(1) in paragraph (1)— 
(A) by striking ‘‘during the applicable pe-
riod for a major disaster’’; and 
(B) by striking ‘‘for that major disaster’’; 
(2) in paragraph (2)— 
(A) in subparagraph (E), by striking ‘‘how 
long the available funding for such loans will 
last’’ and inserting ‘‘the date at which available 
funding for such loans will reach 10 percent of 
the most recent appropriation and the date at 
which the funds will be depleted’’; 
(B) in subparagraph (H), by striking 
‘‘and’’ at the end; 
(C) in subparagraph (I), by striking the 
period at the end and inserting ‘‘; and’’; and 
(D) by adding at the end the following: 
‘‘(J) a summary detailing any changes to 
estimates or assumptions on obligations and ex-
penditures, including data supporting these 
changes.’’; and 
(3) by adding at the end the following: 
‘‘(3) PROHIBITION
ON
OFFICIAL
TRAVEL.—If 
the Administrator does not submit a report required 
to be submitted under paragraph (1) by the required 
date, no funds may be obligated for official travel by 
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the Administrator until the Administrator submits 
the report.’’. 
SEC. 5. BUDGET REQUEST RELATING TO DISASTER LOANS. 
Section 1105 of title 31, United States Code, is 
amended— 
(1) in subsection (a), by adding at the end the 
following: 
‘‘(39) separate statements of— 
‘‘(A) the amount of appropriations re-
quested for the fiscal year for which the budget 
is submitted for the cost of SBA disaster loans, 
the 10-year average of the cost of SBA disaster 
loans, and an explanation for any difference be-
tween the amount requested and the 10-year 
average cost; and 
‘‘(B) the amount of appropriations re-
quested for the fiscal year for which the budget 
is submitted for the cost of COVID-EIDL 
loans, the 10-year average of the cost of 
COVID-EIDL loans, and an explanation for 
any difference between the amount requested 
and the 10-year average cost. 
‘‘(40) separate statements of— 
‘‘(A) the amount of appropriations re-
quested for the fiscal year for which the budget 
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is submitted for administrative costs relating to 
SBA disaster loans, the 10-year average of such 
administrative costs, and an explanation for any 
difference between the amount requested and 
the 10-year average costs; and 
‘‘(B) the amount of appropriations re-
quested for the fiscal year for which the budget 
is submitted for administrative costs relating to 
COVID-EIDL loans, the 10-year average of 
such administrative costs, and an explanation 
for any difference between the amount re-
quested and the 10-year average costs.’’; and 
(2) by adding at the end the following: 
‘‘(j) In paragraphs (39) and (40) of subsection (a)— 
‘‘(1) the term ‘COVID-EIDL loan’ means a di-
rect loan under section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)) that was authorized under 
section 1110 of the CARES Act (15 U.S.C. 9009); 
and 
‘‘(2) the term ‘SBA disaster loan’ means a di-
rect loan authorized by section 7(b) of the Small 
Business Act (15 U.S.C. 636(b)), other than a loan 
that was authorized under section 1110 of the 
CARES Act (15 U.S.C. 9009).’’. 
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SEC. 6. LIMITATIONS ON DISASTER LOANS. 
(a) LOW FUNDING.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended— 
(1) by redesignating the second paragraph des-
ignated as paragraph (16), relating to statute of lim-
itations, as added by the COVID–19 EIDL Fraud 
Statute of Limitations Act of 2022 (Public Law 
117–165; 136 Stat. 1363), as paragraph (18); and 
(2) by inserting after paragraph (16), relating 
to disaster declarations in rural areas, as added by 
the Disaster Assistance for Rural Communities Act 
(Public Law 117–249; 136 Stat. 2350), the fol-
lowing: 
‘‘(17) REQUIREMENTS
WHEN
FUNDING
IS 
LOW.— 
‘‘(A) IN
GENERAL.—Not later than 24 
hours after the unobligated balance of amounts 
available for the cost of direct loans authorized 
by this subsection is less than 10 percent of the 
10-year average annual cost provided in the 
most recent Presidential budget request re-
quired under section 1105(a)(39)(A) of title 31, 
United States Code, or, if unavailable, the 10- 
year average annual cost for the immediately 
preceding 10-year period of SBA disaster loans 
(as defined in section 1105(j) of such title), the 
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Administrator shall notify the Committee on 
Appropriations and the Committee on Small 
Business and Entrepreneurship of the Senate 
and the Committee on Appropriations and the 
Committee on Small Business of the House of 
Representatives. 
