The first section of the text specifies the short title of the Act, which is called the “Disaster Loan Accountability and Reform Act" or simply “DLARA.”

The section outlines the table of contents for a legislative act, listing various parts such as the short title, definitions, and details about disaster loan procedures, reports, budget requests, limitations, prohibitions, and oversight activities.

In this part of the bill, the term "Administration" refers to the Small Business Administration, and "Administrator" refers to the person in charge of it. Additionally, "appropriate committees of Congress" includes the Senate's Committee on Small Business and Entrepreneurship and Committee on Appropriations, as well as the House's Committee on Small Business and Committee on Appropriations.

The section amends the Small Business Disaster Response and Loan Improvements Act of 2008 to update requirements for disaster loan reports by changing how funding information is reported and adding requirements for summaries on spending changes. It also includes a rule that stops the Administrator's official travel if the required report is not submitted on time.

The text outlines amendments to section 1105 of title 31, United States Code, requiring budget requests to include separate statements detailing the requested funds and 10-year average costs for both SBA disaster loans and COVID-EIDL loans, as well as their related administrative costs. It defines terms used, explaining that COVID-EIDL loans are those authorized under the CARES Act while SBA disaster loans are authorized by the Small Business Act.

The section explains that the Administrator cannot forgive a loan unless Congress allows it, and if the Administrator wants to cancel a debt but is restricted by the rules, they must send the debt to the Department of the Treasury for further action.

The bill sets rules for disaster loans when funding is low, including notifying Congress if available funds drop below 10% of recent appropriations and restricting new loans until more money is provided. Additionally, it removes the Administrator's power to raise the loan amount that doesn't need collateral during a major disaster.

The section prohibits the Small Business Administration (SBA) from creating any new rules that would increase the costs associated with its disaster loan programs, starting from the enactment date of this Act. It also defines the terms "cost" and "rule" as per existing U.S. legislation.

The section requires the United States Comptroller General to deliver a report within one year detailing the costs and subsidy effects of recent rule changes to disaster loan programs under the Small Business Act. These rule changes include updates to loan limits, deferment periods, collateral requirements, and credit criteria.

The section requires the Inspector General of the Administration to review and report on the funding shortfall related to direct loans under the Small Business Act. This review will examine various aspects, including any discrepancies in reporting, the reasons for the shortfall, and steps that can be taken to prevent future issues, with a report due to Congress within 180 days.

The Administrator is required to submit a report to Congress detailing improvements to forecasting and budgeting for direct disaster loans within 30 days of the law's enactment. Every 90 days, updates must be provided on the actions taken to implement these improvements until all corrections are completed.

The Disaster Loan Accountability and Reform Act, also known as DLARA, is the official short title for this legislation.

The table of contents for this Act lists the sections included in the legislation, which cover topics such as definitions, disaster loan reports, budget requests, limitations on loans, and various reports by the Government Accountability Office (GAO) and the Small Business Administration (SBA) Inspector General concerning disaster loans.

The section provides definitions for key terms used in the Act. It specifies that "Administration" and "Administrator" refer to the Small Business Administration and its leader, "appropriate committees of Congress" refers to certain Senate and House committees, and "SBA disaster loan" refers to specific direct loans under the Small Business Act, excluding those under section 1110 of the CARES Act.

The section amends the Small Business Disaster Response and Loan Improvements Act of 2008 to update the reporting requirements for monthly disaster loan reports, including specifying when funds will be nearly exhausted and adding a summary of changes to financial assumptions. It also introduces a penalty preventing the use of funds for the Administrator's travel if these reports are not submitted on time.

In this section, Congress proposes changes to the budget request process for disaster and COVID-EIDL loans by requiring detailed statements of requested appropriations and their administrative costs, along with their 10-year averages and explanations for any discrepancies. It also defines terms related to the Small Business Administration's disaster loans and COVID-EIDL loans.

The section amends the Small Business Act to set guidelines when funds for disaster loans are low. It requires the Administrator to notify Congress if funding levels drop, allows limiting loan obligations based on collateral during low funding periods, and mandates disbursing the remaining loan amounts within 14 days after additional funds are provided. The amendment expires 4 years after enactment, and the Comptroller General must report on its impact if the funding limitation is used.

The section mandates that the Comptroller General must submit a report within 180 days detailing how the SBA uses its disaster loan funds, including borrowing patterns and loan amounts. Additionally, within 90 days of receiving this report, the Administrator is required to respond to Congress with a plan to address any recommendations.

The section requires the Comptroller General to submit a report to Congress within one year, analyzing the costs and impacts of recent rule changes to disaster loan programs. These changes include adjustments to loan amounts, deferment periods, mitigation options, and criteria for obtaining credit and collateral.

The section directs the Inspector General to examine a shortfall in funding for small business loans, focusing on why certain reports or notifications were not sent to Congress, the reasons for any misallocated funds, and improvements needed in budget accuracy and reporting. A report on these findings must be submitted to Congress within 180 days of the Act's enactment.

The section requires the Administrator to submit a report to Congress within 30 days explaining improvements to forecasting and budget planning for SBA disaster loan costs. Additionally, every 90 days, the Administrator must update Congress on actions taken, ensuring they align with the improvements initially outlined.