This bill increases the threshold at which the Small Business Administration can require collateral on disaster loans from $14,000 to $50,000, allowing more small businesses to access disaster assistance without having to pledge property or equipment as security. The legislation applies to all types of disasters, not just major disasters as previously specified. The change is intended to make it easier for small business owners to obtain emergency loans following hurricanes, floods, wildfires, and other disasters without the burden of collateral requirements. Within three years of the law's enactment, the Government Accountability Office must report to Congress on how these changes affect loan default rates and the overall performance of disaster loans to ensure the policy achieves its intended benefits. The bill does not specify new funding amounts, but rather modifies the terms under which existing Small Business Administration disaster loan programs operate.
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