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.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The bill exempts increases SBA disaster loan collateral requirement threshold from $14,000 to $50,000 and extends the exemption to all disasters, not just major disasters, requires GAO to report on disaster loan performance and default rates within 3 years, including impact of the increased collateral threshold, and requires SBA to distinguish between rural and urban communities in disaster loan outreach and incorporate actions to address rural community access challenges, per GAO recommendations. It relies on exemptions, reporting requirements, and compliance mandates. The main policy areas are Finance.
Who Benefits and How
Small businesses applying for disaster loans could face fewer barriers and Rural small businesses could face fewer barriers.
Who Bears the Burden and How
SBA Office of Disaster Recovery and Resilience would take on compliance duties, Government Accountability Office would take on compliance duties, and SBA could face increased risk.
Key Provisions
- Exempts increases SBA disaster loan collateral requirement threshold from $14,000 to $50,000 and extends the exemption to all disasters, not just major disasters.
- Requires GAO to report on disaster loan performance and default rates within 3 years, including impact of the increased collateral threshold.
- Requires SBA to distinguish between rural and urban communities in disaster loan outreach and incorporate actions to address rural community access challenges, per GAO recommendations.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill exempts increases SBA disaster loan collateral requirement threshold from $14,000 to $50,000 and extends the exemption to all disasters, not just major disasters, requires GAO to report on disaster loan performance and default rates within 3 years, including impact of the increased collateral threshold, and requires SBA to distinguish between rural and urban communities in disaster loan outreach and incorporate actions to address rural community access challenges, per GAO recommendations.
Key Policy Areas
Finance
Primary Purpose
The bill exempts increases SBA disaster loan collateral requirement threshold from $14,000 to $50,000 and extends the exemption to all disasters, not just major disasters, requires GAO to report on disaster loan performance and default rates within 3 years, including impact of the increased collateral threshold, and requires SBA to distinguish between rural and urban communities in disaster loan outreach and incorporate actions to address rural community access challenges, per GAO recommendations.
Policy Domains
Whole Bill
Identified Gains
- Small businesses applying for disaster loans
- Rural small businesses
Identified Costs
- SBA Office of Disaster Recovery and Resilience
- Government Accountability Office
- SBA
Sponsors
Joe Neguse
D-CO | Primary Sponsor
Legislative Progress
IntroducedMr. Neguse (for himself and Mr. Obernolte) introduced the following …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Government Accountability Office, SBA, SBA Office of Disaster Recovery and Resilience
Rural small businesses, Small businesses applying for disaster loans
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
Key Definitions
Terms defined in this bill
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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