House Passes Davis-Led Legislation to Improve Accountability for Small Business Disaster Loans

WASHINGTON, D.C. — Congressman Don Davis (NC-01) celebrated the U.S. House’s passage of H.R. 4238, Disaster Loan Accountability and Reform Act (DLARA), legislation to strengthen oversight, transparency, and financial accountability within the Small Business Administration's disaster loan program. 

Co-led with Congressman Tim Moore (NC-14), DLARA would require the SBA to provide monthly reports on the status of its disaster loan fund, base budget projections on a ten-year average of disaster assistance needs, and implement funding safeguards when reserve levels fall below critical thresholds. The legislation also directs a comprehensive review of recent shortcomings in the SBA's disaster loan program and requires recommendations to help prevent future funding disruptions for disaster survivors and small businesses.

This bipartisan legislation responds directly to the failures uncovered during the 2024 disaster loan shortfall, when the SBA's loan account was allowed to run dry for more than two months without warning to Congress. That 66-day lapse meant communities hit hard by Hurricane Helene had significantly delayed access to the support they needed to recover. 

“By bringing greater transparency and common-sense accountability to the Small Business Administration’s disaster loan program, we can help ensure these loans reach the people who need them most, on time and as promised,” said Congressman Davis. “Farmers, small business owners, and aspiring entrepreneurs are still recovering from Hurricane Helene and other disasters, and they deserve a loan program they can count on.”

“Hurricane Helene exposed serious weaknesses in the SBA’s disaster loan program,” said Congressman Moore. “When disaster strikes, Americans deserve a loan program that is transparent, accountable, and financially sound. This bill makes necessary reforms to strengthen financial safeguards, prevent delays, and improve disaster response when our communities need it most."

Senator Ted Budd (NC) introduced the companion legislation in the Senate, which passed out of the Senate Small Business Committee unanimously this past year.