A bill to amend the Small Business Act to reduce the rate of interest on certain disaster loans under such Act.

Amends the Small Business Act to make the following loans available for the relief of small business concerns affected by disasters occurring on or after October 1, 1978: (1) loans bearing interest at three percent for amounts not exceeding $55,000, for the repair or replacement of a principal residence or personal property; and (2) loans bearing interest at five percent on amounts not exceeding $250,000 for relief from major disasters declared by the President or natural disasters determined by the Secretary of Agriculture pursuant to the Consolidated Farm and Rural Development Act.