Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015

Floor Speech

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Mr. COLE. Mr. Speaker, I rise today in support of H.R. 208, Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015. I appreciate the support and assistance of both Chairman Chabot and Ranking Member Velázquez to include my legislation, H.R. 2397, the Tornado Family Safety Act of 2015 as part of this legislation.

The Small Business Administration is currently afforded the authority to issue physical disaster loans for 120 percent of the value of property destroyed but not covered by insurance. The purpose of the additional 20 percent is so that individuals and business can modify structures to reduce damage from future disasters. In Oklahoma, the threat of tornadoes is ongoing, and we are always in between tornadoes. Planning is essential in order to militate against damage and loss of life.

It is for this reason that Section 4 is necessary. It reinforces the intent of Congress that already exists in statute--the SBA should already be including the construction of safe rooms as a use for physical disaster loans because it is mitigating measure. The SBA's existing interpretation of existing language in the Small Business Act is incorrect.

Because of misinterpretation of this section previously, the SBA should now understand that physical disaster loans can also be used for other types of storm shelters as well, including, but not limited to structures that protect occupants from not only tornadoes, but from other natural disasters such as hurricanes, floods and wildfires.

It is important to note that loans may not be used to upgrade homes or make additions unless as required by local building codes and secondary or vacation homes are not eligible for these loans. The SBA does not duplicate insurance claim payments. Generally, loans are made over 30 years and interest rates are not more than 4 percent for those cannot obtain credit elsewhere and for those that can obtain alternative credit, the rate does not exceed 8 percent for the loan.

While local and state governments have an obligation to meet the increase in shelter demand, the construction of the shelters is expensive. Under guidelines from the Federal Emergency Management Agency (FEMA) and the International Code Council (ICC), a safe room should withstand 250 mph winds and the impact of a 15-pound plank hitting a wall at 100 mph, according to the Insurance Institute for Business and Home Safety.

Safe rooms designed to the FEMA and ICC standards are recommended for both tornadoes and hurricanes. For individual homes, a safe room could range anywhere from $3,000 to $12,000.

For anyone who has experienced Mother Nature's most indiscriminate and unpredictable terrors, you can truly understand the extent to which they devastate lives and property.

Again, Mr. Speaker, I support Superstorm Sandy Relief and Disaster Loan Program Improvement Act of 2015. As I have stated before on the floor of the House, I hope every Member reflects on the situation of our fellow Americans during a time of crisis or disaster. While we may hope that our communities remain peaceful and safe from crisis; we certainly must support those that do not escape such natural and man-made calamities.

The SPEAKER pro tempore. The question is on the motion offered by the gentleman from Ohio (Mr. Chabot) that the House suspend the rules and pass the bill, H.R. 208, as amended.

The question was taken; and (two-thirds being in the affirmative) the rules were suspended and the bill, as amended, was passed.

The title of the bill was amended so as to read: ``A bill to improve the disaster assistance programs of the Small Business Administration.''.

A motion to reconsider was laid on the table.

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