ASFPM Raises Concerns About SBA Post-Disaster Permitting Rule
ASFPM has submitted formal comments in response to the U.S. Small Business Administration’s (SBA) Interim Final Rule (IFR), Improving SBA Disaster Loan Program to Provide Meaningful and Timely Assistance. The rule proposes sweeping federal preemption of certain state and local permitting requirements for SBA disaster loan recipients.
While ASFPM supports the goal of helping disaster survivors rebuild as quickly and safely as possible, we strongly disagree with the approach taken in this rule.
What the IFR Rule would do:
- Authorize federal preemption of any state or local permitting requirement that results in more than a 60-day delay for SBA disaster loan recipients
- Allow recipients to proceed with reconstruction through a federal self-certification process in lieu of going through a state or local permitting process
- Prohibit certain state and local enforcement actions, including stop-work orders and penalties
In effect, the rule creates a pathway for rebuilding to move forward without traditional local permitting processes once a 60-day threshold is reached. ASFPM believes this approach is a misguided solution to speed up rebuilding, raises concerns about the rule’s legality, and outlines a few practical alternatives that would truly help speed recovery while preserving resilient rebuilding standards.
Recommended steps include:
- Expediting federal reimbursements for debris removal and infrastructure restoration so communities can stabilize more quickly.
- Strengthening mutual aid systems to help surge permitting capacity in overwhelmed jurisdictions.
- Providing direct federal support to local permitting offices following disasters.
- Examining delays in insurance settlements, which often slow rebuilding far more than permitting itself.
These types of targeted interventions would accelerate recovery without undermining the state and local standards that protect lives, property, and long-term community resilience. Download the letter
