Section Text
(a) Definition
In this section, the term "program" means the expedited disaster assistance business loan program established under subsection (b).
(b) Creation of program
The Administrator shall take such administrative action as is necessary to establish and implement an expedited disaster assistance business loan program under which the Administration may, on an expedited basis, guarantee timely payment of principal and interest, as scheduled on any loan made to an eligible small business concern under paragraph (9) of section 636(b) of this title, as added by this Act.
(c) Consultation required
In establishing the program, the Administrator shall consult with—
(1) appropriate personnel of the Administration (including District Office personnel of the Administration);
(2) appropriate technical assistance providers (including small business development centers);
(3) appropriate lenders and credit unions;
(4) the Committee on Small Business and Entrepreneurship of the Senate; and
(5) the Committee on Small Business of the House of Representatives.
(d) Rules (1) In general
Not later than 1 year after the date of enactment of this Act, the Administrator shall issue rules in final form establishing and implementing the program in accordance with this section. Such rules shall apply as provided for in this section, beginning 90 days after their issuance in final form.
(2) Contents
The rules promulgated under paragraph (1) shall—
(A) identify whether appropriate uses of funds under the program may include—
(i) paying employees;
(ii) paying bills and other financial obligations;
(iii) making repairs;
(iv) purchasing inventory;
(v) restarting or operating a small business concern in the community in which it was conducting operations prior to the applicable major disaster, or to a neighboring area, county, or parish in the disaster area; or
(vi) covering additional costs until the small business concern is able to obtain funding through insurance claims, Federal assistance programs, or other sources; and
(B) set the terms and conditions of any loan made under the program, subject to paragraph (3).
(3) Terms and conditions
A loan guaranteed by the Administration under this section—
(A) shall be for not more than $150,000;
(B) shall be a short-term loan, not to exceed 180 days, except that the Administrator may extend such term as the Administrator determines necessary or appropriate on a case-by-case basis;
(C) shall have an interest rate not to exceed 300 basis points above the interest rate established by the Board of Governors of the Federal Reserve System that 1 bank charges another for reserves that are lent on an overnight basis on the date the loan is made;
(D) shall have no prepayment penalty;
(E) may only be made to a borrower that meets the requirements for a loan under section 636(b) of this title, as amended by this Act;
(F) may be refinanced as part of any subsequent disaster assistance provided under section 636(b) of this title, as amended by this Act;
(G) may receive expedited loss verification and loan processing, if the applicant is—
(i) a major source of employment in the disaster area (which shall be determined in the same manner as under section 636(b)(3)(B) 1 of this title); or
(ii) vital to recovery efforts in the region (including providing debris removal services, manufactured housing, or building materials); and
(H) shall be subject to such additional terms as the Administrator determines necessary or appropriate.
(e) Report to Congress
Not later than 5 months after the date of enactment of this Act, the Administrator shall report to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives on the progress of the Administrator in establishing the program.
(f) Authorization
There are authorized to be appropriated to the Administrator such sums as are necessary to carry out this section.
Editorial Notes
REFERENCES IN TEXT Paragraph (9) of section 636(b) of this title, as added by this Act, referred to in subsec. (b), is section 636(b)(9) of this title, as added by Pub. L. 110–246. Section 636(b) of this title, as amended by this Act, referred to in subsec. (d)(3)(E), (F), is section 636(b) of this title, as amended by Pub. L. 110–246. The date of enactment of this Act, referred to in subsecs. (d)(1) and (e), is the date of enactment of Pub. L. 110–246, which was approved June 18, 2008.CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246. Section was enacted as part of the Food, Conservation, and Energy Act of 2008, and also as part of the Small Business Disaster Response and Loan Improvements Act of 2008, and not as part of the Small Business Act which comprises this chapter.EFFECTIVE DATE Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.
Citation
15 U.S.C. § 636j (2018)