[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: 13CFR123.2]

[Page 344]
 
                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.

    Effective Date Note: At 71 FR 75409, Dec. 15, 2006, Sec.  123.2 was 
amended by adding a new sentence after the fourth sentence, effective 
Jan. 16, 2007. For the convenience of the user, the added text is set 
forth as follows:


[Page 344]
 
                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?

    * * * However, for purposes of economic injury disaster loans only, 
they do include droughts and below average water levels in the Great 
Lakes or on any body of water in the United States that supports 
commerce by small businesses. * * *