of certain programs
added
added
Initial report— The Administrator of the Small Business Administration shall report to Congress not later than 30 days after the date of enactment of this Act on the implementation and status of the private disaster loan program established in section 7(c) of the Small Business Act (15 U.S.C. 636(c)), the Immediate Disaster Assistance program established in section 42 of such Act (15 U.S.C. 657n), and the expedited disaster assistance business loan program established in section 12085 of the Small Business Disaster Response and Loan Improvements Act of 2008 (15 U.S.C. 636j).
added
Required consultation with depository institutions and credit unions— The Administrator shall require the Associate Administrator for the Office of Disaster Assistance to consult with depository institutions (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) and credit unions regarding their potential participation in any of the programs described in subsection (a).
added
Report on consultation— Not later than 6 months after date of enactment of this Act, the Administrator shall report to Congress on the consultation required under subsection (b).