[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: 13CFR123.300]



[Page 352-353]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 123_DISASTER LOAN PROGRAM--Table of Contents

 

                Subpart D_Economic Injury Disaster Loans

 

Sec. 123.300  Is my business eligible to apply for an economic injury 

disaster loan?





    (a) If your business is located in a declared disaster area, and 

suffered substantial economic injury as a direct result of a declared 

disaster, you are eligible to apply for an economic injury disaster 

loan.

    (1) Substantial economic injury is such that a business concern is 

unable to meet its obligations as they mature or to pay its ordinary and 

necessary operating expenses.

    (2) Loss of anticipated profits or a drop in sales is not considered 

substantial economic injury for this purpose.

    (b) Economic injury disaster loans are available only if you were a 

small business (as defined in part 121 of this chapter) when the 

declared disaster commenced (except disaster declarations for Hurricanes 

Katrina, Rita, and Wilma, for which size status is determined as of the 

date SBA accepts the application for processing, and for applications 

submitted before December 6, 2005, whether denied because of size status 

or pending, such applications shall be deemed resubmitted on December 6, 

2005), you and your affiliates and



[[Page 353]]



principal owners (20% or more ownership interest) have used all 

reasonably available funds, and you are unable to obtain credit 

elsewhere (see Sec. 123.104).

    (c) Eligible businesses do not include agricultural enterprises, but 

do include--

    (1) Small nurseries affected by a drought disaster designated by the 

Secretary of Agriculture (nurseries are commercial establishments 

deriving 50 percent or more of their annual receipts from the production 

and sale of ornamental plants and other nursery products, including, but 

not limited to, bulbs, florist greens, foliage, flowers, flower and 

vegetable seeds, shrubbery, and sod);

    (2) Small agricultural cooperatives; and

    (3) Producer cooperatives.



[61 FR 3304, Jan. 31, 1996, as amended at 67 FR 11880, Mar. 15, 2002; 70 

FR 72595, Dec. 6, 2005]