Section 1 Short title
This Act may be cited as the “Disaster Loan Equity for Territories Act of 2024”.
Disaster Loan Equity for Territories Act of 2024
A BILL
To amend the Small Business Act to establish requirements relating to the submission of tax returns or tax return transcripts for a disaster loan, and for other purposes.
Sec. 2 Disaster loan tax requirements
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is amended—
by redesignating the second paragraph (16) (relating to statute of limitations) as paragraph (17); and
by inserting after paragraph (17), as so redesignated, the following new paragraph:
“(18) Tax return requirement
“(A) In general—The Administrator shall require an applicant for a loan under this subsection to submit a tax return or tax return transcript before approval of such loan.
“(B) Exception—Notwithstanding subparagraph (A), the Administrator shall provide conditional loan approval to an applicant who is a resident of a territory and does not pay Federal income taxes if loan proceeds will not be disbursed to the applicant until the applicant submits a tax return or tax return transcript from the relevant tax agency of the territory in which the applicant resides.
“(C) Facilitation—The Administrator shall facilitate the request of an applicant to the Internal Revenue Service or the relevant tax agency for the tax return or tax return transcript of the applicant that is made for the purposes of this paragraph.
“(D) Territory defined—In this paragraph, the term territory means American Samoa, Guam, the Commonwealth of Puerto Rico, the Northern Mariana Islands, or the United States Virgin Islands.”