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 | More

If your manufactured home was damaged or developed unhealthy living conditions after a declared disaster due to the disaster can I receive a grant to replace my mobile home?

FAQ#: 443 published 1-23-2023 updated 1-27-2023 1 min. 26 seconds read

Read


Restore Louisiana Homeowner Assistance Program will provide assistance to homeowners who need to demolish and reconstruct their disaster damaged home.

FAQ#: 449 published 1-14-2023 26 seconds read

Read


No inspection from FEMA? Registered and reported Minor Damage but able to live in my home? Only Remote Telephone Inspection? Home Repair Funds less than actual repairs?

FAQ#: 454 published 12-27-2022 updated 1-12-2023 1 min. 9 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


INTERNSHIP OPPORTUNITY: NON-PAID OVERWORKED NONPARTISAN

FAQ#: 241 published 4-23-2020 1 min. 9 seconds read

Read


Federal Disaster Assistance

When you are navigating the federal disaster assistance agencies your first stop should be to the TruckAndTools.Com Disaster Resources. Every disaster agency uses the same process but not every disaster agency follows strict policy and guidance. Don't go into your disaster recovery with blind trust of your federal and state agencies that are leading the push to get you sheltered and out of the program.

SBA Updates data processed from research between 11-2019 and 12-2019

FAQ#: 183 published 1-18-2020 3 min. 25 seconds read

Read


CDBG DR Award calculation letter determination on the eligibility of your grant.

FAQ#: 182 published 12-26-2019 2 min. 42 seconds read

Read


Subscribe to TruckAndTools.Com on Google News

Read full articles from TruckAndTools.Com and explore endless topics, magazines and more on your phone or tablet with Google News. TruckAndTools.Com - Google News.

Or add our TruckAndTools.Com RSS feed to your favorite news reader and keep up when new information is shared.

State of Louisiana Restore LA Program managed by the OCD-DRU says it will not pay interest on SBA loans.

FAQ#: 181 published 12-15-2019 2 min. 40 seconds read

Read


Understanding your SBA Phase and following the HUD disbursements of funds to pay off or pay down your SBA loan

FAQ#: 180 published 12-10-2019 3 min. 34 seconds read

Read


Need a manufactured home quote?

If you need a quote for a new manufactured home for the Louisiana Restore program send a note with your old VIN number and your status in the program. All we can do is help you get the quotes for the MHU you are looking to replace. Contact me

Questions for Congressman Graves Live Facebook event 12-5-2019

FAQ#: 179 published 12-5-2019 4 min. 24 seconds read

Read