House Unanimously Passes Congressman Tim Moore's Disaster Loan Accountability and Reform Act to Strengthen SBA Disaster Response
WASHINGTON, D.C. — Today, the U.S. House unanimously passed Congressman Tim Moore’s H.R. 4238, the Disaster Loan Accountability and Reform Act (DLARA). The bipartisan legislation strengthens oversight and transparency within the Small Business Administration’s (SBA) disaster loan program.
Congressman Moore introduced this legislation alongside Congressman Don Davis (D-NC-01).
“Hurricane Helene exposed serious weaknesses in the SBA’s disaster loan program,” said Congressman Moore. “When disaster strikes, Americans deserve a loan program that is transparent, accountable, and financially sound. This bill makes necessary reforms to strengthen financial safeguards, prevent delays, and improve disaster response when our communities need it most."
“By bringing greater transparency and common-sense accountability to the Small Business Administration’s disaster loan program, we can help ensure these loans reach the people who need them most, on time and as promised,” said Congressman Davis. “Farmers, small business owners, and aspiring entrepreneurs are still recovering from Hurricane Helene and other disasters, and they deserve a loan program they can count on.”
Watch Congressman Moore’s floor speech here.
Additional Background:
The SBA Disaster Loan Account provides low-interest long-term loans to businesses, non-profits, and homeowners to support disaster recovery.
After Hurricane Helene struck Western North Carolina, the Biden SBA failed to notify Congress as the Disaster Loan Account reached critically low depletion levels. This resulted in a 66-day funding shortfall in which SBA was forced to shut off disaster lending. This unacceptable lapse prevented disaster victims from receiving assistance when they needed it most.
The Disaster Loan Accountability and Reform Act strengthens oversight of the SBA’s disaster loan program by requiring the agency to provide Congress with more detailed information on program operations and funding needs. The bill also requires the SBA to notify Congress when available funding for future disaster loans falls below 10 percent of the program’s average annual cost over the previous decade.
Additionally, the legislation directs the Government Accountability Office to examine how previous federal regulations impacted disaster loan costs and terms, as well as the program’s historical rates of loan obligation and disbursement.
Senator Ted Budd (R-NC) introduced the companion legislation in the Senate, which passed out of the Senate Small Business Committee unanimously last year.