15 U.S.C. § 657n: Immediate Disaster…

Summary

Creates the Immediate Disaster Assistance program that guarantees 85 percent of a business’s outstanding loan balance at the time the loan is paid out, when that balance is $25,000 or less for businesses hit by a disaster. To get this guarantee, an applicant must also apply for and meet the basic rules for the standard loans the law covers. If the standard loan is approved, its money must be used first to pay off any Immediate Disaster Assistance loan before being used for anything else. There is no penalty for paying the guaranteed loan off early. If the standard loan is denied, the borrower must repay the guaranteed loan by a deadline set by the Administrator, which cannot be sooner than 10 years after the guaranteed loan was made. The Administrator must approve or deny each application within 36 hours of receiving it.

Title 15, §657n

Commerce and Trade, Source: USLM XML via OLRC

(a)Program required

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)Eligibility requirement

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)Use of proceeds

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)Loan terms

(1)No prepayment penalty

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

(2)Repayment

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 is disbursed.

(e)Approval or disapproval

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