This bill amends the Small Business Act to establish new requirements for disaster loans administered by the Small Business Administration. Currently, the SBA approves disaster loans without requiring applicants to submit tax returns or transcripts, but this legislation would make tax documentation mandatory before loan approval. However, the bill includes an important exception for residents of U.S. territories—American Samoa, Guam, Puerto Rico, the Northern Mariana Islands, and the U.S. Virgin Islands—who don't pay federal income taxes. These territorial residents can receive conditional loan approval, with the understanding that funds won't actually be distributed until they provide a tax return or transcript from their territory's tax agency instead. The SBA would also be required to help applicants request their necessary tax documents from either the Internal Revenue Service or their territorial tax authority. The bill aims to balance the need for financial verification in disaster lending with the unique tax circumstances of U.S. territories.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.