[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: 13CFR123.105]



[Page 349-350]

 

                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. 123.105  How much can I borrow with a home disaster loan and what 

limits apply on use of funds and repayment terms?



    (a) For all disasters occurring on or after October 26, 1993, there 

are limits on how much money you can borrow for particular purposes:

    (1) $40,000 for repair or replacement of household and personal 

effects;

    (2) $200,000 for repair or replacement of a primary residence 

(including upgrading in order to meet minimum standards of safety and 

decency or current building code requirements). Repair or replacement of 

landscaping and/or recreational facilities cannot exceed $5,000;

    (3) $200,000 for eligible refinancing purposes; and

    (4) 20 percent of the loan amount (not including refinancing) up to 

a maximum of $48,000 for mitigation (see Sec. 123.107).

    (b) You may not use loan proceeds to repay any debts on personal 

property, secured or unsecured, unless you incurred those debts as a 

direct result of the disaster.

    (c) SBA determines the loan maturity and repayment terms based on 

your needs and your ability to pay. Generally, you will pay equal 

monthly installments of principal and interest, beginning five months 

from the date of



[[Page 350]]



the loan, as shown on the Note securing the loan. 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. The maximum maturity for a home disaster loan is 30 

years. There is no penalty for prepayment of home disaster loans.