81 FR 63366 - Disaster Assistance Loan Program; Disaster Loan Credit and Collateral Requirements

SMALL BUSINESS ADMINISTRATION

Federal Register Volume 81, Issue 179 (September 15, 2016)

Page Range		63366-63367
FR Document		2016-21512

On April 25, 2014, the Small Business Administration (SBA) published in the Federal Register an interim final rule amending its disaster loan program regulations in response to Hurricane Sandy Rebuilding Task Force recommendations. The first change allowed SBA to rely on the disaster loan applicant's credit, including credit score, rather than personal or business cash flow in order to assess repayment ability for those applicants with strong credit. The second change increased the amount of disaster assistance funds that can be immediately disbursed to borrowers by raising the unsecured threshold for economic injury loans for all disasters and for physical damage loans for major disasters. SBA received no comments on its interim final rule; therefore, SBA adopts the interim final rule without change.

Federal Register, Volume 81 Issue 179 (Thursday, September 15, 2016)

[Federal Register Volume 81, Number 179 (Thursday, September 15, 2016)]
[Rules and Regulations]
[Pages 63366-63367]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-21512]


=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION

13 CFR Part 123

RIN 3245-AG61


Disaster Assistance Loan Program; Disaster Loan Credit and 
Collateral Requirements

AGENCY: U.S. Small Business Administration.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: On April 25, 2014, the Small Business Administration (SBA) 
published in the Federal Register an interim final rule amending its 
disaster loan program regulations in response to Hurricane Sandy 
Rebuilding Task Force recommendations. The first change allowed SBA to 
rely on the disaster loan applicant's credit, including credit score, 
rather than personal or business cash flow in order to assess repayment 
ability for those applicants with strong credit. The second change 
increased the amount of disaster assistance funds that can be 
immediately disbursed to borrowers by raising the unsecured threshold 
for economic injury loans for all disasters and for physical damage 
loans for major disasters. SBA received no comments on its interim 
final rule; therefore, SBA adopts the interim final rule without 
change.

DATES: This final rule is effective September 15, 2016.

FOR FURTHER INFORMATION CONTACT: Eric Wall, Office of Disaster 
Assistance, 409 3rd St. SW., Washington, DC 20416, (202) 205-6739.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Hurricane Sandy Rebuilding Task Force was established pursuant 
to an Executive Order issued on December 7, 2012, E.O. 13632, 
Establishing the Hurricane Sandy Task Force (December 7, 2012). This 
Task Force was established to ensure the recovery effort benefitted 
from cabinet-level focus and coordination, and was charged with 
establishing guidelines for the investment of Federal funds made 
available for the recovery. As a member of this task force, SBA 
collaborated with these executive agencies and offices to identify and 
work to remove obstacles to resilient rebuilding while taking into 
account existing and future risks and promoting the long-term 
sustainability of communities and ecosystems in the Sandy-affected 
region.
    As a result of Task Force recommendations, SBA published an interim 
final rule on April 25, 2014 (79 FR 22859). The rule amended 13 CFR 
123.6 of SBA regulations to allow SBA to rely on a disaster applicant's 
credit, including score, as evidence of repayment ability. This change 
allowed SBA to expedite processing of applications from disaster 
victims with strong credit by removing the requirement to analyze cash 
flow for all loans. The interim final rule also revised 13 CFR 123.11 
to increase SBA's unsecured disaster loan limit to $25,000 for economic 
injury loans for all disasters and for physical damage loans for major 
disasters. The comment period for the interim final rule ended on June 
23, 2014, and SBA received no comments.

Compliance with Executive Orders 12866, 12988, 13132, and 13563 and the 
Paperwork Reduction Act (44 U.S.C., Ch. 35) and the Regulatory 
Flexibility Act (5 U.S.C. 601-612)

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
final rule is not a significant regulatory action for the purposes of 
Executive Order 12866. This is not a major rule under the Congressional 
Review Act, 5 U.S.C. 800.

Executive Order 12988

    This action meets applicable standards set forth in sections 3(a) 
and

[[Page 63367]]

3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden. This action does 
not have preemptive or retroactive effect.

Executive Order 13132

    For the purposes of Executive Order 13132, this final rule will not 
have substantial direct effects on the States, on the relationship 
between the national government and the States, or the distribution of 
power and responsibilities among the various levels of government. 
Therefore, SBA determined that this final rule has no federalism 
implications warranting preparation of a federalism assessment.

