§1161l–3 — Title 20 Education | U.S. Code

Summary

Creates a loan program the Secretary of Education, working with the Secretary of Homeland Security, can set up to help colleges and universities hit by a major disaster or emergency declared by the President. Loans may pay for construction, replacement, renovation, and operating costs caused by the disaster. Loans are available only for disasters or emergencies that happen after August 14, 2008, except that schools harmed by the Gulf hurricane disaster of 2005 can also get loans. Money may be provided if Congress approves it for fiscal year 2009 and each of the five years after that. To get a loan, a school must give a financial statement and proof of its losses, show it had insurance and filed any claims, and show it tried to get FEMA help (though it does not have to have already received FEMA money). The Secretary can audit the financial papers and must reduce any loan amount by money the school already got from insurance, FEMA, or the Small Business Administration. Before making loans, the Secretary must write rules for the program, set loan terms and application steps, provide online forms and instructions, and include other terms like those in similar loan programs. The law names a few defined terms, such as what counts as an institution affected by a Gulf hurricane disaster, and refers to other laws for exact definitions of “emergency,” “major disaster,” and “institution of higher education.”

Title 20, §1161l–3

Education — Source: USLM XML via OLRC

(a)The Secretary, in consultation with the Secretary of Homeland Security, is authorized to establish an Education Disaster and Emergency Relief Loan Program for institutions of higher education impacted by a major disaster or emergency declared by the President.

(b)The Secretary shall, subject to the availability of appropriations, provide loans under this section to institutions of higher education after the declaration of a major disaster or emergency by the President. Loan funds provided under this section may be used for construction, replacement, renovation, and operations costs resulting from a major disaster or emergency declared by the President.

(c)To be considered for a loan under this section, an institution of higher education shall—

(1)submit a financial statement and other appropriate data, documentation, or evidence requested by the Secretary that indicates that the institution incurred losses resulting from the impact of a major disaster or emergency declared by the President, and the monetary amount of such losses;

(2)demonstrate that the institution had appropriate insurance policies prior to the major disaster or emergency and filed claims, as appropriate, related to the major disaster or emergency; and

(3)demonstrate that the institution attempted to minimize the cost of any losses by pursuing collateral source compensation from the Federal Emergency Management Agency prior to seeking a loan under this section, except that an institution of higher education shall not be required to receive collateral source compensation from the Federal Emergency Management Agency prior to being eligible for a loan under this section.

(d)The Secretary may audit a financial statement submitted under subsection (c) and an institution of higher education shall provide any information that the Secretary determines necessary to conduct such an audit.

(e)To determine the amount of a loan to make available to an institution of higher education under this section, the Secretary shall calculate the monetary amount of losses incurred by such institution as a result of a major disaster or emergency declared by the President, and shall reduce such amount by the amount of collateral source compensation the institution has already received from insurance, the Federal Emergency Management Agency, and the Small Business Administration.

(f)Prior to disbursing any loans under this section, the Secretary shall prescribe regulations that establish the Education Disaster and Emergency Relief Loan Program, including—

(1)terms for the loan program;

(2)procedures for an application for a loan;

(3)minimum requirements for the loan program and for receiving a loan, including—

(A)online forms to be used in submitting a request for a loan;

(B)information to be included in such forms; and

(C)procedures to assist in filing and pursuing a loan; and

(4)any other terms and conditions the Secretary may prescribe after taking into consideration the structure of other existing capital financing loan programs under this chapter.

(g)In this section:

(1)The term “institution affected by a Gulf hurricane disaster” means an institution of higher education that—

(A)is located in an area affected by a Gulf hurricane disaster; and

(B)is able to demonstrate that the institution—

(i)incurred physical damage resulting from the impact of a Gulf hurricane disaster; and

(ii)was not able to fully reopen in existing facilities or to fully reopen to the pre-hurricane levels for 30 days or more on or after August 29, 2005.

(2)The terms “area affected by a Gulf hurricane disaster” and “Gulf hurricane disaster” have the meanings given such terms in section 209 of the Higher Education Hurricane Relief Act of 2005 (Public Law 109–148, 119 Stat. 2808).

(3)The term “emergency” has the meaning given such term in section 5122(1) of title 42.

(4)The term “institution of higher education” has the meaning given such term in section 1001 of this title.

(5)The term “major disaster” has the meaning given the term in section 5122(2) of title 42.

(h)Loans provided to institutions of higher education pursuant to this section shall be available only with respect to major disasters or emergencies declared by the President that occur after August 14, 2008, except that loans may be provided pursuant to this section to an institution affected by a Gulf hurricane disaster with respect to such disaster.

(i)There are authorized to be appropriated to carry out this section such sums as may be necessary for fiscal year 2009 and each of the five succeeding fiscal years.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 209 of the Higher Education Hurricane Relief Act of 2005, referred to in subsec. (g)(2), is section 209 of title IV of div. B of Pub. L. 109–148, 119 Stat. 2808, which is not classified to the Code.

Amendments

2009—Subsec. (f)(3)(A). Pub. L. 111–39, § 801(7)(A), inserted “a” after “submitting”. Subsec. (f)(3)(C). Pub. L. 111–39, § 801(7)(B), substituted “pursuing” for “pursing”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2009 AmendmentAmendment by Pub. L. 111–39 effective as if enacted on the date of enactment of Pub. L. 110–315 (Aug. 14, 2008), see section 3 of Pub. L. 111–39, set out as a note under section 1001 of this title.

§1161l–3 Education Disaster and Emergency Relief Loan Program