They are available to homeowners, renters, businesses of all sizes,  and nonprofit organizations. SBA Implemented Most Provisions of the 2008 Act, but Has Not Yet Implemented New Disaster Loan Programs

		SBA Implemented Most of the Provisions in 2008 Act

SBA has implemented most of the requirements of the 2008 Act, which  comprises 26 provisions with substantive requirements for SBA, including  requirements for disaster planning and simulations, reporting, and plan  updates (see app. In June 2008,  SBA appointed an official to head the agency’s newly created  Executive Office of Disaster Strategic Planning and Operations. SBA has taken actions to fully address other provisions, such as those  relating to augmenting infrastructure, information technology and staff as  well as improving disaster lending. SBA  also improved its Disaster Credit Management System, which the agency  uses to process loan applications and make determinations for its  disaster loan program, by increasing the number of concurrent users that  can access it. SBA officials also told us  that they performed initial outreach to lenders to obtain reactions to and  interest in the programs. In 2014, we reported on the Disaster Loan Program (following Hurricane  Sandy) and found that SBA had yet to pilot or implement the three  programs for guaranteed disaster loans. Based on this action, we closed the recommendations for SBA  to develop an implementation plan, formally evaluate lender feedback,  and report to Congress on implementation challenges. SBA Made Improvements in Response to Our Recommendation to Further Enhance Disaster Planning after Hurricane Sandy

SBA made several changes to its planning documents in response to  recommendations in our 2014 report about the agency’s response to  Hurricane Sandy. While SBA created web- based loan applications to expedite the process and encouraged their  use, the agency noted that it did not expect early receipt of such a high  volume of loan applications early in its response and delayed increasing  staffing. At the time of our 2014 report, SBA also had not updated its key disaster  planning documents—the Disaster Preparedness and Recovery Plan and  the Disaster Playbook—to adjust for the effects a large-volume, early  surge in applications could have on staffing, resources, and forecasting  models for future disasters. We therefore recommended that  SBA revise its disaster planning documents to anticipate the potential  impact of early application submissions on staffing, resources, and timely  disaster response. SBA Took Some Actions to Improve Information for Business Loan Applicants but Could Improve Presentation of the Information

		SBA Implemented Some Actions and Planned Others to Improve Information Resources for Business Loan Applicants

In our November 2016 report, we reviewed the actions SBA took or  planned to take to improve the disaster loan program, as discussed in its  Fiscal Year 2015 Annual Performance Report. SBA focused on  promoting disaster preparedness, streamlining the loan process, and  enhancing online application capabilities (see table 1). SBA Has Opportunities to Further Refine Its Presentation of Information on the Disaster Business Loan Process

			Disaster Loan-Related Information Not Easily Accessible

As we found in our November 2016 report, SBA published information  (print and electronic) about the disaster loan process, but much of this  information is not easily accessible from the disaster loan assistance web  portal. We concluded that absent better integration of,  and streamlined access to, disaster loan-related information on SBA’s  web portals, loan applicants—and SBDCs assisting disaster victims— may not be aware of key information for completing applications. However, SBA did not indicate that what actions it would take in  response to our recommendation. We plan to follow up with SBA on  whether the agency will take any action to ensure content is consistent  across print and online resources, among other things. Therefore, we recommended that SBA  define financial terminology on loan application forms (for example, by  adding a glossary to the “help” feature on the web portal). Appendix I: Summary of Provisions in the Small Business Disaster Response and Loan Improvements Act of 2008

Appendix I: Summary of Provisions in the  Small Business Disaster Response and Loan  Improvements Act of 2008 This is a work of the U.S. government and is not subject to copyright protection in the  United States.
Why GAO Did This Study

While SBA is known primarily for its financial support of small businesses, the agency also assists businesses of all sizes and homeowners affected by natural and other declared disasters through its Disaster Loan Program. Disaster loans can be used to help rebuild or replace damaged property or continue business operations. After SBA was criticized for its performance following the 2005 Gulf Coast hurricanes, the agency took steps to reform the program and Congress also passed the 2008 Act. After Hurricane Sandy (2012), questions arose on the extent to which the program had improved since the 2005 Gulf Coast Hurricanes and whether previously identified deficiencies had been addressed.
This statement discusses (1) SBA implementation of provisions from the 2008 Act; (2) additional improvements to agency planning following Hurricane Sandy; and (3) SBA's recent and planned actions to improve information resources for business loan applicants. This statement is based on GAO products issued between July 2009 and November 2016. GAO also met with SBA officials in April 2017 to discuss the status of open recommendations and other aspects of the program.

What GAO Found

The Small Business Administration (SBA) implemented most requirements of the Small Business Disaster Response and Loan Improvements Act of 2008 (2008 Act). For example, in response to the 2008 Act, SBA appointed an official to head the disaster planning office and annually updates its disaster response plan. SBA also implemented provisions relating to marketing and outreach; augmenting infrastructure, information technology, and staff; and increasing access to funds for nonprofits, among other areas. However, SBA has not yet implemented provisions to establish three guaranteed loan programs. In 2010, SBA received an appropriation to pilot one program and performed initial outreach to lenders. However, in 2014, GAO found that SBA had not implemented the programs or conducted a pilot because of concerns from lenders about loan features. GAO recommended that SBA evaluate lender feedback and report to Congress about implementation challenges. In response, SBA sought comments from lenders and sent a letter to Congress that explained remaining implementation challenges.
After Hurricane Sandy, SBA further enhanced its planning for disaster response, including processing of loan applications. In a 2014 report on the Disaster Loan Program, GAO found that while SBA encouraged electronic submissions of loan applications, SBA did not expect early receipt of a high volume of applications after Sandy and delayed increasing staffing. SBA also did not update key disaster planning documents to adjust for the effects of such a surge in future disasters. GAO recommended SBA revise its disaster planning documents to anticipate the potential impact of early application submissions on staffing and resources. In response, SBA updated its planning documents to account for such impacts.
SBA has taken some actions to enhance information resources for business loan applicants but could do more to improve its presentation of online disaster loan-related information. In 2016, GAO found that SBA took or planned to take various actions to improve the disaster loan program and focused on promoting disaster preparedness, streamlining the loan process, and enhancing online application capabilities. However, GAO found that SBA had not effectively presented information on disaster loans (in a way that would help users efficiently find it), had not consistently described key features and requirements of the loan process in print and online resources, or clearly defined financial terminology used in loan applications. Absent better integration of, and streamlined access to, disaster loan-related information, loan applicants may not be aware of key information and requirements for completing the applications. Therefore, GAO recommended that SBA (1) integrate disaster loan-related information into its web portals to be more accessible to users, (2) ensure consistency of content about the disaster loan process across information resources, and (3) better define financial terminology used in the loan application forms. In January 2017, SBA indicated it was working on a glossary for the application. GAO plans to follow up with SBA about the other two open recommendations.