Update on Low-Interest SBA Loans – Programs Have Opened Up In the Last 24 Hours

March 19, 2020 by 2 Comments

SBA loan application mechanisms are opening up for the first round of assistance through low-interest loans.

One of the ways that America helps support those affected by disasters is through SBA low-interest loan programs for small businesses. In order for our industry to make use of small business disaster loans, Congress has to approve the expenditures, and agencies like the Small Business Administration (SBA) have to establish the correct infrastructure to support the loan programs.  SBA has done this and these loans are expected to have an interest rate of 3.75% for small businesses and 2.75% for non-profit organizations (under current law they must be no higher than 4%).

The pieces of the puzzle are falling into place.  Yesterday, the declaration of a national emergency was formally published in the Federal Register.  Based on the March 13 Executive Order, this publication establishes the right for the Health and Human Services Department to take certain steps to temporarily waive or modify certain requirements of the Medicare, Medicaid, and State Children’s Health Insurance programs and of the Health Insurance Portability and Accountability Act Privacy Rule throughout the duration of the public health emergency.

While a small sum has already been approved, this is one of the projects that Congress is working on right now, and most people expect Congress to approve a much larger package of emergency relief including significantly more SBA loan authority.  ASA has been working to try to make sure this money is made available to the aviation supply chain community.

A sum of money has already been approved for Covid-19 disaster assistance loans.  The purpose of the money is to serve as working capital for businesses that are economically affected by Covid-19.   States that have already asked for the money (typically in concert with a disaster declaration by the governor include (links are to the SBA press releases announcing availability of funding for each state, which should have additional useful links):

Don’t see your state in the list?  First, check out the adjacent states – for example the Florida declaration includes certain adjacent counties in Georgia and Alabama (and Alabama does not yet have its own SBA Covid-19 declaration).  The Washington, DC declaration includes neighboring counties in Maryland and Virginia (neither of whom has their own declaration, yet).  Second, contact your state government to see what information you can provide to assist them in making a disaster declaration for the state, and communicating that declaration to the federal government.

Note that a few days ago we reported that the Covid-19 disaster areas were not yet listed on the SBA website.  As of today, they are now listed.

ASA has developed resource to help you communicate with your members of Congress, including:

Let them know what you are thinking and what your business needs to survive!

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SBA Repair Station Meeting Rescheduled

November 1, 2012 by Leave a comment

The Small Business Administration roundtable to discuss the FAA’s proposed Aviation Repair Station Rule – postponed due to the effects of Hurricane Sandy – has been rescheduled for Monday, November 5, 2012, from 2:00 p.m. – 3:30 p.m.

The proposed rule, which the FAA claims is necessary to keep pace with current industry standards and practices, is expected to have a secondary effect on repair station customers and business partners. This includes aircraft parts distributors.  The SBA has recognized that there is significant small business interested in the proposed rule, and will typically write and file comments in response to industry concerns.

Those interested in attending the roundtable should RSVP to Bruce Lundegren via email.  A dial in conference call option may also be available with advanced request.  If you wish to dial in, contact Bruce Lundegren so that SBA can make the appropriate arrangements.

SBA Contact Information:

Bruce E. Lundegren, Assistant Chief Counsel, SBA Office of Advocacy
U.S. Small Business Administration
409 3rd St. SW, Washington, DC 20416
tel: (202) 205-6144
email: bruce.lundegren@sba.gov

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SBA Repair Station Meeting Postponed!

October 29, 2012 by 1 Comment

The Small Business Administration’s small business roundtable to discuss the FAA’s proposed Aviation Repair Station rule has been postponed due to the severe weather effects of Hurricane Sandy.  The meeting will be rescheduled in the next couple of days.

The FAA’s proposed rule would revise the system of ratings, repair station certification requirements, the regulations on repair stations providing maintenance for air carriers, and even the way that repair stations record maintenance.  The rule is expected to have a secondary affect on repair station customers and business partners, including aircraft parts distributors.

The SBA has recognized the potential effects of the rule changes on small businesses and originally scheduled a roundtable meeting on October 30, 2012, to discuss the changes. Typically, the SBA will file comments to address industry concerns.  The roundtable is an excellent opportunity to make your concerns heard.  ASA will also submit comments on the proposed rule.

The ASA blog has periodically offered updates on the proposed Aviation Repair Station rule and will post an update when the SBA meeting is rescheduled.  Those interested in attending the rescheduled roundtable should RSVP to Bruce Lundgren via email.  A conference call option is usually available upon request.  If you wish to dial in, contact Bruce Lundgren in advance so that SBA can make the appropriate arrangements (but please wait until after the hurricane has passed and the federal Government is open again).

SBA Contact Information:

Bruce E. Lundegren, Assistant Chief Counsel, SBA Office of Advocacy
U.S. Small Business Administration
409 3rd St. SW, Washington, DC 20416
tel: (202) 205-6144
email: bruce.lundegren@sba.gov

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Small Business Meeting on Repair Station Rule

October 18, 2012 by 1 Comment

The Federal Aviation Administration (FAA) published a major proposed revision to the Repair Stations rules in the Federal Register on May 21, 2012.  FAA’s proposed rule would amend FAA regulations for aviation repair stations by revising the system of ratings, repair station certification requirements, the regulations on repair stations providing maintenance for air carriers, and even the way that repair stations record maintenance.  The rule is expected to have a secondary affect on repair station customers and business partners, including aircraft parts distributors.

The FAA has stated that the proposed rule is necessary because portions of the existing repair station regulations do not reflect current repair station aircraft maintenance and business practices, or advances in aircraft technology, and that the proposed rule would modernize FAA regulations to keep pace with current industry standards and practices.

The comment period for the proposed rule was scheduled to close on August 20, 2012; however, FAA extended the comment period until November 19, 2012.

The Small Business Administration has recognized that there is significant small business interest in this proposed rule.  Therefore, the SBA Office of Advocacy will host a roundtable meeting to discuss the proposed rule.  Typically, SBA will write and file a comment in response to industry concerns, and these comments tend to carry significant weight, so this is an excellent opportunity to get your voice heard on the issues that matter to you.

The meeting will be held at SBA on Tuesday, October 30, 2012 from 2:00 p.m. – 3:30 p.m. in the 7th Floor Conference Room.  SBA is located at 409 Third Street, SW Washington, DC 20416 (at the Federal Center SW Metro stops on the Orange and Blue lines).

This meeting is open to the public.  Please RSVP to Bruce Lundgren by email if you would like to attend the roundtable meeting.  A conference call in option is usually available upon request – if you would like to dial-in to participate, please contact Bruce Lundgren before the date of the meeting so he can make appropriate arrangements.

SBA Contact Information:

Bruce E. Lundegren, Assistant Chief Counsel, SBA Office of Advocacy
U.S. Small Business Administration
409 3rd St. SW, Washington, DC 20416
tel: (202) 205-6144
email: bruce.lundegren@sba.gov

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