13 CFR 123.203 - What interest rate will my business pay on a physical disaster business loan and what are the repayment terms?

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There is 1 rule appearing in the Federal Register for 13 CFR 123. View below or at eCFR (GPOAccess)
§ 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, has 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 seven years if you have credit elsewhere.
(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.
(c) For certain disaster business physical and economic injury loans, an additional payment, based on a percentage of net earnings, will be required to reduce the balance of the loan. This additional payment will not be required until 5 years after repayment begins.
[61 FR 3304, Jan. 31, 1996, as amended at 75 FR 14333, Mar. 25, 2010; 77 FR 12157, Feb. 29, 2012]

Title 13 published on 2014-01-01

The following are only the Rules published in the Federal Register after the published date of Title 13.

For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.

  • 2014-04-25; vol. 79 # 80 - Friday, April 25, 2014
    1. 79 FR 22859 - Disaster Assistance Loan Program; Disaster Loan Credit and Collateral Requirements.
      GPO FDSys XML | Text
      SMALL BUSINESS ADMINISTRATION
      Interim Final Rule with request for comments.
      Effective date: April 25, 2014. Applicability date: This rule is applicable for disasters declared on or after April 25, 2014. Comment date: Comments must be received on or before June 23, 2014.
      13 CFR Part 123

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United States Code
Statutes at Large

Title 13 published on 2014-01-01

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 13 CFR 123 after this date.

  • 2014-04-25; vol. 79 # 80 - Friday, April 25, 2014
    1. 79 FR 22859 - Disaster Assistance Loan Program; Disaster Loan Credit and Collateral Requirements.
      GPO FDSys XML | Text
      SMALL BUSINESS ADMINISTRATION
      Interim Final Rule with request for comments.
      Effective date: April 25, 2014. Applicability date: This rule is applicable for disasters declared on or after April 25, 2014. Comment date: Comments must be received on or before June 23, 2014.
      13 CFR Part 123