S. 415 — Introduced in Senate

II 113th CONGRESS 1st Session S. 415 IN THE SENATE OF THE UNITED STATES February 28, 2013 Ms. Landrieu (for herself, Mr. Cochran, Mrs. Gillibrand, and Mr. Pryor) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To clarify the collateral requirement for certain loans under section 7(d) of the Small Business Act, to address assistance to out-of-State small business concerns, and for other purposes. 1. Short title This Act may be cited as the Small Business Disaster Reform Act of 2013. 2. Clarification of collateral requirements 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 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. 3. Assistance to out-of-State small businesses 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 businesses (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 assistance, as described in subsection (c), to a small business concern located outside of the State, without regard to geographic proximity, if the small business concern is located in an area for which the President has declared a major disaster under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), during the period of the declaration. (ii) 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. (iii) 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. . 4. Sense of Congress It is the sense of Congress that, subject to the availability of funds, the Administrator of the Small Business Administration shall, 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 (15 U.S.C. 648(b)(3)(B)), as added by this Act.