Summary

Requires the Small Business Administration (SBA) to provide more frequent and detailed reporting to Congress about disaster loan funding, forecasting, and budget assumptions; expands budget-document disclosures on disaster and COVID-EIDL loan costs; and creates temporary authority and reporting requirements intended to prevent or manage funding shortfalls for direct disaster loans. The bill also directs multiple Government Accountability Office (GAO) studies and an SBA Inspector General review to analyze SBA lending and rule changes, and it includes limited penalties for missed reports and a 4-year sunsetting trigger that can restrict new loan obligations if funding falls below a specified threshold.

• Requires rapid, recurring SBA reports to Congress about corrections to forecasting, data quality, and budget assumptions for disaster-loan costs.
• Adds new budget-document disclosures for requested appropriations and administrative costs for both SBA disaster loans and COVID-EIDL loans, with 10-year averages and explanations.
• Creates a temporary 24-hour notification trigger and optional authority to limit new loan obligations when funding falls below 10% of the 10-year average; this authority sunsets after 4 years.
• Imposes a penalty that bars obligating funds for the SBA Administrator’s official travel if certain required monthly reports are late.
• Directs multiple GAO studies (timing, disbursement rates, loan sizes, and fiscal effects of recent rule changes) and an SBA Inspector General review of a recent funding shortfall.
• Requires SBA to respond to GAO findings with an implementation plan within 90 days of the GAO report.
• Does not itself appropriate funds or alter core loan eligibility rules, but creates operational constraints that could slow loan obligations if the funding trigger is reached.
• Includes specific deadlines for reports and reviews (24 hours to 1 year) and a 4-year sunset on the temporary loan-limitation authority.