Substantial Economic Injury Law and Legal Definition

According to 13 CFR 123.500 [Title 13 -- Business Credit and Assistance; Chapter I -- Small Business Administration; Part 123 -- Disaster Loan Program; Subpart F -- Military Reservist Economic Injury Disaster Loans], substantial economic injury means “an economic harm to the small business such that it cannot:

(1) Meet its obligations as they mature,

(2) Pay its ordinary and necessary operating expenses, or

(3) Market, produce or provide a product or service ordinarily marketed, produced or provided by the business. Loss of anticipated profits or a drop in sales is not considered substantial economic injury for this purpose.”