Sec. 6. Limitations on disaster loans

475 words·~2 min read·/bill/119/hr/4238/ih/section-6

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended— by redesignating the second paragraph designated as paragraph (16), relating to statute of limitations, as added by the COVID–19 EIDL Fraud Statute of Limitations Act of 2022 ( Public Law 117–165 ; 136 Stat. 1363), as paragraph (18); and by inserting after paragraph (16), relating to disaster declarations in rural areas, as added by the Disaster Assistance for Rural Communities Act ( Public Law 117–249 ; 136 Stat. 2350), the following:

Not later than 24 hours after the unobligated balance of amounts available for the cost of direct loans authorized by this subsection is less than 10 percent of the 10-year average annual cost provided in the most recent Presidential budget request required under section 1105(a)(39)(A) of title 31, United States Code, or, if unavailable, the 10-year average annual cost for the immediately preceding 10-year period of SBA disaster loans (as defined in section 1105(j) of such title), the Administrator shall notify the Committee on Appropriations and the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Appropriations and the Committee on Small Business of the House of Representatives .

During the period beginning on the first business day occurring on or after the date by which the Administrator is required to notify Congress under subparagraph

(A)and ending on the date on which additional amounts are appropriated for such costs, the Administrator may limit the obligation of funds for a direct loan authorized under this subsection to the amount of such a loan for which collateral is required. In carrying out the authority to enact a limitation under (B), the Administrator shall apply that limitation with respect to amounts obligated for all direct loans authorized under this subsection during the period described in subparagraph (B). If the Administrator exercises the authority under (B), the Administrator shall, not later than 14 days after the date on which additional amounts are appropriated under subparagraph (B), obligate and disburse on a regular schedule any remaining amount outstanding on a direct loan authorized under this subsection. . Effective on the date that is 4 years after the date of enactment of this Act, section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ) is amended— by striking paragraph (17); and by redesignating paragraph

(18)as paragraph (17). Not later than 1 year after the date of enactment of this Act, in the event that the Administrator exercises the authority described in paragraph (17)(B) of section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) ), as added by subsection (a), the Comptroller General of the United States shall submit to the appropriate committees of Congress a report assessing the actual and potential impact of the amendments made by subsection

(a)during the period covered by the report.

Connectionstraces to 3

Traces to 3 documents

U.S. Code