SEC. 1001. Short Title.
This division may be cited as the “Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015”.
Division A — Superstorm Sandy Relief and Disaster Loan Program Improvements
DIVISION A Superstorm Sandy Relief and Disaster Loan Program Improvements
SEC. 1002. Findings.
Congress finds the following:
In 2012, Superstorm Sandy caused substantial physical and economic damage to the United States, and New York in particular.
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.
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.
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.
As a result, many businesses and homeowners affected by Superstorm Sandy were unable to apply for financing from the Small Business Administration.
TITLE I Disaster Assistance Improvements
SEC. 1101. Revised Disaster Deadline.
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.”
SEC. 1102. Use of Physical Damage Disaster Loans to Construct Safe 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:
“(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”
SEC. 1103. Reducing Delays on Closing and Disbursement of Loans.
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.”
SEC. 1104. Safeguarding Taxpayer Interests and Increasing Transparency 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.”
SEC. 1105. Disaster Plan Improvements.
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.