WASHINGTON, D.C. – U.S. Senators Cory Booker (D-NJ) and John Kennedy (R-LA), a member of the Senate Appropriations and Banking Committees, introduced the Small Business Disaster Damage Fairness Act of 2025. The bill would allow borrowers to get a Small Business Administration (SBA) disaster assistance loan for up to $50,000, rather than the current $14,000, without pledging collateral.
Despite rising costs, the collateral threshold has remained stagnant for over a decade. The collateral threshold for major disasters has been at $14,000 since 2008 for SBA-declared disasters. In 2015, Congress passed Booker and Kennedy’s Rebuilding Small Businesses After Disasters Act, which temporarily increased the SBA collateral threshold to $25,000 in 2015.
“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,” said Senator Booker.
“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,” said Senator Kennedy.
The SBA’s Disaster Loan Program is designed to help homeowners, renters, businesses and nonprofits repair, rebuild and recover from disaster-related losses. In 2024, there were 27 weather-related disasters that caused at least $1 billion in damage.
The bill also codifies the Government Accountability Office (GAO)’s recommendation to distinguish between rural and urban communities for outreach and instructs the GAO to further report the Disaster Loan Program’s default rate.
U.S. Senator Mazie Hirono (D-HI) cosponsored the bill.
The read the full text of the bill, click here.