Velázquez, Chabot Announce Small Business Disaster Recovery Bill

Jan 9, 2019
Washington, DC – To help small businesses and homeowners better recover from a natural disaster, House Small Business Committee Chairwoman Rep. Nydia M. Velázquez (D-NY) and Ranking Member Rep. Steve Chabot (R-OH) have introduced H.R. 277, the “Access to Sufficient Capital for Everyone in Natural Disaster Areas Act of 2019” (ASCEND Act). By increasing the minimum amount for which the Small Business Administration (SBA) may require collateral on disaster loans, this legislation will help ensure victims have access to the funds they need to quickly rebuild. 
 
“For small businesses, time and again, we have seen that in the aftermath of a disaster, access to affordable and accessible credit can make the difference between remaining in business or closing their doors and putting Americans out of work,” said Velázquez. “I thank Ranking Member Chabot for cosponsoring this legislation which allows more borrowers to access loans without having to put up collateral.” 
 
“I am pleased to cosponsor the ASCEND Act with Chairwoman Velázquez,” said Chabot. “By increasing the Small Business Administration’s loan limit for physical damage without collateral, individuals and small businesses alike will be able to recover faster and rebuild sooner following a disaster. This statutory update will provide consistent and reliable aid to Americans when they need it most.”
 
Specifically, the bill would permanently raise the minimum disaster loan amount for which the SBA may require collateral from $14,000 to $25,000. This legislation follows the SBA’s request to make the threshold increase permanent as noted in a report assessing the SBA disaster loan program since the enactment of the RISE After Disaster Act. 
 

The bill’s text can be found here.

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