Assistant Leader Neguse Introduces Package of Bipartisan Bills to Simplify Disaster Recovery

Lafayette, CO — Today, House Assistant Minority Leader Joe Neguse, founder and Co-Chair of the Bipartisan Wildfire Caucus, is taking action to streamline access to federal assistance under the Small Business Administration for families and communities impacted by natural disasters. The Assistant Leader introduced a bipartisan legislative package, including the Natural Disaster Loan Interest Relief Act, the Small Business Disaster Damage Fairness Act, and the Disaster Loan Application Flexibility Act. These policies seek to update management of and access to disaster-related loans issued by the Small Business Administration (SBA) by waiving accrued fees, increasing unsecured loan threshold limits, and by simplifying loan application processes. 

Since first being elected to Congress in 2018, western wildfires have impacted thousands of households in Assistant Leader Neguse’s congressional district. After speaking directly with those affected, Neguse sought to create legislation that limits confusion and helps make it easier for families to access the critical resources needed to jumpstart their path to recovery. 

“In recent years, the Marshall, Cameron Peak, East Troublesome, and most recently the Alexander Mountain and Stone Canyon Fires have disrupted the lives of countless families across Colorado,” said House Assistant Minority Leader Joe Neguse. “And the road to recovery after disaster can be slow and at times, all-consuming. That is why I am introducing three bills that ensure those affected receive the recovery assistance they need at the speed they need. Mitigation and response and recovery go hand in hand, and today we are seeking to equip homeowners, small business owners, and individuals with the foundational tools required to rebuild their lives after disaster.”  

The package of bills includes: 

• The Natural Disaster Loan Interest Relief Act, co-led by Rep. Juan Ciscomani (R-AZ). This bill codifies a policy implemented by the SBA to provide zero interest on disaster loans and to give homeowners and business owners approved for these loans up to one year from the date of the loan to begin making payments. Read bill text here. 
• The Small Business Disaster Damage Fairness Act, co-led by Rep. Jay Obernolte (R-CA). This bill directs the SBA to not require collateral for loans of $50,000 or less, an increase from what is currently $14,000, allowing a greater number of individuals to access a physical disaster home or business loan. Read bill text here.
• The Disaster Loan Application Flexibility Act, co-led by Rep. Mike Simpson (R-ID). This bill modifies application deadlines and communication requirements for disaster assistance by directing the SBA to extend loan application deadlines past the current window of two to three months post-disaster declaration, and issuing guidance for public awareness campaigns in affected areas to better educate individuals on the application process and ensuring the Members of Congress who represent these districts stay informed and receive regular updates. Read bill text here. 

Find a one-pager on the disaster recovery legislative package here. 

“I applaud Congressman Neguse and his partners for their bipartisan support and dedication to reforming the Small Business Administration disaster assistance loan programs, and helping to ensure disaster survivors face minimal obstacles during their recovery and rebuilding journey. Homeowners impacted by disasters deserve flexibility and grace as they piece their lives back together. These bills are the necessary steps we need to prioritze the survivor over the onerous processes which impede disaster recovery,” said Jeri Curry, Executive Director, Marshall ROC.  

Background

Assistant Leader Neguse has been leading efforts in Congress to expand access to critical federal disaster assistance for communities impacted by natural disaster. Most recently, he introduced the bipartisan, bicameral Disaster Management Costs Modernization Act, which would allow state and local governments to use FEMA disaster management costs for multiple disasters. He also  led Western lawmakers in a letter to the U.S. Small Business Administration (SBA) requesting the agency extend the time periods during which affected individuals may apply for SBA physical damage loans following a presidential disaster declaration.   

Following the Marshall Fire in 2021, Neguse sought to secure proper cost coverage for Coloradans. Alongside Senators Bennet and Hickenlooper, Rep. Neguse led a successful effort to get the SBA to update their formula used to calculate the Disaster Loan Program amount survivors can borrow to rebuild after the Marshall Fire. Rep. Neguse and the Colorado senators were also able to get FEMA to agree to cover the costs of removing foundations, basements and burned vehicles damaged in the Marshall Fire. This coverage is extremely rare and has only been granted for a handful of other wildfires in recent years. 

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