Small Business Disaster Assistance in Final Farm Bill

Press Release

Small Business Disaster Assistance in Final Farm Bill

After more than two years, legislation to improve financial aid to small businesses nears becoming law

After more than two and a half years of bipartisan efforts to improve assistance to small businesses and individuals devastated by disasters, legislation championed by Senators John Kerry (D-Mass.), Olympia J. Snowe (R-Maine), Mary Landrieu (D-La.), and David Vitter (R-La.) today is one step closer to becoming law. The provisions were included in the final Farm Bill which negotiators released today. The Senators have been working since September 2005 when the aftermath of Hurricane Katrina revealed the need to enact legislation that will get disaster loans processed and into the hands of victims more quickly.

"This past weekend's storms that killed more than 20 people and devastated lives from Oklahoma to Georgia underscore the importance of delivering disaster aid quickly. Whether it's flooding or fire, after a disaster people can't afford to navigate a maze of federal bureaucracy. Our disaster reform provisions will cut through the red tape, increase resources, bring private lenders into the response, and help bridge the gap while disaster victims begin the process of rebuilding their lives," said Senator Kerry, Chairman of the Committee on Small Business and Entrepreneurship.

"I am pleased that Small Business Disaster Assistance legislation has been made part of the Farm Bill," said Senator Snowe, Ranking Member of the Committee on Small Business and Entrepreneurship. "This legislation, which is a product of consensus and compromise over the last two and a half years, equips the SBA with the tools necessary to provide a more comprehensive and aggressive response to future disasters. It is important that the federal government be nimble and effective when responding to future disasters, and I am hopeful that this critical legislation will help the SBA be better equipped to do so."

"The SBA disaster reforms package included in the Farm Bill conference report is a key step forward for our Gulf Coast small businesses," said Senator Landrieu. "Business owners and homeowners seeking SBA assistance following future disasters will encounter a more efficient, responsive agency because of these reforms. Our Louisiana small businesses communicated loud and clear that we needed SBA reform, and this legislation was one of my top priorities to secure before the upcoming hurricane season."

"Small businesses are a significant component of our national economy, and in small towns and rural areas throughout the country they are the principle providers of local jobs," said Senator Vitter. "Disaster recovery programs were crucial to Louisiana businesses during their recovery from the 2005 hurricanes. The sheer scale of the devastation suffered throughout our state demanded that we take a good look at our disaster recovery programs and identify the areas that needed significant improvement. Private disaster loans and the loan limit increases are two such lessons. The inclusion of these provisions in the farm bill is a positive development and one that will help minimize business interruptions and job losses as a result of a natural disaster."

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