Executive 13563

    Executive Order 13563 reaffirms the principles of E.O. 12866 while 
calling for improvements in the nation's regulatory system to promote 
predictability, to reduce uncertainty, and to use the best, most 
innovative, and least burdensome tools for achieving regulatory ends. 
The executive order directs agencies to consider regulatory approaches 
that reduce burdens and maintain flexibility and freedom of choice for 
the public where these approaches are relevant, feasible, and 
consistent with regulatory objectives. E.O. 13563 also requires that 
regulations be based on the open exchange of information and 
perspectives among state and local officials, affected stakeholders in 
the private sector, and the public as a whole.
    In developing the interim final rule, SBA collaborated with 
multiple agencies through its participation on Hurricane Sandy 
Rebuilding Task Force. The Task Force was led by the Secretary of 
Housing and Urban Development, and included twenty-three executive 
department agencies and offices. The Task Force worked with these 
Federal agency members as well as state and local officials to identify 
areas where immediate steps could be taken to help communities 
recovering from Hurricane Sandy. Executive Order 13563 also recognizes 
the importance of maintaining a consistent culture of retrospective 
review and analysis throughout the executive branch. SBA had identified 
revisions to Sec.  123.6 to expedite approval of disaster loans based 
on credit score as a part of its retrospective review. As stated in 
that report, an analysis of the performance of disaster loans to 
borrowers with strong credit indicated limited risk. Changing the 
current process of requiring a cash flow analysis for all loan 
applications has allowed SBA more flexibility to utilize a loan 
approval process that is in line with current private sector practices 
and reduce the processing cost for disaster loans.

Paperwork Reduction Act (44 U.S.C. Ch. 35)

    For the purpose of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, 
SBA has determined that this final rule does not impose any new 
reporting or recordkeeping requirements.

Regulatory Flexibility Act (5 U.S.C. 601-612)

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 requires 
administrative agencies to consider the effect of their actions on 
small entities, including small businesses. According to the RFA, when 
an agency issues a rule, the agency must prepare an analysis to 
determine whether the impact of the rule will have a significant 
economic impact on a substantial number of small entities. However, the 
RFA allows an agency to certify a rule in lieu of preparing an analysis 
if the rulemaking is not expected to have a significant economic impact 
on a substantial number of small entities.
    While this rule will affect all future applicants for disaster 
assistance, some of which would be small entities, it does not impose 
any requirements on small entities. It streamlines SBA's processes in 
order to enable the Agency to provide disaster assistance more quickly 
and efficiently to small entities. SBA is not a small entity. As such, 
SBA certifies that this rule does 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, Reporting and 
recordkeeping requirements, Small businesses, Terrorism.

Authority and Issuance

0
Accordingly, for the reasons set forth above, the interim final rule 
published at 79 FR 22859 (April 25, 2014) is adopted as a final rule 
without change.

    Dated: August 26, 2016.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2016-21512 Filed 9-14-16; 8:45 am]
 BILLING CODE 8025-01-P

Federal Register / Vol. 81, No. 179 / Thursday, September 15, 2016 / Rules and Regulations 63367

