[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR123.13]

[Page 347-348]
 
                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 SBA's 
Disaster Assistance Processing and Disbursement Center (DAPDC) within 
six months of the date of the decline 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

[[Page 348]]

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 Director, Disaster Assistance 
Processing and Disbursement Center. All appeals must be received by the 
processing center 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 Director, DAPDC, is final unless:
    (1) The Director, DAPDC, does not have the authority to approve the 
requested loan;
    (2) The Director, DAPDC, refers the matter to the AA/DA; or
    (3) The AA/DA, upon a showing of special circumstances, requests 
that the Director, DAPDC, forward the matter to him or her for final 
consideration. Special circumstances may include, but are not limited 
to, policy considerations or alleged improper acts by SBA personnel or 
others in processing the application.

[61 FR 3304, Jan. 31, 1996, as amended at 71 FR 63676, Oct. 31, 2006]