text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Gulf Coast Back to Business Act of 
  2007''.
  
  SEC. 2. FINDINGS.
  
      Congress finds that--
              (1) 43 percent of businesses that close following a natural 
          disaster never reopen;
              (2) an additional 29 percent of businesses close down 
          permanently within 2 years of a natural disaster;
              (3) Hurricane Katrina struck the Gulf Coast of the United 
          States on August 29, 2005, negatively impacting small business 
          concerns and disrupting commerce in the States of Louisiana, 
          Mississippi, and Alabama;
              (4) Hurricane Rita struck the Gulf Coast of the United 
          States on September 24, 2005, negatively impacting small 
          business concerns and disrupting commerce in the States of 
          Texas and Louisiana;
              (5) according to the United States Chamber of Commerce, 
          more than 125,000 small- and medium-sized businesses in the 
          Gulf Coast were disrupted by Hurricane Katrina or Hurricane 
          Rita;
              (6) due to a slow initial Federal response and the 
          widespread devastation in the affected States, businesses 
          impacted by Hurricane Katrina are in dire need of increased 
          access to capital and technical assistance to recover and 
          prosper; and
              (7) without the full recovery and prosperity of affected 
          businesses, the Gulf Coast and the rest of the United States 
          will be negatively impacted.
  
  SEC. 3. DEFINITIONS.
  
      In this Act--
              (1) the term ``Disaster Area'' means an area in which the 
          President has declared a major disaster in response to 
          Hurricane Katrina of 2005 or Hurricane Rita of 2005;
              (2) the term ``major disaster'' has the meaning given that 
          term in section 102 of the Robert T. Stafford Disaster Relief 
          and Emergency Assistance Act (42 U.S.C. 5122); and
              (3) the term ``small business concern'' has the meaning 
          given that term in section 3 of the Small Business Act (15 
          U.S.C. 632).
  
  SEC. 4. SMALL BUSINESS CONCERN RECOVERY GRANTS.
  
      (a) In General.--There are authorized to be appropriated to the 
  Secretary of Commerce $100,000,000 for the Economic Development 
  Administration of the Department of Commerce to make grants to the 
  appropriate State government agencies in Louisiana and Mississippi, to 
  carry out this section.
      (b) Disbursement of Funds.--
              (1) In general.--Subject to paragraph (2), the Secretary of 
          Commerce shall disburse the funds authorized under subsection 
          (a) as follows:
                      (A) $75,000,000 to the State of Louisiana.
                      (B) $25,000,000 to the State of Mississippi.
              (2) Proportionate allocation.--Regardless of the amount 
          appropriated under subsection (a), the amount appropriated 
          shall be allocated among the States listed in paragraph (1) of 
          this subsection in direct proportion to the allocation under 
          that paragraph.
      (c) Use of Funds.--
              (1) In general.--Grants awarded to a State under subsection 
          (a) shall be used by the State to provide grants, which may be 
          made to any small business concern located in a Disaster Area 
          that was negatively impacted by Hurricane Katrina of 2005 or 
          Hurricane Rita of 2005, to assist such small business concern 
          for the purposes of--
                      (A) paying employees;
                      (B) paying bills, insurance costs, and other 
                  existing financial obligations;
                      (C) making repairs;
                      (D) purchasing inventory;
                      (E) restarting or operating that business in the 
                  community in which it was conducting operations prior 
                  to Hurricane Katrina of 2005 or Hurricane Rita of 2005, 
                  or to a neighboring area or county or parish in a 
                  Disaster Area;
                      (F) compensating such small business concerns for 
                  direct economic injury suffered as a result of 
                  Hurricane Katrina of 2005 or Hurricane Rita of 2005; or
                      (G) covering additional costs until that small 
                  business concern is able to obtain funding through 
                  insurance claims, Federal assistance programs, or other 
                  sources.
              (2) Criteria.--
                      (A) In general.--Notwithstanding any other 
                  provision of law, in making grants under paragraph (1), 
                  a State may use such criteria as the State determines 
                  appropriate, and shall not be required to apply 
                  eligibility criteria for programs administered by the 
                  Federal Government, including the Department of 
                  Commerce.
                      (B) Exclusion.--In making grants under paragraph 
                  (1), a State may not exclude a small business concern 
                  based on any increase in the revenue of that small 
                  business concern during the 12-month period beginning 
                  on October 1, 2005.
              (3) Administrative expenses.--The Department of Commerce 
          may use not more than $1,500,000 of the funds authorized under 
          subsection (a) to administer the provision of grants to the 
          designated States under this subsection.
  
  SEC. 5. DISASTER LOANS AFTER HURRICANE KATRINA OR HURRICANE RITA.
  
