Bill Overview
Title: Disaster Assistance for Rural Communities Act
Description: This bill authorizes the Small Business Administration (SBA) to declare a disaster in rural areas where significant damage has been incurred for the purpose of providing certain assistance. A rural area is a county or political subdivision designated as such by the Census Bureau. Significant damage means uninsured losses of not less than 40% of the fair replacement value or pre-disaster fair market value of the damaged property (whichever is less). For a rural area where the President has declared a major disaster, the SBA may declare a disaster for the purpose of providing economic injury disaster loans if (1) the state or tribal government wherein the rural area is located requests the declaration; and (2) any home, small business, private nonprofit organization, or small agricultural cooperative has incurred significant damage. The Government Accountability Office must report on (1) any unique challenges to communities in rural areas compared to communities in urbanized areas when seeking economic injury disaster assistance, and (2) any legislative recommendations for improving access to disaster assistance for communities in rural areas.
Sponsors: Sen. Risch, James E. [R-ID]
Target Audience
Population: Individuals in Rural Areas Worldwide
Estimated Size: 60000000
- The bill is targeted at rural communities as defined by the Census Bureau, indicating a focus on non-urban populations.
- Rural areas globally have populations engaged primarily in agriculture or residing outside major urban centers.
- Globally, approximately 44% of the world's population lived in rural areas as of recent estimates (about 3.5 billion people as of 2022).
- These populations include people living in small towns, villages, and rural communities dependent on small businesses and agriculture for their livelihoods.
Reasoning
- The policy is intended to address disasters in rural areas where traditional urban access to disaster assistance is limited or inappropriate. Thus, the interviews should reflect this by focusing on rural dwellers, particularly small business owners, farmers, and individuals at risk of significant natural disasters such as floods, hurricanes, or wildfires.
- The budget constraint along with the target of 60,000,000 rural Americans means the policy will need to be selective, focusing on those with the most uninsured losses and difficulty accessing current assistance. This helps prioritize individuals with significant damage impacting their livelihoods.
- Since rural areas have higher proportions of individuals in farming and small businesses, understanding the challenges in these communities, including insurance gaps and barriers to economic recovery, is crucial. This needs to be reflected in the types and occupations of the individuals interviewed.
Simulated Interviews
farmer (Kansas)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- The new policy might be a game-changer for us small farmers. Last year, we lost nearly half our crops due to drought and none of it was covered by insurance. Any extra help would make a big difference.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 5 | 2 |
small business owner (West Virginia)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- My café was almost wiped out by the recent floods, and insurance did not cover a lot of the damages. This SBA assistance is crucial. Otherwise, I might have to close down.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 3 |
| Year 5 | 6 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
retired miner (Montana)
Age: 60 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- I've seen a lot of friends lose what little they had due to wildfires. This policy could provide them some much-needed relief and maybe even help rebuild some community places.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 3 |
| Year 3 | 4 | 3 |
| Year 5 | 3 | 2 |
| Year 10 | 3 | 2 |
| Year 20 | 3 | 1 |
nonprofit manager (Louisiana)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 12/20
Statement of Opinion:
- This bill could significantly boost our efforts by providing more targeted recovery funds. However, navigating government support processes can be a challenge.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
grain elevator operator (Iowa)
Age: 54 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- If this policy can help stabilize the local economy after disasters, it would prevent a chain reaction that could affect not just farmers but all of us in supply chain businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
artist (Vermont)
Age: 39 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- Getting hit by a hurricane was a massive blow. The proposed assistance could help us get back on our feet, even support local art projects. But will it reach freelance artists effectively? That's a concern.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 3 |
| Year 10 | 5 | 2 |
| Year 20 | 3 | 2 |
rancher (California)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Running a ranch here is getting harder each fire season. Assistance after a declaration would help cover some of our yearly losses—essential if we're to continue ranching.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 3 |
small fishing business operator (Alaska)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 5/20
Statement of Opinion:
- We're often cut off from the usual support systems due to our location. This assistance might ease the pressure during times we can't operate due to severe conditions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
local government official (Maine)
Age: 43 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- The Disaster Assistance policy could significantly improve our ability to implement timely and effective recovery strategies, though we need to ensure funds are distributed fairly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 4 |
teacher (Texas)
Age: 31 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 14/20
Statement of Opinion:
- Recovery after hurricanes can be slow, and our school's resources are stretched thin as it is. This policy might provide some relief and stability for our community and the children.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $500000000 (Low: $400000000, High: $600000000)
Year 3: $500000000 (Low: $400000000, High: $600000000)
Year 5: $500000000 (Low: $400000000, High: $600000000)
Year 10: $500000000 (Low: $400000000, High: $600000000)
Year 100: $500000000 (Low: $400000000, High: $600000000)
Key Considerations
- The frequency and intensity of natural disasters impacting rural areas will significantly influence the annual cost and savings estimates.
- Participation rates in the SBA's economic injury disaster loan program are variable and can affect total expenditure.
- The cooperation level of state and tribal governments in declaring such disasters will impact implementation.