Waive Interest on Disaster Loans

Summary#

This bill would change the Small Business Act so certain disaster loans have no interest and no required principal payments for one year. It adds a new paragraph to section 7(d). For loans made under subsection (b) for disasters declared on or after the bill becomes law, the SBA Administrator must set the loan interest rate to 0% and defer principal payments for the 12-month period that starts when the loan money is disbursed. The bill was introduced in the House on May 21, 2025, by Representatives Joe Neguse, Juan Ciscomani, and Zachary Nunn and was referred to the House Committee on Small Business.

What it means for you#

• If you receive an SBA disaster loan covered by this bill, the loan would not accrue interest and you would not have to make principal payments for 12 months after the loan is disbursed.
• The rule applies only to loans made under subsection (b) for disasters declared on or after the bill becomes law.
• No publicly available information on what happens to interest or payments after the 12-month period.

Expenses#

No publicly available information on budgetary costs, offsets, or any official cost estimates.

Proponents' View#

No publicly available information about supporters' statements or arguments in the bill text or the provided metadata.

Opponents' View#

No publicly available information about critics' statements or arguments in the bill text or the provided metadata.