To amend the Small Business Act with respect to the maximum additional loan amount for certain disaster loans, and for other purposes.
This bill would tweak the Small Business Act to increase the cap on the maximum additional amount a borrower can obtain for certain disaster loans. Specifically, it changes the limit from 20 percent to 30 percent of the original loan amount. In practical terms, disaster loan borrowers could potentially access a larger additional loan beyond their initial disaster loan, which could help with recovery costs such as repairs or working capital. The bill is narrowly focused on this loan-cap provision and does not appear to create new funding or authorize new programs beyond adjusting the existing limit. The bill was introduced in the House by Rep. Castor (D-FL) on February 14, 2025 and referred to the Committee on Small Business. There is no accompanying fiscal note or additional provisions in the text provided.
Key Points
- 1Increases the maximum allowable additional disaster loan amount from 20 percent to 30 percent of the original loan amount.
- 2Amends Section 7(b)(1)(A) of the Small Business Act (the disaster loan provision) to implement the higher cap.
- 3Applies to “certain disaster loans” under the Small Business Act, i.e., loans already approved under this program that may be eligible for an additional amount.
- 4No new funding authorization is included in the text; the change affects loan size limits, not appropriations.
- 5Status: introduced by Rep. Castor of Florida on February 14, 2025 and referred to the Committee on Small Business.