      (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
  636(b)) is amended by inserting immediately after paragraph (3) the 
  following:
              ``(4) Disaster loans after hurricane katrina or hurricane 
          rita in a disaster area.--
                      ``(A) Definitions.--In this paragraph--
                              ``(I) the term `Disaster Area' means an 
                          area in which the President has declared a 
                          major disaster in response to Hurricane Katrina 
                          of 2005 or Hurricane Rita of 2005; and
                              ``(ii) the term `qualified borrower' means 
                          a person to whom the Administrator made a loan 
                          under this section because of Hurricane Katrina 
                          of 2005 or Hurricane Rita of 2005.
                      ``(B) Deferment of disaster loan payments.--
                              ``(i) In general.--Notwithstanding any 
                          other provision of law, payments of principal 
                          and interest on a loan to a qualified borrower 
                          made before December 31, 2006, shall be 
                          deferred, and no interest shall accrue with 
                          respect to such loan, during the time period 
                          described in clause (ii).
                              ``(ii) Time period.--The time period for 
                          purposes of clause (i) shall be 1 year from the 
                          later of the date of enactment of this 
                          paragraph or the date on which funds are 
                          distributed under a loan described in clause 
                          (i), but may be extended to 2 years from such 
                          date, at the discretion of the Administrator.
                              ``(iii) Resumption of payments.--At the end 
                          of the time period described in clause (ii), 
                          the payment of periodic installments of 
                          principal and interest shall be required with 
                          respect to such loan, in the same manner and 
                          subject to the same terms and conditions as 
                          would otherwise be applicable to any other loan 
                          made under this subsection.''.
      (b) Increasing Collateral Requirements.--
              (1) In general.--Notwithstanding any other provision of 
          law, including section 7(c)(6) of the Small Business Act (15 
          U.S.C. 636(c)(6)), the Administrator may not require collateral 
          for any covered loan made by the Administrator.
              (2) Definition.--In this subsection, the term ``covered 
          loan'' means a loan in an amount of not more than $35,000 
          made--
                      (A) under section 7(b)(1) of the Small Business Act 
                  (15 U.S.C. 636(b)(1));
                      (B) as a result of Hurricane Katrina of 2005 or 
                  Hurricane Rita of 2005; and
                      (C) after the date of enactment of this Act.
  
  SEC. 6. OTHER PROGRAMS.
  
      (a) HUBZones.--Section 3(p) of the Small Business Act (15 U.S.C. 
  632(p)) is amended--
              (1) in paragraph (1)--
                      (A) in subparagraph (D), by striking ``or'';
                      (B) in subparagraph (E), by striking the period at 
                  the end and inserting ``; or''; and
                      (C) by adding at the end the following:
                      ``(F) an area in which the President has declared a 
                  major disaster (as that term is defined in section 102 
                  of the Robert T. Stafford Disaster Relief and Emergency 
                  Assistance Act (42 U.S.C. 5122)) as a result of 
                  Hurricane Katrina of August 2005 or Hurricane Rita of 
                  September 2005, during the time period described in 
                  paragraph (8).''; and
              (2) by adding at the end the following:
              ``(8) Time period.--The time period for the purposes of 
          paragraph (1)(F)--
                      ``(A) shall be the 2-year period beginning on the 
                  later of the date of enactment of this paragraph and 
                  August 29, 2007; and
                      ``(B) may, at the discretion of the Administrator, 
                  be extended to be the 3-year period beginning on the 
                  later of the date of enactment of this paragraph and 
                  August 29, 2007.''.
      (b) Relief From Test Program.--Section 711(d) of the Small Business 
  Competitive Demonstration Program Act of 1988 (15 U.S.C. 644 note) is 
  amended--
              (1) by striking ``The Program'' and inserting the 
          following:
              ``(1) In general.--Except as provided in paragraph (2), the 
          Program''; and
              (2) by adding at the end the following:
              ``(2) Exception.--
                      ``(A) In general.--The Program shall not apply to 
                  any contract related to relief or reconstruction from 
                  Hurricane Katrina of 2005 or Hurricane Rita of 2005 
                  during the time period described in subparagraph (B).
                      ``(B) Time period.--The time period for the 
                  purposes of subparagraph (A)--
                              ``(I) shall be the 2-year period beginning 
                          on the later of the date of enactment of this 
                          paragraph and August 29, 2007; and
                              ``(ii) may, at the discretion of the 
                          Administrator, be extended to be the 3-year 
                          period beginning on the later of the date of 
                          enactment of this paragraph and August 29, 
                          2007.''.
target: Gulf Coast Back to Business Act of 2007 - Authorizes appropriations for the Economic Development Administration of the Department of Commerce for grants to appropriate state government agencies in Louisiana and Mississippi for small businesses located in disaster areas caused by Hurricanes Katrina or Rita.
  
  Amends the Small Business Act to authorize the Administrator of the Small Business Administration (SBA) to defer for a conditional period the payment of principal and interest on disaster loans made to small businesses affected by such hurricanes in the case of loans made before December 31, 2006. Prohibits an increased collateral requirement with respect to the deferred loans.
  
  Includes as a HUBZone (historically underutilized business zone) any area in which the President has declared a major disaster as a result of such hurricanes.
  
  Amends the Small Business Competitive Demonstration Program Act of 1988 to make the small business competitive demonstration program (to test innovative small business procurement methods and procedures) inapplicable, for a conditional period, to any contract related to relief or reconstruction from such hurricanes.
feat_title: To address ongoing small business and homeowner needs in the Gulf Coast States impacted by Hurricane Katrina and Hurricane Rita.