WASHINGTON – Sen. John Kennedy (R-La.) today introduced an extension of his 2019 legislation, Rebuilding Small Businesses After Disasters Act. The new bill extends the law and makes permanent provisions that will help homeowners and small businesses access certain U.S. Small Business Administration (SBA) loans.
The original Recovery Improvements for Small Entities (RISE) After Disaster Act of 2015, which the Rebuilding Small Businesses After Disasters Act of 2019 extended, allows borrowers to obtain a physical disaster loan for up to $25,000 without pledging any collateral for three years. The previous loan limit was $14,000. Kennedy’s 2019 bill became law but is set to expire in Nov. 2022.
“Disasters like hurricanes and flooding can leave Louisiana properties in ruin, and my bill would ensure that families have quick access to the funds they need to rebuild,” said Kennedy.
Physical disaster loans help businesses, homeowners and others rebuild damaged property in declared disaster areas.
A Government Accountability Office (GAO) study showed that Kennedy’s 2019 bill saved the government money. 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 proposed bill is available here.