119-s300

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 300 Reported in Senate

    (RS) ]

<DOC>

 Calendar No. 22
119th CONGRESS
 1st Session
 S. 300

 To improve accountability in the disaster loan program of the Small 
 Business Administration, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 January 29, 2025

 Mr. Budd (for himself, Ms. Ernst, Mr. Scott of South Carolina, Mr. 
 Tillis, Mr. Husted, Mr. Justice, Mr. Young, Mr. Risch, and Mrs. 
 Shaheen) introduced the following bill; which was read twice and 
 referred to the Committee on Small Business and Entrepreneurship

 March 4, 2025

 Reported by Ms. Ernst, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
 in italic]

_______________________________________________________________________

 A BILL

 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,

<DELETED>

SECTION 1. SHORT TITLE.</DELETED>

<DELETED> This Act may be cited as the ``Disaster Loan 
Accountability and Reform Act'' or the ``DLARA''.</DELETED>

<DELETED>

SEC. 2. TABLE OF CONTENTS.</DELETED>

<DELETED> The table of contents for this Act is as 
follows:</DELETED>

<DELETED>

Sec. 1. Short title.
<DELETED>

Sec. 2. Table of contents.
<DELETED>

Sec. 3. Definitions.
<DELETED>

Sec. 4. Monthly disaster loan reports.
<DELETED>

Sec. 5. Budget request relating to disaster loans.
<DELETED>

Sec. 6. Limitations on loan forgiveness.
<DELETED>

Sec. 7. Limits on disaster loans.
<DELETED>

Sec. 8. Prohibition regarding SBA rules relating to disaster 
 loans.
<DELETED>

Sec. 9. GAO report on disaster loan changes.
<DELETED>

Sec. 10. SBA Inspector General review.
<DELETED>

Sec. 11. Budget and forecasting report regarding the cost of 
 direct disaster loans.

<DELETED>

SEC. 3. DEFINITIONS.</DELETED>

<DELETED> In this Act--</DELETED>
 <DELETED>

    (1) the terms ``Administration'' and 
 ``Administrator'' mean the Small Business Administration and 
 the Administrator thereof, respectively; and</DELETED>
 <DELETED>

    (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.</DELETED>

<DELETED>

SEC. 4. MONTHLY DISASTER LOAN REPORTS.</DELETED>

<DELETED> 

Section 12091

    (a) of the Small Business Disaster Response 
and Loan Improvements Act of 2008 (15 U.S.C. 636k

    (a) ) is amended--
</DELETED>
 <DELETED>

    (1) in paragraph

    (1) , by striking ``during the 
 applicable period for a major disaster'';</DELETED>
 <DELETED>

    (2) in paragraph

    (2) --</DELETED>
 <DELETED>
        (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'';</DELETED>
 <DELETED>
        (B) in subparagraph
        (H) , by striking 
 ``and'' at the end;</DELETED>
 <DELETED>
            (C) in subparagraph
            (I) , by striking the 
 period at the end and inserting ``; and''; 
 and</DELETED>
 <DELETED>
            (D) by adding at the end the 
 following:</DELETED>
 <DELETED> ``
        (J) a summary detailing any changes to 
 estimates or assumptions on obligations and 
 expenditures, including data supporting these 
 changes.''; and</DELETED>
 <DELETED>

    (3) by adding at the end the following:</DELETED>
 <DELETED> ``

    (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 may be 
 obligated for official travel by the Administrator until the 
 Administrator submits the report.''.</DELETED>

<DELETED>

SEC. 5. BUDGET REQUEST RELATING TO DISASTER LOANS.</DELETED>

<DELETED> 

Section 1105 of title 31, United States Code, is amended--
</DELETED>
 <DELETED>

    (1) in subsection

    (a) , by adding at the end the 
 following:</DELETED>
 <DELETED> ``

    (39) separate statements of--</DELETED>
 <DELETED> ``
        (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</DELETED>
 <DELETED> ``
        (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.</DELETED>
 <DELETED> ``

    (40) separate statements of--</DELETED>
 <DELETED> ``
        (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</DELETED>
 <DELETED> ``
        (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</DELETED>
 <DELETED>

