[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: 13CFR123.13]



[Page 346]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 123_DISASTER LOAN PROGRAM--Table of Contents

 

                           Subpart A_Overview

 

Sec. 123.13  What happens if my loan application is denied?



    (a) If SBA denies your loan application, SBA will notify you in 

writing and set forth the specific reasons for the denial. Any applicant 

whose request for a loan is declined for reasons other than size (not 

being a small business) has the right to present information to overcome 

the reason or reasons for the decline and to request reconsideration in 

writing. (OMB Approval No. 3245-0122.)

    (b) Any decline due to size can only be appealed as set forth in 

part 121 of this chapter.

    (c) Any request for reconsideration must be received by the SBA 

office that declined the original application within six months of the 

date of the declined notice. After six months, a new loan application is 

required.

    (d) A request for reconsideration must contain all significant new 

information that you rely on to overcome SBA's denial of your original 

loan application. Your request for reconsideration of a business loan 

application must also be accompanied by current business financial 

statements.

    (e) If SBA declines your application a second time, you have the 

right to appeal in writing to the Area Director's Office. All appeals 

must be received by the office that declined the prior reconsideration 

within 30 days of the decline action. Your request must state that you 

are appealing, and must give specific reasons why the decline action 

should be reversed.

    (f) The decision of the Area Director is final unless:

    (1) The Area Director does not have authority to approve the 

requested loan;

    (2) The Area Director refers the matter to the Associate 

Administrator for Disaster Assistance; or

    (3) The Associate Administrator for Disaster Assistance, upon a 

showing of special circumstances, requests the Area Director's office to 

forward the matter to him or her for final consideration. Special 

circumstances may include, but are not limited to, policy 

considerations, alleged improper acts by SBA personnel or others in 

processing the application, and conflicting policy interpretations 

between two Area Offices.