Title 15, Commerce and TradeRelease 119-110
§636b Disaster Loan Interest Rates
Title 15 › CHAPTER 14A — AID TO SMALL BUSINESS › § 636b
Summary
Disaster loans can only pay for the current cost to repair or replace the damage, following current codes. The U.S. Treasury Secretary sets the interest rate using 10–12 year U.S. market yields minus up to 2% per year, and it can never be more than 6% per year.
Full Legal Text
Title 15, §636b
Commerce and Trade, Source: USLM XML via OLRC
Any loan made under section 636a of this title and section 4452 of title 42 shall not exceed the current cost of repairing or replacing the disaster injury, loss, or damage in conformity with current codes and specifications. Any loan made under section 636a and 636d of this title, and section 3538 and 4452 of title 42 shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity of ten to twelve years reduced by not to exceed 2 per centum per annum. In no event shall any loan made under this section bear interest at a rate in excess of 6 per centum per annum.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
section 636a of this title, referred to in text, was repealed by Pub. L. 97–35, title XIX, § 1917, Aug. 13, 1981, 95 Stat. 781. Section 4452 of title 42, referred to in text, was repealed by Pub. L. 93–24, § 7, Apr. 20, 1973, 87 Stat. 25. Codification Section was enacted as part of the Disaster Relief Act of 1970, and not as part of the Small Business Act which comprises this chapter. Section was formerly classified to section 4453 of Title 42, The Public Health and Welfare.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Dec. 31, 1970, see section 304 of Pub. L. 91–606, set out as an
Effective Date
of 1970 Amendment note under section 165 of Title 26, Internal Revenue Code.
Reference
Citations & Metadata
Citation
15 U.S.C. § 636b
Title 15, Commerce and Trade
Last Updated
Sep 23, 2026
Release point: 119-110