Popular Name: Handicapped Assistance Loans; HAL-1 and HAL-2
Objectives: To provide direct loans for nonprofit sheltered workshops and other similar organizations that produce goods and services; and to assist in the establishment, acquisition, or operation of a small business owned by handicapped individuals. (Guaranteed Loans are provided under program 59.012.)
59.021 ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: For nonprofit organizations (HAL-1), must be organized under the laws of the State, or of the United States, as an organization operating in the interests of handicapped individuals and must employ handicapped individuals for not less than 75% of the work-hours required for the direct production of commodities or in the provision of services which it renders. For HAL-2 (small business concerns), must be independently owned and operated, not dominant in its field, meet SBA size standards, and be 100% owned by handicapped individuals. Handicap must be of such a nature as to limit the individual in engaging in normal competitive business practices without SBA assistance.
Beneficiary Eligibility: Nonprofit organizations, small businesses.
Credentials/Documentation: Statement of personal history, personal financial statement, company or organization financial statements, summary of collateral, resume, and independent documentation as to the nature and extent of the handicap. Corporate charter and by-laws of nonprofit organizations.
59.021 APPLICATION & AWARD PROCESS:
Preapplication Coordination: None. This program is excluded from coverage under E.O. 12372.
Application Procedure: Applications are filed in the field office serving the territory in which the applicant is located. (See listing of field offices in Appendix IV of the Catalog.)
Award Procedure: Applicant is notified by authorization letter from district SBA office.
Deadlines: None.
Range of Approval/Disapproval Time: Within 10 days from date of acceptance of application.
Appeals: If reconsideration is requested within 6 months after decline or withdrawal, no new application is required.
Renewals: Not applicable.
Criteria for Selecting Proposals: Not applicable.
Examples of Funded Projects: Not applicable.
Range & Average of Financial Assistance: $500 to $150,000; $95,305.
59.021 RELATED PROGRAMS:
59.021 PROGRAM ACCOMPLISHMENTS:
During fiscal year 1995, 44 direct
loans were approved for $4.3 million.
59.021 FINANCIAL & ADMINISTRATIVE INFO:
Federal Agency:
SMALL BUSINESS ADMINISTRATION
Type of Assistance:
Direct Loans.
Obligations:
(Direct Loans) FY 95 $4,253,000; FY 96 est $0; and
FY 97 est $0.
Budget Account Number:
73-1154-0-1-376.
Authorization:
Small Business Act of 1953, Section 7(a) (10), as
amended, Public Law 97-35.
Regulations, Guidelines, & Literature:
Fact Sheet -
"Handicapped Assistance Loans," Part 120, SBA Rules and Regulations.
Regional or Local Office:
Initial contact should be with the
district office listed in Appendix IV of the Catalog.
Headquarters Office:
Director, Loan Policy and Procedures Branch,
Small Business Administration, 409 Third Street, SW., Washington, DC
20416. Phone: (202) 205-6570. Use the same number for FTS.
59.021 ASSISTANCE CONSIDERATIONS:
Formula & Matching Requirements:
Not applicable.
Length & Time Phasing of Assistance:
Not applicable.
Uses & Use Restrictions:
HAL-1 (nonprofit organizations) loan
proceeds may be used for working capital and construction of facilities
if a construction grant is not available from other Government sources.
No loan may be used for training, education, housing or other
supportive services for handicapped employees. HAL-2 (small business
concerns): To be used for construction, expansion, or conversion of
facilities; to purchase building, equipment, or materials; and for
working capital. Excludes speculation, nonprofit enterprises,
speculators in property, lending or investment enterprises, and
financing of real property held for sale or investment. For both HAL-1
and HAL-2, loans must be of such sound value or so secured as
reasonably to assure repayment.
59.021 POST ASSISTANCE REQUIREMENTS:
Reports:
Periodic financial statements.
Audits:
Required only in specific cases.
Records:
Adequate accounting system required.
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