Nydia Velázquez

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Madam Speaker, I withdraw my point of order against the motion, and I rise in opposition to the motion to recommit.

Ms. VELAZQUEZ. Madam Speaker, I reserve a point of order against the motion.

Ms. VELAZQUEZ. Mr. Chairman, we are prepared to accept the amendment. I yield to the ranking member for any comments that he might have.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Chairman, I yield 3 minutes to the gentleman from Indiana (Mr. Ellsworth). (Mr. ELLSWORTH asked and was given permission to revise and extend his remarks.)

Ms. VELAZQUEZ. Mr. Speaker, I demand a recorded vote.

Ms. VELAZQUEZ. Mr. Speaker, I yield the balance of my time to the gentleman from Louisiana (Mr. Melancon).

Ms. VELAZQUEZ. What amazes me is if the gentleman from North Carolina is so concerned about this legislation, where were you when the Small Business Committee was considering this legislation? We had a number of Members who do not sit on the Small Business Committee come before our committee to discuss issues related to the disaster loan legislation. Where were you? And let me say more. Let me say more. If you had come before our committee, you would have learned that what this motion to recommit does is to reinstate policies that the SBA already does. This amendment merely restates what the Small Business Administration does and could actually have the opposite effect and allow more individuals with questionable character to get SBA disaster loans. The Small Business Administration already has a standard operating procedure that provides that no loans shall be made to individuals of low character. The SBA rules and regulations provide that individuals with criminal records and arrest records or who are on probation are considered to be in that category. Simply put, this means that felons are not able to get SBA loans. I will also note that adopting this motion will for all intents and purposes kill the bill, meaning a little over 1 month before hurricane season, the Federal Government will not have a plan to respond to disasters. Disaster victims will be trapped in the bureaucracy between FEMA and SBA. Small businesses impacted by disasters will continue to struggle with backlogs that could extend up to 3 months. New programs to leverage the private sector to assist entrepreneurs in days not months will not be available. Economic recovery in the gulf will lag as much-needed assistance continues to be denied. What this motion to recommit is is a cheap political ploy to kill this legislation that is so much needed. Mr. Speaker, I yield 30 seconds to the majority leader, Mr. Steny Hoyer.

Ms. VELAZQUEZ. Mr. Speaker, I rise in opposition to the motion to recommit.

Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I want to thank the gentleman for offering this creative solution to a pressing problem. In our hearings, my committee heard testimony on how individuals affected by the 2005 hurricanes were victimized twice, once by the storm and a second time by the SBA. The SBA routinely provides disaster victims with a 12-month deferment before requiring repayment on disaster loans. Following the 2005 gulf coast hurricanes, however, the SBA was plagued by lengthy delays and a massive backlog of loan disbursements that has taken months to clear. Now, many disaster victims are scheduled to begin repayment on loan amounts that have yet to be disbursed by the SBA. Clearly, this is an unfair and absurd result that we cannot permit to occur. The amendment offered by the gentleman from Louisiana would provide the SBA with authority to help those victims who have been negatively affected by its delays in loan processing and disbursement. Most importantly, this amendment preserves the discretion of the administrator in deciding which situations should have an increased deferment period. This flexibility ensures that this program will only be applied in appropriate situations, and I support the amendment from the gentleman from Louisiana. At this point, Mr. Chairman, I would like to yield to the gentleman from Louisiana (Mr. Jefferson) for any comments he may have.

Ms. VELAZQUEZ. While not opposed to the amendment, I ask unanimous consent to claim the time in opposition, and I am prepared to accept the amendment.

Ms. VELAZQUEZ. Mr. Chairman, I yield the balance of my time to the gentleman from Louisiana (Mr. Melancon).

Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, this amendment will eliminate an important tool for helping otherwise viable businesses rebuild. These businesses need financial assistance that the disaster loan program cannot provide. The committee has heard victims and experts testify that the SBA's current disaster loan program has been inadequate to help. Largely, this has been the result of pursuing a one-size-fits-all approach to SBA disaster assistance. If the SBA is to be successful in responding to catastrophic disasters, the agency must have tools that are more responsive to victims' needs. The limited grant program in this bill will provide SBA with the authority to help the most severely affected small businesses damaged by Hurricanes Katrina, Rita and Wilma. This has been very narrowly tailored to ensure that grants only go to businesses located in communities most in need. Only a small number of businesses are expected to meet the requirements for one of these grants. If the administrator feels that grants are inappropriate, he will not need to exercise this authority. Furthermore, this program will not be carried forward to future disasters. This is an extraordinary tool to address an extraordinary situation, and this is a leading reason why this measure enjoys bipartisan support. I urge opposition to this amendment. Mr. Chairman, I reserve the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I rise in opposition to the amendment.

Ms. VELAZQUEZ. Mr. Chairman, I yield the balance of my time to the gentleman from Louisiana (Mr. Baker).

Ms. VELAZQUEZ. Mr. Chairman, for the overwhelming majority of disaster victims, the problem wasn't that the Federal Government gave them too much assistance but that they weren't provided with enough. We heard from disaster victims about how the Federal Government was its own worst enemy, giving money to victims on the one hand through state- administered grant programs, then taking it away. The prohibition on ``duplication of benefits'' was originally established to prevent disaster victims from double dipping. But this can only happen if assistance is given out in the first place. Many disaster victims have been waiting for 18 months and are still waiting today. H.R. 1361 gives the SBA the flexibility to break from its overly rigid statutory prohibition. Most importantly, however, this provision has been narrowly tailored to ensure that it will only apply for victims of the 2005 hurricanes. It does not carry forward to future disasters and will only be implemented if the administrator feels it is necessary. It is not a requirement. This amendment will strike that flexibility from the legislation, leaving disaster victims subject to the unworkable standards that currently exist in the statute. Mr. Chairman, I now yield 1 minute to the gentleman from Louisiana (Mr. Jefferson).

Ms. VELAZQUEZ. Mr. Chairman, I rise in opposition to the amendment.

Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of my time.

Ms. VELAZQUEZ. Mr. Chairman, I yield myself the balance of my time. Mr. Chairman, we are now barely over a month away from hurricane season. Many small businesses have been struggling for a year and half to recover after the gulf coast storms of 2005. Following the hurricanes, delays in disaster loans, overwhelming amounts of paperwork and a lengthy application process left many small business owners frustrated and discouraged. In fact, entrepreneurs avoided what is supposed to be their primary source of assistance, the SBA. Our Nation's 25 million small businesses need to know that the next time a disaster happens they will not be left with nothing, but will have efficient and reliable assistance. They need to know that what happened after the gulf coast hurricanes will not ever happen again. The RECOVER Act of 2007 will require that the SBA have a disaster plan in place, provides assistance to the neediest of entrepreneurs and helps in the redevelopment of the community. H.R. 1361 will given entrepreneurs the relief and assistance they deserve after a disaster. With 44 days left till hurricane season, we simply cannot afford not to act. At this point, I want to take a moment to thank the staff who worked on this legislation. From Mr. Chabot's staff, Kevin Fitzpatrick, Mike Smullen and Barry Pinellis; from the majority staff, Michael Day, Adam Minehardt and Andy Jiminez and Tim Slattery.

Ms. VELAZQUEZ. Mr. Chairman, I have no further speakers. If the minority is ready to close, I am ready to close.

Ms. VELAZQUEZ. Mr. Chairman, I yield 5 minutes to the gentleman from Louisiana (Mr. Melancon). And I want to take this opportunity to thank him for his leadership in working with us on this comprehensive legislation.

Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from Iowa (Mr. Braley).

Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentlewoman from New York (Ms. Clarke).

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that Members may have 5 legislative days to revise and extend their remarks on H.R. 1361.

Ms. VELAZQUEZ

Ms. VELAZQUEZ. Mr. Speaker, I ask unanimous consent that the Clerk be authorized to make technical, clerical and conforming corrections in the engrossment of the bill, H.R. 1361.