To amend the Small Business Act with respect to the maximum additional loan amount for certain disaster loans, and for other purposes.
- Bill Number
- H.R. 1375
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-02-14: Referred to the House Committee on Small Business.
- Last Updated
- 2025-03-17T14:59:39Z
AI-Generated Summary
Purpose
This bill, H.R. 1375, aims to enhance support for small businesses recovering from disasters by increasing the maximum additional loan amount available under the Small Business Administration's (SBA) disaster loan program. It modifies the Small Business Act to allow for greater financial assistance in rebuilding efforts.
Key Provisions
- Amends Section 7(b)(1)(A) of the Small Business Act (15 U.S.C. 636(b)(1)(A)).
- Specifically changes the cap on additional loan amounts for certain disaster loans.
Significant Changes to Existing Law
- Under current law, eligible small businesses can receive disaster loans up to a base amount plus an additional 20% of that base for certain purposes, such as mitigation or working capital.
- The bill raises this additional amount from 20 percent to 30 percent, providing more flexibility and funding without altering the overall loan program's structure or eligibility criteria.
Potential Impacts
- On government agencies: The SBA will administer larger loans, potentially increasing its workload and budget needs for disaster relief, but it streamlines recovery by reducing the need for multiple loan applications.
- On citizens: Small business owners in disaster-affected areas (e.g., from hurricanes, floods, or other declared emergencies) can access up to 50% more funding overall (base plus additional), aiding faster recovery, job preservation, and economic stability in communities.
- On international relations: No direct impact, as this is a domestic small business aid measure.
Main Stakeholders Affected
- Small business owners: Primary beneficiaries, especially those in disaster-prone regions like Florida (where the bill's sponsor is from), who rely on SBA loans for rebuilding.
- Small Business Administration (SBA): Responsible for implementing and funding the expanded loans.
- Local economies and communities: Indirectly affected through improved business resilience and reduced long-term economic disruption from disasters.
Notable Legal, Constitutional, or Political Implications
- Legal: This is a minor, targeted amendment to an existing federal statute, requiring no new regulations or oversight beyond SBA's current authority. It aligns with Congress's power to regulate commerce and provide disaster aid under the Commerce Clause of the U.S. Constitution.
- Constitutional: No significant challenges; it supports established federal disaster relief programs without infringing on states' rights or individual liberties.
- Political: Enhances bipartisan support for small business aid, potentially influencing future disaster policy debates by addressing gaps in recovery funding. As an introduced bill in the 119th Congress (2025), it reflects ongoing efforts to bolster economic resilience post-disasters like hurricanes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-02-14: Referred to the House Committee on Small Business.
- 2025-02-14: Introduced in House
- 2025-02-14: Introduced in House
Bill Versions
- To amend the Small Business Act with respect to the maximum additional loan amount for certain disaster loans, and for other purposes. — issued 2025-02-14 — PDF (1 pages)