Small Business Administration Disaster Loan in Rockland County, New York

A review was requested of the Small Business Administration's (SBA) interpretation of section 405 of P.L. 95-89 that reduced interest rates for loans made subsequent to a disaster. The section reduced interest rates for disasters occurring on or after July 1, 1976. Severe storm and flood damage occurred in Rockland County, New York, during June 29-30, 1976. The SBA determined that the Rockland County flood was still taking place on July 1; if the disaster was still actually occurring on July 1, the loan reduction clause would apply to the disaster loans.