A bill to provide for a transitional disaster relief program in connection with floods in areas having special flood hazards prior to the time when flood insurance under the National Flood Insurance Act of 1968 as amended is available.

Provides that in the case of any disaster loan made in connection with a major flood disaster determined pursuant to the Disaster Relief Act of 1970, the Secretaty of Agriculture or the Small Business Administration, as the case may be, shall make available to qualified applicants loans at an interest rate of 1 percent.

States that the provisions of this Act apply only if: (1) the disaster results from a flood occurring after the date of enactment of this Act, but prior to the date on which flood insurance under the National Flood Insurance Act of 1968 is made available; and (2) the property with respect to which the loan is made was situated in an area determined to have special flood hazards.