Sen. Kennedy Introduces Small Business Disaster Damage Fairness Act to Increase Access to SBA Loans

Louisiana Senator John Kennedy has introduced the Small Business Disaster Damage Fairness Act of 2023 to increase access to Small Business Administration (SBA) loans for homeowners and small business owners who face natural disasters. The legislation aims to extend an increase to the Recovery Improvements for Small Entities After Disaster Act’s initial loan limit of $14,000 to $25,000 indefinitely, allowing borrowers to access resources quickly without pledging collateral for three years.

Kennedy hopes that the bill will provide Louisiana families with greater access to SBA loans when disasters strike, particularly during hurricane season. Physical disaster loans can help businesses, homeowners, and others rebuild damaged property in declared disaster areas.

This is not the first time Kennedy has proposed legislation to help small businesses recover from natural disasters. In 2019, he introduced the Rebuilding Small Businesses After Disasters Act, which aimed to extend the Recovery Improvements for Small Entities After Disaster Act of 2015. A Government Accountability Office (GAO) study found that Kennedy’s 2019 bill reduced government spending and saved taxpayer dollars, as loans approved after the change in collateral requirements had lower default rates.