1945.26—Relationship between FmHA or its successor agency under Public Law 103-354 and SBA.
(a) General.
Public Law 99-272 made agricultural enterprises ineligible for SBA physical disaster and economic injury loan programs. However, in disaster areas declared by the President or the SBA Administrator, the SBA will continue to accept physical disaster loan applications for losses to dwellings and/or personal household contents, regardless of whether the dwelling is located on a farm or nonfarm tract. It is the policy of USDA and FmHA or its successor agency under Public Law 103-354 to cooperate with SBA in the use of each agency's respective loan making authorities, to complement the activities of each other; and to the extent possible, improve the delivery of disaster assistance to the agricultural segment of the country and minimize the potential for duplication of benefits for the same losses from the disaster loan programs administered by the two agencies.
(b) Preventing duplication of disaster program benefits.
Preventing borrowers from receiving duplicate disaster program benefits will be assured by taking the following precautions:
(1)
For all counties named by FEMA under a major disaster or Presidential emergency declaration, the FmHA or its successor agency under Public Law 103-354 County Offices will notify the appropriate SBA Disaster Area Office of all EM loan applications received each week, for damage or loss of farm dwellings and/or loss of household contents. Notice will be given by forwarding to SBA a photocopy of the applicant's completed Form FmHA or its successor agency under Public Law 103-354 410-1, “Application for FmHA or its successor agency under Public Law 103-354 Services.” Block 22 of the form should indicate the purpose for which the loan was requested.
(2)
For each application referred to in paragraph (b)(1) of this section, FmHA or its successor agency under Public Law 103-354 County Offices will send a copy of each final action taken with EM loan applications to the appropriate SBA Disaster Area Office.
(3)
A farm applicant may elect to obtain SBA financing for physical damage or loss to the dwelling and household contents, and separate financing from FmHA or its successor agency under Public Law 103-354 to cover damages or losses to the farming operation. Accordingly, applicants who elect to receive SBA physical disaster loans for dwelling and/or household content losses may also file for FmHA or its successor agency under Public Law 103-354 EM loan assistance in disaster areas declared by the President or the Secretary of Agriculture or FmHA or its successor agency under Public Law 103-354 Administrator. An EM loan will not be approved until it is determined the requirements of § 1945.163(d) of subpart D of this part will be met. When an EM loan is approved, the FmHA or its successor agency under Public Law 103-354 County Office will notify the SBA Disaster Area Office, pursuant to paragraph (a)(4)(ii) of § 1945.183 of subpart D of this part.
(1)
Named by the FEMA under a major disaster or emergency declaration by the President; for physical loss and/or economic injury disaster loans.
(d) Notification of SBA disaster areas.
The SBA Central (National) Office will notify the FmHA or its successor agency under Public Law 103-354 National Office when its disaster loan program is made available. The FmHA or its successor agency under Public Law 103-354 National Office will notify State Directors, by memorandum, of the SBA disaster areas; and State Directors will notify the appropriate County Supervisor(s) in writing.