[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: 13CFR123.203]



[Page 352]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 123_DISASTER LOAN PROGRAM--Table of Contents

 

               Subpart C_Physical Disaster Business Loans

 

Sec. 123.203  What interest rate will my business pay on a physical 

disaster business loan and what are the repayment terms?



    (a) SBA will announce interest rates with each disaster declaration. 

If your business, together with its affiliates and principal owners, 

have credit elsewhere, your interest rate is set by a statutory formula, 

but will not exceed 8 percent per annum. If you do not have credit 

elsewhere, your interest rate will not exceed 4 percent per annum. The 

maturity of your loan depends upon your repayment ability, but cannot 

exceed 3 years if you have credit elsewhere. Otherwise, the maximum 

maturity is 30 years.

    (b) Generally, you must pay equal monthly installments, of principal 

and interest, beginning five months from the date of the loan as shown 

on the Note. 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. There is no penalty for 

prepayment for disaster loans.