Small Business Disaster Loan Reauthorization and Improvements Act of 2006

Small Business Disaster Loan Reauthorization and Improvements Act of 2006 - Amends the Small Business Act to authorize appropriations for FY2007 through FY2009 for Small Business Administration (SBA) disaster loan and mitigation programs. Authorizes the SBA Administrator to make loans to small businesses economically adversely impacted by a catastrophic national disaster. Provides for increased public awareness (outreach) of disaster declarations and disaster loan application periods.

Authorizes the Administrator to enter into agreements with private contractors to process loans in the event of a major disaster or catastrophic national disaster, and to make bridge grants and loans to persons negatively impacted by declared disasters. Directs the Administrator to make supplemental emergency loans after disasters.

Amends the Robert T. Stafford Disaster Relief and Emergency Assistance Act to provide a preference for the use of local firms and individuals in the expenditure of federal funds for debris clearance, supplies distribution, reconstruction, and other major disaster or emergency assistance activities. Waives: (1) certain major disaster loan limits; and (2) geographic restrictions on small business development center counseling following a major disaster.

Requires a monthly report from the Administrator to the congressional small business committees on the SBA disaster loan program.

Provides SBA grant assistance for military reservists' small businesses.

Authorizes the Administrator to make loans to small businesses that: (1) have suffered or are likely to suffer substantial economic injury on or after August 24, 2005, as the result of significant increases in the price of heating oil, natural gas, gasoline, propane, or kerosene; and (2) if engaged in the heating oil business, sell not more than 10 million gallons of heating oil per year.