Disaster Loan Accountability and Reform Act; DLARA
Summary
The Disaster Loan Accountability and Reform Act (DLARA) aims to improve accountability and oversight of the Small Business Administration's (SBA) disaster loan program. It mandates more frequent and detailed reporting on disaster loans, including budget requests and potential funding shortfalls. The Act also includes limitations on disaster loan obligations when funding is low and requires reports from the Government Accountability Office (GAO) and the SBA Inspector General on various aspects of the disaster loan program.
Expected Effects
DLARA will likely lead to increased transparency and potentially more efficient management of SBA disaster loans. The enhanced reporting requirements and limitations on loan obligations could help prevent funding shortfalls and ensure that loans are disbursed effectively. The GAO and Inspector General reports could identify areas for improvement in the program's operation and oversight.
Potential Benefits
- Increased transparency in SBA disaster loan programs through monthly reports.
- Improved budget forecasting and data quality related to disaster loans.
- Enhanced oversight and accountability through GAO and SBA Inspector General reviews.
- Potential for more efficient allocation of disaster loan funds.
- Limitations on loan obligations during periods of low funding, potentially preserving funds for the most critical needs.
Potential Disadvantages
- Limitations on loan obligations during low funding periods could delay or reduce access to disaster loans for some applicants.
- Increased reporting requirements may create additional administrative burdens for the SBA.
- The sunset provision on certain limitations could lead to a rollback of accountability measures after four years.
- Potential for delays in loan disbursement due to increased scrutiny and reporting requirements.
- The focus on accountability might overshadow the need for timely disaster relief.
Constitutional Alignment
The DLARA aligns with the constitutional mandate to promote the general welfare (Preamble). Congress has the power to regulate commerce (Article I, Section 8) and to make all laws necessary and proper for carrying into execution the powers vested by the Constitution. The Act's provisions for oversight and accountability are consistent with Congress's role in overseeing the executive branch.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).