3(b)(2) of Executive Order 12988, Civil utilize a loan approval process that is in DEPARTMENT OF TRANSPORTATION
Justice Reform, to minimize litigation, line with current private sector practices
eliminate ambiguity, and reduce and reduce the processing cost for Federal Aviation Administration
burden. This action does not have disaster loans.
preemptive or retroactive effect. 14 CFR Part 39
Paperwork Reduction Act (44 U.S.C. Ch.
Executive Order 13132 35) [Docket No. FAA–2015–0077; Directorate
Identifier 2013–NM–254–AD; Amendment
For the purposes of Executive Order 39–18645; AD 2016–18–14]
13132, this final rule will not have For the purpose of the Paperwork
substantial direct effects on the States, Reduction Act, 44 U.S.C. Ch. 35, SBA RIN 2120–AA64
on the relationship between the national has determined that this final rule does
government and the States, or the not impose any new reporting or Airworthiness Directives; ATR—GIE
distribution of power and recordkeeping requirements. Avions de Transport Régional
responsibilities among the various Airplanes
Regulatory Flexibility Act (5 U.S.C. 601–
levels of government. Therefore, SBA AGENCY: Federal Aviation
determined that this final rule has no 612)
Administration (FAA), Department of
federalism implications warranting The Regulatory Flexibility Act (RFA), Transportation (DOT).
preparation of a federalism assessment. 5 U.S.C. 601 requires administrative ACTION: Final rule.
Executive 13563 agencies to consider the effect of their
actions on small entities, including SUMMARY: We are adopting a new
Executive Order 13563 reaffirms the airworthiness directive (AD) for certain
principles of E.O. 12866 while calling small businesses. According to the RFA,
when an agency issues a rule, the ATR—GIE Avions de Transport
for improvements in the nation’s Régional Model ATR42–500 and Model
regulatory system to promote agency must prepare an analysis to
determine whether the impact of the ATR72–212A airplanes. This AD was
predictability, to reduce uncertainty, prompted by a report indicating that
and to use the best, most innovative, rule will have a significant economic
interference occurred between a Type III
and least burdensome tools for impact on a substantial number of small
Emergency Exit door and the
achieving regulatory ends. The entities. However, the RFA allows an
surrounding passenger cabin furnishing
executive order directs agencies to agency to certify a rule in lieu of during a production check. This AD
consider regulatory approaches that preparing an analysis if the rulemaking requires measuring the gap between the
reduce burdens and maintain flexibility is not expected to have a significant Type III Emergency Exit doors and
and freedom of choice for the public economic impact on a substantial certain overhead stowage compartment
where these approaches are relevant, number of small entities. fittings; removing certain fittings from
feasible, and consistent with regulatory
While this rule will affect all future the overhead stowage compartments
objectives. E.O. 13563 also requires that
applicants for disaster assistance, some and measuring the gap between the
regulations be based on the open
of which would be small entities, it does Type III Emergency Exit doors and the
exchange of information and
perspectives among state and local not impose any requirements on small overhead stowage compartment hooks,
officials, affected stakeholders in the entities. It streamlines SBA’s processes if necessary; re-installing or repairing, as
private sector, and the public as a in order to enable the Agency to provide applicable, the Type III Emergency Exit
whole. disaster assistance more quickly and doors; and modifying the overhead
In developing the interim final rule, efficiently to small entities. SBA is not stowage compartments. We are issuing
SBA collaborated with multiple a small entity. As such, SBA certifies this AD to prevent interference between
agencies through its participation on that this rule does not have a significant a Type III Emergency Exit door and the
Hurricane Sandy Rebuilding Task Force. economic impact on a substantial overhead stowage compartment fitting
The Task Force was led by the Secretary installed on the rail, which could result
number of small entities.
of Housing and Urban Development, in obstructed opening of a Type III
and included twenty-three executive List of Subjects in 13 CFR Part 123 Emergency Exit door during an
department agencies and offices. The emergency evacuation.
Disaster assistance, Loan programs— DATES: This AD is effective October 20,
Task Force worked with these Federal
business, Reporting and recordkeeping 2016.
agency members as well as state and
requirements, Small businesses, The Director of the Federal Register
local officials to identify areas where
Terrorism. approved the incorporation by reference
immediate steps could be taken to help
communities recovering from Hurricane Authority and Issuance of certain publications listed in this AD
Sandy. Executive Order 13563 also as of October 20, 2016.
recognizes the importance of ■ Accordingly, for the reasons set forth ADDRESSES: For service information
maintaining a consistent culture of above, the interim final rule published identified in this final rule, contact
retrospective review and analysis at 79 FR 22859 (April 25, 2014) is ATR—GIE Avions de Transport
throughout the executive branch. SBA adopted as a final rule without change. Régional, 1, Allée Pierre Nadot, 31712
had identified revisions to § 123.6 to Blagnac Cedex, France; telephone +33
Dated: August 26, 2016.
expedite approval of disaster loans (0) 5 62 21 62 21; fax +33 (0) 5 62 21
based on credit score as a part of its Maria Contreras-Sweet, 67 18; email continued.airworthiness@
retrospective review. As stated in that Administrator. atr.fr; Internet http://
rmajette on DSK2TPTVN1PROD with RULES

report, an analysis of the performance of [FR Doc. 2016–21512 Filed 9–14–16; 8:45 am] www.aerochain.com. You may view this
disaster loans to borrowers with strong BILLING CODE 8025–01–P referenced service information at the
credit indicated limited risk. Changing FAA, Transport Airplane Directorate,
the current process of requiring a cash 1601 Lind Avenue SW., Renton, WA.
flow analysis for all loan applications For information on the availability of
has allowed SBA more flexibility to this material at the FAA, call 425–227–

VerDate Sep<11>2014 14:38 Sep 14, 2016 Jkt 238001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\15SER1.SGM 15SER1

Document Created: 2018-02-09 13:18:07
Document Modified: 2018-02-09 13:18:07

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		This final rule is effective September 15, 2016.
Contact		Eric Wall, Office of Disaster Assistance, 409 3rd St. SW., Washington, DC 20416, (202) 205-6739.
FR Citation		81 FR 63366
RIN Number		3245-AG61
CFR Associated		Disaster Assistance; Loan Programs-Business; Reporting and Recordkeeping Requirements; Small Businesses and Terrorism