13 CFR § 123.7 - Are there restrictions on how disaster loans can be used?

---
identifier: "/us/cfr/t13/s123.7"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 123.7 - Are there restrictions on how disaster loans can be used?"
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "123.7"
section_name: "Are there restrictions on how disaster loans can be used?"
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "123"
part_name: "DISASTER LOAN PROGRAM"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 632, 634(b)(6), 636(b), 636(d), 657n, 9009, and U.S. Const. art. VI, cl. 10."
regulatory_source: "61 FR 3304, Jan. 31, 1996, unless otherwise noted."
cfr_part: "123"
---


# 123.7 Are there restrictions on how disaster loans can be used?

You must use disaster loans to restore or replace your primary home (including a mobile home used as a primary residence) and your personal or business property as nearly as possible to their condition before the disaster occurred, and within certain limits, to protect damaged or destroyed real property from possible future disasters.

[61 FR 3304, Jan. 31, 1996, as amended at 88 FR 39340, June 16, 2023]