[Federal Register Volume 77, Number 40 (Wednesday, February 29, 2012)]
[Rules and Regulations]
[Pages 12157-12158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-4760]

Rules and Regulations
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Federal Register / Vol. 77, No. 40 / Wednesday, February 29, 2012 / 
Rules and Regulations

[[Page 12157]]


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.


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: [email protected]; 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 [email protected].

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 

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]]


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.

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,
[FR Doc. 2012-4760 Filed 2-28-12; 8:45 am]