Disaster Assistance for Rural Communities Act
Dec 20, 2022
Statute: 136 Stat. 2350
Became law: Dec 20, 2022
Dec 20, 2022
Statute: 136 Stat. 2350
Became law: Dec 20, 2022
Summary
Allows the Small Business Administration to give disaster loans to rural areas after a major disaster, even if they did not get other federal help.
What problem does this solve?
Sometimes after a big disaster, rural areas suffer major damage but don't qualify for certain types of federal aid. This law creates a new way for them to get disaster loans from the Small Business Administration.
What does this law do?
New disaster declaration authority for rural areas
Allows the head of the Small Business Administration to declare a disaster in a rural area if the governor or a tribal leader asks for it and there is significant damage.
Defines 'significant damage'
Sets a clear rule for what counts as major damage. It means uninsured losses are at least 40 percent of the property's value before the disaster.
Requires annual SBA reporting to Congress
Makes the Small Business Administration give a report to Congress every year about disaster requests from rural areas and any rule changes that affect them.
Mandates a GAO report on rural disaster aid
Tells the Government Accountability Office to study the special problems rural areas have when trying to get disaster help and suggest ways to make it better.
Who does this affect?
- Rural communities
- Small businesses in rural areas
- State and Tribal governments
What is the real world impact?
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Provides a lifeline for rural communities
Creates a new way for rural homes and small businesses to get disaster loans when they suffer major damage but don't qualify for other types of individual federal aid.
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Increases government oversight
Requires the Small Business Administration and the Government Accountability Office to report to Congress. This helps lawmakers see if the program is working and what challenges rural areas face.
When does this start?
This law sets several deadlines for government agencies to take action within the first year.
SBA regulations
The Small Business Administration must create new rules to follow this law within 120 days of it passing.
First annual SBA report
The Small Business Administration must give its first yearly report on rural disaster help to Congress within 120 days of the law passing.
GAO report
The Government Accountability Office must finish its study on disaster aid for rural areas within one year of the law passing.