Small Business Disaster Coordination Act
- Bill Number
- S. 1698
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-05-08: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Last Updated
- 2025-06-05T11:03:18Z
AI-Generated Summary
Purpose
The Small Business Disaster Coordination Act (S. 1698) aims to strengthen the Small Business Administration's (SBA) coordination with its resource partners—such as Small Business Development Centers (SBDCs), SCORE mentors, and Women's Business Centers—during disaster planning and response. This ensures small businesses receive more effective advice, information, and assistance in disaster-affected areas, improving overall recovery efforts.
Key Provisions
- Authorization for Cross-Area Assistance: The SBA can allow resource partners to provide advice, information, and support to small businesses in disaster zones outside their usual service areas, as long as they coordinate with local partners serving that area. This applies to regions eligible for SBA disaster loans under Section 7(b)(2) of the Small Business Act.
- Time Limits and Extensions: Assistance from resource partners can last up to 2 years after a disaster is declared, with the SBA able to extend this period if needed.
- Service Continuity and Facilities: Resource partners must prioritize maintaining services in their home areas while helping disaster zones. The SBA must allow use of its designated sites or facilities for this purpose.
- Enhanced Outreach for Disaster Loans: When promoting disaster loans, the SBA must include links to resource partners' websites and share all related information with these partners to boost public awareness and help applicants.
- Coordination Guidelines: The SBA must develop guidelines for working with federal agencies, state/local governments, and resource partners to meet disaster response demands and optimize resources.
- Inclusion in Disaster Planning: Resource partners must be involved in SBA-led disaster planning activities, alongside federal, state, and local entities.
Significant Changes to Existing Law
- Amends Section 4 of the Small Business Act (15 U.S.C. 633) by adding a new subsection (i) that explicitly authorizes and structures cross-area assistance from resource partners, which was not previously detailed.
- Modifies Section 7(b)(5) of the Small Business Act (15 U.S.C. 636(b)(5)) by requiring links to resource partners in outreach materials and mandating information sharing with them, expanding beyond current general outreach duties.
- Updates Section 40(a)(2)(D) of the Small Business Act (15 U.S.C. 657l(a)(2)(D)) to include resource partners in coordination guidelines, broadening the scope from just federal, state, and local entities.
- Revises Section 12073(c) of the Small Business Disaster Response and Loan Improvements Act of 2008 (15 U.S.C. 636h(c)) to explicitly add resource partners to disaster planning requirements, inserting them as a new category alongside existing participants.
These changes build on the 2008 Act by formalizing and expanding the role of resource partners, making coordination mandatory rather than optional.
Potential Impacts
- On Government Agencies: The SBA will need to invest in better communication and guideline development, potentially streamlining operations but increasing administrative workload for tracking assistance and extensions.
- On Citizens (Small Businesses): Small businesses in disaster areas could access faster, more localized advice and loan information, aiding quicker recovery from events like hurricanes or floods, though geographic barriers to help may persist without full implementation.
- On International Relations: Minimal direct impact, as the bill focuses on domestic U.S. small businesses and agencies; it could indirectly support U.S. economic resilience in disasters that affect trade or supply chains.
Main Stakeholders Affected
- Small Business Administration (SBA): Primary implementer, responsible for authorizations, guidelines, and information sharing.
- Resource Partners: Organizations like SBDCs, SCORE, and Women's Business Centers, which gain expanded roles but must manage cross-area work and maintain home services.
- Small Businesses: Especially those in disaster-declared areas eligible for SBA loans, benefiting from broader support networks.
- State, Local, and Regional Governments: Involved in planning and response coordination, potentially seeing improved collaboration with federal efforts.
- Federal Agencies: Other entities (e.g., FEMA) that must align with SBA's updated guidelines for resource use.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill enhances existing SBA authorities without creating new funding mandates, relying on discretionary powers (e.g., extensions at the Administrator's discretion). It promotes efficiency in federal spending by better leveraging non-governmental resource partners, but could raise questions about oversight if coordination leads to uneven service quality across regions.
- Constitutional: No significant issues; it operates within Congress's commerce clause powers to regulate interstate business and support economic recovery, without infringing on states' rights—coordination explicitly includes state and local input.
- Political: Bipartisan sponsorship (from senators across party lines) suggests broad support for small business aid. It addresses gaps exposed in past disasters (e.g., Hurricanes Katrina or recent wildfires), potentially reducing political criticism of SBA's response times, but implementation success will depend on agency resources amid budget constraints.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (5)
Sen. Cantwell, Maria [D-WA], Sen. Crapo, Mike [R-ID], Sen. Bennet, Michael F. [D-CO], Sen. Peters, Gary C. [D-MI], Sen. Moreno, Bernie [R-OH]
Recent Actions
- 2025-05-08: Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 2025-05-08: Introduced in Senate
Bill Versions
- Small Business Disaster Coordination Act — issued 2025-05-08 — PDF (5 pages)