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
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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.
- Interaction with SBA lending caps: if the SBA operates under total lending caps or appropriations limits, this change may shift resources between borrowers or disaster programs.
Section numbers refer to the bill text the analysis read — linked under Primary records below.
Who it affects
Small businesses and individuals recovering from disasters gain access to larger supplemental loans, increasing their ability to rebuild and recover. The change expands a public benefit program with no apparent cost to taxpayers or restrictions on citizen rights.
Who stands to gain
- small businesses
- disaster-affected individuals and households
- agricultural enterprises eligible for SBA disaster loans
Named in the bill
Small Business Administration (SBA), Small Business Act, Section 7(b)(1)(A)
Where it stands
- Feb 14, 2025 — Introduced · Congress.gov: “Introduced in House”
- Feb 14, 2025 — Referred to House Committee on Small Business · Congress.gov: “Referred to the House Committee on Small Business”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
How this was measured
Analysis — Quorum's AI read the bill text published by Congress.gov (166 characters) on May 21, 2026. Section numbers in the findings refer to that text, linked below; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
As of — page rendered 2026-10-20.
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