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Glossary · The loan itself

Disaster Relief Loan

In short

Loans provided by the SBA to help businesses and homeowners recover from declared disasters. These are distinct from business acquisition loans.

What it means in a deal

While a disaster relief loan is not for buying a business, be aware if the target business has taken one out. It would appear as a liability on their balance sheet and could impact their financial health and repayment capacity. Ensure all existing debt is fully disclosed and understood during due diligence.

Official sources

13 CFR Part 120 — Business Loans

Office of the Federal Register · Federal regulation

Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.

Common questions about Disaster Relief Loan

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Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.

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