Congress raises disaster-loan ceiling for small businesses recovering from catastrophes
H.R. 1375 — To amend the Small Business Act with respect to the maximum additional loan amount for certain disaster loans, and for other purposes. · Filed by Kathy Castor (D-FL) · Introduced Feb 14, 2025 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill increases the maximum additional loan amount available under Small Business Administration disaster loans from 20% to 30% of the primary loan amount. The change applies to a specific category of disaster loans under Section 7(b)(1)(A) of the Small Business Act, allowing small businesses and individuals recovering from disasters to borrow a larger supplemental amount.
Why we flagged it
The bill's sole operative function is to increase the supplemental loan ceiling for SBA disaster loans, a straightforward expansion of an existing public-benefit program.
What the text implies
- Increased SBA lending exposure: higher maximum loan amounts may increase total disaster-loan portfolio risk and default exposure for the federal government.
- Potential fiscal impact depends on uptake: the cost to taxpayers depends on how many borrowers access the higher ceiling and default rates, which are not specified in the bill.
The full analysis lists 3 implications of this text.
Who stands to gain
small businesses; disaster-affected individuals and households; agricultural enterprises eligible for SBA disaster loans