WASHINGTON — The Independent Community Bankers of America recently urged Congress to pass a pending bill to better enable community bank lenders and the Small Business Administration to respond effectively to disaster financing needs.

House Small Business Committee Chairwoman Nydia Velazquez (D-N.Y.) said the House will be considering the Recover Act of 2007–H.R. 1361, aimed at reforming the Small Business Administration's disaster lending efforts. It would require the SBA to develop and maintain a comprehensive disaster response plan, increase the limits on business loans from $1.5 million to $3 million, and revise collateral requirements so that business owners are not required to pledge their homes for business loans less than $100,000.

"Community banks know their customers best and support them, before, during, and well after a disaster strikes. The Recover Act is a good step in better integrating banks into SBA disaster lending and using the established relationships banks already have in their local communities," said James P. Ghiglieri Jr., ICBA chairman and president of Alpha Community Bank, Toluca, Ill.