Reading Room Document

Amendment of SBA Disaster Loan Program

The document is a memorandum addressing three questions regarding the proposed amendment to the regulations governing the disaster loan program administered by the Small Business Administration (SBA). The first question is about the legality of the proposed amendment for pending loan applications. The second question is about the formal procedures the Administration must follow before reaching factual and policy determinations. The third question is about the authority of the SBA to make its amended regulation effective immediately, without notice and comment. The document concludes that there are no constitutional or statutory limitations preventing the SBA from modifying loan criteria for disaster victims, and that the SBA has the authority to make the amendment effective immediately. It also discusses the procedural aspects of the amendment and the exceptions to notice and comment procedures.

March 19, 1981