[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: 13CFR123.4]

[Page 325]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 123--DISASTER LOAN PROGRAM--Table of Contents
 
                           Subpart A--Overview
 
Sec. 123.4  What is a disaster area and why is it important?

    Each disaster declaration defines the geographical areas affected by 
the disaster. Only those victims located in the declared disaster area 
are eligible to apply for SBA disaster loans. When the President 
declares a major disaster, the Federal Emergency Management Agency 
defines the disaster area. In major disasters, economic injury disaster 
loans may be made for victims in contiguous counties or other political 
subdivisions, provided, however, that with respect to major disasters 
which authorize public assistance only, SBA shall not make economic 
injury disaster loans in counties contiguous to the disaster area. 
Disaster declarations issued by the Administrator of SBA include 
contiguous counties for both physical and economic injury assistance. 
Contiguous counties or other political subdivisions are those land areas 
which abut the land area of the declared disaster area without 
geographic separation other than by a minor body of water, not to exceed 
one mile between the land areas of such counties.

[61 FR 3304, Jan. 31, 1996, as amended at 67 FR 64519, Oct. 21, 2002]