Sponsors (2)
The bill speeds and simplifies SBA disaster-loan processing for small businesses by allowing direct IRS data access, but increases exposure of sensitive tax information and creates risks to confidentiality and public trust.
Small business owners applying for SBA disaster loans will get eligibility decisions faster because SBA can directly verify income and tax status using IRS return data.
Applicants (and taxpayers) will face fewer repeated documentation requests and lower administrative burden because SBA can use IRS data directly to verify information.
Taxpayers' confidential tax return information will be shared with SBA employees, increasing privacy and confidentiality risks for applicants.
Broader IRS data sharing raises risk that records could be misused, retained longer than necessary, or accessed without authorization if controls lapse.
Erosion of taxpayer trust in tax-return confidentiality could discourage some eligible small-business owners or taxpayers from applying for assistance.
Based on analysis of 2 sections of legislative text.
Authorizes Treasury to disclose IRS return info to SBA for applicants seeking SBA disaster loans and limits SBA use to eligibility determinations.
Official title: To amend the Internal Revenue Code of 1986 to require the disclosure of return information to the Small Business Administration for the purposes of carrying out the Disaster Loan Program.
Introduced September 10, 2026 by Analilia Mejia · Last progress September 10, 2026
Allows the Treasury Secretary to share IRS tax return information with the Small Business Administration (SBA) when the SBA Administrator requests it in writing for applicants seeking SBA disaster loans. The disclosure is limited: SBA may use the tax return information only to determine eligibility for section 7(b) disaster loans, and the change applies to disclosures made after the law takes effect. The change is a narrow expansion of IRS disclosure authority to speed and support SBA disaster loan eligibility determinations while restricting downstream use of the tax data to loan-eligibility purposes.