Castor proposes more disaster recovery funding legislation

U.S. Representative Kathy Castor (FL-14) has introduced the Rebuild & Save Act, a measure aimed at reducing the cost burden on homeowners and small businesses rebuilding after hurricanes and other natural disasters. The legislation proposes an increase in the Small Business Administration’s (SBA) disaster loan mitigation assistance cap from 20 percent to 30 percent, potentially providing up to an additional $50,000 for qualifying building improvements.

Under current SBA programs, homeowners and small business owners may borrow an extra 20 percent of their base loan amount to undertake critical upgrades – such as installing stronger windows or elevating structures – to reduce vulnerability to future storms. The new proposal would expand that margin, offering greater flexibility and financial support for resilient reconstruction efforts in disaster-prone areas like the Tampa Bay region.

Castor emphasized that the measure is rooted in firsthand observations. “Families across the Tampa Bay area who are rebuilding or replacing their homes due to hurricanes and floods need more resources to rebuild in a stronger and smarter way – and to avoid costly damage in the future,” she said in a prepared statement. The representative noted that discussions with local residents following Hurricanes Debby, Helene and Milton highlighted the necessity for additional resources. “Every $1 invested in mitigation saves $6 in future disaster recovery costs,” Castor added, stressing that the enhanced funding would not only help individual households but also reduce long-term taxpayer expenses by decreasing repetitive losses.

Extreme weather events are becoming more frequent and severe. Recent data from the SBA indicates that, as of Feb. 19, over 16,845 low-interest disaster loan offers have been extended to individuals, families and small businesses affected by recent hurricanes, amounting to more than $1.3 billion in total assistance. These figures underscore the significant reliance on federal disaster recovery funding in the wake of natural disasters.

In addition to  Castor’s remarks, local community leaders have echoed the call for enhanced financial support. Courtney Stein, Vice President of the Riviera Bay Neighborhood Association and a real estate professional in St. Petersburg, shared her perspective on the issue. “As a homeowner and a real estate professional in St. Petersburg, I know how important it is to have a home you love in a location you love, but sometimes those locations come with risks,” Stein said. “Our home was flooded in both Hurricane Idalia and Helene, which has been immensely stressful both emotionally and financially, and our story is unfortunately not unique. I heard from countless neighbors and homeowners about the need to increase the Small Business Administration’s loan percentages to effectively build back.”

The Rebuild & Save Act is currently under consideration, with supporters urging congressional colleagues to back the legislation. If passed, it would represent a significant shift in federal disaster recovery policy, potentially decreasing future dependence on emergency relief by fostering more resilient rebuilding practices.

The full text of the bill, along with supplementary details on the allowable uses of mitigation assistance funding, can be viewed via this link.