H.R. 4238

[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