H.R. 1375: To amend the Small Business Act with respect to the maximum additional loan amount for certain disaster loans, and for other purposes.

This bill proposes an amendment to the Small Business Act, specifically regarding the loans provided to small businesses in the event of disasters. The key change involves increasing the maximum amount that small businesses can receive in additional loans after a disaster.

Key Provisions

• The bill seeks to change the percentage limit on additional disaster loans from 20 percent to 30 percent.
• This adjustment will allow small businesses affected by disasters to access a larger pool of funds, which may help them recover more effectively.
• The increase applies to specific disaster loans that are available under current laws.

Purpose

The intention behind this amendment is to enhance financial support for small businesses that face challenges due to disasters, thereby aiming to improve their resilience and capacity to rebuild after such events.

Additional Considerations

• This change could potentially benefit a wide range of small businesses across various sectors that experience disruptions due to natural disasters.
• The bill emphasizes support for businesses that may struggle to recover solely using existing funding limits.

Implementation

If passed, the bill would alter how the Small Business Administration (SBA) administers disaster loans, enabling faster and more substantial financial relief.

Relevant Companies