Small Business Disaster Damage Fairness Act of 2025

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.