81 FR 67901 - Disaster Assistance Loan Program; Disaster Loan Mitigation, Contractor Malfeasance and Secured Threshold
SMALL BUSINESS ADMINISTRATION Federal Register Volume 81, Issue 191 (October 3, 2016)
Federal Register Volume 81, Issue 191 (October 3, 2016)
| Page Range | 67901-67904 | |
| FR Document | 2016-23733 |
[Federal Register Volume 81, Number 191 (Monday, October 3, 2016)] [Rules and Regulations] [Pages 67901-67904] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-23733] ----------------------------------------------------------------------- SMALL BUSINESS ADMINISTRATION 13 CFR Part 123 RIN 3245-AG78 Disaster Assistance Loan Program; Disaster Loan Mitigation, Contractor Malfeasance and Secured Threshold AGENCY: U.S. Small Business Administration. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: On April 6, 2016, the U.S. Small Business Administration (SBA) published in the Federal Register a proposed rule to amend its disaster loan program regulations in response to changes made to the Small Business Act (the Act) by the Recovery Improvements for Small Entities After Disaster Act of 2015 (the RISE Act). SBA received no comments on its proposed rule; therefore SBA adopts the proposed rule without change. The first change expands the definition of a mitigating measure to include the construction of a safe room or similar storm shelter designed to protect property and occupants. The second change allows for an increase of the unsecured threshold for physical damage loans for non-major disasters. The third change allows SBA to increase loan amounts to address contractor malfeasance. In addition, SBA is making several technical corrections to conform certain regulatory provisions to existing statutory authority and remove an obsolete reference in part 123. DATES: This rule is effective on October 3, 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 Section 7(b) of the Small Business Act, 15 U.S.C. 636(b), authorizes SBA to make direct loans to homeowners, renters, businesses, and non-profit organizations that have been adversely affected by a disaster. After a declared disaster, SBA makes loans of up to $200,000 to homeowners and renters (plus up to $40,000 for personal property) and loans of up to $2 million to businesses of all sizes and non-profit organizations to assist with any uninsured and otherwise uncompensated physical losses sustained during the disaster. In addition to loans for the repair or replacement of damaged physical property, SBA also offers working capital loans, known as Economic Injury Disaster Loans (EIDLs), to small businesses, small agricultural cooperatives, and most private non-profit organizations that have suffered economic injury caused by a disaster. The maximum loan amount is $2 million for physical and economic injuries combined. SBA may waive this $2 million limit if a business is a major source of employment. The Recovery Improvements for Small Entities After Disaster Act of 2015, Public Law 114-88, 129 Stat. 686 (November 25, 2015), amended certain terms and conditions of SBA's Disaster Assistance program. SBA published a proposed rule in the Federal Register on April 6, 2016 (81 FR 19934), to address three of those statutory amendments, as set out in sections 1102 (safe rooms), 2102 (three year temporary increase in unsecured loan limits), and 2107 (contractor malfeasance) of the RISE Act, as well as to make several minor technical amendments to the program regulations to ensure consistency between the program's regulatory and statutory authorities. The comment period for the proposed rule ended on June 6, 2016, and SBA received no comments. As discussed below, this final rule implements those statutory [[Page 67902]] and technical amendments without change. II. Changes Made as a Result of the RISE Act Section 1102 of the RISE Act, Use of Physical Damage Disaster Loans to Construct Safe Rooms, expanded the definition of mitigation to include ``construction of a safe room or similar storm shelter designed to protect property and occupants from tornadoes or other natural disasters, if such safe room or similar storm shelter is constructed in accordance with applicable standards issued by the Federal Emergency Management Agency.'' This change allows SBA to include a safe room or storm shelter as a mitigating measure; therefore, SBA is amending 13 CFR 123.21 to reflect this change in the definition of a mitigation measure. Increases for mitigation