‘‘(B) 
LIMITATION
ON
OBLIGATING 
FUNDS.—During the period beginning on the 
first business day occurring on or after the date 
by which the Administrator is required to notify 
Congress under subparagraph (A) and ending 
on the date on which additional amounts are 
appropriated for such costs, the Administrator 
may limit the obligation of funds for a direct 
loan authorized under this subsection to the 
amount of such a loan for which collateral is re-
quired. 
‘‘(C) AUTHORITY TO LIMIT OBLIGATION OF 
FUNDS.—In carrying out the authority to enact 
a limitation under (B), the Administrator shall 
apply that limitation with respect to amounts 
obligated for all direct loans authorized under 
this subsection during the period described in 
subparagraph (B). 
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‘‘(D) REQUIREMENT TO DISBURSE WITHIN 
DAYS.—If the Administrator exercises the 
authority under (B), the Administrator shall, 
not later than 14 days after the date on which 
additional amounts are appropriated under sub-
paragraph (B), obligate and disburse on a reg-
ular schedule any remaining amount out-
standing on a direct loan authorized under this 
subsection.’’. 
(b) SUNSET.—Effective on the date that is 4 years 
after the date of enactment of this Act, section 7(b) of 
the Small Business Act (15 U.S.C. 636(b)) is amended— 
(1) by striking paragraph (17); and 
(2) by redesignating paragraph (18) as para-
graph (17). 
(c) REPORT.—Not later than 1 year after the date 
of enactment of this Act, in the event that the Adminis-
trator exercises the authority described in paragraph 
(17)(B) of section 7(b) of the Small Business Act (15 
U.S.C. 636(b)), as added by subsection (a), the Comp-
troller General of the United States shall submit to the 
appropriate committees of Congress a report assessing the 
actual and potential impact of the amendments made by 
subsection (a) during the period covered by the report. 
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SEC. 7. GAO REPORT ON SBA DISASTER LOAN ACCOUNT. 
(a) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Comptroller General of the 
United States shall submit to the Administrator and the 
appropriate committees of Congress a report on— 
(1) the average weekly rate at which the Ad-
ministration obligates the unobligated balance of 
amounts available for the cost of SBA disaster 
loans; 
(2) the average amount, during the periods be-
ginning on October 1, 2015, and ending on July 31, 
2023, and beginning on July 31, 2023, and ending 
on the date of enactment of this Act, respectively, 
disbursed to a borrower each week, during the initial 
12-week period in which a borrower receives 
amounts from an SBA disaster loan, beginning the 
day after the borrower accepts their loan, separated 
by home SBA disaster loan borrowers, business SBA 
disaster loan borrowers, and economic injury dis-
aster loan borrowers; and 
(3) the average amount of fully disbursed SBA 
disaster loans, originated during the period begin-
ning on July 31, 2023, and ending on the date of 
enactment of this Act, with separate averages for 
SBA disaster loans delineated by home, business, 
and economic injury disaster loans. 
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(b) RESPONSE.—Not later than 90 days after the 
date on which the Comptroller General of the United 
States submits the report under subsection (a), the Ad-
ministrator shall submit to the appropriate committees of 
Congress a response to the report, including an implemen-
tation plan for any recommendations in the report. 
SEC. 8. GAO REPORT ON DISASTER LOAN CHANGES. 
(a) DEFINITION.—In this section, the term ‘‘covered 
final rule’’ means— 
(1) the final rule entitled ‘‘Disaster Assistance 
Loan Program Changes to Maximum Loan Amounts 
and Miscellaneous Updates’’ (88 Fed. Reg. 39335 
(June 16, 2023); RIN 3245–AH91); or 
(2) the final rule entitled ‘‘Disaster Assistance 
Loan 
Program 
Changes 
to 
Unsecured 
Loan 
Amounts and Credit Elsewhere Criteria’’ (89 Fed. 
