I 
119TH CONGRESS 
1ST SESSION H. R. 1021 
To amend the Small Business Act to increase the minimum disaster loan 
amount for which the Small Business Administration may require collat-
eral, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 5, 2025 
Mr. NEGUSE (for himself and Mr. OBERNOLTE) introduced the following bill; 
which was referred to the Committee on Small Business 
A BILL 
To amend the Small Business Act to increase the minimum 
disaster loan amount for which the Small Business Ad-
ministration may require collateral, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Dis-
aster Damage Fairness Act of 2025’’. 
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SEC. 2. COLLATERAL REQUIREMENTS FOR DISASTER 
LOANS. 
Section 7(d)(6) of the Small Business Act (15 U.S.C. 
636(d)(6)) is amended, in the second sentence, in the third 
proviso— 
(1) by striking ‘‘$14,000’’ and inserting 
‘‘$50,000’’; and 
(2) by striking ‘‘major disaster’’ and inserting 
‘‘disaster’’. 
SEC. 3. GAO REPORT ON DEFAULT RATES. 
Not later than 3 years after the date of enactment 
of this Act, the Comptroller General of the United States 
shall submit to the Committee on Small Business and En-
trepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives a report on the 
performance, including the default rate, of loans made 
under section 7(b)(1) of the Small Business Act (15 
U.S.C. 636(b)(1)), and the impact of the amendments to 
collateral amounts made under section 2 of this Act on 
the performance of those loans, during the period— 
(1) beginning on September 30, 2020; and 
(2) ending on the date on that is 2 years after 
the date of enactment of this Act. 
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SEC. 4. DISTINGUISHING BETWEEN RURAL AND URBAN 
COMMUNITIES 
IN 
MARKETING 
AND 
OUT-
REACH. 
(a) DEFINITIONS.—In this section: 
(1) ADMINISTRATION.—The term ‘‘Administra-
tion’’ means the Small Business Administration. 
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Administra-
tion. 
(3) ASSOCIATE
ADMINISTRATOR.—The term 
‘‘Associate Administrator’’ means the Associate Ad-
ministrator of the Office of Disaster Recovery and 
Resilience of the Administration. 
(4) COVERED
PROGRAM.—The term ‘‘covered 
program’’ means the disaster loan program author-
ized by section 7(b) of the Small Business Act (15 
U.S.C. 636(b)). 
(b) REQUIREMENT.—Beginning on the date of enact-
ment of this Act, consistent with the recommendations of 
the Government Accountability Office in the report enti-
tled ‘‘Small Business Administration: Targeted Outreach 
about Disaster Assistance Could Benefit Rural Commu-
nities’’ (GAO–24–106755) (February 22, 2024), the Ad-
ministrator shall ensure that the Associate Adminis-
trator— 
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(1) distinguishes between rural and urban com-
munities in the outreach and marketing plan of the 
Administration with respect to the covered program; 
and 
(2) incorporates actions to mitigate challenges 
encountered by rural communities in accessing loans 
under the covered program. 
Æ 
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