    (2) by adding at the end the following:</DELETED>
<DELETED> ``

    (j) In paragraphs

    (39) and

    (40) of subsection

    (a) --
</DELETED>
 <DELETED> ``

    (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</DELETED>
 <DELETED> ``

    (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).''.</DELETED>

<DELETED>

SEC. 6. LIMITATIONS ON LOAN FORGIVENESS.</DELETED>

<DELETED> 

Section 7 of the Small Business Act (15 U.S.C. 636) is 
amended by adding at the end the following:</DELETED>
<DELETED> ``

    (o) Limitations on Loan Forgiveness.--</DELETED>
 <DELETED> ``

    (1) In general.--The Administrator may not--
 </DELETED>
 <DELETED> ``
        (A) forgive any loan under this section 
 unless Congress has authorized such forgiveness; 
 or</DELETED>
 <DELETED> ``
        (B) compromise on, suspend, or end 
 collections on a debt owed to the Administration 
 pursuant to paragraph

    (2) or

    (3) of 

section 3711

    (a) of 
 title 31, United States Code.</DELETED>
 <DELETED> ``

    (2) Referral of debt.--If the Administrator 
 seeks to discharge a debt and the discharge of such debt is 
 limited under paragraph

    (1) , the Administrator shall refer such 
 debt to the Department of the Treasury for collection action, 
 including a final determination regarding whether to suspend, 
 end, or continue collection of the debt.''.</DELETED>

<DELETED>

SEC. 7. LIMITS ON DISASTER LOANS.</DELETED>

<DELETED>

    (a) Low Funding.--

Section 7

    (b) of the Small Business Act 
(15 U.S.C. 636

    (b) ) is amended--</DELETED>
 <DELETED>

    (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</DELETED>
 <DELETED>

    (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:</DELETED>
 <DELETED> ``

    (17) Requirements when funding is low.--
 </DELETED>
 <DELETED> ``
        (A) In general.--Not later than 24 hours 
 after the unobligated balance of amounts available for 
 the cost of direct loans authorized by this subsection 
 is less than 10 percent of the most recent 
 appropriation for such costs, 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.</DELETED>
 <DELETED> ``
        (B) Limitation on obligating funds.--
 During the period beginning on the first business day 
 occurring on or after the date by which the 
 Administrator is required to notify Congress under 
 subparagraph
        (A) and ending on the date on which 
 additional amounts are appropriated for such costs, the 
 Administrator may not obligate funds for a direct loan 
 authorized under this subsection in an amount that is 
 more than the amount of such a loan for which 
 collateral is required.''.</DELETED>
<DELETED>

    (b) Repeal of Authority To Increase Amount of Loans for 
Which Collateral Is Not Required.--

Section 7
            (d) (6) of the Small 
Business Act is amended by striking ``(or such higher amount as the 
Administrator determines appropriate in the event of a major 
disaster)''.</DELETED>

<DELETED>

SEC. 8. PROHIBITION REGARDING SBA RULES RELATING TO DISASTER 
 LOANS.</DELETED>

<DELETED>

    (a) 

=== Definitions. ===
-In this section:</DELETED>
 <DELETED>

    (1) Cost.--The term ``cost'' has the meaning given 
 the term in 

section 502 of the Federal Credit Reform Act of 
 1990 (2 U.S.C. 661a).</DELETED>
 <DELETED>

    (2) Rule.--The term ``rule'' has the meaning given 
 the term in 

section 551 of title 5, United States 
 Code.</DELETED>
<DELETED>

    (b) Prohibition.--Notwithstanding any other provision of 
law or regulation, beginning on the date of enactment of this Act, the 
Administrator of the Small Business Administration may not issue any 
rule that will result in any increased cost to the program carried out 
under 

section 7

    (b) of the Small Business Act (15 U.S.C. 
636

    (b) ).</DELETED>

<DELETED>

SEC. 9. GAO REPORT ON DISASTER LOAN CHANGES.</DELETED>

<DELETED>

    (a) 

=== Definition. ===
-In this section, the term ``covered final 
rule'' means--</DELETED>
 <DELETED>

    (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</DELETED>
 <DELETED>

    (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).</DELETED>
<DELETED>

    (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 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 a report on--</DELETED>
 <DELETED>

    (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</DELETED>
 <DELETED>

    (2) the effect on the subsidy for such loans of 
 the changes contained in the covered final rules.</DELETED>

<DELETED>

SEC. 10. SBA INSPECTOR GENERAL REVIEW.</DELETED>

<DELETED>

    (a) 

