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Second Appeal Brief
PA ID# 000-UIMTF-00; Catholic Diocese of Biloxi
PW ID# Project Worksheet 10697; Small Business Administration Loan
FEMA-1604-DR-MS, Catholic Diocese of Biloxi,
Small Business Administration Loan, PW 10697
Private Nonprofit (PNP)
High winds and heavy rainfall from Hurricane Katrina in August 2005 caused extensive damage on the St. Thomas the Apostle Catholic Church campus. FEMA determined that the Family Life Center was an eligible PNP community center. The Small Business Administration (SBA) estimated $2,335,160 in damages at the Family Life Center comprising 41 percent of the total of $5,536,033 in damages. SBA approved $1,500,000 to reconstruct disaster-damaged facilities. FEMA prepared PW 10679 for $2,890,016 for the estimated replacement costs of the Family Life Center. FEMA determined that the approved SBA loan covered eligible and ineligible damages. Based on the ratio of eligible SBA-estimated damages to ineligible SBA-estimated damages, FEMA deducted $614,653.
In its second appeal, the Applicant reiterates its position that it was not the intent and purpose of the SBA requirement to hinder the recovery of ineligible facilities by depriving them of the full use of the SBA funds for which they qualified. The Applicant re-asserts that if it were to apply to the SBA for additional funds to be used toward the Parish Life Center it would receive $0 and would result in $0 offset to the Parish Life Center. Finally, the Applicant requests that if FEMA decides to apportion SBA loan proceeds that it include building contents that were not included in the SBA assessment.
When an SBA disaster loan covers damages for both eligible and ineligible facilities without specifying the apportionment of the loan proceeds against respective damaged facilities, does FEMA have statutory or regulatory authority to deduct the proportionate amount of loan proceeds from available permanent work assistance based on a ratio of eligible damages to ineligible damages?
Robert T. Stafford Disaster Relief and Emergency Assistance Act, Section 102(10); 44 CFR §206.221(e) and (f) and §206.223(b), FEMA Recovery Policy RP9521.3, Private Nonprofit (PNP) Facility Eligibility
, dated May 23, 2003; 44 CFR §206.226(c); FEMA Recovery Policy RP9525.3, Duplication of Benefits Non-Government Funds, dated October 30, 2000