Disaster Loan Accountability and Reform Act

Floor Speech

Mr. Speaker, SBA loans provide long-term, low-interest capital to homeowners, renters, entrepreneurs, and nonprofits after declared disasters, playing a critical role in Federal disaster response and recovery.

In 2024, several major hurricanes made landfall in the U.S., crippling not only our communities but SBA's disaster loan fund, as well.

On October 15, 2024, the agency announced its disaster loan funds had been exhausted, and it couldn't approve or disburse new loans until Congress appropriated extra money delaying much-needed relief to the affected areas.

Ultimately, this failure was caused by a lack of communication from the SBA to Congress. They failed to submit required reports on the disaster program, and they didn't give Congress enough notice to replenish the funds. That is why the Disaster Loan Accountability Reform Act, or DLARA, is necessary.

This bill would expand SBA disaster loan notice and reporting requirements, create specific budget line items for disaster loans, and direct the U.S. Government Accountability Office to study how previous rulemaking has impacted the speed of disaster loan disbursement.

I commend Representatives Davis and Moore of North Carolina, as well as Ms. Goodlander, Ms. King-Hinds, and Mr. Meuser for working together on this critical issues.

Mr. Speaker, I urge members to support this bill, as amended, and I reserve the balance of my time.

Mr. WILLIAMS OF Texas.

Mr. MOORE of North Carolina. Mr. Speaker, I will first start off with thanking my colleague on the other side of the aisle for his support on this. It is great when we can do bipartisan things, particularly on such subject matter.

I rise today in support of my bill, the Disaster Loan Accountability and Reform Act. When Hurricane Helene struck western North Carolina and so many other States, small businesses were on the front lines of recovery.

They stepped up to serve their communities and support their neighbors. They led, in a lot of ways, the response when it was needed most.

When disaster hits, speed matters.

Delays can determine whether businesses reopen or whether homes are repaired. The longer it takes for a community to rebuild, the greater the strain on the local economy.

That is why the Small Business Administration's Disaster Loan Program is so important.

It provides low-interest, long-term loans that help homeowners and businesses recover, rebuild, and get back on their feet.

Unfortunately, a few years ago, the SBA failed to notify Congress that the disaster loan account was running dangerously low on funds.

So what happened?

As a result, the program experienced a 66-day funding shortfall. What that did, Mr. Speaker, was leave homeowners and small businesses unable to access critical disaster assistance when they needed it most.

Hurricane Helene exposed serious weaknesses in the oversight and management of this account. We should learn from these failures rather than allowing them to be repeated.

That is why I introduced this bill. It strengthens oversight, increases transparency, and also puts in place even better financial safeguards within the Small Business Administration's disaster loan program.

These reforms are going to help ensure that Congress receives timely information, that resources are managed responsibly, and that disaster assistance remains available when Americans need it, not after it is too late.

Homeowners and small businesses cannot afford delays after a disaster. This ensures that the Federal Government is better prepared to respond quickly, effectively, and responsibly when disaster strikes.

Mr. Speaker, I urge my colleagues to support this bill.

Mr. Speaker, DLARA would make numerous bipartisan reforms to the SBA disaster loan program, like expanded notice and reporting requirements, separate budget line items, and professional evaluations of the program's administration in light of recent rule changes.

This bill will go a long way to ensure that the disaster loan account does not run out of funds again and that disaster victims receive assistance in a timely manner.

Mr. Speaker, I urge all Members to support the bill, and I yield back the balance of my time.

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