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The SBA's Disaster Loan Program



What is the SBA’s Disaster Loan Program?

The Disaster Loan Program aims to provide low-interest loans to renters, homeowners, all sized businesses and most private non-profit organizations for any assets that may have been destroyed in a declared disaster.



Who should apply/ is eligible for a disaster loan?

Any renter, homeowner, business owner, or non-profit organization member who has been a victim of a declared disaster can apply for disaster loan. However, there are some restrictions to eligibility: losses should be uninsured or uncompensated, primary or have a significant functional value. Applicants must have also complied with the terms of previous SBA loans.

What are disaster loan interest rates/terms?

Interest rates vary depending on if the SBA decides the victim is capable of recovering through other means or not. If the applicant has other options, then the interest will be higher than if he/she had no other recovery options. Once the interest rate is set, however, it is fixed for the term of the loan. Typically, the interest for business loans is greater than that of homeowners and non-profit organizations.

The maximum loan term is 30 years for people without recovery options, but 3 years for those with options. Applicants for home loans can receive a maximum of $20,000, while applicants for business loans can receive up to $2M.

How can my small business apply for a disaster loan?

People can apply for a disaster loan regarding lost or damaged assets at home or at a business through the Electronic Loan Application (ELA) or mail. To learn more about ELA, you should visit: http://www.sba.gov/services/disasterassistance/SERV_DISASTERLOAN_ONLINEAP_FAQ.html