Disaster loan program: Streamlining and clarification; correction,
[Federal Register: March 22, 1999 (Volume 64, Number 54)]
[Rules and Regulations]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
SMALL BUSINESS ADMINISTRATION
Disaster Loan Program; Correction
AGENCY: Small Business Administration (SBA).
ACTION: Correcting amendments.
SUMMARY: This document contains a correction to the final regulation published in the Federal Register on January 31, 1996, 61 FR 3304, concerning the SBA's disaster regulations. This regulation is contained in Sec. 123.3 of volume 13 of the Code of Federal Regulations. Under the disaster regulations, a State Governor must make certification of economic injury within 120 days of the physical disaster. This correction reinstates a provision which gives the SBA Administrator authority, in cases of undue hardship, to accept a Governor's certification more than 120 days after the disaster.
DATES: Effective March 22, 1999.
FOR FURTHER INFORMATION CONTACT: Herbert L. Mitchell, 202-205-6734.
SUPPLEMENTARY INFORMATION: Under SBA's disaster regulations, a State Governor may certify to the SBA that small businesses suffered substantial economic injury as a result of a disaster in the State. The Governor must submit such certification to the local SBA disaster office within 120 days of the disaster. That office evaluates the request and makes its recommendation to SBA's Headquarters office. The SBA Administrator takes final action and decides whether to make an economic injury disaster declaration. Under disaster regulations prior to 1996, the SBA Administrator had authority, in cases of undue hardship, to accept a Governor's certification after the 120-day period had elapsed. When SBA revised its regulations in 1996, it inadvertently omitted this provision from 13 CFR 123.3 (formerly Sec. 123.23(c) prior to 1996). This correction reinstates the SBA Administrator's authority to accept a Governor's certification after 120 days.
Before a Governor submits a request for SBA to declare an economic injury, the affected small businesses in the community must prepare and submit documentation with respect to the economic injuries they have incurred as a result of a disaster in the State. There are times when the paperwork is delayed in getting to the State Governor, with the result that the Governor's request to SBA arrives more than 120 days after the disaster incident. Thus, the SBA Administrator needs authority to accept late requests from a governor to protect small businesses. This technical correction will allow the SBA Administrator to act so that small businesses would not suffer undue economic hardship.
Compliance With Executive Orders 12612, 12778, and 12866, the Regulatory Flexibility Act (5 U.S.C., et seq.), and the Paperwork Reduction Act (44 U.S.C. Ch 35)
SBA certifies that this correction does not constitute a significant rule within the meaning of Executive Order 12866, since it is not likely to have an annual effect on the economy of $100 million or more, result in a major increase in costs or prices, or have a significant adverse effect on competition or the U.S. economy.
SBA certifies that this correction will not have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. SBA certifies that this correction does not impose any additional reporting or recordkeeping requirements under the Paperwork Reduction Act, 44 U.S.C. chapter 35.
For purposes of Executive Order 12612, SBA certifies that this proposed rule has no federalism implications warranting preparation of a Federalism Assessment.
For purposes of Executive Order 12778, SBA certifies that this correction is drafted, to the extent practicable, to comply with the standards set forth in section 2 of that Order.
List of Subjects in 13 CFR Part 123
Disaster assistance, loan programs-businesses, small businesses.
For the reasons set forth in the above preamble, SBA amends 13 CFR part 123 as follows:
PART 123--DISASTER LOAN PROGRAM
The authority citation for part 123 continues to read as follows:
Authority: 15 U.S.C. 634(b)(6), 636(b), 636(c) and 636(f); Pub. L. 102-395, 106 Stat. 1828, 1864; and Pub. L. 103-75, 107 Stat. 739.
Amend Sec. 123.3 by adding a new sentence at the end of paragraph (a)(4) to read as follows:
Sec. 123.3 How are disaster declarations made?
(a) * * *
(4) * * * The Administrator may, in a case of undue hardship, accept such request after 120 days have expired. * * * * *
Dated: March 16, 1999. Fred Hochberg, Deputy Administrator.
[FR Doc. 99-6856Filed3-19-99; 8:45 am]
BILLING CODE 8025-01-M