DLARA

This bill would increase oversight of the Small Business Administration (SBA) disaster loan program by requiring monthly operational reports and specific notifications to Congress when available funding drops below certain thresholds. It proposes that the President’s annual budget include detailed justifications for disaster loan funding requests compared to historical averages and would restrict the SBA Administrator’s official travel funds if reporting deadlines are missed. Additionally, the measure would mandate Government Accountability Office audits on loan disbursements and require the SBA to report on efforts to improve its budget forecasting and data quality.

This bill primarily affects the Small Business Administration (SBA), specifically the SBA Administrator and personnel involved in the disaster loan program's reporting and budgeting. The Government Accountability Office (GAO) is also affected as it is tasked with conducting new oversight reports on loan disbursements and rule costs. Additionally, the President is required to provide more detailed budget statements regarding appropriations for disaster loans and COVID-19 Economic Injury Disaster Loans (EIDL).

• Monthly disaster loan program reporting. The Small Business Administration (SBA) must provide monthly reports on the disaster loan program, including estimated dates for when available funding will reach 10% of its appropriation and when funds will be fully depleted.
• Travel funding restrictions for the SBA Administrator. If the SBA fails to submit the required monthly reports by the deadline, the agency is prohibited from obligating funds for the SBA Administrator's official travel until the reporting requirement is met.
• Budget request transparency and historical comparisons. The President's annual budget must include separate appropriation requests for SBA disaster loans and COVID-19 Economic Injury Disaster Loans, with explanations for any deviations from the 10-year average cost of those loans.
• Congressional notification of low funding levels. The SBA is required to notify Congress when the unobligated balance for disaster loans falls below 10% of the 10-year average annual cost identified in the most recent presidential budget.
• Enhanced GAO and SBA oversight reports. The Government Accountability Office must report on loan disbursements and the costs of specific SBA rule changes, while the SBA must report on its efforts to improve data quality and budget forecasting for disaster loan costs.

• H.R. 4238, Disaster Loan Accountability and Reform Act or DLARA
  Jun 16, 2026 · As reported by the House Committee on Small Business on June 11, 2026

This bill modifies the Small Business Administration (SBA) disaster loan program by expanding monthly reporting requirements and adding new oversight mandates for the SBA and the Government Accountability Office. It also amends the requirements for the President's annual budget request to include specific justifications and comparisons to 10-year average costs for SBA disaster loans and COVID-19 Economic Injury Disaster Loans (EIDL).

The bill aims to enhance the oversight and financial transparency of the Small Business Administration's (SBA) disaster loan program by requiring more frequent operational reporting, detailed budget justifications, and proactive notifications regarding funding depletion. It also seeks to improve program management through independent audits of loan disbursements and internal reviews of forecasting and data quality.