Palmetto State News

U.S. Senator Tim Scott has announced plans to introduce the SBA Disaster Transparency Act, aiming to align the Small Business Administration's disaster account with the Federal Emergency Management Agency's Disaster Relief Fund. This proposed legislation seeks to require public reporting 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 collaborated with Senate Small Business Committee Ranking Member Ernst and other Senate colleagues in addressing a letter to SBA Administrator Guzman. The letter expressed concerns over what they described as unacceptable failures by the SBA leading to a funding shortfall. Senators Todd Young and James Risch also joined in signing this letter.

"We are committed to ensuring disaster victims across our nation, including those affected by recent Hurricanes Helene and Milton, receive timely federal disaster assistance…" stated the Senators in their correspondence. "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."

The full content of their letter can be accessed through provided links.

As reported on October 15th by the SBA, their Disaster Loan Account is currently exhausted; however, they continue accepting applications pending further congressional appropriation for additional disaster funds.