YourVoice.Now Summary
Your MoneyTransparency & AccountabilityWould let the SBA cap disaster loan payouts when money runs low, and require 24-hour warnings to Congress.
Your Money
The 14-day clock starts when Congress approves the new money. The SBA must then commit and pay out the rest of each capped loan on a set schedule.
If the SBA's unspent disaster loan money drops below 10 percent of its 10-year average yearly cost, the head of the SBA may cap each new loan. The cap holds a loan to the size where the SBA starts asking for collateral, and the rest waits for new funding.
Transparency & Accountability
Today the SBA reports monthly only while a major disaster is active. These reports would run year-round and add the date funding hits 10 percent of the last appropriation and the date it runs out.
The clock starts when unspent loan funds fall below 10 percent of the 10-year average yearly cost. Four congressional committees must hear about it within 24 hours.
If the monthly report is late, no federal money may pay for the SBA Administrator's official travel. The block lifts as soon as the report is filed.
Each year the President's budget would list SBA disaster loan and COVID-EIDL costs on their own lines. It must also explain any gap between the request and the 10-year average.
The Government Accountability Office would report on how fast disaster loans reach homeowners and businesses. A second report would price two SBA rules from 2023 and 2024 that raised loan limits and eased collateral terms.
The SBA's inspector general would examine why disaster loan money ran short in late 2024. The review must cover missed warnings to Congress, weak internal controls, and an agency reorganization.
The low-funding notice and the loan cap both end four years after the law takes effect. Congress would have to renew them to keep them in place.
More about this bill
If you borrow from the Small Business Administration after a disaster, part of your loan could be delayed. When the agency's loan fund drops below 10 percent of its 10-year average, the head of the SBA could cap each new loan. The cap would hold each loan to the size where the SBA starts requiring collateral. Once Congress adds money, the SBA would have to pay out the rest within 14 days. This power would end four years after the law takes effect. Warnings to Congress would come earlier. The SBA would have to notify four congressional committees within 24 hours of the fund falling that low. Monthly reports on the disaster loan program would run year-round, not just during major disasters. Each report would name the date funding hits 10 percent and the date it runs out. If a report is late, no federal money could pay for the Administrator's official travel. The President's yearly budget would list SBA disaster loan costs on their own lines. It would have to explain any gap from the 10-year average. Outside auditors would report on how fast loans reach homeowners and businesses. They would also price two SBA rules from 2023 and 2024 that raised loan limits. The SBA's inspector general would review why the loan fund ran short in late 2024, with findings due in 180 days.
Congressional Summary
Disaster Loan Accountability and Reform Act or the DLARAThis bill modifies the Small Business Administration (SBA) disaster loan program and requires external review of, and reporting on, the program.First, the bill requires the SBA to report monthly on the operation of the disaster loan program. (Currently, the SBA must report only during the applicable period for a major disaster.) The report must estimate the date on which available funding for such loans will reach 10% of the most recent appropriation and the date on which the funds will be depleted.Second, the President's annual budget must include separate statements regarding the appropriations request for SBA disaster loans and COVID-19 Economic Injury Disaster Loans (EIDL), including explanations for any difference between the amount requested and the 10-year average cost for such loans.Third, for a period of four years, the SBA must notify Congress when the unobligated balance of amounts available for disaster loans is less than 10% of the 10-year average annual cost provided in the most recent Presidential budget. At such point, the SBA may limit disaster loans to collateralized amounts.Finally, the bill requires additional oversight of the disaster loan program, includinga Government Accountability Office report on the disbursement of disaster loans and the effect of specified SBA rules on home lending limits,an SBA Office of Inspector General review of recent funding shortfalls for disaster loans, andan SBA report on improvements for forecasting the cost of disaster loans.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Reported to Senate
- Action Date
- 2025-03-04
- Date Added
- 2026-05-15
- Source
- Congress.gov →
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