community disaster loans

community disaster loans Sec. 414. (a) The President is authorized to make loans to any local government which may suffer a substantial loss of tax and other revenues as a result of a major disaster, and has demonstrated a need for financial assistance in order to perform its governmental functions. The amount of any such loan shall be based on need, and shall not exceed 25 per centum of the annual operating budget of that local government for the fiscal year in which the major disaster occurs. Repayment of all or any part of such loan to the extent that revenues of the local government during the three full fiscal year period following the major disaster are insufficient to meet the operating budget of the local government, including additional disaster-related expenses of a municipal operation character shall be cancelled. (b) Any loans made under this section shall not reduce or otherwise affect any grants or other assistance under this Act. (c) (1) Subtitle C of title I of the State and Local Fiscal Assistance Act of 1972 (P.L. 92–512; 86 Stat. 919) is amended by adding at the end thereof the following new section: “SEC. 145. ENTITLEMENT FACTORS AFFECTED BY MAJOR DISASTERS. “In the administration of this title the Secretary shall disregard any change in data used in determining the entitlement of a State government or a unit of local government for a period of 60 months if that change— “(1) results from a major disaster determined by the President under section 301 of the Disaster Relief Act of 1974, and “(2) reduces the amount of the entitlement of that State government or unit of local government.”. (2) The amendment made by this section takes effect on April 1, 1974.