[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 13CFR123.101]



[Page 348-349]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 123_DISASTER LOAN PROGRAM--Table of Contents

 

                      Subpart B_Home Disaster Loans

 

Sec. 123.101  When am I not eligible for a home disaster loan?



    You are not eligible for a home disaster loan if:

    (a) You have been convicted, during the past year, of a felony 

during and in connection with a riot or civil disorder or other declared 

disaster;

    (b) You acquired voluntarily more than a 50 percent ownership 

interest in the damaged property after the disaster, and no contract of 

sale existed at the time of the disaster;

    (c) Your damaged property can be repaired or replaced with the 

proceeds of insurance, gifts or other compensation, including 

condemnation awards (with one exception), these amounts must either be 

deducted from the amount of the claimed losses or, if received after SBA 

has approved and disbursed a loan, must be paid to SBA as principal 

payments on your loan. You must notify SBA of any such recoveries 

collected after receiving an SBA disaster loan. The one exception 

applies to amounts received under the Individuals and Household Program 

of the Federal Emergency Management Agency solely to meet an emergency 

need pending processing of an SBA loan. In such an event, you must repay 

the financial assistance with SBA loan proceeds if it was used for 

purposes also eligible for an SBA loan;

    (d) SBA determines that you assumed the risk (for example, by not 

maintaining flood insurance as required by an earlier SBA disaster loan 

when the current loss is also due to flood);

    (e) Your damaged property is a secondary home (although if you 

rented the property out before the disaster and the property would not 

constitute a ``residence'' under the provisions of Section 280A of the 

Internal Revenue Code (26 U.S.C. 280A), you may be eligible for a 

physical disaster business loan);

    (f) Your damaged property is the type of vehicle normally used for 

recreational purposes, such as motorhomes, aircraft, and boats;

    (g) Your damaged property consists of cash or securities;

    (h) The replacement value of your damaged personal property is 

extraordinarily high and not easily verified, such as the value of 

antiques, artworks, or hobby collections;

    (i) You or other principal owners of the damaged property are 

presently incarcerated, or on probation or parole following conviction 

for a serious criminal offense;



[[Page 349]]



    (j) Your only interest in the damaged property is in the form of a 

security interest, mortgage, or deed of trust;

    (k) The damaged building, including contents, was newly constructed 

or substantially improved on or after February 9, 1989, and (without a 

significant business justification) is located seaward of mean high tide 

or entirely in or over water; or

    (l) You voluntarily decide to relocate outside the business area in 

which the disaster has occurred, and there are no special or unusual 

circumstances leading to your decision (business area means the 

municipality which provides general governmental services to your 

damaged home or, if not located in a municipality, the county or 

equivalent political entity in which your damaged home is located).



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