H. R. 4238, Disaster Loan Accountability and Reform Act — Reported Bill (119th Congress)
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- 407464 2026 06 23 Committee On Small Business Celebrates Seven Commi Att2
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- 2026-06-23
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- 407464 2026 06 23 Committee On Small Business Celebrates Seven Commi Att2
Summary
The reported version of H. R. 4238, the Disaster Loan Accountability and Reform Act, 119th Congress, 2d Session, on Union Calendar No. 603 with Report No. 119–695, Part I. The bill was introduced June 27, 2025 by Mr. MOORE of North Carolina and reported from the Committee on Small Business with an amendment on June 11, 2026, when the Committee on the Budget was discharged. Its sections amend monthly disaster loan reporting, bar official travel by the Administrator when a report is late, and add budget statements on SBA disaster loans and COVID-EIDL loans. Section 6 requires notice to committees within 24 hours when loan funding falls below 10 percent of the 10-year average cost. Sections 7 and 8 direct GAO reports on the disaster loan account and on two final rules, and section 9 requires a forecasting report within 30 days of enactment.
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Union Calendar No. 603
119TH CONGRESS
2D SESSION
H. R. 4238
[Report No. 119–695, Part I]
To improve accountability in the disaster loan program of the Small Business
Administration, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 27, 2025
Mr. MOORE of North Carolina (for himself, Mr. DAVIS of North Carolina, Mr.
EDWARDS, Ms. KING-HINDS, Mr. GIMENEZ, Mr. MURPHY, Mr.
DONALDS, Mr. FRY, Mr. CISCOMANI, Mr. ROUZER, and Mr. WILSON of
South Carolina) introduced the following bill; which was referred to the
Committee on Small Business, and in addition to the Committee on the
Budget, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
JUNE 11, 2026
Additional sponsors: Mr. LAMALFA, Mr. TAYLOR, Mr. HARRIGAN, Mr.
FLOOD, Mr. BEGICH, Mr. SHREVE, Mrs. LUNA, Mr. MEUSER, and Ms.
GOODLANDER
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JUNE 11, 2026
Reported from the Committee on Small Business with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
JUNE 11, 2026
Committee on the Budget discharged; committed to the Committee of the
Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on June 27, 2025]
A BILL
To improve accountability in the disaster loan program of
the Small Business Administration, and for other purposes.
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1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the ‘‘Disaster Loan Account-
5 ability and Reform Act’’ or the ‘‘DLARA’’.
6 SEC. 2. TABLE OF CONTENTS.
7 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.
8 SEC. 3. DEFINITIONS.
9 In this Act—
10 (1) the terms ‘‘Administration’’ and ‘‘Adminis-
11 trator’’ mean the Small Business Administration and
12 the Administrator thereof, respectively;
13 (2) the term ‘‘appropriate committees of Con-
14 gress’’ means the Committee on Small Business and
15 Entrepreneurship and the Committee on Appropria-
16 tions of the Senate and the Committee on Small Busi-
17 ness and the Committee on Appropriations of the
18 House of Representatives; and
19 (3) the term ‘‘SBA disaster loan’’ means a direct
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20 loan authorized by section 7(b) of the Small Business
21 Act (15 U.S.C. 636(b)), other than a loan that was
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1 authorized under section 1110 of the CARES Act (15
2 U.S.C. 9009).
3 SEC. 4. MONTHLY DISASTER LOAN REPORTS.
4 Section 12091(a) of the Small Business Disaster Re-
5 sponse and Loan Improvements Act of 2008 (15 U.S.C.
6 636k(a)) is amended—
7 (1) in paragraph (1)—
8 (A) by striking ‘‘during the applicable pe-
9 riod for a major disaster’’; and
10 (B) by striking ‘‘for that major disaster’’;
11 (2) in paragraph (2)—
12 (A) in subparagraph (E), by striking ‘‘how
13 long the available funding for such loans will
14 last’’ and inserting ‘‘the date at which available
15 funding for such loans will reach 10 percent of
16 the most recent appropriation and the date at
17 which the funds will be depleted’’;
18 (B) in subparagraph (H), by striking
19 ‘‘and’’ at the end;
20 (C) in subparagraph (I), by striking the pe-
21 riod at the end and inserting ‘‘; and’’; and
22 (D) by adding at the end the following:
23 ‘‘(J) a summary detailing any changes to
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24 estimates or assumptions on obligations and ex-
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1 penditures, including data supporting these
2 changes.’’; and
3 (3) by adding at the end the following:
4 ‘‘(3) PROHIBITION ON OFFICIAL TRAVEL.—If the
5 Administrator does not submit a report required to be
6 submitted under paragraph (1) by the required date,
7 no funds may be obligated for official travel by the
8 Administrator until the Administrator submits the
9 report.’’.
