Washington, D.C. – The U.S. House of Representatives today approved H.R. 1361, the RECOVER Act, a bill to improve the disbursement of disaster loans from the Small Business Administration (SBA).  U.S. Representative Charles W. Boustany, Jr. (R-La.) lauded the bill as a needed reform to address the problems that plagued the disaster loan process following Hurricanes Rita and Katrina.

“Disaster loans provided an essential boost to countless residents and small businesses following Hurricane Rita,” Boustany said.  “This bill is a balance between streamlining the disaster loan process and ensuring that taxpayer money is spent wisely.  By allowing local lenders to have a role in the loan process, small business owners will be able to avoid the bureaucracy that slowed recovery for so many.”

H.R. 1361, the RECOVER Act:

• Requires the Administrator of the Small Business Administration (SBA) to develop, implement, and maintain a comprehensive written disaster response plan, and to maintain a disaster reserve corps.

• Allows the waiver of prohibition of duplication of benefits, thus avoiding major problems with Road Home grants being used to pay back SBA disaster loans

• Establishes an Associate Administrator for Disaster Assistance

• Authorizes SBA disaster loans for incidents of national significance

• Directs the Administrator to carry out an Immediate Disaster Assistance program

• Provides a revised disbursement process for SBA disaster loans

• Provides enhanced lending authority for private lenders

• Authorizes SBA grants to small businesses located in disaster areas upon their certification that they will reestablish the business in the same area

• Requires annual SBA reports on disaster assistance operations