purposes are only available when the mitigation protects or mitigates against damage from the same type of occurrence as the declared disaster. Revised Sec. 123.21 also clarifies that a mitigation measure is something done for the purpose of protecting property (real and personal) and occupants. In addition, safe rooms and storm shelters are now included in the examples of mitigation measures. The final rule adopts the proposed revisions to 13 CFR 123.21 without change. Section 2102 of the RISE Act, Collateral Requirements for Disaster Loans, increased SBA's unsecured loan limits for all disaster loans for a period of three years. Therefore, SBA proposed to amend 13 CFR 123.11 to reflect a $25,000 unsecured threshold for all disaster declarations. In accordance with the RISE Act, after November 25, 2018, the unsecured limit for physical damage loans for non-major disasters will revert back to $14,000, unless Congress makes the increase permanent. The final rule adopts the proposed revision to 13 CFR 123.11 without change. Section 2107 of the RISE Act, Contractor Malfeasance, expanded SBA's ability to provide disaster assistance by expressly allowing for supplemental assistance for malfeasance by a contractor or other person and defining what constitutes malfeasance. Prior to implementation of the RISE Act, SBA provided assistance only for malfeasance by contractors, not malfeasance by any ``other person'' in connection with the loan, and did not allow for increases in the loan amount beyond the regulatory limit of $200,000 for repair or replacement of damaged property. The RISE Act gave SBA authority to increase a disaster loan when a contractor or other person engages in malfeasance in connection with repairs to, rehabilitation of, or replacement of property for which SBA made a disaster loan and the malfeasance results in substantial economic damage or substantial risks to health or safety. SBA proposed to revise 13 CFR 123.18, 123.20, and 123.105 to include details on what constitutes malfeasance, provide guidance on when borrowers are eligible to apply for loan increases due to malfeasance, and allow home loan borrowers to increase their loans up to an additional $200,000 for malfeasance. For business loans, the total maximum loan amount, including any increase for malfeasance, remains $2,000,000. The final rule adopts the proposed revisions to 13 CFR 123.18, 123.20, and 123.105 without change. The changes made as a result of the RISE Act apply to all eligible recipients of SBA disaster loans for disasters declared on or after the effective date of the RISE Act, November 25, 2015. III. Technical Corrections In addition to the changes made as a result of the RISE Act, SBA is also making several technical corrections. In the proposed rule, SBA proposed to change the phrase ``sudden physical event'' to ``sudden event'' in 13 CFR 123.2 to conform the regulation to SBA's statutory definition of ``disaster'' in 15 U.S.C. 632(k). SBA also proposed to revise 13 CFR 123.3 to remove the reference to ``emergency'' declarations in 123.3(a)(1) in order to conform the regulations to SBA's statutory authority. SBA proposed this change to clarify that SBA disaster assistance is not automatically authorized when the President declares an emergency; such assistance may be available, however, if SBA declares a disaster under its own authority. Finally, SBA proposed to revise 13 CFR 123.13(a) to remove the reference to an expired OMB control number. These proposed technical corrections are all adopted without change in the final rule. IV. Justification for Immediate Effective Date The APA requires that ``publication or service of a substantive rule shall be made not less than 30 days before its effective date, except as . . . otherwise provided by the agency for good cause found and published with the rule.'' 5 U.S.C. 553(d)(3). The purpose of this provision is to provide interested and affected members of the public sufficient time to adjust their behavior before the rule takes effect. SBA's Disaster Assistance Program offers low interest, fixed rate loans to disaster victims, enabling them to replace property damaged or destroyed in declared disasters. It also offers such loans to affected small businesses and non-profits to help them recover from economic injury caused by such disasters. The changes in this final rule will not require members of the public to adjust their behavior. Rather, the changes will benefit the public by increasing the unsecured threshold for all disaster loans, allowing SBA to provide supplemental assistance for malfeasance by a contractor or other person, and expanding available uses of mitigation funds to include safe rooms and storm shelters. In light of the urgent need to assist disaster victims, SBA finds that there is good cause for making this rule effective immediately instead of observing the 30-day period between publication and effective date. 