[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR123.203]

[Page 333]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 123--DISASTER LOAN PROGRAM--Table of Contents
 
               Subpart C--Physical Disaster Business Loans
 
Sec. 123.203  What interest rate will my business pay on a physical disaster business loan and what are the repayment terms?

    (a) SBA will announce interest rates with each disaster declaration. 
If your business, together with its affiliates and principal owners, 
have credit elsewhere, your interest rate is set by a statutory formula, 
but will not exceed 8 percent per annum. If you do not have credit 
elsewhere, your interest rate will not exceed 4 percent per annum. The 
maturity of your loan depends upon your repayment ability, but cannot 
exceed 3 years if you have credit elsewhere. Otherwise, the maximum 
maturity is 30 years.
    (b) Generally, you must pay equal monthly installments, of principal 
and interest, beginning five months from the date of the loan as shown 
on the Note. SBA will consider other payment terms if you have seasonal 
or fluctuating income, and SBA may allow installment payments of varying 
amounts over the first two years of the loan. There is no penalty for 
prepayment for disaster loans.