Lafayette Reporter

Senators John Kennedy and Cory Booker have introduced the Small Business Disaster Damage Fairness Act of 2025, a legislative proposal aimed at expanding access to disaster loans for small businesses. The bill proposes increasing the limit for Small Business Administration (SBA) disaster assistance loans from $14,000 to $50,000 without requiring collateral.

Kennedy emphasized the challenges faced by small business owners in securing loans when disasters occur. "Too many small business owners can’t put up collateral for a loan when disaster strikes. As a result, they can’t re-open their doors. My bill would make sure small businesses can get back to serving their communities after disasters hit," he stated.

The SBA’s Disaster Loan Program supports homeowners, renters, businesses, and nonprofits in recovering from losses due to disasters. In 2024 alone, there were 27 weather-related events causing damages exceeding $1 billion each.

Booker highlighted the frequent impact of extreme weather on New Jersey residents and the necessity of accessible funding for recovery efforts. "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. This bill will help ensure small businesses everywhere have the support they need to recover in the wake of a disaster," he said.

Additionally, the proposed legislation includes provisions based on recommendations from the Government Accountability Office (GAO). It aims to differentiate outreach strategies between rural and urban areas and mandates further reporting on default rates within the Disaster Loan Program.

Senator Mazie Hirono has also cosponsored this bill.

The complete text of the bill is available online.