Bill > HR4238

This bill, known as the Disaster Loan Accountability and Reform Act (DLARA), aims to enhance oversight and transparency of the Small Business Administration's (SBA) disaster loan program. Key provisions include requiring the SBA Administrator to provide more detailed monthly reports on disaster loans, including specific dates for when funding will reach 10% of appropriations and when it will be depleted, and to report any changes to estimates or assumptions. Failure to submit these reports on time will prohibit the Administrator from using funds for official travel. The bill also mandates that budget requests for SBA disaster loans and COVID-EIDL (Economic Injury Disaster Loan) loans, including administrative costs, must separately state the requested amount, the 10-year average cost, and explain any discrepancies. Furthermore, it requires the SBA Administrator to notify Congress within 24 hours if the funds for direct disaster loans fall below 10% of the 10-year average annual cost. The bill also directs the Government Accountability Office (GAO) to report on the rate at which SBA disaster loans are obligated, the average amounts disbursed to borrowers, and the average amounts of fully disbursed loans. Additionally, the GAO will analyze the cost and subsidy effects of recent changes to disaster loan program rules. Finally, the SBA Administrator must submit a report detailing planned corrections to improve forecasting, data quality, and budget assumptions for disaster loans, followed by regular updates on the implementation of these corrections.