End SBA direct lending and shift disaster loans away from SBA
Mandate’s success metrics include ending SBA direct lending; for disaster loans (mostly to individuals, not small businesses), work with Congress to move lending to another agency and/or private channels, and specify no new direct lending programs.
Mandate
Mandate Ch. 25 (SBA) — success would yield an end to SBA direct lending; Disaster Loan Program: work with Congress to assess extent disaster loans should be offered by another agency rather than SBA and explore private-sector channels; specify clearly that no new direct lending programs will be developed at SBA.
Undo plan
1) Keep a federal disaster-credit backstop coordinated with FEMA—do not strand homeowners/firms after declared disasters.
2) If relocating the program, transfer servicing capacity and anti-fraud controls intact.
3) Distinguish emergency disaster credit from ending all SBA credit programs.
4) Codify insurance-coordination reforms without eliminating last-resort credit.
5) Verify: disaster application cycle times and unmet-need rates.