Disaster Loan Accountability and Reform Act

Key Points

• The bill requires the Small Business Administration to give Congress monthly updates on how much money is left for disaster loans. It specifically requires the agency to predict when funds will drop below 10 percent or run out completely so lawmakers are not surprised by shortages.
• If the head of the Small Business Administration fails to turn in these reports on time, they would be banned from using government money for official travel until the paperwork is finished. This rule is meant to make sure the agency stays on top of its reporting duties.
• The agency would have to change how it asks for money in the yearly budget. They must provide separate cost estimates for regular disaster loans and those related to the pandemic, comparing them to 10-year averages to justify their requests.
• Government watchdogs would investigate recent changes to the program, such as higher loan limits for homeowners and longer wait times before payments start. This helps Congress understand if these changes are making the program too expensive or risky.
• The Small Business Administration must also create a plan to improve how they predict future costs. They would have to report to Congress every 90 days until they have fixed their data and forecasting systems.

Impact Analysis

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