A bill to authorize loans under the Small Business Act for economic injury caused by Federal action, to establish criteria for the determination of substantial economic injury under section 7 of the Small Business Act, and for other purposes.

Amends the Small Business Act to set forth specified criteria to be used by the Small Business Administration for determining whether a small business or agricultural cooperative has suffered a substantial economic injury as a result of a disaster or Federal action with respect to the award of economic injury loans. Sets forth the effective date of eligibility for such loans. Prohibits the disapproval of such loans solely on the basis of the indebtedness of the applicant which existed prior to the disaster or Federal action which is claimed to have caused the economic injury.