§657n — Title 15 Commerce and Trade | U.S. Code

Summary

The Administrator must run an Immediate Disaster Assistance program that guarantees 85 percent of a business loan’s outstanding balance when the loan is disbursed, if that balance is $25,000 or less for businesses hit by a disaster. To get that guarantee, the applicant must also apply for and meet basic rules for a regular loan under section 636(b) or 636(c). The Administrator must approve or deny the application within 36 hours after getting it. If the borrower later receives the regular loan under section 636(b) or (c), they must use that money first to pay off any guaranteed disaster loan. There is no penalty for paying the guaranteed loan early. If the borrower is denied the regular loan, they must repay the guaranteed loan by a date the Administrator sets, but not sooner than 10 years after the guaranteed loan was disbursed.

Title 15, §657n

Commerce and Trade — Source: USLM XML via OLRC

(a)The Administrator shall carry out a program, to be known as the Immediate Disaster Assistance program, under which the Administration participates on a deferred (guaranteed) basis in 85 percent of the balance of the financing outstanding at the time of disbursement of the loan if such balance is less than or equal to $25,000 for businesses affected by a disaster.

(b)To receive a loan guaranteed under subsection (a), the applicant shall also apply for, and meet basic eligibility standards for, a loan under subsection (b) or (c) of section 636 of this title.

(c)A person who receives a loan under subsection (b) or (c) of section 636 of this title shall use the proceeds of that loan to repay all loans guaranteed under subsection (a), if any, before using the proceeds for any other purpose.

(d)(1)There shall be no prepayment penalty on a loan guaranteed under subsection (a).

(2)A person who receives a loan guaranteed under subsection (a) and who is disapproved for a loan under subsection (b) or (c) of section 636 of this title, as the case may be, shall repay the loan guaranteed under subsection (a) not later than the date established by the Administrator, which may not be earlier than 10 years after the date on which the loan guaranteed under subsection 11 So in original. Probably should be “subsection (a)”. is disbursed.

(e)The Administrator shall ensure that each applicant for a loan under the program receives a decision approving or disapproving of the application within 36 hours after the Administration receives the application.

Notes & Related Subsidiaries

Editorial Notes

Codification Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

Statutory Notes and Related Subsidiaries

Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.

§657n Immediate Disaster Assistance Program