Federal disaster loans from the Small Business Administration would face new transparency rules under this Senate bill. The SBA Administrator would have to send Congress monthly reports on disaster loan operations year-round (not only during active major disasters), flag the dates when funding will drop below 10 percent of the 10-year average, and explain any changes to budget estimates. If the report is late, no agency funds can pay for the Administrator's official travel until it is filed. The bill also requires the President's annual budget to show SBA disaster loan and COVID-EIDL loan costs separately against 10-year averages. When unobligated funds fall below 10 percent of the recent average, the Administrator must notify Congress within 24 hours and may cap new loans at the secured-collateral level until Congress appropriates more money. A Government Accountability Office study and an SBA Inspector General review of the 2024 funding shortfall are required, and the new low-funding limits sunset 4 years after enactment.
Average Household Impact
- disaster loan amounts — capped at collateral-required level when funds run low
Transparency & Accountability
- SBA monthly disaster loan reports — required outside major-disaster periods
- budget disclosures — 10-year-average cost comparisons added to President's budget
- GAO and Inspector General reviews — mandated on 2024 funding shortfall
- Administrator travel funds — blocked when monthly reports are late
- low-funding obligation cap — sunsets 4 years after enactment
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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