74 FR 187 pg. 49905 - Gulf Opportunity Pilot Loan Program (GO Loan Pilot)
Type: NOTICEVolume: 74Number: 187Page: 49905
FR document: [FR Doc. E9-23406 Filed 9-28-09; 8:45 am]
Agency: Small Business Administration
Official PDF Version: PDF Version
SMALL BUSINESS ADMINISTRATION
Gulf Opportunity Pilot Loan Program (GO Loan Pilot)
AGENCY:
U.S. Small Business Administration (SBA).
ACTION:
Notice of extension of waiver of regulatory provisions.
SUMMARY:
This notice announces the extension of the "Notice of waiver of regulatory provisions" for SBA's GO Loan Pilot until September 30, 2010. Due to the scope and magnitude of the devastation to Presidentially-declared disaster areas resulting from Hurricanes Katrina and Rita, the Agency is extending its full guaranty and streamlined and centralized loan processing available through the GO Loan Pilot to small businesses in the eligible parishes/counties through September 30, 2010.
DATES:
The waiver of regulatory provisions published in the Federal Register on November 17, 2005, is extended under this Notice until September 30, 2010.
FOR FURTHER INFORMATION CONTACT:
Gail Hepler, Office of Financial Assistance, U.S. Small Business Administration, 409 Third Street, SW., Washington, DC 20416; gail.hepler@sba.gov.
SUPPLEMENTARY INFORMATION:
On November 8, 2005, SBA initiated the GO Loan Pilot program which was designed to provide expedited small business financial assistance to businesses located in those communities severely impacted by Hurricanes Katrina and Rita. Under this unique initiative, SBA provides its full (85%) guaranty and streamlined and centralized loan processing to all eligible lenders that agree to make expedited SBA 7(a) loans available to small businesses located in, locating to or re-locating in the parishes/counties that have been Presidentially-declared as disaster areas resulting from Hurricanes Katrina and Rita, plus any contiguous parishes/counties.
To maximize the effectiveness of the GO Loan Pilot, on November 17, 2005, SBA published a notice in the Federal Register waiving for the GO Loan Pilot certain Agency regulations for the 7(a) Business Loan Program. (70 FR 69645). Because the pilot was designed as a temporary program scheduled to expire on September 30, 2006, and was extended to September 30, 2009, the waiver of certain Agency regulations also is due to expire on September 30, 2009. However, the Agency believes that there is a continuing, substantial need for the specific SBA assistance provided by this pilot in the affected areas.
When compared to other similarly-sized Section 7(a) loans in the same States, the GO Loan portfolio is performing very well, at about one-half the rates of delinquency and loan purchase. In addition, the demand for GO Loans has significantly increased in FY2009 in response to the continued need to rebuild the Gulf Coast areas devastated by Hurricanes Katrina and Rita. The annualized disbursement of GO Loans approved in FY2009 was 21% higher than disbursements of GO Loans approved in FY2008. Furthermore, on August 24, 2009, the Federal Emergency Management Agency (FEMA) issued a news release announcing additional funding for projects throughout the New Orleans, LA area. These additional funds bring the total public assistance funds obligated for Louisiana recovery projects since January 20, 2009 to more than $1 billion. The extension of the GO Loan pilot program, combined with additional FEMA funding, form a continuing, comprehensive Federal response to support the recovery of these highly devastated communities.
Thus, the Agency believes it is appropriate to extend this unique and vital program through September 30, 2010. Accordingly, the SBA is also extending its waiver of the Agency regulations identified in the Federal Register notice at 70 FR 69645 through September 30, 2010. SBA's waiver of these provisions is authorized by regulations. These waivers apply only to those loans approved under the GO Loan Pilot and will last only for the duration of the Pilot, which expires September 30, 2010. As part of the GO Loan Pilot, these waivers apply only to those small businesses located in, locating to, or relocating in the parishes/counties that have been Presidentially-declared as disaster areas resulting from Hurricanes Katrina or Rita, plus any contiguous parishes/counties. A list of all eligible parishes/counties is located at http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_goloan_3.pdf.
Authority:
15 U.S.C. 636(a)(24); 13 CFR 120.3.
Eric R. Zarnikow,
Associate Administrator, Office of Capital Access.
[FR Doc. E9-23406 Filed 9-28-09; 8:45 am]
BILLING CODE 8025-01-P