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119-s-397119th CongressWALLET

Small Business Disaster Damage Fairness Act of 2025

Sponsored By: Senator Kennedy, John [R-LA]

Introduced

Summary

Raises the collateral threshold for Small Business Administration disaster loans.

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  • Small businesses and households that apply for SBA disaster loans would see a higher collateral cutoff. The bill changes the threshold from $14,000 to $50,000 so more smaller disaster loans would avoid collateral requirements.
  • Congress and oversight bodies would get new data. The Government Accountability Office would review loan performance tied to the collateral changes.
  • Rural communities would get different outreach than urban areas. The bill directs targeted marketing and access adjustments to distinguish rural from urban applicants.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Higher collateral cutoff for small business loans

If enacted, the bill would raise the SBA disaster loan collateral cutoff from $14,000 to $50,000. Loans up to $50,000 would meet the referenced proviso and would not need collateral under that rule. The change would apply to disasters (not only major disasters) and would take effect upon enactment. This would affect small business owners and smallholder farmers who apply for SBA disaster loans.

Small Business Administration outreach for rural communities

If enacted, the bill would require the Small Business Administration to distinguish rural and urban communities in disaster loan outreach plans. The SBA would add steps to mitigate access challenges rural communities face, implemented consistent with GAO report GAO-24-106755 (February 22, 2024). This requirement would not itself provide new funding or change loan terms.

Sponsors & CoSponsors

Sponsor

Kennedy, John [R-LA]

LA • R

Cosponsors

  • Sen. Booker, Cory A. [D-NJ]

    NJ • D

    Sponsored 2/4/2025

  • Sen. Hirono, Mazie K. [D-HI]

    HI • D

    Sponsored 2/4/2025

Roll Call Votes

No roll call votes available for this bill.

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