U.S. Senator Mazie K. Hirono has joined forces with Senators Cory Booker and John Kennedy to propose new legislation aimed at expanding access to disaster loans for small businesses. The proposed Small Business Disaster Damage Fairness Act of 2025 seeks to increase the cap on Small Business Administration (SBA) disaster assistance loans from $14,000 to $50,000 without requiring collateral.
Senator Hirono emphasized the importance of these loans in aiding small businesses and their communities after natural disasters. “SBA disaster assistance loans are crucial in helping small businesses and their surrounding community rebuild following a natural disaster—something I saw firsthand after the devastating wildfires on Maui in 2023,” she stated.
The SBA’s Disaster Loan Program supports homeowners, renters, businesses, and nonprofits in recovering from losses due to disasters. The previous year witnessed 27 weather-related events causing damages of at least $1 billion each.
Additionally, the bill incorporates recommendations from the Government Accountability Office (GAO) by distinguishing between rural and urban communities for outreach purposes. It also mandates further reporting by the GAO on the program’s default rate.
