Tuesday, May 28, 2024

Kennedy introduces Small Business Disaster Damage Fairness Act to help Louisiana homeowners, small businesses rebuild properties

by BIZ Magazine

WASHINGTON – Sen. John Kennedy (R-La.), a member of the Senate Appropriations Committee, today introduced the Small Business Disaster Damage Fairness Act of 2023 to permanently increase access to Small Business Administration (SBA) loans for homeowners and small business owners who face natural disasters.

The legislation would indefinitely extend an increase to the Recovery Improvements for Small Entities After Disaster Act’s initial loan limit of $14,000 to $25,000. The increase would not require borrowers to pledge collateral for three years. 

“Too often in the aftermath of hurricane season, thousands of Louisiana’s families depend on SBA loans to rebuild their homes and businesses. I’m introducing this bill to give Louisianians more access to loans when disaster strikes and they need resources quickly,” said Kennedy.

Physical disaster loans help businesses, homeowners and others rebuild damaged property in declared disaster areas.

Background:

  • Kennedy introduced the Rebuilding Small Businesses After Disasters Act of 2019 to extend the Recovery Improvements for Small Entities After Disaster Act of 2015, which became law but expired in November of 2022.
  • A Government Accountability Office (GAO) study showed that Kennedy’s 2019 bill reduced government spending and saved taxpayer dollars. According to the study, the GAO “reviewed more than 20 years of loan data and found that the loans approved before the change in collateral requirements had higher default rates than the loans approved after the change.”

Text of the bill is available here.

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