A bill to amend the Small Business Act to reduce the interest rates on disaster-related loans under such act and to provide for the cancellation of a portion of principal and interest payments with respect to certain such loans.

[AI summary unavailable — showing source text] Amends the Small Business Act to reduce to three percent per annum the interest rate on the Small Business Administration's share of any loan made necessary because of floods, riots or civil disorders, or disaster or economic injury affecting small business concerns. Allows a qualified borrower, with respect to a loan concerning any home which is damaged as a result of a major disaster, to elect to have a portion of the principal and interest on such loan canceled. Specifies a formula by which the amount of such loan such borrower may elect to cancel may be determined. Disallows any such cancellation when such borrower transfers such home to any person not a member of his family. Stipulates that no election may be made or amount canceled in any year the Administrator determines such borrower exceeds the maximum permissable income.…