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 rule does not constitute a significant regulatory action under 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 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. This action does not have preemptive effect. The final rule will have retroactive effect to the enactment date of the statutory amendments. Sections 1102 (Safe Rooms), 2102 (3 year temporary increase in unsecured loan limits) and 2107 (Contractor Malfeasance) of the RISE Act amended the Small Business Act effective November 25, 2015. The regulatory changes made as a result of the RISE Act will apply to disasters declared on or after November 25, 2015. Executive Order 13132 For the purposes of Executive Order 13132, this 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 rule has no [[Page 67903]] federalism implications warranting preparation of a federalism assessment. Executive Order 13563 Executive Order 13563 reaffirms the principles of Executive Order 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. Executive Order 13563 emphasizes further that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We developed this rule in a manner consistent with these requirements and afforded the public 60 days to participate and provide comments. No comments were received. Paperwork Reduction Act (44 U.S.C. Ch. 35) For purpose of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA has determined that this rule will 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. For reasons stated in the preamble, the U.S. Small Business Administration amends 13 CFR part 123 as follows: PART 123--DISASTER LOAN PROGRAM 0 1. The authority citation for part 123 is revised to read as follows: Authority: 15 U.S.C. 632, 634(b)(6), 636(b), 636(d), 657n; and Pub. L. 102-395, 106 Stat. 1828, 1864. 0 2. Amend Sec. 123.2 by revising the seventh sentence to read as follows: Sec. 123.2 What are disaster loans and disaster declarations? * * * Sudden events that cause substantial economic injury may be disasters even if they do not cause physical damage to a victim's property. * * * 0 3. Amend Sec. 123.3 by revising paragraph (a)(1) to read as follows: Sec. 123.3 How are disaster declarations made? (a) * * * (1) The President declares a Major Disaster and authorizes Federal Assistance, including individual assistance (Assistance to Individuals and Households Program). * * * * * 0 4. Amend Sec. 123.11 by revising paragraph (a)(2) to read as follows: Sec. 123.11 Does SBA require collateral for any of its disaster loans? (a) * * * (2) Physical disaster home and physical disaster business loans. Generally, SBA will not require that you pledge collateral to secure a physical disaster home or physical disaster business loan of $25,000 or less. This authority expires on November 25, 2018, unless extended by statute. * * * * * Sec. 123.13 [Amended] 0 5. Amend Sec. 123.13 by removing the parenthetical phrase ``(OMB Approval No. 3245-0122.)'' from paragraph (a). 0 6. Amend Sec. 123.18 by: 0 a. Redesignating the undesignated text as paragraph (a); 0 b. Revising the first sentence of the redesignated paragraph (a); and 0 c. Adding paragraph (b). The revisions and additions read as follows: Sec. 123.18 Can I request an increase in the amount of a physical disaster loan? (a) Generally, SBA will consider your request for an increase in your loan if you can show that the eligible cost of repair or replacement of damages increased because of events occurring after the loan approval that were beyond your control. * * * (b) For all disasters occurring on or after November 25, 2015, you may also request an increase in your loan if you suffered substantial economic damage or substantial risks to health or safety as a result of malfeasance in connection with the repair or replacement of real property or business machinery and equipment for which SBA made a disaster loan. See Sec. 123.105 for limits on home loan amounts and Sec. 123.202 for limits on business loan amounts. Malfeasance may include, but is not limited to, nonperformance of all or any portion of the work for which a contractor was paid, work that does not meet acceptable standards, or use of substandard materials. 