Collateral Requirements for Disaster Loans Act

Bill 117 HR 8482, also known as the Collateral Requirements for Disaster Loans Act, is a piece of legislation currently being considered by the US Congress. The purpose of this bill is to amend the Small Business Act to modify the collateral requirements for certain disaster loans provided by the Small Business Administration (SBA).

Under the current law, the SBA requires borrowers to provide collateral in order to secure disaster loans. However, this bill seeks to make it easier for small businesses and individuals to access these loans by reducing the collateral requirements. Specifically, the bill would allow the SBA to waive the collateral requirement for disaster loans of $200,000 or less, as long as the borrower has credit available elsewhere.

The bill also includes provisions to ensure that the SBA continues to prioritize loans for small businesses and individuals who have been affected by disasters. This includes requiring the SBA to provide outreach and assistance to underserved communities, as well as reporting on the impact of the changes to the collateral requirements. Overall, the Collateral Requirements for Disaster Loans Act aims to streamline the process for accessing disaster loans and provide much-needed relief to small businesses and individuals who have been impacted by disasters. It is currently being reviewed by Congress and may be subject to amendments before being voted on.