Protect Our Homes Act

Assistance for Homeowner Associations: Under Section 2, adding subsection (o)(1)(A) to the Small Business Act, loans are provided to covered entities like homeowner associations to make necessary repairs to residential common areas damaged by natural disasters or acts of God. This helps communities recover physically and financially from events like water, wind, or fire damage.

Future Disaster Protection: Under Section 2, adding subsection (o)(1)(B) to the Small Business Act, loans are offered to eligible entities in recent disaster areas to implement measures that protect property from possible future disasters. This allows communities to proactively safeguard their neighborhoods.

Collateral Relief for Smaller Loans: Under Section 2, adding subsection (o)(3)(D) to the Small Business Act, the Administration is prohibited from requiring collateral for program loans of $14,000 or less, or a higher amount in the event of a major disaster. This makes smaller loans more accessible without risking personal property as collateral.

Debt Burden: Under Section 2, adding subsections (o)(1)(A) and (o)(1)(B) to the Small Business Act, communities are taking on loans that must eventually be repaid, which can increase the financial burden on homeowners who make up the membership of these organizations.

Borrowing Limits: Under Section 2, adding subsection (o)(3)(A) to the Small Business Act, the aggregate loan amount is capped at $500,000 for standard borrowers, unless the borrower constitutes a major source of employment in the disaster area. This cap may not be enough to fully cover extensive damages or mitigation projects in larger communities.