Community disaster loans.

Whenever, at the request of the Governor, the President has declared a major disaster to exist in this Commonwealth, the Governor is authorized:

(1) Upon determining that a political subdivision of this Commonwealth will suffer a substantial loss of tax and other revenues from a major disaster and has demonstrated a need for financial assistance to perform its governmental functions, to apply to the Federal Government, on behalf of the political subdivision, for a loan and to receive and disburse the proceeds of any approved loan to any applicant political subdivision.

(2) To determine the amount needed by any applicant political subdivision to restore or resume its governmental functions and to certify the amount to the Federal Government. No application amount shall exceed 25% of the annual operating budget of the applicant for the fiscal year in which the major disaster occurs.

(3) After review, recommend to the Federal Government the cancellation of all or any part of repayment when, in the first three full fiscal-year periods following the major disaster, the revenues of the political subdivision are insufficient to meet its operating expenses including additional disaster-related expenses of a municipal operation character. Cross References. Section 7304 is referred to in section 7306 of this title.