[Congressional Record Volume 165, Number 118 (Monday, July 15, 2019)]
[House]
[Pages H5805-H5806]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




ACCESS TO SUFFICIENT CAPITAL FOR EVERYONE IN NATURAL DISASTER AREAS ACT 
                                OF 2019

  Mr. DELGADO. 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.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                H.R. 277

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Access to Sufficient Capital 
     for Everyone in Natural Disaster areas Act of 2019'' or the 
     ``ASCEND Act of 2019''.

     SEC. 2. COLLATERAL REQUIREMENTS FOR DISASTER LOANS UNDER THE 
                   SMALL BUSINESS ACT.

       (a) Amendment to the RISE After Disaster Act of 2015.--
     Section 2102 of the RISE After Disaster Act of 2015 (Public 
     Law 114-88) is amended--
       (1) by striking subsections (b) and (c); and
       (2) by striking ``(a) In General.--''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as though enacted as part of the RISE After 
     Disaster Act of 2015.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Delgado) and the gentleman from Ohio (Mr. Chabot) each will 
control 20 minutes.
  The Chair recognizes the gentleman from New York.


                             General Leave

  Mr. DELGADO. 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.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. DELGADO. 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. CHABOT. 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.

[[Page H5806]]

  

  Mr. DELGADO. Mr. Speaker, I have no further speakers, and I am 
prepared to close.
  I reserve the balance of my time.
  Mr. CHABOT. 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.
  Mr. DELGADO. 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.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York (Mr. Delgado) that the House suspend the rules 
and pass the bill, H.R. 277, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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