Small Business Disaster Damage Fairness Act of 2025
Small Business Disaster Damage Fairness Act of 2025
Plain Language Summary
# Small Business Disaster Damage Fairness Act of 2025 - Plain Language Summary **What the Bill Would Do:** This bill would make it easier for small businesses to get emergency loans after disasters. Currently, the Small Business Administration (SBA) can require collateral (like equipment or property) for disaster loans over $14,000. This bill would raise that threshold to $50,000, meaning businesses wouldn't need to put up collateral for loans under that new amount.
The bill also requires the government to study how well these loans perform and whether borrowers are paying them back. **Who It Affects:** Small business owners in disaster-affected areas would benefit most, particularly those in rural communities. The bill specifically aims to address challenges rural businesses face when applying for disaster assistance, requiring the SBA to create different outreach strategies for rural versus urban areas and to identify and fix barriers that make it harder for rural businesses to access these loans. **Current Status:** The bill was introduced in the Senate by Senator John Kennedy (R-LA) and is currently in committee, meaning it hasn't yet been debated or voted on by the full Senate.
CRS Official Summary
Small Business Disaster Damage Fairness Act of 2025This bill increases from $14,000 to $50,000 the threshold loan amount over which the Small Business Administration (SBA) may require collateral for a disaster loan.The Government Accountability Office must report on the performance, including the default rate, of such loans.Additionally, the SBA must (1) distinguish between rural and urban communities in the outreach and marketing for disaster loans, and (2) incorporate actions to mitigate challenges encountered by rural communities in accessing such loans.
Latest Action
Read twice and referred to the Committee on Small Business and Entrepreneurship.