When am I not eligible for a home disaster loan?

CFR · 2024-01-01 · US · Title 13

You are not eligible for a home disaster loan if: (a) You have been convicted, during the past year, of a felony during and in connection with a riot or civil disorder or other declared disaster; (b) You acquired voluntarily more than a 50 percent ownership interest in the damaged property after the disaster, and no contract of sale existed at the time of the disaster; (c) Your damaged property can be repaired or replaced with the proceeds of insurance, gifts or other compensation, including condemnation awards (with one exception), these amounts must either be deducted from the amount of the claimed losses or, if received after SBA has approved and disbursed a loan, must be paid to SBA as principal payments on your loan. You must notify SBA of any such recoveries collected after receiving an SBA disaster loan. The one exception applies to amounts received under the Individuals and Household Program of the Federal Emergency Management Agency solely to meet an emergency need pending processing of an SBA loan. In such an event, you must repay the financial assistance with SBA loan proceeds if it was used for purposes also eligible for an SBA loan; (d) SBA determines that you assumed the risk (for example, by not maintaining flood insurance as required by an earlier SBA disaster loan when the current loss is also due to flood); (e) Your damaged property is a secondary home (although if you rented the property out before the disaster and the property would not constitute a “resid

official document · source cfr-2024 · id 13:§ 123.101