To amend the Small Business Act to waive the accrual of interest and payments for certain disaster loans for a year, and for other purposes.
Summary
What This Bill Does
This bill amends section 7(d) of the Small Business Act. For SBA disaster loans made under section 7(b) for disasters declared on or after enactment, the SBA Administrator must, for the 12-month period beginning on the loan disbursement date, set the interest rate at zero percent and defer principal payments. The relief applies at the start of the loan, when disaster survivors and small businesses are likely managing repairs, lost revenue, replacement costs, or relocation. The bill does not forgive principal; it delays payments and prevents interest accrual for the first year.
Who Benefits and How
Small businesses receiving SBA disaster loans benefit from one year without interest accrual. Homeowners with SBA disaster loans benefit from deferred principal payments during recovery. Renters eligible for SBA disaster loans benefit from lower first-year repayment pressure. Disaster-affected communities benefit if borrowers have more cash flow for repairs and reopening.
Who Bears the Burden and How
SBA disaster loan staff must update loan terms for qualifying post-enactment disasters. Federal credit programs lose first-year interest income on affected disaster loans. Borrowers still owe principal after the 12-month deferral ends. Federal taxpayers bear the subsidy cost of zero-interest disaster lending.
Key Provisions
- Amends Small Business Act section 7(d).
- Requires zero percent interest for the first 12 months after disbursement.
- Requires deferral of principal payments for the first 12 months after disbursement.
- Applies to section 7(b) disaster loans for disasters declared on or after enactment.
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
Requires SBA disaster loans for disasters declared on or after enactment to carry a zero percent interest rate and deferred principal payments for the first 12 months after disbursement.
Key Policy Areas
Small Business, Disaster Loans, Disaster Relief
Primary Purpose
Requires SBA disaster loans for disasters declared on or after enactment to carry a zero percent interest rate and deferred principal payments for the first 12 months after disbursement.
Policy Domains
Resolution provisions
Identified Gains
- Small businesses receiving disaster loans
- Homeowners with disaster loans
- Renters with disaster loans
- Disaster-affected communities
Identified Costs
- SBA disaster loan staff
- Federal credit programs
- Borrowers after deferral
- Federal taxpayers
Sponsors
Legislative Progress
In CommitteeMr. Neguse (for himself and Mr. Ciscomani) introduced the following …
Referred to the House Committee on Small Business.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Homeowners with disaster loans, Renters with disaster loans
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
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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