=== Definitions. ===
-In this section--</DELETED>
 <DELETED>

    (1) the term ``covered amounts'' means amounts 
 made available for the cost of direct loans authorized by 
 

section 7

    (b) of the Small Business Act (15 U.S.C. 636

    (b) ); 
 and</DELETED>
 <DELETED>

    (2) the term ``Inspector General'' means the 
 Inspector General of the Administration.</DELETED>
<DELETED>

    (b) Review.--</DELETED>
 <DELETED>

    (1) In general.--The Inspector General shall 
 conduct a review of the circumstances surrounding the funding 
 shortfall with respect to covered amounts, as described in--
 </DELETED>
 <DELETED>
        (A) the letter from President Joseph R. 
 Biden, Jr. entitled ``Letter to Congress on Disaster 
 Needs'', dated October 4, 2024; and</DELETED>
 <DELETED>
        (B) the letter from the Administrator 
 submitted to the Chair and Ranking Members of the 
 Committees on Appropriations of the Senate and the 
 House of Representatives, dated October 10, 
 2024.</DELETED>
 <DELETED>

    (2) Contents.--The review required under paragraph

    (1) shall include the following with respect to the funding 
 shortfall described in that paragraph:</DELETED>
 <DELETED>
        (A) The identification of any reporting or 
 notification requirements in statute that the 
 Administration failed to provide to Congress with 
 respect to the funding shortfall.</DELETED>
 <DELETED>
        (B) The reason for any obligation or 
 expenditure of covered amounts for a purpose that 
 significantly diverged from the purpose for which the 
 covered amounts were made available.</DELETED>
 <DELETED>
            (C) An analysis of the accuracy of 
 projections and estimates relevant to the divergences 
 described in subparagraph
        (B) .</DELETED>
 <DELETED>
            (D) The identification and description of 
 any internal controls in place to manage covered 
 amounts.</DELETED>
 <DELETED>
        (E) An analysis of the impact that any 
 reorganization of the Administration, including the 
 transfer of administrative authority for the program 
 carried out under 

section 7

    (b) of the Small Business 
 Act (15 U.S.C. 636

    (b) ) to the Office of Capital Access 
 of the Administration, may have had with respect to the 
 funding shortfall.</DELETED>
 <DELETED>
        (F) The identification of actions that the 
 Administration can take to--</DELETED>
 <DELETED>
            (i) improve the accuracy of 
 information submitted by the President under 
 

section 1105

    (a) of title 31, United States 
 Code, with respect to the 
 Administration;</DELETED>
 <DELETED>
            (ii) prevent any future funding 
 shortfall with respect to any account of the 
 Administration; and</DELETED>
 <DELETED>
            (iii) improve the report submitted 
 to the appropriate committees of Congress under 
 

section 12091

    (a) of the Small Business Disaster 
 Response and Loan Improvements Act of 2008 (15 
 U.S.C. 636k

    (a) ).</DELETED>
 <DELETED>
        (G) Any other matter determined relevant 
 by the Inspector General.</DELETED>
<DELETED>
            (c) Report.--Not later than 180 days after the date of 
enactment of this Act, the Inspector General shall submit to the 
appropriate committees of Congress a report that contains the findings 
of the review carried out under subsection

    (b) .</DELETED>

<DELETED>

SEC. 11. BUDGET AND FORECASTING REPORT REGARDING THE COST OF 
 DIRECT DISASTER LOANS.</DELETED>

<DELETED>

    (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 direct loans authorized by 

section 7

    (b) of the Small Business Act (15 U.S.C. 636

    (b) ).</DELETED>
<DELETED>

    (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--</DELETED>
 <DELETED>

    (1) detailing the actions the Administration has 
 taken to implement the corrections described in subsection

    (a) ; 
 and</DELETED>
 <DELETED>

    (2) explaining how each action detailed under 
 paragraph

    (1) is directly related to implementing 1 or more 
 corrections described in subsection

    (a) .</DELETED>

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. SBA Inspector General review.

Sec. 10. 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 may be obligated 
 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.

