INSIGHTi
Supplemental Appropriations: SBA Disaster
Loan Account
Updated March 1, 2023
Introduction
The Small Business Administration (SBA) Disaster Loan Program provides direct loans to businesses,
private nonprofit organizations, and households to help them rebuild and recover from federally certified
disasters. The SBA Disaster Loan Program is divided into two loans types: (1) Home Disaster Loans, and
(2) Business Disaster Loans.
SBA Home Disaster Loans are comprised of two lending subcategories:
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SBA Business Disaster Loans are provided to eligible businesses and private nonprofit 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 impact on the national economy. Both programs support eligible businesses with
funding that does not have to be repaid to the federal government.
SBA Disaster Loan Account
The above SBA programs receive 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 may receive 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 $70.58 billion in supplemental appropriations for disaster
assistance in FY2020 and $35.46 billion in FY2021 to assist small businesses adversely affected by
COVID-19. The SBA’s FY2022 appropriations have not been finalized. Federal agencies, including the
SBA, are currently operating under continuing appropriations through February 18, 2022, as provided by
P.L. 117-43, the Extending Government Funding and Delivering Emergency Assistance Act.
Table 1. Supplemental Appropriations: SBA Disaster Loan Account
FY2020-FY2022
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 Na
$20,000,000,000
P.L. 116-260 appropriated $20
bil ion for Targeted EIDL Grants, of
which $20,000,000 shall be made
Economic Aid to Hard-Hit Small Businesses,
available to the Inspector General
Nonprofits, and Venues Act
of the Small Business Administration
to prevent waste, fraud, and abuse.
P.L. 117-2, American Rescue Plan Act of
$15,460,000,000
P.L. 117-2 appropriated $10 bil ion
2021
for Targeted EIDL Advance Grants;
$5 bil ion for Emergency EIDL
Grants; and $460 mil ion for the
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Public Law Number, Division, and Bill
Title
Appropriation
Purpose
disaster loan account, of which $70
mil ion was for disaster loan credit
subsidies and $390 mil ion was for
disaster loan administrative
expenses.
FY2022b
P.L. 117-43, Division B Extending
$1,189,100,000
P.L. 117-43 appropriated $1.1891
Government Funding and Delivering
bil ion for the disaster loan account.
Emergency Assistance Act
Up to $620 mil ion may be
transferred to and merged with
“Salaries and Expenses” for
administrative expenses to carry
out the disaster loan program.
Source: Based on CRS interpretation of appropriation laws.
a. P.L. 116-260. Division E, the Financial Services and General Government Appropriations Act, 2021, also appropriated
$168,075,000 for FY2021 regular appropriations to the SBA disaster loan program account.
b. P.L. 117-58, the Infrastructure Investment and Jobs Act, rescinded $36.929 bil ion in SBA unobligated balance,
including $17.578 bil ion from funds provided by P.L. 116-260 for the Targeted EIDL Advance grant program; and
$13.5 bil ion from funds provided by P.L. 116-139 for the Disaster Loans Program Account for EIDL loan credit
subsidies.
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 estimate 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.” DRF monthly reports help Congress track disaster relief
funding activities and 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 cost and
exhausted funding projections.
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
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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
Author Information
Bruce R. Lindsay
Jared C. Nagel
Specialist in American National Government
Senior Research Librarian
Robert Jay Dilger
R. Corinne Blackford
Senior Specialist in American National Government
Analyst in Small Business and Economic Development
Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of
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