0 7. Amend Sec. 123.20 by redesignating the undesignated text as paragraph (a) and adding paragraph (b) to read as follows: Sec. 123.20 How long do I have to request an increase in the amount of a physical disaster loan or an economic injury loan? (a) * * * (b) For physical disaster loan increases requested under Sec. 123.18(b) as a result of malfeasance, the request must be received not later than two years after the date of final disbursement. 0 8. Amend Sec. 123.21 by revising the first and third sentences to read as follows: Sec. 123.21 What is a mitigation measure? A mitigation measure is something done for the purpose of protecting property and occupants against disaster related damage. * * * Examples of mitigation measures include building retaining walls, sea walls, grading and contouring land, elevating flood prone structures, relocating utilities, constructing a safe room or similar storm shelter (if such safe room or similar storm shelter is constructed in accordance with applicable standards issued by the Federal Emergency Management Agency), or retrofitting structures to protect against high winds, earthquakes, flood, wildfires, or other physical disasters. * * * 0 9. Amend Sec. 123.105 by: 0 a. Revising paragraph (a) introductory text; 0 b. Removing the word ``and'' from paragraph (a)(3); 0 c. Revising paragraph (a)(4); and 0 d. Adding paragraph (a)(5). [[Page 67904]] The revisions and additions read as follows: Sec. 123.105 How much can I borrow with a home disaster loan and what limits apply on use of funds and repayment terms? (a) There are limits on how much money you can borrow for particular purposes: * * * * * (4) 20 percent of the verified loss (not including refinancing or malfeasance), before deduction of compensation from other sources, up to a maximum of $200,000 for post-disaster mitigation (see Sec. 123.107); and (5) $200,000 for eligible malfeasance, pursuant to Sec. 123.18. * * * * * Dated: September 22, 2016. Maria Contreras-Sweet, Administrator . [FR Doc. 2016-23733 Filed 9-30-16; 8:45 am] BILLING CODE 8025-01-P
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Rules and Regulations Federal Register
Vol. 81, No. 191
Monday, October 3, 2016
This section of the FEDERAL REGISTER size determination in connection with a statutory authority and remove an
contains regulatory documents having general concern that is otherwise eligible for obsolete reference in part 123.
applicability and legal effect, most of which program certification.’’ However, the DATES: This rule is effective on October
are keyed to and codified in the Code of amendment could not be implemented 3, 2016.
Federal Regulations, which is published under because at that point the words to be
50 titles pursuant to 44 U.S.C. 1510. FOR FURTHER INFORMATION CONTACT: Eric
removed did not exist in § 121.404(b). Wall, Office of Disaster Assistance, 409
The Code of Federal Regulations is sold by Therefore, SBA is removing that 3rd St. SW., Washington, DC 20416,
the Superintendent of Documents. Prices of instruction from the final rule published (202) 205–6739.
new books are listed in the first FEDERAL on October 2, 2013. SUPPLEMENTARY INFORMATION:
REGISTER issue of each week. In the FR Rule Doc. No. 2016–22064
in the issue of October 2, 2013, I. Background
beginning on page 61113, make the Section 7(b) of the Small Business
SMALL BUSINESS ADMINISTRATION following correction: Act, 15 U.S.C. 636(b), authorizes SBA to
On page 61131, first column, remove make direct loans to homeowners,
13 CFR Part 121
amendatory instruction number 4c. renters, businesses, and non-profit
RIN 3245–AG20 Dated: September 21, 2016. organizations that have been adversely
A. John Shoraka,
affected by a disaster. After a declared
Acquisition Process: Task and disaster, SBA makes loans of up to
Delivery Order Contracts, Bundling, Associate Administrator for Government
Contracting and Business Development.
$200,000 to homeowners and renters
Consolidation (plus up to $40,000 for personal
[FR Doc. 2016–23478 Filed 9–30–16; 8:45 am]
AGENCY: U.S. Small Business property) and loans of up to $2 million
BILLING CODE 8025–01–P
Administration. to businesses of all sizes and non-profit
organizations to assist with any
ACTION: Final rule; correction.