    (a) Low Funding.--

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.--
 ``
        (A) In general.--Not later than 24 hours after 
 the unobligated balance of amounts available 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.
 ``
        (B) Limitation on obligating funds.--During the 
 period beginning on the first business day occurring on 
 or after the date by which the Administrator is 
 required to notify Congress under subparagraph
        (A) and 
 ending on the date on which additional amounts are 
 appropriated for such costs, the Administrator may 
 limit the obligation of funds for a direct loan 
 authorized under this subsection to the amount of such 
 a loan for which collateral is required.
 ``
            (C) Authority to limit obligation of funds.--In 
 carrying out the authority to enact a limitation under
        (B) , the Administrator shall apply that limitation with 
 respect to amounts obligated for all direct loans 
 authorized under this subsection during the period 
 described in subparagraph
        (B) .
 ``
            (D) Requirement to disburse within 14 days.--If 
 the Administrator exercises the authority under
        (B) , 
 the Administrator shall, not later than 14 days after 
 the date on which additional amounts are appropriated 
 under subparagraph
        (B) , obligate and disburse on a 
 regular schedule any remaining amount outstanding on a 
 direct loan authorized under this subsection.''.

    (b) Sunset.--Effective on the date that is 4 years after the date 
of enactment of this Act, 

section 7

    (b) of the Small Business Act (15 
U.S.C. 636

    (b) ) is amended--

    (1) by striking paragraph

    (17) ; and

    (2) by redesignating paragraph

    (18) as paragraph

    (17) .
            (c) Report.--Not later than 1 year after the date of enactment of 
this Act, in the event that the Administrator exercises the authority 
described in paragraph

    (17)
        (B) of 

section 7

    (b) of the Small Business 
Act (15 U.S.C. 636

    (b) ), as added by subsection

    (a) , the Comptroller 
General of the United States shall submit to the appropriate committees 
of Congress a report assessing the actual and potential impact of the 
amendments made by subsection

    (a) during the period covered by the 
report.

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. SBA INSPECTOR GENERAL REVIEW.

    (a) 

=== Definitions. ===
-In this section--

    (1) the term ``covered amounts'' means amounts made 
 available for the cost of direct loans authorized by 

section 7

    (b) of the Small Business Act (15 U.S.C. 636

    (b) ); and

    (2) the term ``Inspector General'' means the Inspector 
 General of the Administration.

    (b) Review.--

    (1) In general.--The Inspector General shall conduct a 
 review of the circumstances surrounding the funding shortfall 
 with respect to covered amounts, as described in--
        (A) the letter from President Joseph R. Biden, Jr. 
 entitled ``Letter to Congress on Disaster Needs'', 
 dated October 4, 2024; and
        (B) the letter from the Administrator submitted to 
 the Chair and Ranking Members of the Committees on 
 Appropriations of the Senate and the House of 
 Representatives, dated October 10, 2024.

    (2) Contents.--The review required under paragraph

    (1) shall include the following with respect to the funding 
 shortfall described in that paragraph:
        (A) The identification of any report or 
 notification required by statute that the 
 Administration failed to provide to Congress with 
 respect to the funding shortfall.
        (B) The reason for any obligation or expenditure of 
 covered amounts for a purpose that significantly 
 diverged from the purpose for which the covered amounts 
 were made available.
            (C) An analysis of the accuracy of projections and 
 estimates relevant to the divergences described in 
 subparagraph
        (B) .
            (D) The identification and description of any 
 internal controls in place to manage covered amounts.
        (E) An analysis of the impact that any 
 reorganization of the Administration, including the 
 transfer of administrative authority for the program 
 carried out under 

section 7

    (b) of the Small Business 
 Act (15 U.S.C. 636

    (b) ) to the Office of Capital Access 
 of the Administration, may have had with respect to the 
 funding shortfall.
        (F) The identification of actions that the 
 Administration can take to--
            (i) improve the accuracy of information 
 submitted by the President under 

section 1105

    (a) of title 31, United States Code, with 
 respect to the Administration;
            (ii) prevent any future funding shortfall 
 with respect to any account of the 
 Administration; and
            (iii) improve the reports submitted to the 
 appropriate committees of Congress under 
 

section 12091

    (a) of the Small Business Disaster 
 Response and Loan Improvements Act of 2008 (15 
 U.S.C. 636k

    (a) ).
        (G) Any other matter determined relevant by the 
 Inspector General.
            (c) Report.--Not later than 180 days after the date of enactment of 
this Act, the Inspector General shall submit to the appropriate 
committees of Congress a report that contains the findings of the 
review carried out under subsection

    (b) .

SEC. 10. 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) .
 Calendar No. 22

119th CONGRESS

 1st Session

 S. 300

_______________________________________________________________________

 A BILL

 To improve accountability in the disaster loan program of the Small 
 Business Administration, and for other purposes.

_______________________________________________________________________

 March 4, 2025

 Reported with an amendment