What This Bill Does
The Disaster Loan Accountability and Reform Act (DLARA) would add new reporting, budget, and notification requirements for the Small Business Administration’s disaster loan program. It would require monthly disaster-loan reports to include when funding is projected to hit 10% of the most recent appropriation and when it will be depleted, plus a summary of changes in assumptions and estimates. The bill also directs the President’s budget to separately show requested appropriations and 10-year average costs for SBA disaster loans and COVID-EIDL loans, and it would require SBA to notify Congress within 24 hours when disaster-loan funding falls below 10% of the relevant 10-year average annual cost. In addition, it orders GAO studies on SBA disaster-loan account usage, recent rule changes, and SBA’s forecasting and budget assumptions.
- Requires monthly SBA disaster-loan reports to show when funding hits 10% of the most recent appropriation and when it will be depleted.
- Adds a report item on changes to obligations and expenditures, with supporting data.
- Bars the SBA Administrator from obligating funds for official travel if a required monthly report is late.
- Amends 31 U.S.C. 1105 to require separate budget statements for SBA disaster loans and COVID-EIDL loans, including 10-year average costs.
- Requires SBA to notify key House and Senate committees within 24 hours when disaster-loan balances fall below 10% of the relevant 10-year average annual cost.
Who This Bill Affects
If you are a small business owner, homeowner, or other borrower who might seek an SBA disaster loan after a hurricane, wildfire, flood, or other declared disaster, this bill is designed to make the program’s funding status more transparent and to alert Congress sooner when money is running low. That could reduce the chance of being surprised by a funding shortfall, but it does not create new loan eligibility or increase loan amounts. It mainly changes how SBA reports, forecasts, and notifies Congress about the disaster-loan account.
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- Disaster borrowers and local communities They may want earlier warning when the SBA disaster-loan account is nearing depletion, because that can affect whether loans are processed smoothly after a major disaster. More detailed reporting could also make it easier to understand whether funding problems are due to real demand or forecasting errors.
- Fiscal watchdogs and budget analysts They are likely to favor the bill’s emphasis on 10-year averages, separate budget statements, and explanations for differences between requested and historical costs. Those provisions make it harder for agencies to obscure cost growth or rely on weak assumptions.
- Members of Congress overseeing SBA spending Appropriators and small-business committee members may support faster notification and better data because it gives them more time to respond if the disaster-loan account is running low. The GAO reports in sections 7 and 8 also provide outside analysis of loan usage and the effects of recent rule changes.
- Small Business Administration administrators and program managers They may object that the bill adds multiple new reporting deadlines, budget displays, and notification triggers that could consume staff time during disaster response. The travel restriction for late reports also creates an enforcement penalty that could be seen as inflexible.
- Disaster recovery advocates focused on speed They may worry that more procedural requirements could slow internal decision-making or encourage overly cautious administration of the loan program. In a disaster setting, they may prefer flexibility over additional layers of reporting and congressional notification.
- Borrowers needing rapid assistance after disasters Some borrowers could fear that tighter funding triggers and public warnings about low balances might make the program feel less reliable, even if the bill is meant to improve oversight. If administrators become more cautious near funding thresholds, processing could become slower at the very moment applicants need help quickly.
Key Implications
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““the date at which available funding ... will reach 10 percent ... and the date at which the funds will be depleted””
SBA would have to give Congress a much clearer warning window about when disaster-loan money is running out. That can help lawmakers act sooner, but it also makes the program’s funding pressure more visible to the public.
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““no funds may be obligated for official travel by the Administrator””
If a required monthly report is late, the Administrator loses authority to spend on official travel until the report is filed. This is a direct enforcement mechanism meant to push timely reporting.
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““separate statements of ... the amount of appropriations requested ... for the cost of SBA disaster loans””
The President’s budget would have to break out disaster-loan costs separately and compare them with 10-year averages. That makes it easier to spot whether requests are rising or falling relative to historical experience.
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““notify the Committee on Appropriations ... and the Committee on Small Business””
When disaster-loan balances fall below the bill’s threshold, Congress must be alerted within 24 hours. That could speed oversight and possible funding action before the account is exhausted.
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““a report on the cost ... of the increase in the home loan lending limits””
GAO would examine the fiscal effect of the 2023 and 2024 disaster-loan rule changes, including higher home-loan limits and changes to collateral and credit-elsewhere criteria. The findings could shape future adjustments to SBA lending rules.
Latest Status
June 11, 2026
Placed on the Union Calendar, Calendar No. 603.
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Ask AI about this billData sourced from api.congress.gov.