Reg. 59826 (July 24, 2024); RIN 3245–AI08). 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Comptroller General of the 
United States shall submit to the appropriate committees 
of Congress a report on— 
(1) the cost (as defined in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 
661a)) of the increase in the home loan lending lim-
its for, the extension of the deferment period for, the 
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expansion of mitigation options for, the modifica-
tions to the criteria for determining whether appli-
cants can obtain credit elsewhere with respect to, the 
changes to collateral requirements for, and other 
changes to the terms and conditions of loans under 
section 7(b)(1) of the Small Business Act (15 U.S.C. 
636(b)(1)) made by the covered final rules; and 
(2) the effect on the subsidy for such loans of 
the changes contained in the covered final rules. 
SEC. 9. SBA INSPECTOR GENERAL REVIEW. 
(a) DEFINITIONS.—In this section— 
(1) 
the 
term 
‘‘covered 
amounts’’ 
means 
amounts made available for the cost of direct loans 
authorized by section 7(b) of the Small Business Act 
(15 U.S.C. 636(b)); and 
(2) the term ‘‘Inspector General’’ means the In-
spector General of the Administration. 
(b) REVIEW.— 
(1) IN GENERAL.—The Inspector General shall 
conduct a review of the circumstances surrounding 
the funding shortfall with respect to covered 
amounts, as described in— 
(A) the letter from President Joseph R. 
Biden, Jr. entitled ‘‘Letter to Congress on Dis-
aster Needs’’, dated October 4, 2024; and 
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(B) the letter from the Administrator sub-
mitted to the Chair and Ranking Members of 
the Committees on Appropriations of the Sen-
ate and the House of Representatives, dated 
October 10, 2024. 
(2) CONTENTS.—The review required under 
paragraph (1) shall include the following with re-
spect to the funding shortfall described in that para-
graph: 
(A) The identification of any report or no-
tification required by statute that the Adminis-
tration failed to provide to Congress with re-
spect to the funding shortfall. 
(B) The reason for any obligation or ex-
penditure of covered amounts for a purpose 
that significantly diverged from the purpose for 
which the covered amounts were made available. 
(C) An analysis of the accuracy of projec-
tions and estimates relevant to the divergences 
described in subparagraph (B). 
(D) The identification and description of 
any internal controls in place to manage cov-
ered amounts. 
(E) An analysis of the impact that any re-
organization of the Administration, including 
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the transfer of administrative authority for the 
program carried out under section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) to the 
Office of Capital Access of the Administration, 
may have had with respect to the funding 
shortfall. 
(F) The identification of actions that the 
Administration can take to— 
(i) improve the accuracy of informa-
tion submitted by the President under sec-
tion 1105(a) of title 31, United States 
Code, with respect to the Administration; 
(ii) prevent any future funding short-
fall with respect to any account of the Ad-
ministration; and 
(iii) improve the reports submitted to 
the appropriate committees of Congress 
under section 12091(a) of the Small Busi-
ness Disaster Response and Loan Improve-
ments Act of 2008 (15 U.S.C. 636k(a)). 
(G) Any other matter determined relevant 
by the Inspector General. 
(c) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Inspector General shall sub-
mit to the appropriate committees of Congress a report 
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that contains the findings of the review carried out under 
subsection (b). 
SEC. 10. BUDGET AND FORECASTING REPORT REGARDING 
THE COST OF DIRECT DISASTER LOANS. 
(a) BUDGET FORMULATION AND FORECASTING.— 
Not later than 30 days after the date of enactment of this 
Act, the Administrator shall submit to the appropriate 
committees of Congress a report detailing corrections the 
Administration will make to improve forecasting, data 
quality, and budget assumptions relating to budget sub-
missions relating to amounts made available for the cost 
of SBA disaster loans. 
(b) UPDATES.—Not later than 90 days after the date 
of enactment of this Act, and every 90 days thereafter 
until the date that is 90 days after the date on which all 
the corrections described in subsection (a) have been im-
plemented, the Administrator shall submit to the appro-
priate committees of Congress a report— 
(1) detailing the actions the Administration has 
taken to implement the corrections described in sub-
section (a); and 
(2) explaining how each action detailed under 
paragraph (1) is directly related to implementing 1 
or more corrections described in subsection (a). 
Æ 
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