DLARA
Latest Action
Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 448.
Official Summary
Disaster Loan Accountability and Reform Act or the DLARA This bill modifies the Small Business Administration (SBA) disaster loan program to require additional oversight and reports regarding the program. First, the bill requires the SBA to report monthly on the operation of the disaster loan program. (Currently, the SBA must report only during the applicable period for a major disaster.) The report must estimate the date on which available funding for such loans will reach 10% of the most recent appropriation and the date on which the funds will be depleted. If a report is not submitted by the required date, no funds may be appropriated for official travel by the SBA Administrator until the report is submitted. Second, the President's annual budget must include separate statements regarding the appropriations request for SBA disaster loans and COVID-19 Economic Injury Disaster Loans (EIDL), including explanations for any difference between the amount requested and the 10-year average cost for such loans. Third, the SBA must notify Congress when the balance of amounts available for disaster loans is less than 10% of the 10-year average annual cost provided in the most recent presidential budget. Finally, the bill requires additional oversight of the disaster loan program, including Government Accountability Office reports on the disbursement of disaster loans and the cost of specified SBA rules that modified the loan program; andan SBA report on its actions to improve forecasting, data quality, and budget assumptions for the cost of disaster loans.
GovScope Watchdog™
AI Government Intelligence™The Disaster Loan Accountability and Reform Act (DLARA) proposes changes to the Small Business Administration's (SBA) disaster loan program to increase oversight and transparency. It mandates monthly reporting by the SBA on the status of disaster loan funds, including projections for when funds will be nearly depleted. The bill also requires the President's annual budget to separately detail appropriations for SBA disaster loans and COVID-19 Economic Injury Disaster Loans (EIDL), explaining any differences from historical average costs. Additionally, the SBA must notify Congress when available disaster loan funds fall below a specified threshold. The bill calls for Government Accountability Office (GAO) reports on loan disbursements and the impact of certain SBA rules, as well as an SBA report on improvements in forecasting and budgeting for disaster loans.
DLARA aims to enhance accountability and transparency in the SBA disaster loan program through increased reporting requirements and oversight mechanisms.
- Requires monthly SBA reports on disaster loan program operations, including funding depletion estimates.
- Mandates separate budget statements for SBA disaster loans and COVID-19 EIDL with explanations for funding differences.
- Obligates SBA to notify Congress when disaster loan funds drop below 10% of the 10-year average annual cost.
- Directs GAO to report on disaster loan disbursements and costs related to SBA rule changes.
- Requires SBA to report on efforts to improve forecasting, data quality, and budget assumptions for disaster loans.
['Small Business Administration (SBA)', 'Congress, through improved oversight capabilities', 'Small businesses and individuals seeking disaster loans', 'Government Accountability Office (GAO) in conducting mandated reviews']
['Increased reporting requirements may impose administrative burdens on the SBA.', 'Restrictions on SBA Administrator travel funds could affect agency operations if reports are delayed.', 'The bill does not specify funding sources for the additional oversight activities.', 'Potential challenges in accurately forecasting disaster loan demand and costs.']
The bill is currently in process after passing the House and being received in the Senate, where it has been placed on the Senate Legislative Calendar. It addresses ongoing concerns about transparency and fiscal management of federal disaster loan programs, particularly in light of recent large-scale disasters and the COVID-19 pandemic's economic impact.
Hidden impact flags detected: 2
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['Enhanced transparency may improve congressional and public understanding of disaster loan program funding and usage.', 'More frequent reporting could lead to earlier identification of funding shortfalls, potentially influencing budgetary decisions.', 'Restrictions on travel funds for the SBA Administrator could impact agency leadership engagement and operations if reporting deadlines are missed.']
This bill introduces significant new reporting and oversight requirements intended to increase transparency of the SBA disaster loan program. The linkage of travel fund appropriations to timely reporting is a notable enforcement mechanism. Monitoring the implementation of these provisions will be important to assess their impact on SBA operations and the effectiveness of increased oversight.
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