13 CFR § 123.806 - Interference with SBA Disaster Loan Usage.

---
identifier: "/us/cfr/t13/s123.806"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 123.806 - Interference with SBA Disaster Loan Usage."
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "123.806"
section_name: "Interference with SBA Disaster Loan Usage."
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "123"
part_name: "DISASTER LOAN PROGRAM"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
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"
---


# 123.806 Interference with SBA Disaster Loan Usage.

(a) State or local government officials must not unlawfully interfere with, impede, or disrupt the otherwise lawful use of SBA Disaster Loan proceeds under this Part in the name of enforcing a preempted State or Local Requirement.

(b) State or Local Requirements are preempted only to the extent that they result in a condition identified by § 123.803.