Response to correspondence to President Trump, dated November 27, 2018, requesting that the President waive any requirements that Small Business Administration SBA loans are a prohibited duplication of benefit with HUD CDBG.

FAQ#: 17 published 1-3-2019

FEMA U.S. Department of Homeland Security Washington, DC 20528

December 21, 2018

TO: Honorable Jon Bel Edwards
P.O. Box 94004
Baton Rouge, LA 70804

Dear Governor Edwards:

This letter is in response to your correspondence to President Trump, dated November 27, 2018, requesting that the President waive any requirements that Small Business Administration (SBA) loans are a prohibited duplication of benefit with Community Development Block Grant (CDBG) funding. The President requested I respond.

Section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) (42 U.S.C. 5155) prohibits federal agencies from providing disaster relief for a loss in the form of financial assistance for which an individual or entity has received financial assistance under another program, insurance or any other source.

Section 1210(a) of the Disaster Recovery Reform Act (DRRA) (Division D of the FAA Reauthorization Act of 2018, Public Law 115-254) amends Section 312 of the Stafford Act to authorize the President, in certain limited circumstances and at the request of a Governor, to waive a duplication of benefit otherwise prohibited by Section 312. Importantly, the law does not require the President to issue a waiver. Instead, the President may issue a waiver if he determines a waiver is in the public interest and will not result in waste, fraud, or abuse.

The DRRA's amendment to Section 312 also changes what constitutes a duplication under Section 312 by prohibiting the President from considering a loan to be a duplication of benefit, provided that all Federal assistance is used toward a loss suffered as a result of a major disaster or emergency. This change regarding loans is independent of the new waiver provision, and is not subject to a 45-day response period that applies to waivers.

Pursuant to the amended Section 312, an SBA loan is not a prohibited duplication of benefit with a grant provided under the CDBG program, administered by the U.S. Department of Housing and Urban Development (HUD). As such, there is no duplication for the President to waive pursuant to the new Section 312 waiver procedures. However, the DRRA did not direct agencies to make any program or policy changes with respect to whether grant funds could be used for repaying SBA loans. Instead, whether particular federal grant funds are available for the purpose of paying down an SBA loan is a determination reserved for the grant awarding agency, pursuant to its program authorities and appropriations. I am therefore forwarding your request to HUD Secretary Carson for his consideration.

Thank you for your interest in disaster recovery. We look forward to continuing to work with you.

Sincerely,
Brock Long
Administrator

Comment | Suggestion | Feedback

Renter's or Homeowner's Declaration required by the CDC to prevent evictions before Dec. 31, 2020 or if extended the new date.

FAQ#: 261 published 12-6-2020 updated 12-12-2020 4 min. 14 seconds read

Read


How to use our Research Based Learning pages to better understand a subject, to collect the missing pieces of the puzzle, to start a research project or to close out your research project. Resources published here are parts or segments of..

FAQ#: 1 published 12-30-2018 updated 12-12-2020 1 min. 55 seconds read

Read


I am not a U.S. Citizen but my business meets all the other criteria for a COVID-19 EIDL will I get a loan?

FAQ#: 310 published 11-30-2020 8 min. 24 seconds read

Read


I was not told why my SBA EIDL was declined. Does the SBA send a reason code or declined reason by letter?

FAQ#: 447 published 11-30-2020 1 min. 28 seconds read

Read


FEMA Disaster Assistance for Individuals and Households Program which is provided for temporary repairs of your home so you are not dependent on other housing assistance and is not a Duplication of Benefits (DOB) to other assistance and HUD CDBG-DR Grants

FAQ#: 446 published 11-13-2020 1 min. 24 seconds read

Read


Louisiana Workforce Commission LWC filing your DUA and PUA with the expectation of a backdated FPUC.

FAQ#: 413 published 11-8-2020 1 min. 12 seconds read

Read


Louisiana Workforce Commission note, Start of new calendar quarter may require some to file a new unemployment

FAQ#: 434 published 10-4-2020 1 min. 49 seconds read

Read


SBA Form 3502

FAQ#: 343 published 8-6-2020 updated 9-4-2020 3 seconds read

Read


Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19 An unpublished Notice by the Centers for Disease Control and Prevention on 09/04/2020

FAQ#: 416 published 9-3-2020 12 seconds read

Read


I made a mistake listing my revenue when I applied for the SBA EIDL, I would like reconsideration for the loan.

FAQ#: 386 published 9-1-2020 2 min. 32 seconds read

Read