Cochran, Wicker Praise Proposed Regulation On Hurricane Katrina Loan Forgiveness

Press Release

Senators encourage Mississippi communities to comment on DHS proposal

The Department of Homeland Security has released a plan to make communities that received Hurricane Katrina disaster loans eligible for loan forgiveness. Mississippi Senators Thad Cochran and Roger Wicker responded to the news today.

In 2005, Congress passed legislation authorizing Special Community Disaster Loans for the Gulf Coast, but did not allow for loan forgiveness. Provisions to forgive loans in cases of significant community hardship are included in the regular Community Disaster Loan program. The announced proposal reflects a law passed by Congress in 2007 to correct this inequity. Progress in the development of the proposed rule had been delayed by an executive order directing all federal rulemaking processes to be suspended as the new Administration takes shape.

"I am glad the Department of Homeland Security has moved forward with this proposed amendment to the Special Community Disaster Loan regulations," Sen. Cochran said. "This rule change will allow Gulf Coast communities still recovering from Hurricane Katrina to receive the same loan forgiveness benefits received by others who have received disaster loans. I hope community leaders will express support for the proposal during the Federal Emergency Management Agency's public comment period."
Sen. Wicker added: "This proposed amendment represents another important step toward full recovery along the Gulf Coast. I am glad FEMA is finally acting to provide a process for communities still recovering from Katrina to have loans related to the storm forgiven. I strongly encourage residents and officials from affected communities to comment and actively participate in this process. With active community participation, I am confident that FEMA and Secretary Napolitano will complete these regulations in an expedited manner."

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