Small Business Disaster Coordination Act
- Sponsor
- Sen. Risch, James E. [R-ID]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- May 8, 2025
Bottom line
The bill aims to improve the efficiency and reach of small business disaster recovery and preparedness efforts by better leveraging the SBA's network of resource partners through enhanced coordination and expanded service capabilities.
What it actually does
This bill amends the Small Business Act and the Small Business Disaster Response and Loan Improvements Act of 2008 to enhance coordination between the Small Business Administration (SBA) and its resource partners during disaster response and planning. It authorizes resource partners to provide assistance to small businesses outside their usual service areas during disasters, requires the SBA to share disaster loan information with resource partners, and formally includes resource partners in SBA's disaster coordination guidelines and planning activities.
Proponents argue
Supporters argue that this bill strengthens the SBA's disaster response capabilities by enabling better utilization of its resource partner network, ensuring more small businesses receive timely assistance, and improving overall disaster preparedness. They contend it streamlines access to critical information and advice, especially in hard-hit areas or where local resources are overwhelmed.
Opponents contend
Potential opponents might express concerns about the administrative burden or potential for confusion arising from resource partners operating outside their established geographic areas, or question the effectiveness of such coordination without additional funding or clear operational guidelines. They might also argue that existing coordination mechanisms are sufficient or that the changes could dilute the focus of local resource partners.
The bill is short and clear, allowing for a quick and comprehensive understanding of its provisions.
Section 2(a)(1), amending Section 4 of the Small Business Act (15 U.S.C. 633) by adding subsection (i).
Expanded Geographic Assistance for Resource Partners During Disasters
This provision allows SBA resource partners (such as Small Business Development Centers or SCORE chapters) to offer advice, information, and assistance to small businesses located outside their normal service areas during a declared disaster. This authorization is for a period of up to two years, with a possible extension, provided the assisting resource partner coordinates with the local resource partner in the affected area. It also permits resource partner personnel to use SBA-designated disaster recovery sites.
Supporters argue
Supporters argue this provision will significantly enhance the reach and effectiveness of disaster recovery efforts by allowing the SBA to deploy expertise where it's most needed, overcoming geographic limitations and ensuring more small businesses receive timely support.
Critics contend
Critics might raise concerns about potential administrative complexities, ensuring quality control for services provided out-of-area, or the burden on resource partners to maintain continuity of services in their home areas while assisting elsewhere.
Tradeoffs
The tension lies between expanding access to critical disaster assistance and maintaining operational efficiency, quality control, and local accountability for resource partners.
Section 2(a)(2), amending Section 7(b)(5) of the Small Business Act (15 U.S.C. 636(b)(5)).
Enhanced Information Sharing with Resource Partners for Disaster Assistance
This provision requires the SBA to include links to resource partner websites in its disaster information communications. Crucially, it mandates that the SBA make all disaster-related information available to its resource partners. This enables resource partners to amplify public awareness regarding relevant information and assist disaster loan applicants more effectively.
Section 2(a)(3) amending Section 40(a)(2)(D) of the Small Business Act (15 U.S.C. 657l(a)(2)(D)) and Section 2(b) amending Section 12073(c) of the Small Business Disaster Response and Loan Improvements Act of 2008 (15 U.S.C. 636h(c)).
Formal Integration of Resource Partners into Disaster Coordination and Planning
This provision updates existing law to explicitly include SBA resource partners in the agency's guidelines for coordinating with other federal, state, local, and regional authorities during disaster response. It also adds resource partners to the list of entities with whom the SBA must coordinate its disaster planning activities, formalizing their role in preparedness efforts.
A resource partner providing assistance outside its service area during a disaster must, 'to the maximum extent practicable,' ensure continuity of services in its own primary service area.
Section 2(a)(1), adding new subsection 4(i)(3) to the Small Business Act.
Why it matters:This clause is a necessary operational safeguard, addressing a practical concern that arises from the primary policy change. It's standard legislative practice to include such mitigating provisions rather than an attempt to hide something.
Case for: Supporters argue this clause is crucial for preventing a 'robbing Peter to pay Paul' scenario, ensuring that while disaster areas receive help, the regular services in the assisting partner's home region are not unduly disrupted.
Case against: Critics might argue that 'to the maximum extent practicable' is vague and could allow for insufficient attention to home-area services if disaster demands are high, or that it could limit the willingness of partners to offer extensive out-of-area support.
Estimated impact: This clause aims to mitigate potential negative impacts on small businesses in non-disaster areas served by resource partners, ensuring a more balanced deployment of resources during emergencies.