Disaster Assistance for Rural Communities Act
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- Crpt 117Srpt103
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- Crpt 117Srpt103
Summary
Senate Report 117–103 of the 117th Congress, 2d Session, on the Disaster Assistance for Rural Communities Act, submitted by Mr. Cardin from the Committee on Small Business and Entrepreneurship to accompany S. 1617 and ordered to be printed May 3, 2022. The committee reports the bill favorably with an amendment in the nature of a substitute and recommends that it pass. The report states the bill would let the SBA Administrator declare a disaster in a rural area covered by a presidential major disaster declaration under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act where individual assistance was not authorized, on request of the Governor or tribal Chief Executive. It describes the Risch substitute amendment, a committee voice vote recorded February 15, 2022, annual SBA reporting, regulations within 120 days and a GAO report within 1 year.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Calendar No. 278
117TH CONGRESS REPORT
" SENATE !
2d Session 117–103
DISASTER ASSISTANCE FOR RURAL COMMUNITIES ACT
MAY 3, 2022.—Ordered to be printed
Mr. CARDIN, from the Committee on Small Business and
Entrepreneurship, submitted the following
R E P O R T
[To accompany S. 1617]
The Committee on Small Business and Entrepreneurship, to
which was referred the bill (S. 1617) to modify the requirements for
the Administrator of the Small Business Administration relating to
declaring a disaster in a rural area, and for other purposes, reports
favorably thereon, with an amendment in the nature of a sub-
stitute, and recommends that the bill, as amended, do pass.
I. INTRODUCTION
A bill to authorize the SBA to declare a disaster in rural areas
where significant damage has been incurred to provide disaster as-
sistance was introduced by Senators Jim Risch, Jeanne Shaheen,
Maggie Hassan, John Kennedy, and Mike Braun on May 13, 2021.
This bill allows the Administrator to declare a disaster in a rural
area for which a major disaster was declared by the President
under section 401 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, and for which individual assistance was
not authorized, if the Governor of the State or the Chief Executive
of the Indian tribal government in which the rural area is located
requests such a declaration; and any home, small business concern,
private nonprofit organization, or small agricultural cooperative
has incurred significant damage in the rural area.
The bill requires SBA to issue annual reports, including the
number of requests for assistance under this Act, and any changes
to regulations that affect rural disaster assistance. This bill re-
quires regulations to be promulgated within 120 days to carry out
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the Act. The bill also mandates GAO issue a report within 1 year
of enactment detailing any unique circumstances rural commu-
29–010
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nities may face in obtaining SBA disaster assistance, and provide
legislative recommendations to improve such access.
During the markup of the bill, the Risch substitute amendment
to the bill was approved by a voice vote as part of a manager’s
package. The Risch substitute amendment changes the definition of
rural area to mean any county or other political subdivision of a
State, the District of Columbia, or a territory or possession of the
United States that is designated as a rural area by the Bureau of
the Census. The amendment also allows the Chief Executive of the
Indian tribal government in which the rural area is located to re-
quest a disaster declaration from SBA. Lastly, the amendment
clarifies that an SBA disaster declaration made pursuant to the bill
would be triggered only under situations when the President de-
clares a Public Assistance-only declaration. The bill, as amended,
was also approved by a voice vote as part of a manager’s package.
II. HISTORY (PURPOSE & NEED FOR LEGISLATION)
The SBA disaster loan program is designed to help homeowners
and small business recover from natural disasters. In order for
homeowners and small businesses to access funding under the pro-
gram, the SBA must issue a disaster declaration. Applicants are
limited to entities located in the geographic areas designated in
such declaration. Presidentially-declared natural disasters author-
ize FEMA to provide individual and public assistance, while SBA
issues its own declarations to determine eligibility for disaster
loans. SBA is precluded from issuing a disaster declaration unless
a base level of businesses or homes are certified by local authorities
as having been impacted by the natural disaster. This can lead to
situations in which natural disasters can significantly impact a
large percentage of a small rural community but, due to sparse
populations, still fail to reach the current threshold of impacted
homes and businesses necessary to be eligible for a SBA disaster
declaration.
