A bill to amend the Disaster Relief Act of 1974 with respect to certain loan programs.

Provides for the cancellation of disaster and emergency loans up to the amount of $5,000 under the Small Business Act and the Consolidated Farmers Home Administration Act, respectively to the extent that the loss or damage incurred is not covered by insurance and without regard to whether the required financial assistance is otherwise available from private sources.

Provides that the interest on the balance of such loans made to cover losses resulting from a major disaster shall be one percent, and that such loan payments may be deferred.

Authorizes the refinancing of any mortgage or other liens outstanding against the destroyed or damaged property if such property is to be repaired, rehabilitated, or replaced, except that the amount refinanced shall not exceed the amount of physical loss sustained.