# 13 CFR § 123.10: What happens if I cannot use my insurance proceeds to make repairs?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-13-123.10

## Section

- **Citation:** 13 CFR § 123.10
- **Heading:** What happens if I cannot use my insurance proceeds to make repairs?
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 13—Business Credit and Assistance > CHAPTER I—SMALL BUSINESS ADMINISTRATION > PART 123—DISASTER LOAN PROGRAM > Subpart A—Overview

## Text

If you must pay insurance proceeds to the holder of a recorded lien or encumbrance against your damaged property instead of using them to make repairs, you may apply to SBA for the full amount needed to make such repairs. If you voluntarily pay insurance proceeds to a recorded lienholder, your loan eligibility is reduced by the amount of the voluntary payment.

## Nearby sections

- [13 CFR § 123.1 § 123.1 What do these rules cover?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.1.md)
- [13 CFR § 123.2 § 123.2 What are disaster loans and disaster declarations?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.2.md)
- [13 CFR § 123.3 § 123.3 How are disaster declarations made?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.3.md)
- [13 CFR § 123.4 § 123.4 What is a disaster area and why is it important?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.4.md)
- [13 CFR § 123.5 § 123.5 What kinds of loans are available?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.5.md)
- [13 CFR § 123.6 § 123.6 What does SBA look for when considering a disaster loan applicant?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.6.md)
- [13 CFR § 123.7 § 123.7 Are there restrictions on how disaster loans can be used?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.7.md)
- [13 CFR § 123.8 § 123.8 Does SBA charge any fees for obtaining a disaster loan?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.8.md)
- [13 CFR § 123.9 § 123.9 What happens if I don't use loan proceeds for the intended purpose?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.9.md)
- [13 CFR § 123.10 § 123.10 What happens if I cannot use my insurance proceeds to make repairs?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.10.md)
- [13 CFR § 123.11 § 123.11 Does SBA require collateral for any of its disaster loans?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.11.md)
- [13 CFR § 123.12 § 123.12 Are books and records required?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.12.md)
- [13 CFR § 123.13 § 123.13 What happens if my loan application is denied?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.13.md)
- [13 CFR § 123.14 § 123.14 How does the Federal Debt Collection Procedures Act of 1990 apply?](https://www.frixlaw.com/law-library/statutes/ecfr-13-123.14.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-13-123.10. Check the current official text before relying on it. Not legal advice.