III. HEARINGS & ROUNDTABLES
The Committee held a hearing in the 116th Congress entitled
‘‘Examining SBA’s Office of Disaster Assistance and the Response
to Recent Catastrophic Floods.’’ During the hearing Lisa Shimkat,
State Director of the Iowa Small Business Development Center in
Ames, Iowa, described the challenges of responding to disasters in
rural areas, particularly when damage occurs over a widespread
area. Several committee members drew attention to the unique
challenges rural areas face when disasters strike. Both Ms.
Shimkat and witness Robin Barnes of the Greater New Orleans or-
ganization both testified that SBA must ensure post-natural dis-
aster resources are available to disaster victims in need.
IV. DESCRIPTION OF BILL
This bill amends section 7(b) of the Small Business Act by adding
a new paragraph 16 regarding disaster declarations in rural areas.
The new paragraph includes definitions for ‘‘rural areas’’ and ‘‘sig-
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nificant damage’’ which are necessary for the Administrator to de-
termine how to declare a disaster under the paragraph. The new
provision creates a new authority under which the Administrator
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may declare a disaster in a rural area for which a major disaster
was declared by the President under section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, and for
which individual assistance was not authorized, if the Governor of
the State or the Chief Executive of the Indian tribal government
in which the rural area is located requests such a declaration; and
any home, small business concern, private nonprofit organization,
or small agricultural cooperative has incurred significant damage
in the rural area. The SBA declaration authorized under paragraph
16 of section 7(b) may not be applied to contiguous counties. By de-
claring a disaster under this paragraph, the Administrator would
then be authorized to make physical loans (section 7(b)(1)) and eco-
nomic injury disaster loans (section 7(b)(2)).
The new paragraph 16, as added by this Act, requires SBA to
issue annual reports, including the number of requests for assist-
ance under this Act, and any changes to regulations that affect
rural disaster assistance. Finally, the bill mandates a one-time
GAO report within 1 year of enactment detailing any unique cir-
cumstances facing rural communities may face obtaining SBA dis-
aster assistance, and provide legislative recommendations to im-
prove such access.
V. COMMITTEE VOTE
In compliance with rule XXVI (7)(b) of the Standing Rules of the
Senate, the following vote was recorded on February 15, 2022.
A motion to adopt S. 1617, a bill to authorize the Small Business
Administration (SBA) to declare a disaster in rural areas where
significant damage has been incurred, as amended by the Risch
substitute amendment, was agreed to by a majority voice vote of
a quorum present as part of a manager’s package.
VI. COST ESTIMATE
The Committee has not yet received the Congressional Budget
Office’s estimate of the cost of S. 1617 as ordered reported. When
the Congressional Budget Office completes its cost estimate, it will
be posted on the Internet at www.cbo.gov.
VII. EVALUATION OF REGULATORY IMPACT
In compliance with rule XXVI (11)(b) of the Standing Rules of the
Senate, it is the opinion of the Committee that no significant addi-
tional regulatory impact will be incurred in carrying out the provi-
sions of this legislation.
VIII. SECTION-BY-SECTION ANALYSIS
Section 1. Short title
This section designates the act as the ‘‘Disaster Assistance for
Rural Communities Act’’.
Sec. 2. Disaster declaration in rural areas
This section defines terms, and creates new authority for the
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SBA Administrator to declare disasters in rural areas where sig-
nificant damage has been incurred. The section outlines the nec-
essary requirements to make a rural disaster declaration under
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this Act, and requires SBA to report to Congress annually regard-
ing activities undertaken under the provisions of this Act.
This section requires regulations to be promulgated within 120
days to carry out the Act and mandates GAO issue a report within
1 year of enactment detailing any unique circumstances facing
rural communities may face obtaining SBA disaster assistance, and
provide legislative recommendations to improve such access.
Æ
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