SMALL BUSINESS ADMINISTRATION uninsured and otherwise
SUMMARY: The U.S. Small Business uncompensated physical losses
Administration (SBA) is correcting a 13 CFR Part 123 sustained during the disaster. In
final rule that appeared in the Federal addition to loans for the repair or
Register on October 2, 2013. The rule, replacement of damaged physical
RIN 3245–AG78
which described how supply property, SBA also offers working
procurements should be classified, Disaster Assistance Loan Program; capital loans, known as Economic Injury
mistakenly attempted to amend a Disaster Loan Mitigation, Contractor Disaster Loans (EIDLs), to small
regulation by removing words that did Malfeasance and Secured Threshold businesses, small agricultural
not exist in the particular paragraph. cooperatives, and most private non-
This notice corrects that rule document AGENCY: U.S. Small Business profit organizations that have suffered
by removing the instruction. Administration. economic injury caused by a disaster.
ACTION: Final rule. The maximum loan amount is $2
DATES: Effective October 3, 2016.
million for physical and economic
FOR FURTHER INFORMATION CONTACT: SUMMARY: On April 6, 2016, the U.S. injuries combined. SBA may waive this
Michael McLaughlin, Office of Policy, Small Business Administration (SBA) $2 million limit if a business is a major
Planning & Liaison, U.S. Small Business published in the Federal Register a source of employment.
Administration, 409 Third Street SW., proposed rule to amend its disaster loan The Recovery Improvements for Small
Washington, DC 20416; 202–205–5353; program regulations in response to Entities After Disaster Act of 2015,
michael.mclaughlin@sba.gov. changes made to the Small Business Act Public Law 114–88, 129 Stat. 686
SUPPLEMENTARY INFORMATION: On June (the Act) by the Recovery Improvements (November 25, 2015), amended certain
28, 2013, SBA published a rule in the for Small Entities After Disaster Act of terms and conditions of SBA’s Disaster
Federal Register at 78 FR 38811 that 2015 (the RISE Act). SBA received no Assistance program. SBA published a
amended § 121.404(b) by removing ‘‘and comments on its proposed rule; proposed rule in the Federal Register on
the date of certification by SBA’’ and therefore SBA adopts the proposed rule April 6, 2016 (81 FR 19934), to address
adding in its place ‘‘and, where without change. The first change three of those statutory amendments, as
applicable, the date the SBA program expands the definition of a mitigating set out in sections 1102 (safe rooms),
office requests a formal size measure to include the construction of 2102 (three year temporary increase in
determination in connection with a a safe room or similar storm shelter unsecured loan limits), and 2107
concern that otherwise appears eligible designed to protect property and (contractor malfeasance) of the RISE
for program certification.’’ The final rule occupants. The second change allows Act, as well as to make several minor
published on October 2, 2013, (78 FR for an increase of the unsecured technical amendments to the program
61113) intended to amend 13 CFR threshold for physical damage loans for regulations to ensure consistency
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121.404(b) by removing ‘‘date of non-major disasters. The third change between the program’s regulatory and
certification by SBA’’ and adding in its allows SBA to increase loan amounts to statutory authorities. The comment
place ‘‘date the Director of the Division address contractor malfeasance. In period for the proposed rule ended on
of Program Certification and Eligibility addition, SBA is making several June 6, 2016, and SBA received no
or the Associate Administrator for technical corrections to conform certain comments. As discussed below, this
Business Development requests a formal regulatory provisions to existing final rule implements those statutory
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federalism implications warranting List of Subjects in 13 CFR Part 123 § 123.18 Can I request an increase in the
preparation of a federalism assessment. amount of a physical disaster loan?
