Small Business Disaster Damage Fairness Act of 2025

Hozzl · 2025-03-06T03:08:24Z

Explore the details of House Bill 1021 Small Business Disaster Damage Fairness Act of 2025 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on undefined. Stay informed on legislative developments.

3/6/2025, 3:08 AM

Summary of Bill HR 1021

Bill 119 hr 1021, also known as the Small Business Disaster Loan Collateral Act, aims to amend the Small Business Act to raise the minimum amount of disaster loans for which the Small Business Administration (SBA) can demand collateral. Currently, the SBA can require collateral for disaster loans of $25,000 or more. This bill seeks to increase that minimum amount, although the specific new threshold is not specified in the bill text.

The purpose of this amendment is to provide greater flexibility for small businesses seeking disaster assistance from the SBA. By allowing the SBA to require collateral for larger loans, the agency can better protect taxpayer funds and ensure that loans are repaid in a timely manner. This change could potentially make it easier for small businesses to access the financial assistance they need to recover from disasters such as hurricanes, wildfires, or other emergencies.

Overall, the Small Business Disaster Loan Collateral Act aims to strike a balance between protecting taxpayer dollars and supporting small businesses in times of need. It is important to note that this bill does not specify the exact amount by which the minimum loan threshold will be increased, leaving room for interpretation and potential adjustments in the future.

Congressional Summary of HR 1021

Small Business Disaster Damage Fairness Act of 2025

This 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.

Read the Full Bill

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Current Status of Bill HR 1021

Bill HR 1021 is currently in the status of Bill Introduced since February 5, 2025. Bill HR 1021 was introduced during Congress 119 and was introduced to the House on February 5, 2025. Bill HR 1021's most recent activity was Referred to the House Committee on Small Business. as of February 5, 2025

Bipartisan Support of Bill HR 1021

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Policy Area and Potential Impact of Bill HR 1021

Primary Policy Focus

Alternate Title(s) of Bill HR 1021

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.