Sponsors (2)
The bill expands SBA‑backed loans to help homeowner associations and condo communities repair and harden shared residential common areas after disasters—improving recovery and mitigation—but increases federal exposure and may still leave some large or already‑capped communities underfunded or facing higher costs if rates rise.
Homeowners in homeowner associations and condominium communities can obtain SBA‑guaranteed loans (up to $2M for qualifying entities; $500K for others) to repair shared residential common areas after a disaster, enabling recovery of communal infrastructure.
Homeowners and renters in disaster-impacted areas can access SBA mitigation loans to implement measures that protect previously damaged property, reducing future risk to homes and common areas.
Borrowers (communities and homeowners) benefit from loan terms up to 30 years and deferment options similar to existing SBA disaster loans, lowering near-term payment burdens during recovery.
Taxpayers may face increased federal financial exposure because the SBA will guarantee loans for community repairs and mitigation, raising potential government liabilities after disasters.
Some homeowners and associations may still lack sufficient access to funds because existing statutory loan limits and the $500,000 cap for non-major employers could be reached or be insufficient for large condominium associations or extensive common-area damage.
Borrowers’ long‑term costs could rise because interest rates are tied to U.S. public debt plus 0.25%, meaning higher federal interest rates would increase repayment burdens.
Based on analysis of 2 sections of legislative text.
Authorizes an SBA-guaranteed loan program for homeowner/condo associations to repair residential common areas and fund disaster-area mitigation.
Official title: To amend the Small Business Act to establish a program under which the Small Business Administration may make supplemental disaster loans to homeowner associations to repair common areas damaged by disasters and implement disaster mitigation measures, and for other purposes.
Introduced June 4, 2026 by Darren Michael Soto · Last progress June 4, 2026
Creates a new SBA-guaranteed loan program that lets the Small Business Administration, working with lenders, make loans to homeowner associations, condominium associations, and similar "covered entities" to repair residential common areas and fund mitigation in recently declared disaster areas. The loans supplement existing SBA business loan authority, include borrower exposure caps, a defined interest rate formula, up to 30-year terms, limited collateral waivers for very small loans, and deferment options tied to existing SBA rules. The program defines eligible borrowers and covered repair/mitigation uses, sets eligibility tied to certain disaster declarations or a governor certification, and specifies loan limits and key terms. It does not appropriate new funds but authorizes SBA to guarantee these loans under amended Small Business Act authority.