DLARA

Summary

Strengthens oversight, reporting, and budget transparency for the SBA disaster loan program and COVID-EIDL loans, requires reviews by the SBA Inspector General and the Government Accountability Office, and limits certain loan forgiveness, collection relief, and rulemaking authority without Congressional approval. It adds new budget disclosure requirements for the President’s budget, requires the SBA to notify Congress quickly when loan-funding reserves fall below 10%, and creates reporting and progress requirements for correcting forecasting and data issues.

• Requires an SBA Inspector General review of a recent disaster loan funding shortfall and recommendations within 180 days.
• Mandates SBA corrective plans and progress reports on forecasting, data quality, and budget assumptions, starting within 30 days of enactment.
• Strengthens monthly disaster loan reporting to Congress, including dates when funding reaches 10% and when funds will be depleted.
• Requires two new budget disclosures in the President’s budget for SBA disaster and COVID-EIDL loan costs and administrative costs with 10-year averages and explanations.
• Prohibits SBA forgiveness or suspension of collection on certain debts without Congressional authorization and routes barred discharge requests to Treasury.
• Requires 24-hour congressional notice when unobligated loan-cost funds fall below 10%; restricts obligating funds beyond collateral-covered amounts until new appropriations.
• Removes CDC-style emergency authority to raise uncollateralized loan thresholds in major disasters and bans SBA rules that would increase program cost.
• Directs GAO to analyze cost and subsidy impacts of recent SBA rule changes to disaster loan terms and report within one year.