---
kind: "section"
citation: "15 U.S.C. § 657n"
title: "15"
title_heading: "Commerce and Trade"
number: "657n"
heading: "Immediate Disaster Assistance program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/657n"
units:
  - "Chapter 14A — Aid to Small Business"
---

# §657n. Immediate Disaster Assistance program

- (a) **Program required—** The [Administrator](/usc/15/637c.md?p=1) shall carry out a program, to be known as the Immediate [Disaster](/usc/15/632.md?p=k-1) Assistance program, under which the [Administration](/usc/15/636e.md?p=1) participates on a deferred (guaranteed) basis in 85 percent of the balance of the financing outstanding at the time of disbursement of the loan if such balance is less than or equal to $25,000 for businesses affected by a [disaster](/usc/15/632.md?p=k-1).
- (b) **Eligibility requirement—** To receive a loan guaranteed under [subsection (a)](#a), the [applicant](/usc/15/7a.md?p=3) shall also apply for, and meet basic eligibility standards for, a loan under subsection (b) or (c) of [section 636 of this title](/usc/15/636.md).
- (c) **Use of proceeds—** A [person](/usc/15/7a.md?p=6) who receives a loan under subsection (b) or (c) of [section 636 of this title](/usc/15/636.md) shall use the proceeds of that loan to repay all loans guaranteed under [subsection (a)](#a), if any, before using the proceeds for any other purpose.
- (d) **Loan terms—**
  - (1) **No prepayment penalty—** There shall be no prepayment penalty on a loan guaranteed under [subsection (a)](#a).
  - (2) **Repayment—** A [person](/usc/15/7a.md?p=6) who receives a loan guaranteed under [subsection (a)](#a) and who is disapproved for a loan under subsection (b) or (c) of [section 636 of this title](/usc/15/636.md), as the case may be, shall repay the loan guaranteed under [subsection (a)](#a) not later than the date established by the [Administrator](/usc/15/637c.md?p=1), which may not be earlier than 10 years after the date on which the loan guaranteed under subsection[^1] is disbursed.
- (e) **Approval or disapproval—** The [Administrator](/usc/15/637c.md?p=1) shall ensure that each [applicant](/usc/15/7a.md?p=3) for a loan under the program receives a decision approving or disapproving of the application within 36 hours after the [Administration](/usc/15/636e.md?p=1) receives the application.

## Footnotes

[^1]: So in original. Probably should be “subsection (a)”.

## Source credit

(Pub. L. 85–536, § 2[42], as added Pub. L. 110–234, title XII, § 12084, May 22, 2008, 122 Stat. 1420, and Pub. L. 110–246, § 4(a), title XII, § 12084, June 18, 2008, 122 Stat. 1664, 2182.)

## Notes

### Editorial Notes

### Codification

Pub. L. 110–234 and Pub. L. 110–246 enacted identical sections. Pub. L. 110–234 was repealed by section 4(a) of Pub. L. 110–246.

### Statutory Notes and Related Subsidiaries

### Effective Date

Enactment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as a note under section 8701 of Title 7, Agriculture.