# 13 CFR § 123.2: What are disaster loans and disaster declarations?

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-13-123.2

## Section

- **Citation:** 13 CFR § 123.2
- **Heading:** What are disaster loans and disaster declarations?
- **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

(a) SBA offers low interest, fixed rate loans to disaster survivors, 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. SBA also offers interim guaranteed disaster loans, in participation with financial institutions, to affected small businesses (“IDAP loans”).
(b) 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. 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. Sudden events that cause substantial economic injury may be disasters even if they do not cause physical damage to a survivor'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 survivors.
[89 FR 91538, Nov. 20, 2024]

## 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-13-123.2. Check the current official text before relying on it. Not legal advice.