Senate Small Business Committee passes Kennedy bill to help homeowners, small business owners rebuild after disaster strikes

Published 9:34 am Thursday, July 20, 2023

“The Small Business Committee understands the significant need to help small business and home owners access loans when they need them the most—after a disaster strikes. Now, the Senate must pass this bill so that Louisianians and all Americans can actually recover and rebuild in the wake of tragedy.”

WASHINGTON – Sen. John Kennedy’s (R-La.) Small Business Disaster Damage Fairness Act of 2023 today passed the Senate Small Business Committee, and now moves to the Senate floor for consideration.

“The Small Business Committee understands the significant need to help small business and home owners access loans when they need them the most—after a disaster strikes. Now, the Senate must pass this bill so that Louisianians and all Americans can actually recover and rebuild in the wake of tragedy,” said Kennedy.

Kennedy’s 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.

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

Background:

 

  • In March, Kennedy introduced the Small Business Disaster Damage Fairness Act of 2023.

  • In August 2019, Kennedy introduced the Rebuilding Small Businesses After Disasters Act 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.”