H.R. 4238Passed one chamberJobs & the economy
Bill seeks tighter oversight of SBA's disaster loan funding
Data as of July 23, 2026
DLARA would force earlier SBA warnings and possible loan payout limits when disaster loan funding runs critically low.AI-decoded50-second read · 5 questions answered below
Decoded
AI-decodedWhat does this do?
The bill requires the SBA to send Congress more detailed monthly reports on its disaster loan program and clearer warnings when funding runs low. It also sets rules for when funding drops below 10% of the historical average, allowing temporary limits on loan payouts until Congress adds more money, with delayed amounts paid within 14 days of new funding. It requires GAO and SBA Inspector General reports on loan patterns, rule changes, and a 2024 funding shortfall.
Who does it affect?
The SBA and its disaster loan program, plus congressional oversight committees, are directly affected.
Why does it matter?
Small businesses and homeowners relying on SBA disaster loans after hurricanes, floods, or other disasters could face payment delays during funding shortages, though earlier warnings aim to prevent unexpected gaps.
What does it cost, and who pays?
- Uses 10-year average loan costs as benchmark
- Includes COVID-EIDL loans in comparison
- No new spending amount specified
Where does it stand?
- Introduced
- House committee
- House vote
- Senate — You are here
- President's desk
Right now: it passed the House and now goes to the Senate. If the Senate changes it, it goes back to the House before reaching the President.
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Official title
DLARA
- Introduced:
- June 27, 2025
- Latest action:
- June 24, 2026
Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 448.
Read the official bill on Congress.gov