Disaster assistance, Loan programs— (a) Generally, SBA will consider your
Executive Order 13563 business, Reporting and recordkeeping request for an increase in your loan if
requirements, Small businesses. you can show that the eligible cost of
Executive Order 13563 reaffirms the
principles of Executive Order 12866 For reasons stated in the preamble, repair or replacement of damages
while calling for improvements in the the U.S. Small Business Administration increased because of events occurring
nation’s regulatory system to promote amends 13 CFR part 123 as follows: after the loan approval that were beyond
predictability, to reduce uncertainty, your control. * * *
and to use the best, most innovative, PART 123—DISASTER LOAN (b) For all disasters occurring on or
and least burdensome tools for PROGRAM after November 25, 2015, you may also
achieving regulatory ends. The request an increase in your loan if you
■ 1. The authority citation for part 123 suffered substantial economic damage
executive order directs agencies to
is revised to read as follows: or substantial risks to health or safety as
consider regulatory approaches that
reduce burdens and maintain flexibility Authority: 15 U.S.C. 632, 634(b)(6), 636(b), a result of malfeasance in connection
and freedom of choice for the public 636(d), 657n; and Pub. L. 102–395, 106 Stat. with the repair or replacement of real
1828, 1864. property or business machinery and
where these approaches are relevant,
feasible, and consistent with regulatory ■ 2. Amend § 123.2 by revising the equipment for which SBA made a
objectives. Executive Order 13563 seventh sentence to read as follows: disaster loan. See § 123.105 for limits on
emphasizes further that regulations home loan amounts and § 123.202 for
§ 123.2 What are disaster loans and limits on business loan amounts.
must be based on the best available disaster declarations?
science and that the rulemaking process Malfeasance may include, but is not
must allow for public participation and * * * Sudden events that cause limited to, nonperformance of all or any
an open exchange of ideas. We substantial economic injury may be portion of the work for which a
developed this rule in a manner disasters even if they do not cause contractor was paid, work that does not
consistent with these requirements and physical damage to a victim’s meet acceptable standards, or use of
afforded the public 60 days to property. * * * substandard materials.
participate and provide comments. No ■ 3. Amend § 123.3 by revising ■ 7. Amend § 123.20 by redesignating
comments were received. paragraph (a)(1) to read as follows: the undesignated text as paragraph (a)
and adding paragraph (b) to read as
Paperwork Reduction Act (44 U.S.C. Ch. § 123.3 How are disaster declarations follows:
35) made?
(a) * * * § 123.20 How long do I have to request an
For purpose of the Paperwork increase in the amount of a physical
Reduction Act, 44 U.S.C. Ch. 35, SBA (1) The President declares a Major
disaster loan or an economic injury loan?
has determined that this rule will not Disaster and authorizes Federal
Assistance, including individual (a) * * *
impose any new reporting or (b) For physical disaster loan
recordkeeping requirements. assistance (Assistance to Individuals
and Households Program). increases requested under § 123.18(b) as
Regulatory Flexibility Act (5 U.S.C. 601– a result of malfeasance, the request must
* * * * * be received not later than two years after
612)
■ 4. Amend § 123.11 by revising the date of final disbursement.
The Regulatory Flexibility Act (RFA), paragraph (a)(2) to read as follows: ■ 8. Amend § 123.21 by revising the first
5 U.S.C. 601, requires administrative
§ 123.11 Does SBA require collateral for
and third sentences to read as follows:
agencies to consider the effect of their
actions on small entities, including any of its disaster loans? § 123.21 What is a mitigation measure?
