Sen. Scott Announces Efforts to Bring Public Accountability to the SBA’s Disaster Fund

WASHINGTON — U.S. Senator Tim Scott (R-S.C.) announced his intent to introduce the SBA Disaster Transparency Act. The legislation would bring the Small Business Administration (SBA) disaster account into parity with the Federal Emergency Management Agency (FEMA) Disaster Relief Fund, requiring public reports on the status of the SBA’s fund.

“Residents in South Carolina, North Carolina, Tennessee, Georgia, and Florida affected by Hurricanes Helene and Milton are counting on us for urgent federal assistance,” said Senator Scott. “As we work to provide much-needed support, we must also ensure that Congress and the American people are never caught off guard by funding shortfalls. My bill will mandate that the Small Business Administration publicly report on the status of the Disaster Loan Account, similar to FEMA’s transparency with its Disaster Relief Fund. This will enhance accountability and enable Congress to provide timely assistance during disasters well before funds are depleted.”

Earlier this week, Senator Scott joined Senate Small Business Committee Ranking Member Ernst (R-Iowa) and his Senate colleagues in penning a letter to SBA Administrator Guzman raising serious concerns with the unacceptable failures by SBA that allowed this funding shortfall to occur. Joining Senators Scott and Ernst on the letter were Senators Todd Young (R-Ind.) and James Risch (R-Idaho).

“We are committed to ensuring disaster victims across our nation, including those affected by recent Hurricanes Helene and Milton, receive timely federal disaster assistance…” the Senators wrote. “We are deeply concerned about the SBA’s handling of its disaster loan account and the SBA’s failures to provide its authorizing committees statutorily required information…Unfortunately, the SBA failed to comply, or only partially complied, with several of these provisions, and is now, at the eleventh-hour, sounding alarm bells.”

Read their full letter here.

As of October 15th, the SBA stated that its Disaster Loan Account is exhausted, but they will continue to accept applications to be considered for loan dollars once Congress appropriates more disaster funds.

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