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House Small Business Committee grills SBA on October 2024 disaster‑fund lapse and steps to prevent future gaps
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Summary
Committee members questioned SBA associate administrator Chris Stallings about the October 2024 funding lapse that halted disaster loan approvals for 68 days, and pressed the agency on new forecasting, monthly reporting, and operational changes intended to prevent another interruption.
The House Committee on Small Business examined the Small Business Administration’s disaster lending program on Jan. 15, 2026, focusing on an October 2024 funding lapse that temporarily paused new disaster loans.
Members opened the hearing by flagging the human consequences of delayed aid. In his opening remarks the chair said the funding lapse lasted 68 days and “caused an unnecessary delay in dispersing disaster loans,” a disruption lawmakers said left survivors waiting for critical recovery funds.
Chris Stallings, the SBA’s associate administrator for the Office of Disaster Recovery and Resilience, told the committee the agency has taken steps to make the program more transparent and resilient. “We have improved funding forecasting to prevent disruptions like we saw under the Biden administration,” Stallings said, and pointed to an updated monthly congressional report and the use of economists and meteorological partners as part of a new forecasting methodology.
Stallings provided performance figures to illustrate change: “Since 01/20/2025, the SBA has approved 27,996 disaster loans, totaling over $4,700,000,000,” he said, and added that the average approval time has fallen to 15.4 days from 21.7 days the prior year. He also said the agency elevated regional recovery coordinators and expanded mobile recovery and portable loan outreach centers to improve field access.
Members pressed whether staffing reductions would undercut those improvements. Ranking Member Velasquez noted agency staffing declines and referenced an intended 47% cut in the SBA workforce; Stallings responded that processing times have improved despite personnel changes and that the agency is reorganizing to bring disaster lending back under the Office of Disaster Recovery and Resilience to restore cradle‑to‑grave visibility of loans.
Lawmakers urged continued oversight, regular and legible reporting to Congress, and contingency plans to prevent future lapses. The committee recessed and will accept additional questions and follow‑up materials in writing.
The hearing record shows the agency making concrete operational commitments (monthly reporting, updated forecasting, and expanded field presence) while members from both parties signaled they will continue oversight until they are satisfied the program is protected from funding and staffing shocks.
