DLARA (H.R. 4238)

Summary

Creates stricter reporting and budget rules for the Small Business Administration's disaster loan program to improve how it is managed and funded.

What problem does this solve?

The government sometimes struggles to predict how much money is needed for disaster loans, which can cause funding to run low unexpectedly. This bill requires more detailed reports and better planning to make sure money is available for people affected by disasters.

What does this bill do?

Requires more detailed monthly reports

Changes current law to require monthly disaster loan reports to include the date when available funds are expected to drop to 10% and when they will run out completely.

Bans official travel for late reports

Stops the Administrator of the Small Business Administration from using government money for official travel if a required monthly report is not submitted on time.

Mandates specific budget requests

Requires the President's budget to show how much money is requested for disaster loans compared to the average cost over the last 10 years, with an explanation for any difference.

Creates a low-funding alert system

Requires the SBA Administrator to notify Congress within 24 hours after the money available for disaster loans drops below 10% of the 10-year average annual cost.

Orders a GAO report on loan spending

Directs the Government Accountability Office (GAO) to study and report on how quickly the SBA is spending disaster loan funds and the average loan amounts given to borrowers.

Orders a GAO report on recent loan rule changes

Requires the GAO to report on the financial cost and effects of recent rule changes made to the disaster loan program in 2023 and 2024.

Requires a plan to improve budget forecasting

Directs the SBA to create a plan to fix its methods for predicting disaster loan costs and to report to Congress on its progress every 90 days.

Who does this affect?

Small Business Administration (SBA)
Small businesses and homeowners applying for disaster loans
U.S. Congress

What is the real world impact?

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Increases congressional oversight

Requires the Small Business Administration (SBA) to send detailed monthly reports and budget plans to Congress. This gives lawmakers more information to watch over the agency's spending and management of disaster loan funds.

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Prevents funding shortages for disaster aid

Forces the SBA to warn Congress when disaster loan funds are running low. This early warning system helps prevent situations where there isn't enough money to help people and businesses after a disaster.

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Pressures the SBA administrator to comply

Includes a rule that stops the head of the SBA from traveling on official business if required reports are not submitted on time. This could be seen as a way to publicly pressure the agency's leader to follow the new rules.

When does this start?

This bill sets several deadlines for reports and actions that begin after it becomes law.

Low funding notification

The SBA Administrator must notify Congress within 24 hours of disaster loan funds dropping below a specific threshold.

Budget forecasting improvement plan

Within 30 days of the bill becoming law, the SBA must submit a report on how it will improve its budget forecasting.

Forecasting progress reports

Starting 90 days after the bill becomes law, the SBA must provide progress reports every 90 days on its forecasting improvements.

GAO report on loan account

The Government Accountability Office (GAO) must submit a report on the SBA disaster loan account within 180 days of the bill becoming law.

SBA response to GAO report

The SBA Administrator must submit a response and implementation plan within 90 days of receiving the GAO's report on the loan account.

GAO report on loan changes

The GAO must submit a report on recent changes to the disaster loan program within one year of the bill becoming law.