[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: 13CFR123.2]



[Page 343]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 123_DISASTER LOAN PROGRAM--Table of Contents

 

                           Subpart A_Overview

 

Sec. 123.2  What are disaster loans and disaster declarations?



    SBA offers low interest, fixed rate loans to disaster victims, 

enabling them to repair or replace property damaged or destroyed in 

declared disasters. It also offers such loans to affected small 

businesses to help them recover from economic injury caused by such 

disasters. Disaster declarations are official notices recognizing that 

specific geographic areas have been damaged by floods and other acts of 

nature, riots, civil disorders, or industrial accidents such as oil 

spills. These disasters are sudden events which cause severe physical 

damage, and do not include slower physical occurrences such as shoreline 

erosion or gradual land settling. Sudden physical events that cause 

substantial economic injury may be disasters even if they do not cause 

physical damage to a victim's property. Past examples include ocean 

conditions causing significant displacement (major ocean currents) or 

closure (toxic algae blooms) of customary fishing waters, as well as 

contamination of food or other products for human consumption from 

unforeseeable and unintended events beyond the control of the victims.