small businesses. According to the RFA, (a) * * * A mitigation measure is something
when an agency issues a rule, the (2) Physical disaster home and done for the purpose of protecting
agency must prepare an analysis to physical disaster business loans. property and occupants against disaster
determine whether the impact of the Generally, SBA will not require that you related damage. * * * Examples of
rule will have a significant economic pledge collateral to secure a physical mitigation measures include building
impact on a substantial number of small disaster home or physical disaster retaining walls, sea walls, grading and
entities. However, the RFA allows an business loan of $25,000 or less. This contouring land, elevating flood prone
agency to certify a rule in lieu of authority expires on November 25, structures, relocating utilities,
preparing an analysis if the rulemaking 2018, unless extended by statute. constructing a safe room or similar
is not expected to have a significant * * * * * storm shelter (if such safe room or
economic impact on a substantial similar storm shelter is constructed in
number of small entities. § 123.13 [Amended] accordance with applicable standards
While this rule will affect all future ■ 5. Amend § 123.13 by removing the issued by the Federal Emergency
applicants for disaster assistance, some parenthetical phrase ‘‘(OMB Approval Management Agency), or retrofitting
of which would be small entities, it does No. 3245–0122.)’’ from paragraph (a). structures to protect against high winds,
not impose any requirements on small earthquakes, flood, wildfires, or other
■ 6. Amend § 123.18 by:
entities. It streamlines SBA’s processes physical disasters. * * *
in order to enable the Agency to provide ■ a. Redesignating the undesignated text
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■ 9. Amend § 123.105 by:
disaster assistance more quickly and as paragraph (a);
■ a. Revising paragraph (a) introductory
efficiently to small entities. SBA is not ■ b. Revising the first sentence of the
text;
a small entity. As such, SBA certifies redesignated paragraph (a); and ■ b. Removing the word ‘‘and’’ from
that this rule does not have a significant ■ c. Adding paragraph (b). paragraph (a)(3);
economic impact on a substantial The revisions and additions read as ■ c. Revising paragraph (a)(4); and
number of small entities. follows: ■ d. Adding paragraph (a)(5).
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The revisions and additions read as • Federal eRulemaking Docket: Go to comments, data, or views. We also
follows: http://www.regulations.gov. Follow the invite comments relating to the
online instructions for sending your economic, environmental, energy, or
§ 123.105 How much can I borrow with a comments electronically. federalism impacts that resulted from
home disaster loan and what limits apply on
• Fax: 202–493–2251. adopting this AD. The most helpful
use of funds and repayment terms?
• Mail: Send comments to the U.S. comments reference a specific portion of
(a) There are limits on how much Department of Transportation, Docket the AD, explain the reason for any
money you can borrow for particular Operations, M–30, West Building recommended change, and include
purposes: Ground Floor, Room W12–140, 1200 supporting data. To ensure the docket
* * * * * New Jersey Avenue SE., Washington, does not contain duplicate comments,
(4) 20 percent of the verified loss (not DC 20590–0001. commenters should send only one copy
including refinancing or malfeasance), • Hand Delivery: Deliver to the of written comments, or if comments are
before deduction of compensation from ‘‘Mail’’ address between 9 a.m. and 5 filed electronically, commenters should
other sources, up to a maximum of p.m., Monday through Friday, except submit them only one time. We will file
$200,000 for post-disaster mitigation Federal holidays. in the docket all comments that we
(see § 123.107); and receive, as well as a report summarizing
(5) $200,000 for eligible malfeasance, Examining the AD Docket
each substantive public contact with
pursuant to § 123.18. You may examine the AD docket on FAA personnel concerning this
* * * * * the Internet at http:// rulemaking during the comment period.
www.regulations.gov by searching for We will consider all the comments we
Dated: September 22, 2016. and locating Docket No. FAA–2016– receive and may conduct additional
Maria Contreras-Sweet, 9168; or in person at the Docket rulemaking based on those comments.
Administrator . Operations Office between 9 a.m. and 5
[FR Doc. 2016–23733 Filed 9–30–16; 8:45 am] p.m., Monday through Friday, except Discussion
BILLING CODE 8025–01–P Federal holidays. The AD docket On April 13, 2016, EASA, which is
contains this AD, the European Aviation the Technical Agent for the Member
Safety Agency (EASA) AD, any States of the European Union, issued
DEPARTMENT OF TRANSPORTATION incorporated by reference service EASA Emergency AD No. 2016–0073–E
information, the economic evaluation, (AD 2016–0073–E) to correct an unsafe
Federal Aviation Administration any comments received, and other condition for Airbus Helicopters Model
information. The street address for the SA341G and SA342J helicopters with a
14 CFR Part 39 Docket Operations Office (telephone crosstube part number (P/N)
800–647–5527) is in the ADDRESSES 341A415201.00 or P/N 341A415201.01.
