"Velázquez Probes SBA Disaster Relief During Hearing"
Summary
A release dated December 16, 2025 on a House Committee on Small Business full committee hearing titled "American Resilience: Examining SBA Disaster Assistance Programs." It quotes Ranking Member Nydia M. Velázquez (D-NY) on SBA's low-interest disaster loans and the need for oversight of SBA disaster programs as extreme weather events become more frequent and more expensive. The committee heard testimony from Chris Stallings, Associate Administrator for SBA's Office of Disaster Recovery and Resilience. Members raised concerns about SBA's preparedness as staffing reductions, funding lapses and budget cuts for the Federal Emergency Management Agency could add strain. Congressman Derek Tran (D-CA) says assistance should follow need, not politics, and lawmakers cite funding shortfalls after back-to-back hurricanes in 2024 that temporarily halted new disaster loan approvals.
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Velázquez Probes SBA Disaster Relief During Hearing December 16, 2025 WASHINGTON — Today, the House Committee on Small Business held a full committee hearing entitled “American Resilience: Examining SBA Disaster Assistance Programs,” exploring how the Small Business Administration (SBA) delivers disaster loans to help small businesses, homeowners, renters, and nonprofits recover from floods, fires, hurricanes, and other emergencies. During the hearing, Ranking Member Nydia M. Velázquez (D-NY) underscored the critical role SBA disaster assistance plays in helping communities rebuild as extreme weather events become more frequent and more costly. She emphasized that SBA’s low-interest disaster loans are often the largest source of federal recovery assistance for survivors, particularly small businesses struggling to stay afloat after a disaster. “Whether you believe in climate change or not, the data is clear: extreme weather events are becoming more frequent and more expensive,” said Ranking Member Velázquez. “When disaster strikes, small businesses need timely, reliable support to reopen their doors, keep workers on payroll, and rebuild their communities. That’s why strong oversight of SBA’s disaster programs is so important.” As of late 2025, the SBA has been deployed in dozens of active disaster zones nationwide, managing billions of dollars in disaster lending to support recovery efforts following devastating floods, wildfires, and severe storms. Members raised concerns about whether the agency is adequately prepared to meet growing demand, particularly as staffing reductions, funding lapses, and budget cuts for the Federal Emergency Management Agency could place more strain on SBA’s disaster programs. The Committee heard testimony from Chris Stallings, Associate Administrator for SBA’s Office of Disaster Recovery and Resilience, on the agency’s current disaster relief efforts. Members raised concerns about the politicization of disaster assistance and stressed that relief must be distributed equitably to all communities. “For many of my constituents and my colleague’s constituents, the SBA’s Disaster Assistance Programs are not an abstract policy debate. They were the difference between reopening their doors or shutting them forever,” said Congressman Derek Tran (D-CA), Ranking Member of the Subcommittee on Oversight, Investigations, and Regulations. “When wildfires, floods, or hurricanes hit, small businesses and families need fast, fair, and reliable help. They need to know that disaster assistance will show up based on need—not based on politics, not based on what state they live in, and not based on who they voted for.” Lawmakers also highlighted the need to ensure that future disasters do not result in delays like those seen after back-to-back hurricanes in 2024, when funding shortfalls temporarily halted new disaster loan approvals. “As disasters grow more intense and more common, we cannot afford gaps in federal disaster response,” Velázquez said. “We must continue our oversight of this program and ensure the policies and procedures in place prevent future lapses. Congress has the responsibility to ensure the SBA is fully prepared to deliver relief quickly and fairly, so communities can recover and rebuild stronger.”
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