Sponsors (20)
The bill increases transparency, oversight, and early-warning signals for SBA disaster lending—helping taxpayers, Congress, and borrowers plan and hold programs accountable—but does so at the cost of added administrative burdens, potential delays or confusion in assistance, and possible changes to loan availability or budgetary costs.
Taxpayers, Congress, and oversight bodies will get far more timely and detailed information about SBA disaster loans (including depletion/exhaustion dates, 90-day status updates, separate budget lines, and a GAO cost estimate), improving accountability of federal disaster-lending spending and enabling informed oversight.
Small-business owners and disaster-affected homeowners will get clearer, more actionable information (separate COVID/EIDL budget figures, depletion alerts, and disbursement-timing data) so they can better plan cash flow, seek alternatives, or prepare for interruptions in disaster assistance.
State and local officials and Congress will gain earlier warning and planning signals (reports that include dates when funding will fall below 10% and regular status updates), enabling better disaster-response planning and coordination.
SBA, OMB, and other agency staff will face substantial recurring administrative and reporting burdens (new reports, 10-year averages, variance explanations, 24-hour notices, and frequent status updates), which could divert staff time from loan processing and direct assistance.
Small-business owners and homeowners may experience reduced loan availability, slower processing, or short-term uncertainty if reporting-driven budget changes, staffing diversion, or implementation changes alter subsidy levels or procedures.
Recipients (small businesses, homeowners, taxpayers) could receive incomplete, confusing, or mistimed depletion notices—especially because the trigger is tied to a 10-year average metric or draft placeholder text—leading to false alarms or missed warnings about funding status.
Based on analysis of 8 sections of legislative text.
Enhances SBA disaster-loan transparency and forecasting: tighter monthly reports, required GAO reviews, 24-hour low-fund notifications, separate budget lines for standard vs COVID-EIDL loans, and corrective-action deadlines.
Official title: Disaster Loan Accountability and Reform Act
Introduced June 27, 2025 by Tim Moore · Last progress June 24, 2026
Requires the Small Business Administration to improve transparency, forecasting, and oversight for its disaster loan programs by strengthening monthly reporting to Congress, adding budget justifications to the President's budget, imposing fast-notice requirements when available loan subsidy funds fall below defined thresholds, and directing GAO studies with required SBA responses and implementation plans. It also ties a limited travel funding prohibition for the SBA Administrator to overdue monthly reports and requires recurring agency updates until forecasting and data-quality corrections are implemented. Implements new budget disclosure lines distinguishing normal SBA disaster loans from COVID-era EIDL loans, mandates GAO reviews of loan disbursement and rule cost effects, and creates notification and internal-response timelines to improve management of unobligated balances and borrower disbursements for home, business, and economic-injury disaster loans.