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SBA Disaster Loan Forgiveness: Debt Relief for Disaster Victims.

This bill introduces the possibility of canceling or repaying a portion of the debt owed on disaster loans provided by the Small Business Administration (SBA). Citizens and small businesses affected by natural disasters can receive debt forgiveness, directly reducing their financial burden after a catastrophe. The amount of forgiveness depends on the individual's income or the status of the small entity.
Key points
Individuals with lower incomes (up to 400% of the poverty line) may qualify for 100% forgiveness of the disaster loan balance.
Higher-income individuals (under $250,000) and small businesses/nonprofits may qualify for up to 50% debt forgiveness.
The law aims to ease the financial consequences of natural disasters by reducing obligations to the federal government.
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Expired
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Additional Information
Print number: 118_HR_8581
Sponsor: Rep. Brownley, Julia [D-CA-26]
Process start date: 2024-05-31
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Disaster Loan Forgiveness Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8581.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-05-31.

What are the main provisions?

Key points include:

  • Individuals with lower incomes (up to 400% of the poverty line) may qualify for 100% forgiveness of the disaster loan balance.
  • Higher-income individuals (under $250,000) and small businesses/nonprofits may qualify for up to 50% debt forgiveness.
  • The law aims to ease the financial consequences of natural disasters by reducing obligations to the federal government.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Brownley, Julia [D-CA-26].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Small Business.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

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