WASHINGTON (February 4, 2025) – WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Appropriations and Banking Committees, today joined Sen. Cory Booker (D-N.J.) in introducing the Small Business Disaster Damage Fairness Act of 2025. The bill would allow borrowers to get a Small Business Administration (SBA) disaster assistance loan for up to $50,000, rather than the current $14,000, without pledging collateral.
“Too many small business owners can’t put up collateral for a loan when disaster strikes. As a result, they can’t re-open their doors. My bill would make sure small businesses can get back to serving their communities after disasters hit,” said Kennedy.
The SBA’s Disaster Loan Program is designed to help homeowners, renters, businesses and nonprofits repair, rebuild and recover from disaster-related losses. In 2024, there were 27 weather-related disasters that caused at least $1 billion in damage.
“New Jerseyans are unfortunately too familiar with the impacts of extreme weather, from hurricanes to major flooding events. The last thing homeowners and small businesses should need to worry about is how they will access the funding they need to rebuild after a storm. This bill will help ensure small businesses everywhere have the support they need to recover in the wake of a disaster,” said Booker.
The bill also codifies the Government Accountability Office (GAO)’s recommendation to distinguish between rural and urban communities for outreach and instructs the GAO to further report the Disaster Loan Program’s default rate.
Sen. Mazie Hirono (D-Hawaii) cosponsored the bill.
The full bill text is available here.
