CONGRESSWOMAN ELISE STEFANIK
On Wednesday, September 19, 2012, the House is scheduled to consider H.R. 6296, the Disaster Loan Fairness Act of 2012, as amended, under a suspension of the rules requiring a two-thirds majority vote for approval. The bill was introduced on August 2, 2012, by Rep. Lou Barletta (R-PA) and referred to the Committees on Small Business.
H.R. 6296 would lower the interest rates on disaster loans issued by the Small Business Administration following presidentially declared disaster areas. The bill would apply retroactively to January 1, 2011, and would sunset in four years.
The interest rate of the loan would equal the lesser of: 4 percent or ½ the prevailing market rate for individuals unable to find credit elsewhere or ¾ the prevailing market rate for borrowers who are able to find credit elsewhere.
The bill would also terminate the use of public funds for political party nominating conventions—a provision included as a budget offset.
According to the Small Business Administration (SBA), SBA provides low interest disaster loans to homeowners, renters, businesses of all sizes and private, nonprofit organizations to repair or replace real estate, personal property, machinery & equipment, inventory and business assets that have been damaged or destroyed in a declared disaster.
There is no Congressional Budget Office (CBO) cost estimate available for this legislation.