[Federal Register Volume 64, Number 54 (Monday, March 22, 1999)]
[Rules and Regulations]
[Page 13667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6856]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 123


Disaster Loan Program; Correction

AGENCY: Small Business Administration (SBA).

ACTION: Correcting amendments.

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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

    1. 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.

    2. 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. 99-6856 Filed 3-19-99; 8:45 am]
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