[Docket No. FAA–2016–9168; Directorate EASA advises that two reported failures
Identifier 2016–SW–028–AD; Amendment section. Comments will be available in
the AD docket shortly after receipt. of a crosstube have occurred during
39–18670; AD 2016–20–04]
For service information identified in maintenance and towing operations,
RIN 2120–AA64 this final rule, contact Airbus resulting in the helicopters dropping or
Helicopters, 2701 N. Forum Drive, tipping over. EASA further states that
Airworthiness Directives; Airbus Grand Prairie, TX 75052; telephone excessive hardness of the crosstube
Helicopters (972) 641–0000 or (800) 232–0323; fax material, combined with inter-granular
AGENCY: Federal Aviation (972) 641–3775; or at http:// corrosion initiation, may have affected
www.airbushelicopters.com/techpub. the structural integrity of the crosstube.
Administration (FAA), Department of
You may review the referenced service EASA advises that this condition could
Transportation (DOT).
information at the FAA, Office of the lead to failure of the crosstube and
ACTION: Final rule; request for dropping or tipping over of the
comments. Regional Counsel, Southwest Region,
10101 Hillwood Pkwy, Room 6N–321, helicopter. To address this unsafe
SUMMARY: We are adopting a new Fort Worth, TX 76177. It is also condition, EASA AD 2016–0073–E
airworthiness directive (AD) for Airbus available on the Internet at http:// requires identifying the affected
Helicopters Model SA341G and SA342J. www.regulations.gov by searching for crosstubes, implementing a temporary
This AD prohibits autorotation training and locating Docket No. FAA–2016– prohibition of autorotation training
flights until the hardness of the landing 9168. flights on affected helicopters by
gear rear crosstube (crosstube) is amending the RFM and installing a
FOR FURTHER INFORMATION CONTACT: Matt placard, inspecting the hardness of each
inspected. This AD is prompted by two Fuller, Senior Aviation Safety Engineer,
reports of crosstubes failing during affected crosstube, and replacing any
Safety Management Group, Rotorcraft crosstubes that do not meet the hardness
ground handling. These actions are Directorate, FAA, 10101 Hillwood
intended to prevent failure of a criteria.
Pkwy, Fort Worth, TX 76177; telephone
crosstube, which could result in (817) 222–5110; email matthew.fuller@ FAA’s Determination
dropping or tipping of the helicopter. faa.gov. These helicopters have been approved
DATES: This AD becomes effective SUPPLEMENTARY INFORMATION: by the aviation authority of France and
October 18, 2016. are approved for operation in the United
The Director of the Federal Register Comments Invited States. Pursuant to our bilateral
approved the incorporation by reference This AD is a final rule that involves agreement with France, EASA, its
rmajette on DSK2TPTVN1PROD with RULES
of a certain document listed in this AD requirements affecting flight safety, and technical representative, has notified us
as of October 18, 2016. we did not provide you with notice and of the unsafe condition described in the
We must receive comments on this an opportunity to provide your EASA AD. We are issuing this AD
AD by December 2, 2016. comments prior to it becoming effective. because we evaluated all information
ADDRESSES: You may send comments by However, we invite you to participate in provided by EASA and determined the
any of the following methods: this rulemaking by submitting written unsafe condition exists and is likely to
VerDate Sep<11>2014 14:33 Sep 30, 2016 Jkt 241001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\03OCR1.SGM 03OCR1](https://thefederalregister.org/doc/81_FR_68092/page/4.svg)
Document Created: 2018-02-13 14:10:55
Document Modified: 2018-02-13 14:10:55
| 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 rule is effective on October 3, 2016. | |
| Contact | Eric Wall, Office of Disaster Assistance, 409 3rd St. SW., Washington, DC 20416, (202) 205-6739. | |
| FR Citation | 81 FR 67901 | |
| RIN Number | 3245-AG78 | |
| CFR Associated | Disaster Assistance; Loan Programs-Business; Reporting and Recordkeeping Requirements and Small Businesses |
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