[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 13CFR123.14]



[Page 346-347]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 123_DISASTER LOAN PROGRAM--Table of Contents

 

                           Subpart A_Overview

 

Sec. 123.14  How does the Federal Debt Collection Procedures Act of 

1990 apply?



    (a) Under the Federal Debt Collection Procedures Act of 1990 (28 

U.S.C. 3201(e)), a debtor who owns property which is subject to an 

outstanding judgment lien for a debt owed to the United States generally 

is not eligible to receive physical and economic injury disaster loans. 

The SBA Associate Administrator for Disaster Assistance, or designee, 

may waive this restriction as to disaster loans upon a demonstration of 

good cause. Good cause means a written representation by you under oath 

which convinces SBA that:

    (1) The declared disaster was a major contributing factor to the 

delinquency which led to the judgment lien, regardless of when the 

original debt was incurred; or

    (2) The disaster directly prevented you from fulfilling the terms of 

an agreement with SBA or any other Federal Government entity to satisfy 

its



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pre-disaster judgment lien; in this situation, the judgment creditor 

must certify to SBA that you were complying with the agreement to 

satisfy the judgment lien when the disaster occurred; or

    (3) Other circumstances exist which would justify a waiver.

    (b) The waiver determination by the Associate Administrator for 

Disaster Assistance, or designee, is a final, non-appealable decision. 

The granting of a waiver does not include loan approval; a waiver 

recipient must then follow normal loan application procedures.