What does Preamble of DLARA do?

This bill is formally titled 'To improve accountability in the disaster loan program of the Small Business Administration, and for other purposes.'

What does SHORT TITLE. of DLARA do?

This bill is formally titled the Disaster Loan Accountability and Reform Act.

What does DEFINITIONS. of DLARA do?

This section defines terms used within the Act. The terms 'Administration' and 'Administrator' refer to the Small Business Administration and its Administrator, respectively. “Appropriate committees of Congress” are defined as specific committees in both the Senate and the House of Representatives. An 'SBA disaster loan' is defined as a direct loan authorized by section 7(b) of the Small Business Act, excluding loans authorized under section 1110 of the CARES Act.

What does MONTHLY DISASTER LOAN REPORTS. of DLARA do?

This section amends Section 12091(a) of the Small Business Disaster Response and Loan Improvements Act of 2008. Paragraph (1) of Section 12091(a) is modified by removing phrases related to major disasters. Subparagraph (E) of paragraph (2) now requires reporting the dates when available loan funding reaches 10% of the most recent appropriation and when funds will be depleted. Subparagraph (H) of paragraph (2) removes the conjunction 'and'. Subparagraph (I) of paragraph (2) replaces the period with a semicolon. A new subparagraph (J) is added to paragraph (2), requiring a summary detailing changes to estimates or assumptions on obligations and expenditures. A new paragraph (3) is added, prohibiting official travel by the Administrator if the required monthly disaster loan report is not submitted on time.

What does BUDGET REQUEST RELATING TO DISASTER LOANS. of DLARA do?

This section amends Section 1105 of Title 31, United States Code. It requires separate statements in budget requests regarding appropriations for SBA disaster loans and COVID-EIDL loans, including the requested amount, the 10-year average cost, and an explanation of any differences. Similar statements are required for administrative costs related to SBA disaster loans and COVID-EIDL loans. The term 'COVID-EIDL loan' is defined as a direct loan under section 7(b) of the Small Business Act authorized under section 1110 of the CARES Act. The term 'SBA disaster loan' is defined as a direct loan authorized by section 7(b) of the Small Business Act, excluding loans authorized under section 1110 of the CARES Act.

What does LIMITATIONS ON DISASTER LOANS. of DLARA do?

This section amends Section 7(b) of the Small Business Act to establish limitations on disaster loans when funding is low. If the unobligated balance for direct loans falls below 10% of the 10-year average annual cost, the Administrator must notify Congress within 24 hours. During a period after notification and before additional funding is appropriated, the Administrator may limit loan obligations to those requiring collateral. If additional funding is appropriated, the Administrator must obligate and disburse any remaining loan amounts within 14 days. This section includes a sunset provision, rescinding the new paragraph (17) four years after the Act's enactment. The Comptroller General must submit a report to Congress within one year of enactment if the Administrator exercises the authority to limit loan obligations, assessing the impact of the amendments.

What does GAO REPORT ON SBA DISASTER LOAN ACCOUNT. of DLARA do?

This section requires the Comptroller General of the United States to submit a report to the Administrator and Congress within 180 days of the Act's enactment. The report must detail the average weekly rate of obligating unobligated funds for SBA disaster loans. It also requires reporting on the average amount disbursed weekly to borrowers during specific periods (October 1, 2015 - July 31, 2023 and July 31, 2023 - enactment date), categorized by loan type (home, business, economic injury). The report must include the average amount of fully disbursed SBA disaster loans originated during the latter period, also separated by loan type. The Administrator must respond to the report and provide an implementation plan for any recommendations within 90 days of the report's submission.

What does GAO REPORT ON DISASTER LOAN CHANGES. of DLARA do?

This section requires a report from the Comptroller General of the United States regarding changes to the Disaster Assistance Loan Program. The report must be submitted to Congress within one year of the Act's enactment. The report will analyze the cost of increased home loan lending limits and other modifications made by specific final rules. The report will also assess the effect on the subsidy for these loans due to the final rule changes.

What does SBA INSPECTOR GENERAL REVIEW. of DLARA do?

This section mandates a review by the Inspector General of the Administration (IGA) regarding a funding shortfall related to Small Business Act (SBA) section 7(b) direct loans. The review will consider letters from President Biden and the SBA Administrator dated October 4, 2024, and October 10, 2024, respectively. The IGA's review must identify any statutory reporting failures to Congress concerning the shortfall. The review will analyze the reasons for any significant divergence in the use of covered amounts from their intended purpose. The IGA will assess the accuracy of projections and estimates related to these divergences. The review will also examine internal controls for managing covered amounts. The impact of any Administration reorganization, particularly the transfer of authority to the Office of Capital Access, on the funding shortfall will be analyzed. The IGA must identify actions to improve the accuracy of presidential submissions under 31 U.S.C. 1105(a), prevent future shortfalls, and improve reports to Congress under 15 U.S.C. 636k(a). The IGA can include any other relevant matters in the review. The IGA must submit a report containing the review's findings to Congress within 180 days of the Act's enactment.

What does BUDGET AND FORECASTING REPORT REGARDING THE COST OF DIRECT of DLARA do?

This bill, formally titled 'A BILL To improve accountability in the disaster loan program of the Small Business Administration, and for other purposes,' requires the Administrator to submit a report to Congress within 30 days of enactment detailing corrections to improve forecasting, data quality, and budget assumptions related to Small Business Administration (SBA) disaster loans. The initial report must address improvements to forecasting, data quality, and budget assumptions for SBA disaster loan costs. Following the initial report, the Administrator must submit updates every 90 days until all corrections are implemented. These updates must detail actions taken to implement the corrections and explain how each action relates to specific corrections outlined in the initial report.

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DLARA

Last updated: 3/4/2025 · Introduced: 1/29/2025

Author: Ted Budd (R-NC)

TL;DR (AI)

The bill mandates monthly reports from the Small Business Administration (SBA) detailing disaster loan funding levels and changes to cost estimates, with potential travel restrictions for the Administrator if reports are late.
It requires separate budget request statements for SBA disaster loans and COVID-EIDL loans, including cost projections and explanations of any differences.
During periods of low funding, the SBA Administrator must limit disaster loan obligations to those requiring collateral and promptly notify Congress.
The bill directs the Government Accountability Office (GAO) to report on the SBA’s disaster loan obligating and disbursement rates, and to analyze the impact of recent loan program modifications.
The SBA Inspector General must review a recent funding shortfall for disaster loans, identifying reporting failures, analyzing the reasons for the shortfall, and recommending improvements to projections and reporting to Congress.

119th Congressin committeeOfficial page

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