Washington, D.C. — Last night, the Disaster Loan Accountability and Reform Act was approved by the Senate Small Business Committee with bipartisan support and sent to the Senate floor for consideration.
The bill is led by Senator Ted Budd (R-NC), Chair Joni Ernst (R-IA), Senator Thom Tillis (R-NC), and Senator Tim Scott (R-SC).
The legislation strengthens oversight, financial safeguards, and transparency within the Small Business Administration’s disaster loan account.
Key provisions include:
- Requires detailed monthly reports on funding status, assumptions, and depletion estimates, with penalties for non-compliance.
- Requires budget requests follow a 10-year program average for disaster loan subsidy and administrative costs.
- Limits unsecured loan thresholds when funding falls below 10% of the 10-year average cost of the program.
- Directs comprehensive reviews of recent funding shortfalls and program inefficiencies, with actionable recommendations for improvement.
Senator Budd said in a statement:
“As we learn the lessons from Hurricane Helene and the federal response, it’s imperative that we improve disaster response in a fiscally responsible way. My bill adds much-needed accountability, transparency, and oversight to SBA’s disaster loan account. I thank my colleagues for joining this effort to help those in need, while protecting the integrity of taxpayer dollars.”
Chair Ernst said:
“SBA’s mismanagement resulted in the disaster loan program running out of money for 66 days last year. This unacceptable failure left disaster victims across the country out in the cold. By advancing this legislation, the Senate Committee on Small Business and Entrepreneurship is ensuring that more Americans in need can get critical relief as soon as possible after disaster strikes.”
Senator Tillis said:
“Small businesses across Western North Carolina were hit hard by Hurricane Helene, and it’s our responsibility to ensure they have the resources to recover and rebuild. This legislation will enhance oversight, tighten financial controls, and eliminate wasteful spending by instituting clear reporting and budgeting standards. It’s essential that we not only support our small businesses during times of crisis, but also uphold the highest levels of accountability to ensure those resources are available when urgently needed.”
Senator Tim Scott said:
“Far too long have government agencies gone unchecked when dealing with taxpayer dollars. The Disaster Loan Accountability and Reform Act will implement the necessary measures to ensure that hard-earned tax dollars are used in the American people’s best interest and that Congress has a say in any financial decision from the Small Business Administration. I am grateful for Senator Budd’s efforts on this legislation.”
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