ASCEND Act of 2019

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 277) to adjust collateral requirements under the Small Business Act for disaster loans, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on the measure under consideration.

Mr. Speaker, I yield myself such time as I may consume.

I rise today in support of H.R. 277, the Access to Sufficient Capital for Everyone in Natural Disaster Areas Act, also called the ASCEND Act.

However, before we get to the substance of the bill, I want to thank the ranking member, Ranking Member Chabot, and his staff, for working in a bipartisan way on this package of bills.

I also would like to thank all our Members, both Republican and Democrat, for their hard work and continued bipartisan commitment to putting small businesses first. It is, once again, a reminder of the importance of working across the aisle and getting things done for the American people.

Being the only committee dedicated solely to the needs of small firms, we remain committed on working to promote policies that will encourage economic prosperity on Main Street.

Access to capital is essential for business success, and it is particularly true after a natural disaster. That is why I rise in support of H.R. 277, the ASCEND Act, which will permanently set the unsecured credit threshold for SBA's disaster loans at $25,000.

The SBA's Disaster Assistance program was implemented to provide timely financial assistance in the form of low-interest loans and working capital for businesses and homeowners devastated by a disaster.

Continual improvement and modernization of the program has been a priority of our committee for many years. And as we continue to experience increased disasters, both in frequency and strength, it is imperative Congress provides the necessary policies to get communities back on their feet.

One of those policies originated in the 114th Congress as part of a bill introduced by Chairwoman Nydia Velazquez, H.R. 208, the Recovery Improvements for Small Entities After Disaster Act of 2015, the RISE Act. That law raised the collateralization threshold on disaster loans to make it easier for victims to obtain capital to rebuild their homes and businesses. Unfortunately, this provision will expire this year, so Congress must act.

H.R. 277 permanently raises the minimum disaster loan amount that the SBA may require collateral from $14,000 to $25,000. This means that a disaster victim can continue to receive a $25,000 loan, rather than just $14,000, within 5 days of closing to speed up the reconstruction project.

Raising the unsecured loan amount provides support for Americans when they need it most. And for smaller businesses, time and again, we have seen that in the aftermath of a disaster, access to affordable credit can make the difference between remaining in business or closing their doors and putting Americans out of work.

Without this legislation, the unsecured loan limit for agency declarations will revert to the lower limits and create an unfair discrepancy for disaster survivors in areas of an SBA declaration and that of a major disaster declaration.

I thank Ranking Member Chabot for cosponsoring this legislation, which allows more borrowers to access loans without having to put up collateral. I urge Members to support this bipartisan piece of legislation.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I have no further speakers, and I am prepared to close.

I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

There is little doubt that natural disasters result in economic hardship for the people living in those communities. And no matter the scope or the cause of a disaster, the first few weeks are critical to a small firm's recovery.

H.R. 277 seeks to provide that lifeline by permanently increasing the collateralization threshold to $25,000 and giving peace of mind to disaster victims. This legislation is a much-needed response to the record-breaking disasters of the past 2 years, the impacts of which are still being felt in various parts of the country.

It is a commonsense move, and one supported by the Small Business Administration. In a report assessing the SBA Disaster Loan Program, the SBA recommended that an increase in the unsecured loan limit for disaster loans should be made permanent.

The agency, again, stated as much in congressional testimony at a hearing held last September before our committee and in its fiscal year 2020 budget and legislative proposals.

Again, I thank Ranking Member Chabot for his support, and I urge my colleagues to support the bill.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

I rise in support of H.R. 277, the Access to Sufficient Capital for Everyone in Natural Disaster Areas Act of 2019, as also known as the ASCEND Act.

I want to thank the gentleman from New York, as well as the chairwoman of the committee, Ms. Velazquez, for their bipartisan cooperation on the committee. It is probably one of the most, if not the most, bipartisan committee in Congress. We really do work together on behalf of small business; so I would like to thank the gentleman and, as always, Ms. Velazquez.

When natural disasters strike the Nation, the U.S. SBA, the Small Business Administration, leads the government's long-term recovery efforts through its Disaster Loan Program. This program, which offers low-interest and fixed-rate financing to individuals and businesses, helps communities and neighborhoods as they recover and rebuild.

To assist disaster victims quickly and efficiently, the SBA offers an initial unsecured loan disbursement of $25,000 to qualified victims. However, after November, that was going to drop to 14,000, and this reduced loan level would conflict with the disbursement levels attributed to all other declared disasters.

Immediately after a catastrophe, and when victims need help the most, loan levels across the SBA's Disaster Loan Program should be clear and consistent. So H.R. 277, this bill, codifies the $25,000 unsecured loan limit for Physical Damage Loans under an SBA Agency disaster declaration.

I would, again, like to thank my colleagues on the other side of the aisle for their cooperation in attaining this effort, and I urge my colleagues to support the ASCEND Act.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

This commonsense legislation passed out of our committee unanimously and will allow the SBA to be nimbler and more responsive to survivors of a natura disaster, so I would urge my colleagues to support it.

I yield back the balance of my time.