§ 123.507. Under what circumstances will SBA consider waiving the \$2 million loan limit?

301 words·~1 min read·/us/cfr/t13/s§ 123.507·

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SBA will consider waiving the \$2 million limit if you can certify to the following conditions and SBA approves of such certification based on the information supplied in your application:

(a)Your small business is a major source of employment. A major source of employment is a business concern that, on or after the date of the disaster:

(1)Employs 10 percent or more of the work force within the commuting area of the geographically identifiable community (no larger than a county) in which the business employing the essential employee is located, provided that the commuting area does not extend more than 50 miles from such community; or

(2)Employs 5 percent of the work force in an industry within such commuting area and, if the small business is a non-manufacturing small business, employs no less than 50 employees in the same commuting area, or if the small business is a manufacturing small business, employs no less than 150 employees in the commuting area; or

(3)Employs no less than 250 employees within such commuting area;

(b)Your small business is in imminent danger of going out of business as a result of one or more essential employees being called up to active service for a period of more than 30 consecutive days, and a loan in excess of \$2 million is necessary to reopen or keep open the small business; and

(c)Your small business has used all reasonably available funds from the small business, its affiliates, its principal owners and all available credit elsewhere (as described in § 123.104) to alleviate the small business' economic injury. \[61 FR 3304, Jan. 31, 1996, as amended at 73 FR 54675, Sept. 23, 2008; 75 FR 14333, Mar. 25, 2010; 88 FR 24109, Apr. 19, 2023; 89 FR 59831, July 24, 2024\]

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§ 123.507

Under what circumstances will SBA consider waiving the \$2 million loan limit?

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