SBA: Disaster Loan Program
The rule was issued by
DATES: This rule is effective on
FOR FURTHER INFORMATION CONTACT:
* * *
The
The rule will remove all regulations applicable to two subparts: Pre-Disaster Mitigation Loans and Economic Injury Disaster Loans as a Result of the
The removal of these regulations will assist the public by simplifying SBA's regulations in the CFR.
SUPPLEMENTARY INFORMATION:
I. Background Information
A. Pre-Disaster Mitigation Loans, Part 123, Subpart E
Pre-disaster mitigation loans were authorized by
B. Economic Injury Disaster Loans as a Result of the
In response to the
C. Executive Order 13771
On
D. Executive Order 13777
On
II. Section by Section Analysis
A. Pre-Disaster Mitigation Loans, Part 123, Subpart E
SBA is removing subpart E from part 123 of SBA's regulations because the regulations are no longer necessary. The regulations at 13 CFR 123.400 through 123.412 describe eligibility requirements, allowable uses of proceeds, loan terms, and application procedures for Pre-Disaster Mitigation Loans. Specifically, the provisions to be removed are: (1) Section 123.400 What is the Pre-Disaster Mitigation Loan Program?; (2) Section 123.401 What types of mitigation measures can your business include in an application for a pre-disaster mitigation loan?; (3) Section 123.402 Can your business include its relocation as a mitigation measure in an application for a pre-disaster mitigation loan?; (4) Section 123.403 When is your business eligible to apply for a pre-disaster mitigation loan?; (5) Section 123.404 When is your business ineligible to apply for a pre-disaster mitigation loan?; (6) Section 123.405 How much can your business borrow with a pre-disaster mitigation loan?; (7) Section 123.406 What is the interest rate on a pre-disaster mitigation loan?; (8) Section 123.407 When does your business apply for a pre-disaster mitigation loan and where does your business get an application?; (9) Section 123.408 How does your business apply for a pre-disaster mitigation loan?; (10) Section 123.409 Which pre-disaster mitigation loan requests will SBA consider for funding?; (11) Section 123.410 Which loan requests will SBA fund?; (12) Section 123.411 What if SBA determines that your business loan request meets the selection criteria of Section 123.409 but SBA is unable to fund it because SBA has already allocated all program funds?; and (13) Section 123.412 What happens if SBA declines your business' pre-disaster mitigation loan request?
The statutory authority for Pre-Disaster Mitigation Loans expired in 2004; therefore, SBA is no longer making these loans. There are no outstanding loans.
B. Economic Injury Disaster Loans as a Result of the
SBA is also removing subpart G from part 123 of SBA's regulations because the regulations are no longer necessary. The regulations at 13 CFR 123.600 through 123.606 describe eligibility requirements, allowable uses of proceeds, loan terms, and application procedures for economic injury disaster loans made under Subpart G. Specifically, the provisions to be removed are: (1) Section 123.600 Are economic injury disaster loans under this subpart limited to the geographic areas contiguous to the declared disaster areas?; (2) Section 123.601 Is my business eligible to apply for an economic injury disaster loan under this subpart?; (3) Section 123.602 When would my business not be eligible to apply for an economic injury disaster loan under this subpart?; (4) Section 123.603 What is the interest rate on an economic injury disaster loan under this subpart?; (5) Section 123.604 How can my business spend my economic injury disaster loan under this subpart?; (6) Section 123.605 How long do I have to apply for a loan under this subpart?; and (7) Section 123.606 May I request an increase in the amount of an economic injury disaster loan under this subpart?
This loan program was intended to specifically address the unique injury caused by the
C. Conforming Amendment
SBA is removing regulatory text that cross-references the regulations being removed by this rule. Specifically, this conforming change removes the text in Section 123.21 that references pre-disaster mitigation loans.
D. Administrative Procedure Act--Direct Final Rule
SBA is publishing this rule as a direct final rule because SBA views this action as a non-controversial administrative action that relates solely to expired SBA programs. This rule will be effective on the date shown in the DATES section unless SBA receives any significant adverse comments on or before the deadline for comments set forth in the DATES section. Significant adverse comments are comments that SBA determines provide strong justifications for why the rule should not be adopted or for changing the rule. If SBA receives any significant adverse comments, SBA will publish a document in the
III. Compliance With Executive Orders 12866, 13771, 12988, and 13132, the Paperwork Reduction Act (44 U.S.C., Ch. 35), and the Regulatory Flexibility Act (5 U.S.C. 601-612)
A. Executive Order 12866
B. Executive Order 13771
This direct final rule is an Executive Order 13771 deregulatory action with an annualized net savings of
Approximately 109,131 applicants apply for SBA disaster assistance loans per year on average, based on data from 2014-2018. These calculations assume 3% of disaster loan applicants read the regulations per year (or approximately 3,300 applicants) and that the removal of these obsolete regulations would save each applicant 30 minutes of time otherwise spent reviewing or inquiring about non-existent programs. This time is valued at
C. Executive Order 12988
This action meets applicable standards set forth in Section s 3(a) and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. The action does not have retroactive or preemptive effect.
D. Executive Order 13132
This rule does not have federalism implications as defined in Executive Order 13132. It will not have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in the Executive order. As such it does not warrant the preparation of a Federalism Assessment.
E. Paperwork Reduction Act
The SBA has determined that this final rule does not affect any existing collection of information.
F. Regulatory Flexibility Act
When an agency issues a rule, the Regulatory Flexibility Act (RFA) requires the agency to prepare a final regulatory flexibility analysis (FRFA), which describes whether the rule will have a significant economic impact on a substantial number of small entities. However, Section 605 of the RFA allows an agency to certify a rule, in lieu of preparing a FRFA, if the rulemaking is not expected to have a significant economic impact on a substantial number of small entities.
This direct final rule is removing descriptions of obsolete programs in the current regulations, which will reduce confusion and the time required to read and/or inquire about obsolete programs. Approximately 109,131 applicants apply for SBA disaster assistance loans per year, on average based on data from 2014-2018. The net savings to potential disaster loan applicants is
Therefore, SBA hereby certifies that this rule will not have a significant economic impact on a substantial number of small entities.
List of Subjects in 13 CFR Part 123
* Disaster assistance
* Loan programs-business
* Small businesses
* Terrorism
Dated:
Administrator.
[FR Doc. 2020-03657 Filed 3-4-20;
BILLING CODE 8025-01-P
The document is published in the
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