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119-s-300119th CongressWALLET

DLARA

Sponsored By: Senator Budd, Ted [R-NC]

In Committee

Summary

Stronger transparency and funding controls for SBA disaster loans. This bill would tighten reporting, require clearer budget disclosures, and add funding triggers and oversight for Small Business Administration direct disaster loans and CARES-era COVID Economic Injury Disaster Loans (COVID-EIDL).

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  • Small businesses and disaster borrowers would face new safeguards and limits: if the program's unobligated balance falls below 10 percent of the 10-year average annual cost, the SBA must notify key committees within 24 hours and can limit new loan obligations while ensuring outstanding loan disbursements are obligated within 14 days after new appropriations.
  • Oversight and program data would increase: monthly reports must include expanded detail, GAO must produce an account report within 180 days and a rule-change cost review within one year, and the Administrator must respond with an implementation plan within 90 days of the GAO account report.
  • Budgeting and agency fixes would be forced into regular cycles: the President's budget would show 10-year average costs and administrative costs for SBA disaster and COVID-EIDL loans and the SBA must submit an initial corrective-action report within 30 days followed by updates every 90 days until corrections are complete.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Loan limits when SBA disaster funds low

If enacted, the SBA would have to tell key House and Senate committees within 24 hours when its disaster loan fund falls below 10 percent of the 10‑year average cost. From the first business day after that notice until Congress adds money, the SBA would be able to limit new direct disaster loans to only those that require collateral. If the SBA used this limit, it would have to obligate and disburse any remaining outstanding loan amounts within 14 days after new funds are appropriated. Monthly reports would also have to say when funds will hit 10 percent and when they will run out. The travel budget for the Administrator would be frozen until any overdue monthly report is filed.

Inspector General review of SBA shortfall

If enacted, the SBA Inspector General would review the recent funding shortfall described in specified Presidential and Administrator letters. The IG would check for missed required reports, explain why obligations or spending diverged from plans, test projection accuracy, describe internal controls, and analyze any reorganizations. The IG would also list actions the SBA can take to avoid future shortfalls. The IG report must be sent to the appropriate committees within 180 days of enactment.

New SBA budget and reporting rules

If enacted, the President's budget would have to show separate statements for SBA disaster loan costs and COVID‑EIDL costs. Each statement would include the amount requested, the 10‑year average, and an explanation for any difference. The SBA Administrator would also have to send a corrections plan within 30 days and update it every 90 days until fixes are done. The bill would add clear definitions for terms like 'SBA disaster loan' and 'COVID‑EIDL loan' for these reports.

GAO reviews of SBA loan rules

If enacted, the Government Accountability Office would send several reports to Congress. Within 180 days GAO would report on how fast the SBA obligates and disburses disaster loans and the average weekly disbursements to borrowers in the first 12 weeks. The SBA would have 90 days to give an implementation plan responding to that report. Within 1 year GAO would also assess the cost effects of two recent SBA final rules and, if the low‑funding limit is used, GAO would assess the actual impacts of that limit.

Sponsors & CoSponsors

Sponsor

Budd, Ted [R-NC]

NC • R

Cosponsors

  • Sen. Ernst, Joni [R-IA]

    IA • R

    Sponsored 1/29/2025

  • Sen. Scott, Tim [R-SC]

    SC • R

    Sponsored 1/29/2025

  • Sen. Tillis, Thomas [R-NC]

    NC • R

    Sponsored 1/29/2025

  • Sen. Husted, Jon [R-OH]

    OH • R

    Sponsored 2/24/2025

  • Sen. Justice, James C. [R-WV]

    WV • R

    Sponsored 2/24/2025

  • Sen. Young, Todd [R-IN]

    IN • R

    Sponsored 2/24/2025

  • Sen. Risch, James E. [R-ID]

    ID • R

    Sponsored 2/24/2025

  • Sen. Shaheen, Jeanne [D-NH]

    NH • D

    Sponsored 2/24/2025

  • Sen. Kennedy, John [R-LA]

    LA • R

    Sponsored 4/9/2025

Roll Call Votes

No roll call votes available for this bill.

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