Rep. Velázquez Questions SBA Official on Disaster Loan Forecasting and Staffing

SBA's Disaster Loan Forecasting Methodology

• 💡 The SBA's forecasting methodology for disaster loans has not been updated in 15 years, leading to projections that do not account for increasing disaster costs.
• 🎯 A new methodology was implemented in response to an OIG report, using analog years from meteorological partners, 10-year averages, and expert analysis on construction and rebuild costs, adjusted for inflation.
• ❓ Questions were raised about the assumptions used to determine the $143 million appropriation request under this new methodology.

Staffing and Capacity at Disaster Processing Centers

• ⚠️ Monthly reports indicate a significant decrease in staffing at the disaster processing and disbursement center, with a 44-45% reduction from December to November.
• 🗣️ The Associate Administrator stated that position descriptions are being re-evaluated to ensure employees are utilized effectively, not just that there are many of them.
• 📉 Despite a reported 47% intended cut in the SBA workforce, the administrator claims this has not affected loan processing and that money has been disbursed faster.
• 🤔 Concerns were expressed about whether a 47% staff cut is appropriate, especially in light of potential future disasters.