A bill to provide that, with respect to disaster loans made by the Small Business Administration in connection with the Johnstown flood of July 1977, $5,000 of each such loan shall be canceled and the interest rate shall be reduced to 1 percent.

Directs the Administrator of the Small Business Administration to cancel $5,000 of each disaster loan made in connection with the Johnstown, Pennsylvania, flood of 1977 and to reduce the rate of interest on the remaining balance to one percent per annum. Requires applications for such loans to have been submitted by October 1, 1977, in order to be eligible for such reductions.