Sponsors (20)
Introduced June 27, 2025 by Tim Moore · Last progress June 27, 2025
The bill increases transparency and independent review of SBA disaster‑loan funding—giving taxpayers, Congress, and borrowers better information and opportunities for reform—at the cost of added reporting burdens, possible short‑term administrative costs, and measures (like collateral prioritization) that may reduce equitable access for some small businesses.
Taxpayers and Congress will get clearer, timelier oversight because the SBA must deliver frequent reports, notifications (including 24-hour notices of low funding), and explain cost estimate changes, improving visibility into disaster-loan funding and shortfalls.
Small businesses and local governments will receive better information on loan availability and timing (10‑year averages, when funds hit 10% or will be exhausted, and disbursement timelines), helping recovery planning and cash‑flow management.
Independent reviews (GAO and Inspector General) and mandated SBA implementation plans will diagnose causes and costs of shortfalls and rule changes, producing recommendations to fix internal controls and improve future program delivery.
SBA, OMB, GAO, and IG will incur substantial additional reporting and review workloads that divert staff time from core operations (like loan servicing), potentially slowing disaster-relief delivery.
Taxpayers could face higher short‑term compliance and administrative costs to support the new reporting and review requirements (extra staff, systems, or contractor support).
If the new reports are perfunctory or lack actionable detail, the added reporting burden may not yield real improvements, wasting resources while delaying substantive fixes.
Based on analysis of 17 sections of legislative text.
Tightens SBA disaster-loan accountability: faster, expanded reporting and budget disclosures, GAO/IG reviews, and temporary 10%-threshold authority to limit loan obligations until funds are replenished.
Requires the Small Business Administration to improve forecasting, transparency, and oversight of its disaster loan programs by expanding and accelerating reporting to Congress and OMB, ordering GAO and Inspector General reviews, and creating short-term controls when loan-cost funding falls to low levels. The bill changes budget presentation for disaster loans (including COVID‑EIDL separately), tightens monthly reporting content and timing, and temporarily authorizes the SBA to limit certain loan obligations if available funding drops below a 10% threshold until additional appropriations arrive.