[Federal Register Volume 77, Number 40 (Wednesday, February 29, 2012)]
[Rules and Regulations]
[Pages 12157-12158]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4760]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 77, No. 40 / Wednesday, February 29, 2012 /
Rules and Regulations
[[Page 12157]]
SMALL BUSINESS ADMINISTRATION
13 CFR Part 123
RIN 3245-AG42
Disaster Assistance Loan Program; Maximum Term for Disaster Loans
to Small Businesses With Credit Available Elsewhere
AGENCY: U.S. Small Business Administration (SBA).
ACTION: Direct final rule.
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SUMMARY: SBA is amending its disaster assistance regulations to reflect
a statutory change to the disaster assistance program contained in the
Consolidated Appropriations Act, 2012. The change extends the maximum
term of an SBA disaster loan to small businesses with credit available
elsewhere from three years to seven years. This direct final rule
conforms the regulations to the Act by adopting the new statutory
requirement without change.
DATES: This rule is effective April 16, 2012 without further action,
unless significant adverse comment is received by March 30, 2012. If
significant adverse comment is received, SBA will publish a timely
withdrawal of the rule in the Federal Register.
ADDRESSES: You may submit comments, identified by RIN 3245-AG42, by any
of the following methods: (1) Federal Rulemaking Portal: http://www.regulations.gov, following the specific instructions for submitting
comments; (2) Fax: (202) 481-2226; or Email: James.Rivera@sba.gov; or
(3) Mail/Hand Delivery/Courier: James E. Rivera, Associate
Administrator for Disaster Assistance, 409 3rd Street SW., Washington,
DC 20416.
FOR FURTHER INFORMATION CONTACT: Roger B. Garland, Office of Disaster
Assistance, 202-205-6734 or Roger.Garland@sba.gov.
SUPPLEMENTARY INFORMATION: Section 7(b) of the Small Business Act, 15
U.S.C. 636(b), authorizes SBA to make long-term disaster loans to
homeowners, renters, businesses, and non-profit organizations that have
been adversely affected by a declared disaster. The Consolidated
Appropriations Act, 2012, Public Law 112-74, Div. C, title V, section
531, enacted December 23, 2011, amended the Small Business Act to
increase the maximum loan maturity from three years to seven years for
business disaster victims that have been determined to have access to
credit elsewhere.
SBA is amending section 123.203 to incorporate this change. The
change applies to business physical loans only. For economic injury
loans, businesses with credit elsewhere remain ineligible. The new
seven year term for disaster loans to businesses determined to have
credit available elsewhere will apply to disasters declared on or after
December 23, 2011, the enactment date of the statutory amendment.
Consideration of Comments
SBA believes that this rule is routine and non-controversial since
it merely implements changes required by statute, and SBA anticipates
no significant adverse comments to this rulemaking. If SBA receives any
significant adverse comments, it will publish a timely withdrawal of
this direct final rule.
Compliance With Executive Orders 12866, 12988, and 13132 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
direct final 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. The action does not
have preemptive effect. The final rule will have retroactive effect to
the enactment date of the statutory amendment. The new seven year term
for direct disaster loans to businesses determined to have credit
available elsewhere will apply to disasters declared on or after
December 23, 2011.
Executive Order 13132
For the purposes of Executive Order 1312, the direct 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 direct final rule has
no federalism implications warranting preparation of a federalism
assessment.
Paperwork Reduction Act (44 U.S.C. Chapter 35)
For the purpose of the Paperwork Reduction Act, 44 U.S.C. chapter
35, SBA has determined that this direct final rule would 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 impact on a
substantial number of small entities. This rule only makes a conforming
amendment to recent legislation on the disaster loan program, and does
not implement new agency policies. The amendment will affect small
entities; however SBA has determined that the amendment will not have a
significant economic impact on a substantial number of such entities.
List of Subjects in 13 CFR Part 123
Disaster assistance, Loan programs--business. Reporting and
recordkeeping requirements, Small businesses.
For reasons set forth in the preamble, the SBA amends 13 CFR part
123 as follows:
[[Page 12158]]
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; Pub.
L. 102-395, 106 Stat. 1828, 1864; Pub. L. 103-75, 107 Stat. 739; and
Pub. L. 106-50, 113 Stat. 245.
0
2. Amend Sec. 123.203(a) by revising the fourth sentence of paragraph
(a) to read as follows:
Sec. 123.203 What interest rate will my business pay on a physical
disaster business loan and what are the repayment terms?
(a) * * * The maturity of your loan depends upon your repayment
ability, but cannot exceed seven years if you have credit elsewhere. *
* *
* * * * *
Dated: February 17, 2012.
Karen G. Mills,
Administrator.
[FR Doc. 2012-4760 Filed 2-28-12; 8:45 am]
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