Small Business Disaster Damage Fairness Act of 2025

119 S397 IS: Small Business Disaster Damage Fairness Act of 2025 U.S. Senate 2025-02-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. II 119th CONGRESS 1st Session S. 397 IN THE SENATE OF THE UNITED STATES February 4, 2025 Mr. Kennedy (for himself, Mr. Booker , and Ms. Hirono ) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To amend the Small Business Act to increase the minimum disaster loan amount for which the Small Business Administration may require collateral, and for other purposes. 1. Short title This Act may be cited as the Small Business Disaster Damage Fairness Act of 2025 . 2. Collateral requirements for disaster loans Section 7(d)(6) of the Small Business Act ( 15 U.S.C. 636(d)(6) ) is amended, in the second sentence, in the third proviso— (1) by striking $14,000 and inserting $50,000 ; and (2) by striking major disaster and inserting disaster . 3. GAO report on default rates Not later than 3 years after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on the performance, including the default rate, of loans made under section 7(b)(1) of the Small Business Act ( 15 U.S.C. 636(b)(1) ), and the impact of the amendments to collateral amounts made under section 2 of this Act on the performance of those loans, during the period— (1) beginning on September 30, 2020; and (2) ending on the date on that is 2 years after the date of enactment of this Act. 4. Distinguishing between rural and urban communities in marketing and outreach (a) Definitions In this section: (1) Administration The term Administration means the Small Business Administration. (2) Administrator The term Administrator means the Administrator of the Administration. (3) Associate Administrator The term Associate Administrator means the Associate Administrator of the Office of Disaster Recovery and Resilience of the Administration. (4) Covered program The term covered program means the disaster loan program authorized by section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ). (b) Requirement Beginning on the date of enactment of this Act, consistent with the recommendations of the Government Accountability Office in the report entitled Small Business Administration: Targeted Outreach about Disaster Assistance Could Benefit Rural Communities (GAO–24–106755) (February 22, 2024), the Administrator shall ensure that the Associate Administrator— (1) distinguishes between rural and urban communities in the outreach and marketing plan of the Administration with respect to the covered program; and (2) incorporates actions to mitigate challenges encountered by rural communities in accessing loans under the covered program.