Hoosier State Today

U.S. Senators Todd Young, Joni Ernst, Tim Scott, and James Risch have called for explanations from the Small Business Administration (SBA) regarding its management of disaster resources. The senators, all members of the Senate Small Business and Entrepreneurship Committee, expressed concerns after the SBA reported it had depleted its disaster relief funds.

The senators pointed out that the SBA did not inform Congress about the need for additional funding in advance as required by law. They attributed this to bureaucratic inefficiencies within the agency.

"Under existing law, the SBA already has several reporting requirements to provide Congress with sufficient notification and information before any shortfall occurs in its disaster account," they stated. "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."

They questioned whether internal decisions within the SBA contributed to this situation. "For example, SBA currently has more than $550 million in its disaster administrative expenses account to pay for salaries but did not request any reprogramming to their disaster loan fund," they noted.

The senators emphasized that adequate staffing and training are crucial during disasters. They highlighted a statutory requirement for a disaster cadre that should not fall below 1,000 employees. According to recent information from the SBA while seeking supplemental funds, this cadre might no longer exist without prior notification.

"This raises stark concerns about the SBA’s ability to provide for disaster victims during the immediate aftermath of these storms and its ability to inform Congress in accordance with the law," they concluded.