10 SEC. 5. BUDGET REQUEST RELATING TO DISASTER LOANS.
11 Section 1105 of title 31, United States Code, is amend-
12 ed—
13 (1) in subsection (a), by adding at the end the
14 following:
15 ‘‘(39) separate statements of—
16 ‘‘(A) the amount of appropriations re-
17 quested for the fiscal year for which the budget
18 is submitted for the cost of SBA disaster loans,
19 the 10-year average of the cost of SBA disaster
20 loans, and an explanation for any difference be-
21 tween the amount requested and the 10-year av-
22 erage cost; and
23 ‘‘(B) the amount of appropriations re-
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24 quested for the fiscal year for which the budget
25 is submitted for the cost of COVID-EIDL loans,
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1 the 10-year average of the cost of COVID-EIDL
2 loans, and an explanation for any difference be-
3 tween the amount requested and the 10-year av-
4 erage cost.
5 ‘‘(40) separate statements of—
6 ‘‘(A) the amount of appropriations re-
7 quested for the fiscal year for which the budget
8 is submitted for administrative costs relating to
9 SBA disaster loans, the 10-year average of such
10 administrative costs, and an explanation for any
11 difference between the amount requested and the
12 10-year average costs; and
13 ‘‘(B) the amount of appropriations re-
14 quested for the fiscal year for which the budget
15 is submitted for administrative costs relating to
16 COVID-EIDL loans, the 10-year average of such
17 administrative costs, and an explanation for any
18 difference between the amount requested and the
19 10-year average costs.’’; and
20 (2) by adding at the end the following:
21 ‘‘(j) In paragraphs (39) and (40) of subsection (a)—
22 ‘‘(1) the term ‘COVID-EIDL loan’ means a di-
23 rect loan under section 7(b) of the Small Business Act
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24 (15 U.S.C. 636(b)) that was authorized under section
25 1110 of the CARES Act (15 U.S.C. 9009); and
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1 ‘‘(2) the term ‘SBA disaster loan’ means a direct
2 loan authorized by section 7(b) of the Small Business
3 Act (15 U.S.C. 636(b)), other than a loan that was
4 authorized under section 1110 of the CARES Act (15
5 U.S.C. 9009).’’.
6 SEC. 6. LIMITATIONS ON DISASTER LOANS.
7 Section 7(b) of the Small Business Act (15 U.S.C.
8 636(b)) is amended—
9 (1) by redesignating the second paragraph des-
10 ignated as paragraph (16), relating to statute of limi-
11 tations, as added by the COVID–19 EIDL Fraud
12 Statute of Limitations Act of 2022 (Public Law 117–
13 165; 136 Stat. 1363), as paragraph (18); and
14 (2) by inserting after paragraph (16), relating to
15 disaster declarations in rural areas, as added by the
16 Disaster Assistance for Rural Communities Act (Pub-
17 lic Law 117–249; 136 Stat. 2350), the following:
18 ‘‘(17) REQUIREMENTS WHEN FUNDING IS LOW.—
19 Not later than 24 hours after the unobligated balance
20 of amounts available for the cost of direct loans au-
21 thorized by this subsection is less than 10 percent of
22 the 10-year average annual cost provided in the most
23 recent Presidential budget request required under sec-
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24 tion 1105(a)(39)(A) of title 31, United States Code,
25 or, if unavailable, the 10-year average annual cost for
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1 the immediately preceding 10-year period of SBA dis-
