Senate Republicans Demand Clarity on Exhausted Disaster Loan Funds

Friday, 18 October 2024, 11:00

Senate Republicans are raising important questions after the SBA announced its disaster loan program has exhausted its funds due to recent hurricanes. They express concerns over the agency's lack of transparency and compliance with reporting requirements, emphasizing the need for accountability and additional funding for affected small businesses.
Thehill
Senate Republicans Demand Clarity on Exhausted Disaster Loan Funds

Senate Republicans Raise Concerns Over SBA Disaster Loan Program

A group of GOP senators, including Senators Joni Ernst, Tim Scott, Todd Young, and James E. Risch, have issued a letter to SBA Administrator Isabel Casillas Guzman, calling for urgent clarification regarding the exhaustion of disaster loan funds. The senators are pressing the Small Business Administration (SBA) for answers after the agency indicated that the disaster loan program is out of funds following the devastation caused by recent hurricanes.

Transparency and Compliance Issues

In their letter, the senators expressed significant concerns about the SBA's actions, highlighting a lack of transparency in managing the disaster loan account. They criticized the agency for not providing the required notifications and reports to Congress in a timely manner. This situation raises serious questions about the SBA's ability to manage its disaster portfolio effectively.

Urgent Funding Needs

The senators' letter comes in the wake of President Biden's comments on the disaster program being a critical lifeline for small businesses and homeowners affected by disasters. Recent alerts from Biden administration officials indicate that the program needs approximately $1.6 billion in supplemental funds to address heightened demand following Hurricane Helene.

Calls for Accountability

Senator Ernst and her colleagues demand accountability from the SBA, questioning whether the agency's internal decisions contributed to the funding shortfall. They have outlined a list of information requests that must be answered by October 21, aimed at ensuring proper oversight of the disaster loan program and its future funding.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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