INSIGHTi
Supplemental Appropriations: SBA Disaster
Loan Account
Updated July 28, 2021
Introduction
The Small Business Administration (SBA) Disaster Loan Program provides direct loans to businesses,
private non-profit organizations, and households to help them rebuild and recover from federally certified
disasters. The SBA Disaster Loan Program divided into two loans types: (1) Home Disaster Loans, and
(2) Business Disaster Loans.
SBA Home Disaster Loans are comprised of two subcategories of lending programs:
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SBA Business Disaster Loans are provided to eligible businesses and private non-profit organizations and
are comprised of two subcategories of lending programs:
In addition to the above lending programs, Congress established the “Emergency EIDL grant” program
and Targeted EIDL Advances in response to the Coronavirus Disease 2019 (COVID-19) pandemic’s
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widespread adverse economic impact on the national economy. Both programs provide funding to eligible
businesses that does not have to be repaid.
SBA Disaster Loan Account
The above SBA programs are funding through the SBA Disaster Loan Account. The SBA Disaster Loan
Account is a “no year” account, meaning that funding does not lapse at the end of the fiscal year. Rather,
any remaining funds are rolled over to the next fiscal year. In addition to rolled over funds (if available),
the SBA Disaster Loan Account is funded through annual appropriations, supplemental appropriations,
and revenue from disaster loan payments (including interest on the loans).
Appropriations for disaster loan administration and servicing (including disaster loan credit subsidies to
account for loan defaults), and disaster loan revenues (loan payments and default collateral recoveries)
replenish the SBA Disaster Loan Account. As funding comes into the account, SBA disaster loans are
paid as installments. Each dollar of disaster loan credit subsidy supports about seven dollars in disaster
lending authority.
In both FY2020 and FY2021, the SBA received an appropriation of $168.1 million for disaster assistance.
As indicated in Table 1, the SBA also received roughly $70.6 billion in supplemental appropriations for
disaster assistance in FY2020 and $35 billion in supplemental disaster assistance in FY2021 to assist
small businesses affected by COVID-19.
Table 1. Supplemental Appropriations: SBA Disaster Loan Account
FY2020-FY2021
Public Law Number, Division, and Bill
Title
Appropriation
Purpose
FY2020
P.L. 116-123, Division A
$20,000,000
P.L. 116-123 appropriated $20
Coronavirus Preparedness and Response
mil ion to carry out administrative
Supplemental Appropriations Act, 2020
expenses associated with the SBA
Disaster Loan Program
P.L. 116-136, Division B
$10,562,000,000
P.L. 116-136 appropriated $10
CARES Act
billion for Emergency EIDL Grants
and $562 mil ion to support EIDL
P.L. 116-139, Division B
$60,000,000,000
P.L. 116-139 appropriated $10
Paycheck Protection Program and Health
bil ion for Emergency EIDL Grants,
Care Enhancement Act
and $50 bil ion to support EIDL
FY2021
P.L. 116-260, Division Ma
$20,000,000,000
P.L. 116-260 appropriated $20
Coronavirus Response and Relief
bil ion for Emergency EIDL Grants,
Supplemental Appropriations Act, 2021
of which $20,000,000 shall be made
available to the Inspector General
of the Small Business Administration
to prevent waste, fraud, and abuse.
P.L. 117-2, American Rescue Plan Act of
$15,000,000,000
P.L. 117-2 appropriated $10 bil ion
2021
for Targeted EIDL Advances under
the Economic Aid to Hard-Hit Small
Businesses, Nonprofits, and Venues
Actb and $5 bil ion for Emergency
EIDL grants.
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Source: Based on CRS interpretation of appropriation laws.
a. The bil also included $168,075,000 for FY2021 regular appropriations to the disaster loan program account within
Division E.
b. See Title III of Division N of P.L. 116-260.
Note: EIDL refers to economic injury disaster loan.
Considerations for Congress
The supplemental appropriations in Table 1 have not required SBA to submit reports on the funding
status of the Disaster Loan Account. Congress has required disaster funding reports from other agencies to
delineate funding activities and make estimates on the date on which the funds may be exhausted. For
example, after Hurricane Katrina, Congress required the Federal Emergency Management Agency
(FEMA) to issue quarterly reports on the Disaster Relief Fund (DRF). The DRF is “an appropriation
against which FEMA can direct, coordinate, manage, and fund eligible response and recovery efforts
associated with domestic major disasters and emergencies that overwhelm State resources pursuant to the
Robert T. Stafford Disaster Relief and Emergency Assistance Act.” The DRF report helps Congress track
disaster relief funding activities as well as determine how much funding is available for current and future
incidents. The SBA could be required to issue a similar report on the Disaster Loan Account. The report
could include information such as the account balance, available lending authority, monthly revenues, and
projected costs.
Additional CRS Resources
CRS resources on business recovery include:
CRS Report R46284, COVID-19 Relief Assistance to Small Businesses: Issues and Policy
Options
CRS Report R44412, SBA Disaster Loan Program: Frequently Asked Questions
CRS Insight IN11301, Small Businesses and COVID-19: Relief and Assistance Resources
CRS Insight IN11357, COVID-19-Related Loan Assistance for Agricultural Enterprises
CRS Insight IN11370, SBA EIDL and Emergency EIDL Grants for COVID-19
CRS Report R46325, Fourth COVID-19 Relief Package (P.L. 116-139): In Brief
CRS Report R46285, Coronavirus Preparedness and Response Supplemental
Appropriations Act, 2020 (P.L. 116-123): First Coronavirus Supplemental
CRS Insight IN11402, The Economic Development Administration’s Economic Recovery
Assistance for COVID-19 Impacted Communities
CRS Insight IN11418, COVID-19: EDA Revolving Loan Funds for Businesses
CRS Insight IN11228, COVID-19: Federal Economic Development Tools and Potential
Responses
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Author Information
Bruce R. Lindsay
Jared C. Nagel
Specialist in American National Government
Senior Research Librarian
Robert Jay Dilger
Senior Specialist in American National Government
Disclaimer
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