H.R. 4238

DLARA

Sponsor: Tim Moore · 19 cosponsors

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Official summary

Written by the Congressional Research Service.

Disaster Loan Accountability and Reform Act or the DLARA

This bill modifies the Small Business Administration (SBA) disaster loan program to require additional oversight and reports regarding the program.

First, the bill requires the SBA to report monthly on the operation of the disaster loan program. (Currently, the SBA must report only during the applicable period for a major disaster.) The report must estimate the date on which available funding for such loans will reach 10% of the most recent appropriation and the date on which the funds will be depleted. If a report is not submitted by the required date, no funds may be appropriated for official travel by the SBA Administrator until the report is submitted. 

Second, the President's annual budget must include separate statements regarding the appropriations request for SBA disaster loans and COVID-19 Economic Injury Disaster Loans (EIDL), including explanations for any difference between the amount requested and the 10-year average cost for such loans.

Third, the SBA must notify Congress when the balance of amounts available for disaster loans is less than 10% of the 10-year average annual cost provided in the most recent presidential budget.

Finally, the bill requires additional oversight of the disaster loan program, including

  • Government Accountability Office reports on the disbursement of disaster loans and the cost of specified SBA rules that modified the loan program; and
  • an SBA report on its actions to improve forecasting, data quality, and budget assumptions for the cost of disaster loans.

Text of the bill

Expand all
Sec. 6. Limitations on disaster loans Changed · Jun 23

Where this section came from

  1. Jun 27, 2025 · Introduced in House Referred to House Committee on the Budget, Jun 27 Referred to House Committee on Small Business, Jun 27
  2. Jun 11, 2026 · Reported in House Marked up by House Committee on Small Business, May 20 Reported by House Committee on Small Business, Jun 11 Committee members' individual votes aren't in our records.
  3. Jun 23, 2026 · Engrossed in House
What changed in the text

… 4 unchanged passages …

(17) Requirements when funding is low. Not later than 24 hours after the unobligated balance of amounts funds available 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.

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What is a markup?

A markup is a committee meeting where members go through a bill and vote on changes before sending it to the full chamber.

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:

Text this section adds to the law

(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.