WASHINGTON — Proposed reforms to the Small Business Administration's disaster loan program, introduced in the Senate in February 2026, would streamline the application process, increase loan limits, and create a fast-track approval pathway for small businesses with fewer than 10 employees — a category that includes the majority of restoration contractors.
The SBA's Economic Injury Disaster Loan program provides low-interest loans to businesses affected by declared disasters, but the program has been criticized for slow processing times and complex application requirements that disadvantage small businesses without dedicated financial staff.
The proposed reforms would increase the maximum EIDL loan amount from $2 million to $5 million for businesses in presidentially declared disaster areas, reflecting the increased cost of business disruption and property damage since the current limits were set.
A fast-track approval pathway for businesses with fewer than 10 employees would use automated underwriting to approve loans of up to $500,000 within 72 hours of application, compared to the current average processing time of 21 to 45 days.
The Restoration Industry Association has endorsed the reforms, noting that small restoration contractors are often among the first businesses to be affected by a disaster — losing equipment, vehicles, and facilities — and among the last to receive assistance under the current program's processing timeline.
