ABSTRACT

Changes to the SBA Disaster Loan Program: Proposed Legislation in the 110th Congress [Updated June 22, 2007]   [open pdf - 118KB]

"Members of the House of Representatives and Senate have introduced bills in the 110th Congress (H.R. 1361 and S. 163, respectively) to modify the Small Business Administration's (SBA) response to major disasters. The bills agree on certain fundamental questions, but differ in the details. Both bills address ways to improve SBA's response to large disasters. There is some congressional concern that following an exceptionally large disaster SBA staff may not be large enough to be able to respond as rapidly as Congress might wish. Both bills would increase disaster staffing and both would augment SBA's staff by allowing certain private lenders to either make loans on behalf of SBA or make loans that SBA would guarantee in a manner similar to SBA's other loan programs. Other provisions would allow for closer congressional oversight of SBA disaster responses. Under both bills, SBA would continue to make disaster loans to households and businesses. The maximum personal real property limit of $40,000 and the real personal property limit of $200,000 would not change. The maximum size of disaster loans to businesses would increase from $1.5 million to $3 million (House) or $2 million (Senate). Both bills would allow economic impact disaster loans to be made to nonprofits for the first time. Under both bills SBA would make smaller, quickly approved loans that could be folded into a larger permanent loan. The House would set a maximum for the expedited business loans of $25,000. The Senate leaves the maximum to SBA."

Report Number:
CRS Report for Congress, RL34058
Publisher:
Date:
2007-06-22
Copyright:
Public Domain
Retrieved From:
Via E-mail
Format:
pdf
Media Type:
application/pdf
URL:
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