15 U.S.C. § 657n — Immediate Disaster Assistance program

(a) Program required. The Administrator must run the Immediate Disaster Assistance program. For a business affected by a disaster, the Administration participates on a deferred, guaranteed basis in 85% of the loan balance outstanding when the loan is disbursed, if that balance is $25,000 or less. (b) Eligibility requirement. The applicant must also apply for a loan under section 636(b) or (c) and meet that loan’s basic eligibility standards. (c) Use of proceeds. Anyone receiving a section 636(b) or (c) loan must use its proceeds to repay every subsection (a) guaranteed loan before using the proceeds for anything else. (d) Loan terms. (1) There is no prepayment penalty. (2) If the recipient is denied the section 636(b) or (c) loan, the recipient must repay the guaranteed loan by the date the Administrator sets. That date may not be earlier than 10 years after the guaranteed loan was disbursed. (e) Approval or disapproval. The Administrator must ensure that each applicant gets an approval or denial within 36 hours after the Administration receives the application.