DLARA
Sponsored By: Senator Budd, Ted [R-NC]
In Committee
Summary
Accountability and funding controls are the bill's central aim. This bill would force clearer reporting and tighter budget controls for SBA disaster loans by separating COVID‑EIDL from other disaster lending and imposing monthly transparency, low‑funding triggers, and GAO and Inspector General reviews.
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- Small business and homeowner borrowers would face tighter limits when program balances run low. If unobligated funds drop below 10% of the 10‑year average, the Administrator could only approve loans up to collateral‑based amounts and must follow a regular disbursement schedule with a 14‑day payout requirement.
- SBA leadership would need to produce mandatory monthly reports, submit an initial budgeting corrections plan within 30 days and recurring progress updates every 90 days until fixes are complete, and face an official travel ban for late monthly reports.
- Congress and taxpayers would get separated budget lines with 10‑year averages for disaster loans and COVID‑EIDL, plus GAO and Inspector General reviews. GAO must report on lending rates and rule costs within 180 days to one year, and the SBA Inspector General must review funding shortfalls and report within 180 days.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Limits on disaster loans for borrowers
This bill would require SBA to notify key congressional committees within 24 hours if disaster loan funds fall below 10% of the 10‑year average. From the first business day after that notice, SBA could limit new direct loans to only the part backed by collateral until Congress provides more money. If the SBA uses the limit, any remaining loan amount must be obligated and disbursed on a regular schedule and paid within 14 days after Congress provides funds. This temporary limit would begin on enactment and expire four years later.
Ban on rules raising disaster loan costs
This bill would bar the SBA from issuing any rule that raises the measured budget 'cost' of its disaster loan program. The ban would begin on the date of enactment and uses the cost definition in federal credit law. If enacted, this could make it harder for future rules to raise borrower costs or the program's subsidy estimates.
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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