H.R. 1021 — Small Business Disaster Damage Fairness Act of 2025

This section provides the short title of the Act as the “Small Business Disaster Damage Fairness Act of 2025.”

This section revises collateral requirements for Small Business Administration disaster loans by increasing the threshold for when collateral is required to secure a loan to $50,000 (from $14,000) and by replacing “major disaster” with “disaster.” (Thus, the change broadens the provision to apply to disaster loans generally, rather than only to loans made in connection with a major disaster.)

This section directs the Comptroller General of the United States to submit, not later than 3 years after enactment, a report to the Senate Committee on Small Business and Entrepreneurship and the House Committee on Small Business 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 effect of the collateral amendments made by section 2 of the Act on those loans during the period beginning on September 30, 2020, and ending 2 years after enactment.

This section directs the Small Business Administration, beginning on the date of enactment, to require the Associate Administrator of the Office of Disaster Recovery and Resilience to distinguish between rural and urban communities in the agency’s outreach and marketing plan for the section 7(b) disaster loan program under 15 U.S.C. § 636(b) and to include actions to mitigate challenges rural communities face in accessing those loans.