S300-119

What This Bill Does

The Disaster Loan Accountability and Reform Act focuses on SBA's direct disaster loan program. It requires recurring monthly reports, separate budget-request statements on disaster loan appropriations and expected costs, limits SBA's ability to forgive disaster loans without congressional authorization, restricts rules that increase disaster-loan costs without budget support, orders GAO reports on the disaster loan account and recent program changes, requires an SBA Inspector General review of covered loan-cost amounts, and requires a budget and forecasting report on the cost of direct disaster loans.

Who Benefits and How

Congressional small business committees benefit from regular disaster-loan data, cost forecasts, and reports that make SBA's disaster portfolio easier to oversee. Federal taxpayers benefit from restrictions on loan forgiveness and cost-increasing rules that are not authorized or budgeted. SBA disaster loan applicants benefit indirectly if better forecasting prevents backlogs, funding gaps, or abrupt policy changes. GAO and SBA Inspector General offices benefit from explicit review mandates and access to disaster-loan cost information.

Who Bears the Burden and How

SBA must produce monthly reports, budget statements, cost forecasts, and implementation information. SBA disaster assistance staff must track loan amounts, subsidy costs, rules, and program changes in more detail. Disaster loan borrowers face tighter limits on forgiveness unless Congress authorizes it. SBA policy offices face restrictions on issuing disaster-loan rules that increase costs without satisfying the bill's requirements.

Key Provisions

• Requires monthly reports on SBA disaster loans.
• Requires separate budget statements for disaster-loan appropriations, subsidy costs, and program needs.
• Limits SBA disaster-loan forgiveness unless Congress authorizes it.
• Restricts cost-increasing disaster-loan rules.
• Requires GAO reports on disaster-loan accounts and program changes.
• Requires SBA Inspector General review and a budget forecasting report on direct disaster-loan costs.