Small Business Disaster Damage Fairness Act of 2025

# Small Business Disaster Damage Fairness Act of 2025 - Summary **What the Bill Does** This bill would make it easier for small businesses to get disaster loans from the Small Business Administration (SBA) by raising the threshold at which the SBA can demand collateral (assets pledged as security) from $14,000 to $50,000. Currently, businesses borrowing less than $14,000 don't need to provide collateral, but those borrowing more do. Under this bill, businesses could borrow up to $50,000 without collateral, reducing barriers for struggling businesses trying to rebuild after disasters like hurricanes, floods, or fires. **Key Changes and Who It Affects** The bill primarily affects small businesses in disaster-affected areas seeking SBA loans for recovery.

It also addresses rural communities specifically by requiring the SBA to develop separate outreach strategies for rural versus urban areas and to identify and address unique challenges rural businesses face in accessing disaster loans. An independent government audit would be required to track how well these loans perform and monitor default rates to ensure the program is working effectively. **Current Status** The bill (HR 1021) was introduced in the 119th Congress by Rep. Joe Neguse (D-Colorado) and is currently in committee, meaning it has not yet been voted on by the full House.