S. 397

119 S397 IS: Small Business Disaster Damage Fairness Act of 2025
 U.S. Senate
 2025-02-04
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 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.