Sec. 2106. RECOVERY OPPORTUNITY LOANS
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## SEC. 2106 RECOVERY OPPORTUNITY LOANS Section 7(a)(31) of the Small Business Act (15 U.S.C. 636(a)(31)) is amended— ####
(1)in subparagraph (A)— #####
(A)by redesignating clauses (i), (ii), and
(iii)as clauses (ii), (iii), and (iv), respectively; and #####
(B)by inserting before clause (ii), as so redesignated, the following: > > ###### “(i) > > The term ‘disaster area’ means the area for which the President has declared a major disaster, during the 5-year period beginning on the date of the declaration.” > ; and ####
(2)by adding at the end the following: > > ##### “(H) Recovery opportunity loans > > > ###### “(i) In general > > The Administrator may guarantee an express loan to a small business concern located in a disaster area in accordance with this subparagraph. > > > ###### “(ii) Maximums > > For a loan guaranteed under clause (i)— > > > ###### “(I) > > the maximum loan amount is $150,000; and > > > ###### “(II) > > the guarantee rate shall be not more than 85 percent. > > > ###### “(iii) Overall cap > > A loan guaranteed under clause
(i)shall not be counted in determining the amount of loans made to a borrower for purposes of subparagraph (D). > > > ###### “(iv) Operations > > A small business concern receiving a loan guaranteed under clause
(i)shall certify that the small business concern was in operation on the date on which the applicable major disaster occurred as a condition of receiving the loan. > > > ###### “(v) Repayment ability > > A loan guaranteed under clause
(i)may only be made to a small business concern that demonstrates, to the satisfaction of the Administrator, sufficient capacity to repay the loan. > > > ###### “(vi) Timing of payment of guarantees > > > ###### “(I) In general > > Not later than 90 days after the date on which a request for purchase is filed with the Administrator, the Administrator shall determine whether to pay the guaranteed portion of the loan. > > > ###### “(II) Recapture > > Notwithstanding any other provision of law, unless there is a subsequent finding of fraud by a court of competent jurisdiction relating to a loan guaranteed under clause (i), on and after the date that is 6 months after the date on which the Administrator determines to pay the guaranteed portion of the loan, the Administrator may not attempt to recapture the paid guarantee. > > > ###### “(vii) Fees > > > ###### “(I) In general > > Unless the Administrator has waived the guarantee fee that would otherwise be collected by the Administrator under paragraph
(18)for a loan guaranteed under clause (i), and except as provided in subclause (II), the guarantee fee for the loan shall be equal to the guarantee fee that the Administrator would collect if the guarantee rate for the loan was 50 percent. > > > ###### “(II) Exception > > Subclause
(I)shall not apply if the cost of carrying out the program under this subsection in a fiscal year is more than zero and such cost is directly attributable to the cost of guaranteeing loans under clause (i). > > > ###### “(viii) Rules > > Not later than 270 days after the date of enactment of this subparagraph, the Administrator shall promulgate rules to carry out this subparagraph.” > .
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Sec. 2106
RECOVERY OPPORTUNITY LOANS
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