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.
Related terms
Common questions about Disaster Relief Loan
- Are SBA 7(a) loans only for businesses unable to get traditional bank loans?
- What exactly is an SBA 7(a) loan, and who offers these loans?
- How do SBA 7(a) loan interest rates compare to standard commercial loans?
- What makes an SBA 7(a) loan 'government-backed' compared to other loans?
- Does the SBA check for past defaults on federal debts, like student loans or prior SBA loans?
- How do SBA loan guaranty fees for FY2026 apply to loans below $500,000?
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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