Indy Standard

U.S. Senators Todd Young, Joni Ernst, Tim Scott, and James Risch have expressed concerns over the Small Business Administration's (SBA) handling of disaster resources. The senators are questioning the agency after it announced a shortage of funds for disaster relief.

The senators, all members of the Senate Small Business and Entrepreneurship Committee, criticized the SBA for not informing Congress about the need for additional funding in advance. They attribute this oversight 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. 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 stated. The senators questioned whether internal decisions by the SBA contributed to this issue. They noted that while there is over $550 million available for administrative expenses such as salaries, no reprogramming was requested for their disaster loan fund.

The letter also highlighted concerns regarding staffing during disasters. "Further, during a disaster, on-the-ground staff and training is essential," they emphasized. The senators pointed out that despite having a statutorily authorized disaster cadre meant to maintain at least 1,000 employees, it appears this requirement may not have been met without notifying anyone.

"Based on information recently provided by the SBA in response to questions as it sought supplemental funds, it appears that this cadre may have vanished," they concluded. This raises significant concerns about the agency's capacity to support disaster victims effectively and keep Congress informed according to legal obligations.