Small business panel votes to retool disaster relief programs

The House Small Business Committee on Thursday approved a bill that revamps the Small Business Administration's disaster relief programs in the wake of hurricanes Katrina and Rita, which devastated the Gulf two years ago.

The bill (H.R. 1361) seeks to update and improve the SBA's disaster relief provisions in light of the unprecedented levels of destruction brought on by the 2005 hurricane season. It sets aside $3 million for programs.

Small Business Chairwoman Nydia Velazquez, D-N.Y., called the bill "a more balanced and effective piece of legislation," than what has been previously offered.

The bill calls for a comprehensive disaster response plan and charges the SBA administrator with conducting a disaster simulation once per fiscal year. It also calls for enhanced coordination with the Federal Emergency Management Agency. It also calls for the administrator to develop and maintain a centralized information system to track communications between the SBA and disaster victims.

Rep. Steve Chabot, R-Ohio, challenged the bill's grant program that would give up to $100,000 in aid to small business owners in disaster areas. Chabot said that he "cannot support that kind of government spending," and wants to see where the money will be going before starting up new programs.

Velazquez said that Chabot's amendment would eliminate an important tool from the bill, one that she said is necessary to combat the extraordinary circumstances of the Gulf Coast market. Chabot's amendment was defeated in a roll call vote of 17-10.

In a second attempt to strike out a portion of the legislation, Chabot's amendment to eliminate the bill's waiver of a ban on duplication of certain benefits, also failed. The waiver will allow recipients to obtain aid from more than one source. Democrats forced down the proposal 14-7.

Rep. Mike Michaud, D-Maine, offered an amendment to add "lack of snowfall" to the list of disasters that can qualify a business for aid. Chabot said that the snowfall definition would make "too much mischief possible," within the boundaries of the SBA and brought up many questions regarding how far this amendment could push the limits of disaster aid. The amendment was passed 14-11.

An amendment to include "ice storms and blizzards," in the SBA language governing natural disasters, submitted by Rep. Bruce Braley, D-Iowa, met with unanimous approval after Braley shared a story about how a frozen tree limb crashed down on his roof. Velazquez supported the addition, saying that it was within the established logic of the SBA and the amendment passed upon voice vote.