H.R.3557 - To amend the Small Business Act to waive the accrual of interest and payments for certain disaster loans for a year, and for other purposes. (119th Congress)
Summary
H.R.3557 proposes amending the Small Business Act to waive interest accrual and defer payments for certain disaster loans for a 12-month period. This applies to loans made for disasters declared on or after the enactment date. The bill aims to provide immediate financial relief to small businesses affected by disasters.
Expected Effects
If enacted, H.R.3557 would provide temporary financial relief to small businesses recovering from disasters. This would be achieved by reducing the financial burden of disaster loans during the initial recovery period. The waiver of interest and deferral of payments would last for one year from the date the loan is disbursed.
Potential Benefits
- Provides immediate financial relief to small businesses affected by disasters.
- Reduces the burden of loan repayment during the critical recovery period.
- Allows businesses to allocate resources to rebuilding and resuming operations.
- Could lead to faster economic recovery in disaster-stricken areas.
- May prevent some businesses from closing permanently after a disaster.
Potential Disadvantages
- Could increase the overall cost of the disaster loan program in the long term.
- May create a precedent for similar waivers in other loan programs.
- Potential for increased government debt if not offset by other savings.
- May not address the underlying issues that make businesses vulnerable to disasters.
- Could be perceived as unfair to businesses that did not receive disaster loans or those that received loans before the enactment date.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to enact laws that promote economic stability and provide relief to citizens affected by disasters. Article I, Section 8 grants Congress the power to borrow money on the credit of the United States, which implicitly supports the ability to manage and modify loan programs.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).