2 aster loans (as defined in section 1105(j) of such
3 title), the Administrator shall notify the Committee
4 on Appropriations and the Committee on Small Busi-
5 ness and Entrepreneurship of the Senate and the
6 Committee on Appropriations and the Committee on
7 Small Business of the House of Representatives.’’.
8 SEC. 7. GAO REPORT ON SBA DISASTER LOAN ACCOUNT.
9 (a) REPORT.—Not later than 180 days after the date
10 of enactment of this Act, the Comptroller General of the
11 United States shall submit to the Administrator and the
12 appropriate committees of Congress a report on—
13 (1) the average weekly rate at which the Admin-
14 istration obligates the unobligated balance of amounts
15 available for the cost of SBA disaster loans;
16 (2) the average amount, during the periods be-
17 ginning on October 1, 2015, and ending on July 31,
18 2023, and beginning on July 31, 2023, and ending on
19 the date of enactment of this Act, respectively, dis-
20 bursed to a borrower each week, during the initial 12-
21 week period in which a borrower receives amounts
22 from an SBA disaster loan, beginning the day after
23 the borrower accepts their loan, separated by home
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24 SBA disaster loan borrowers, business SBA disaster
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1 loan borrowers, and economic injury disaster loan
2 borrowers; and
3 (3) the average amount of fully disbursed SBA
4 disaster loans, originated during the period beginning
5 on July 31, 2023, and ending on the date of enact-
6 ment of this Act, with separate averages for SBA dis-
7 aster loans delineated by home, business, and eco-
8 nomic injury disaster loans.
9 (b) RESPONSE.—Not later than 90 days after the date
10 on which the Comptroller General of the United States sub-
11 mits the report under subsection (a), the Administrator
12 shall submit to the appropriate committees of Congress a
13 response to the report, including an implementation plan
14 for any recommendations in the report.
15 SEC. 8. GAO REPORT ON DISASTER LOAN CHANGES.
16 (a) DEFINITION.—In this section, the term ‘‘covered
17 final rule’’ means—
18 (1) the final rule entitled ‘‘Disaster Assistance
19 Loan Program Changes to Maximum Loan Amounts
20 and Miscellaneous Updates’’ (88 Fed. Reg. 39335
21 (June 16, 2023); RIN 3245–AH91); or
22 (2) the final rule entitled ‘‘Disaster Assistance
23 Loan Program Changes to Unsecured Loan Amounts
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24 and Credit Elsewhere Criteria’’ (89 Fed. Reg. 59826
25 (July 24, 2024); RIN 3245–AI08).
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1 (b) REPORT.—Not later than 1 year after the date of
2 enactment of this Act, the Comptroller General of the United
3 States shall submit to the appropriate committees of Con-
4 gress a report on—
5 (1) the cost (as defined in section 502 of the Fed-
6 eral Credit Reform Act of 1990 (2 U.S.C. 661a)) of
7 the increase in the home loan lending limits for, the
8 extension of the deferment period for, the expansion of
9 mitigation options for, the modifications to the cri-
10 teria for determining whether applicants can obtain
11 credit elsewhere with respect to, the changes to collat-
12 eral requirements for, and other changes to the terms
13 and conditions of loans under section 7(b)(1) of the
14 Small Business Act (15 U.S.C. 636(b)(1)) made by
15 the covered final rules; and
16 (2) the effect on the subsidy for such loans of the
17 changes contained in the covered final rules.
18 SEC. 9. BUDGET AND FORECASTING REPORT REGARDING
19 THE COST OF DIRECT DISASTER LOANS.
20 (a) BUDGET FORMULATION AND FORECASTING.—Not
21 later than 30 days after the date of enactment of this Act,
22 the Administrator shall submit to the appropriate commit-
23 tees of Congress a report detailing corrections the Adminis-
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24 tration will make to improve forecasting, data quality, and
25 budget assumptions relating to budget submissions relating
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1 to amounts made available for the cost of SBA disaster
2 loans.
3 (b) UPDATES.—Not later than 90 days after the date
4 of enactment of this Act, and every 90 days thereafter until
5 the date that is 90 days after the date on which all the
6 corrections described in subsection (a) have been imple-
7 mented, the Administrator shall submit to the appropriate
8 committees of Congress a report—
9 (1) detailing the actions the Administration has
10 taken to implement the corrections described in sub-
11 section (a); and
12 (2) explaining how each action detailed under
13 paragraph (1) is directly related to implementing 1
14 or more corrections described in subsection (a).
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Union Calendar No. 603
119TH CONGRESS
2D SESSION H. R. 4238
[Report No. 119–695, Part I]
H4238
A BILL
E:\BILLS\H4238.RH
To improve accountability in the disaster loan pro-
gram of the Small Business Administration, and
for other purposes.
Sfmt 6651
JUNE 11, 2026
Reported from the Committee on Small Business with an
amendment
JUNE 11, 2026 Fmt 6651
Committee on the Budget discharged; committed to the
Frm 00012
Committee of the Whole House on the State of the
Union and ordered to be printed
PO 00000
Jkt 069200
22:40 Jun 11, 2026
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