S.300 - Disaster Loan Accountability and Reform Act; DLARA (119th Congress)
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. This bill introduces measures such as monthly disaster loan reports, budget request requirements, limitations on loan forgiveness, and stricter rules regarding loan amounts and rule-making. It also mandates GAO and SBA Inspector General reports on disaster loan changes and budget forecasting.
Expected Effects
DLARA seeks to enhance transparency and prevent misuse of disaster loan funds. It will likely lead to more rigorous monitoring of SBA's disaster loan program. This may result in more efficient allocation of resources and reduced potential for fraud.
Potential Benefits
- Increased transparency in disaster loan allocation.
- Improved budget forecasting and data quality.
- Limitations on loan forgiveness to prevent abuse.
- Enhanced oversight through GAO and SBA Inspector General reports.
- More responsible use of taxpayer money.
Potential Disadvantages
- Stricter loan requirements may make it harder for some businesses to access needed funds.
- Increased reporting requirements could create additional administrative burden for the SBA.
- Limitations on loan forgiveness may negatively impact disaster victims.
- Potential delays in loan disbursement due to increased scrutiny.
- Possible reduction in the overall amount of disaster loans available.
Constitutional Alignment
The bill's focus on accountability and responsible spending aligns with the general welfare clause of the Constitution (Preamble). Congress's role in overseeing government programs is consistent with its legislative powers under Article I, Section 8. The required reports to Congress ensure legislative oversight, a key aspect of constitutional governance.
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).