[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: 13CFR123.104]



[Page 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. 123.104  What interest rate will I pay on my home disaster loan?



    If you can obtain credit elsewhere, your interest rate is set by a 

statutory formula, but will not exceed 8 percent per annum. If you 

cannot obtain credit elsewhere, your interest rate is one-half the 

statutory rate, but will not exceed 4 percent per annum. Credit 

elsewhere means that, with your cash flow and disposable assets, SBA 

believes you could obtain financing from non-federal sources on 

reasonable terms. If you cannot obtain credit elsewhere, you also may be 

able to borrow from SBA to refinance existing recorded liens against 

your damaged real property. Under prior legislation, some SBA disaster 

loans had split interest rates. On any such loan, repayments of 

principal are applied first to that portion of the loan with the lowest 

interest rate.