WASHINGTON – United States Senator Mary L. Landrieu, D-La., today introduced the Small Business Disaster Recovery Improvement Act, which would create a short-term, low-interest loan program at the U.S. Small Business Administration (SBA) to help businesses impacted by major disasters. Senate Committee on Small Business and Entrepreneurship Chairman John Kerry, D-Mass., Ranking Member Olympia Snowe, R-Maine, and Committee member David Vitter, R-La., are co-sponsors.

"After major disasters, small businesses cannot afford to wait for SBA Disaster Loans to be processed," Sen. Landrieu, a member of the Small Business Committee said. "Hurricanes Katrina and Rita forced many of Louisiana's businesses to shut down because they could not get the immediate assistance they needed. This legislation will give the SBA the flexibility it needs to grant short-term low interest loans to keep ailing small businesses afloat until they are able to get a longer-term disaster loan. As this year's hurricane season approaches, we must ensure that the SBA is equipped to handle disasters so that local businesses can keep their doors open without having to wait for a bureaucratic loan process."

The Small Business Disaster Recovery Improvement Act, also included in a larger SBA Disaster Reforms bill re-introduced at the start of the 110th Congress, would allow the SBA to make immediate, short-term loans to allow businesses to make payroll, begin repairs and continue operating until they receive regular SBA Disaster Loans or insurance payment. The Expedited Disaster Assistance Loans cannot exceed 180 days after the disaster, have no prepayment penalty and can be refinanced as part of any subsequent SBA Disaster Loans.

"Timely financial assistance is critical after a disaster so that businesses can recover and prosper once again. I applaud Sen. Landrieu's tireless advocacy and leadership on this issue and am pleased to cosponsor her legislation to give SBA the tools to cut red tape and get aid out quickly. As Chairman of the Committee on Small Business and Entrepreneurship, I will work with Sen. Landrieu to pass these provisions as part of comprehensive bipartisan disaster loan legislation as soon as possible," said Sen. Kerry.

"As we've learned in recent years, when hurricanes, tornadoes, floods and other disasters hit, it's critical that SBA have the capacity to provide low-interest, short-term loans to help hard-hit businesses recover, rebuild and re-open their doors as quickly as possible," Sen. Snowe said. "This measure will ensure that SBA is more flexible in helping keep businesses operating when they need help the most."