[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4238 Placed on Calendar Senate (PCS)]
<DOC>
Calendar No. 448
119th CONGRESS
2d Session
H. R. 4238
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 24, 2026
Received; read twice and placed on the calendar
_______________________________________________________________________
AN ACT
To improve accountability in the disaster loan program of the Small
Business Administration, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Disaster Loan Accountability and
Reform Act'' or the ``DLARA''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
Sec. 4. Monthly disaster loan reports.
Sec. 5. Budget request relating to disaster loans.
Sec. 6. Limitations on disaster loans.
Sec. 7. GAO report on SBA disaster loan account.
Sec. 8. GAO report on disaster loan changes.
Sec. 9. Budget and forecasting report regarding the cost of direct
disaster loans.
SEC. 3. DEFINITIONS.
In this Act--
(1) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(2) the term ``appropriate committees of Congress'' means
the Committee on Small Business and Entrepreneurship and the
Committee on Appropriations of the Senate and the Committee on
Small Business and the Committee on Appropriations of the House
of Representatives; and
(3) the term ``SBA disaster loan'' means a direct loan
authorized by section 7(b) of the Small Business Act (15 U.S.C.
636(b)), other than a loan that was authorized under section
1110 of the CARES Act (15 U.S.C. 9009).
SEC. 4. MONTHLY DISASTER LOAN REPORTS.
Section 12091(a) of the Small Business Disaster Response and Loan
Improvements Act of 2008 (15 U.S.C. 636k(a)) is amended--
(1) in paragraph (1)--
(A) by striking ``during the applicable period for
a major disaster''; and
(B) by striking ``for that major disaster'';
(2) in paragraph (2)--
(A) in subparagraph (E), by striking ``how long the
available funding for such loans will last'' and
inserting ``the date at which available funding for
such loans will reach 10 percent of the most recent
appropriation and the date at which the funds will be
depleted'';
(B) in subparagraph (H), by striking ``and'' at the
end;
(C) in subparagraph (I), by striking the period at
the end and inserting ``; and''; and
(D) by adding at the end the following:
``(J) a summary detailing any changes to estimates
or assumptions on obligations and expenditures,
including data supporting these changes.''; and
(3) by adding at the end the following:
``(3) Prohibition on official travel.--If the Administrator
does not submit a report required to be submitted under
paragraph (1) by the required date, no funds are authorized to
be appropriated for official travel by the Administrator until
the Administrator submits the report.''.
SEC. 5. BUDGET REQUEST RELATING TO DISASTER LOANS.
Section 1105 of title 31, United States Code, is amended--
(1) in subsection (a), by adding at the end the following:
``(39) separate statements of--
``(A) the amount of appropriations requested for
the fiscal year for which the budget is submitted for
the cost of SBA disaster loans, the 10-year average of
the cost of SBA disaster loans, and an explanation for
any difference between the amount requested and the 10-
year average cost; and
``(B) the amount of appropriations requested for
the fiscal year for which the budget is submitted for
the cost of COVID-EIDL loans, the 10-year average of
the cost of COVID-EIDL loans, and an explanation for
any difference between the amount requested and the 10-
year average cost.
``(40) separate statements of--
``(A) the amount of appropriations requested for
the fiscal year for which the budget is submitted for
administrative costs relating to SBA disaster loans,
the 10-year average of such administrative costs, and
an explanation for any difference between the amount
requested and the 10-year average costs; and
``(B) the amount of appropriations requested for
the fiscal year for which the budget is submitted for
administrative costs relating to COVID-EIDL loans, the
10-year average of such administrative costs, and an
explanation for any difference between the amount
requested and the 10-year average costs.''; and
(2) by adding at the end the following:
``(j) In paragraphs (39) and (40) of subsection (a)--
``(1) the term `COVID-EIDL loan' means a direct loan under
section 7(b) of the Small Business Act (15 U.S.C. 636(b)) that
was authorized under section 1110 of the CARES Act (15 U.S.C.
9009); and
``(2) the term `SBA disaster loan' means a direct loan
authorized by section 7(b) of the Small Business Act (15 U.S.C.
636(b)), other than a loan that was authorized under section
1110 of the CARES Act (15 U.S.C. 9009).''.
SEC. 6. LIMITATIONS ON DISASTER LOANS.
Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) is
amended--
(1) by redesignating the second paragraph designated as
paragraph (16), relating to statute of limitations, as added by
the COVID-19 EIDL Fraud Statute of Limitations Act of 2022
(Public Law 117-165; 136 Stat. 1363), as paragraph (18); and
(2) by inserting after paragraph (16), relating to disaster
declarations in rural areas, as added by the Disaster
Assistance for Rural Communities Act (Public Law 117-249; 136
Stat. 2350), the following:
``(17) Requirements when funding is low.--Not later than 24
hours after the balance of funds authorized to be appropriated
for the cost of direct loans authorized by this subsection is
less than 10 percent of the 10-year average annual cost
provided in the most recent Presidential budget request
required under section 1105(a)(39)(A) of title 31, United
States Code, or, if unavailable, the 10-year average annual
cost for the immediately preceding 10-year period of SBA
disaster loans (as defined in section 1105(j) of such title),
the Administrator shall notify the Committee on Appropriations
and the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Appropriations and the Committee on
Small Business of the House of Representatives.''.
SEC. 7. GAO REPORT ON SBA DISASTER LOAN ACCOUNT.
(a) Report.--Not later than 180 days after the date of enactment of
this Act, the Comptroller General of the United States shall submit to
the Administrator and the appropriate committees of Congress a report
on--
(1) the average weekly rate at which the Administration
obligates the unobligated balance of amounts available for the
cost of SBA disaster loans;
(2) the average amount, during the periods beginning on
October 1, 2015, and ending on July 31, 2023, and beginning on
July 31, 2023, and ending on the date of enactment of this Act,
respectively, disbursed to a borrower each week, during the
initial 12-week period in which a borrower receives amounts
from an SBA disaster loan, beginning the day after the borrower
accepts their loan, separated by home SBA disaster loan
borrowers, business SBA disaster loan borrowers, and economic
injury disaster loan borrowers; and
(3) the average amount of fully disbursed SBA disaster
loans, originated during the period beginning on July 31, 2023,
and ending on the date of enactment of this Act, with separate
averages for SBA disaster loans delineated by home, business,
and economic injury disaster loans.
(b) Response.--Not later than 90 days after the date on which the
Comptroller General of the United States submits the report under
subsection (a), the Administrator shall submit to the appropriate
committees of Congress a response to the report, including an
implementation plan for any recommendations in the report.
SEC. 8. GAO REPORT ON DISASTER LOAN CHANGES.
(a) Definition.--In this section, the term ``covered final rule''
means--
(1) the final rule entitled ``Disaster Assistance Loan
Program Changes to Maximum Loan Amounts and Miscellaneous
Updates'' (88 Fed. Reg. 39335 (June 16, 2023); RIN 3245-AH91);
or
(2) the final rule entitled ``Disaster Assistance Loan
Program Changes to Unsecured Loan Amounts and Credit Elsewhere
Criteria'' (89 Fed. Reg. 59826 (July 24, 2024); RIN 3245-AI08).
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller General of the United States shall submit to
the appropriate committees of Congress a report on--
(1) the cost (as defined in section 502 of the Federal
Credit Reform Act of 1990 (2 U.S.C. 661a)) of the increase in
the home loan lending limits for, the extension of the
deferment period for, the expansion of mitigation options for,
the modifications to the criteria for determining whether
applicants can obtain credit elsewhere with respect to, the
changes to collateral requirements for, and other changes to
the terms and conditions of loans under section 7(b)(1) of the
Small Business Act (15 U.S.C. 636(b)(1)) made by the covered
final rules; and
(2) the effect on the subsidy for such loans of the changes
contained in the covered final rules.
SEC. 9. BUDGET AND FORECASTING REPORT REGARDING THE COST OF DIRECT
DISASTER LOANS.
(a) Budget Formulation and Forecasting.--Not later than 30 days
after the date of enactment of this Act, the Administrator shall submit
to the appropriate committees of Congress a report detailing
corrections the Administration will make to improve forecasting, data
quality, and budget assumptions relating to budget submissions relating
to amounts made available for the cost of SBA disaster loans.
(b) Updates.--Not later than 90 days after the date of enactment of
this Act, and every 90 days thereafter until the date that is 90 days
after the date on which all the corrections described in subsection (a)
have been implemented, the Administrator shall submit to the
appropriate committees of Congress a report--
(1) detailing the actions the Administration has taken to
implement the corrections described in subsection (a); and
(2) explaining how each action detailed under paragraph (1)
is directly related to implementing 1 or more corrections
described in subsection (a).
Passed the House of Representatives June 23, 2026.
Attest:
KEVIN F. MCCUMBER,
Clerk.
Calendar No. 448
119th CONGRESS
2d Session
H. R. 4238
_______________________________________________________________________
AN ACT
To improve accountability in the disaster loan program of the Small
Business Administration, and for other purposes.
_______________________________________________________________________
June 24, 2026
Received; read twice and placed on the calendar