SE North Carolina News

The Senate Small Business Committee has advanced the Disaster Loan Accountability and Reform Act, moving it to the Senate floor for further consideration. The bill, supported by both parties, aims to enhance oversight and transparency within the Small Business Administration's disaster loan program.

Senator Ted Budd (R-NC), along with Chair Joni Ernst (R-IA), Senator Thom Tillis (R-NC), and Senator Tim Scott (R-SC), spearheaded the legislation. It seeks to implement several key measures:

- Monthly detailed reports on funding status with penalties for non-compliance.

- Budget requests based on a 10-year program average for disaster loan subsidy and administrative costs.

- Limits on unsecured loan thresholds when funding is low.

- Comprehensive reviews of recent funding shortfalls and inefficiencies with actionable recommendations.

Senator Budd emphasized the importance of learning from past disasters like Hurricane Helene to improve federal response. "As we learn the lessons from Hurricane Helene and the federal response, it’s imperative that we improve disaster response in a fiscally responsible way," he stated. He expressed gratitude to his colleagues for supporting efforts to protect taxpayer dollars while aiding those in need.

Chair Ernst highlighted previous mismanagement issues within SBA that left disaster victims without aid. "SBA’s mismanagement resulted in the disaster loan program running out of money for 66 days last year," she noted, stressing the need for timely relief.

Senator Tillis focused on support for small businesses affected by disasters such as Hurricane Helene. "This legislation will enhance oversight, tighten financial controls, and eliminate wasteful spending," he said, underscoring accountability during crises.

Senator Tim Scott remarked on government accountability concerning taxpayer funds. "Far too long have government agencies gone unchecked when dealing with taxpayer dollars," he stated, appreciating Senator Budd's leadership in introducing necessary reforms.