WASHINGTON, D.C. – U.S. Senators John Kennedy (R-La.) and Cory Booker (D-N.J.) have introduced the Small Business Disaster Damage Fairness Act of 2025, a bipartisan bill aimed at expanding access to Small Business Administration (SBA) disaster assistance loans for businesses recovering from natural disasters.
The legislation would increase the unsecured loan threshold from $14,000 to $50,000, allowing more small businesses to secure funding without requiring collateral.
“Too many small business owners can’t put up collateral for a loan when disaster strikes. As a result, they can’t reopen their doors,” said Kennedy. “My bill would make sure small businesses can get back to serving their communities after disasters hit.”
Addressing Disaster Recovery Challenges
The SBA’s Disaster Loan Program provides critical financial assistance to homeowners, renters, businesses, and nonprofits affected by disasters. In 2024 alone, 27 weather-related disasters each caused at least $1 billion in damages, highlighting the growing need for financial relief programs that support business recovery.
Sen. Booker emphasized the urgency of the legislation, citing extreme weather events in New Jersey.
“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,” said Booker.
Additional Provisions in the Bill
The Small Business Disaster Damage Fairness Act includes:
- Codifying the Government Accountability Office (GAO)’s recommendation to differentiate between rural and urban communities for disaster assistance outreach.
- Requiring the GAO to report on the Disaster Loan Program’s default rate, ensuring transparency and program sustainability.
Sen. Mazie Hirono (D-Hawaii) has also signed on as a co-sponsor of the bill.
If passed, the legislation aims to streamline disaster relief and reduce financial barriers for small businesses trying to recover after a crisis.