The SBA and USDA provide low interest loans to qualifying businesses and individuals to repair or replace real estate, personal property, machinery and equipment, inventory and business assets that have been damaged or destroyed in a “presidentially declared” disaster. SBA disaster loans are a critical source of economic assistance in disaster-ravaged communities, helping to spur employment and stabilize tax bases.
SBA makes a physical disaster declaration based on one of the following:
If the Secretary of Agriculture determines that a natural disaster has occurred or when at least five small businesses in a disaster area, identified by county or other political subdivision, have suffered substantial economic injury and require reasonable financial assistance as the result of the disaster, SBA also makes an economic injury disaster declaration.
Home and Property Disaster Loans
Renters and homeowners alike may borrow up to $40,000 to repair or replace clothing, furniture, cars, appliances, etc. damaged or destroyed in the disaster. Homeowners may apply for up to $200,000 to repair or replace their primary residence to its pre-disaster condition.
Disaster Assistance Loans
SBA provides low interest disaster loans (up to $1,500,000) to qualified homeowners, renters, businesses of all sizes and private, nonprofit organizations to repair or replace real estate, personal property, machinery & equipment, inventory and business assets that have been damaged or destroyed in a declared disaster.
Economic Injury Loans
If your small business or private, nonprofit organization has suffered economic injury, regardless of physical damage, and is located in a declared disaster area, you may be eligible for financial assistance from the U.S. Small Business Administration.
Economic Injury Disaster Loans provide necessary working capital until normal operations resume after a disaster. These loans are for small businesses and small agricultural cooperatives when unable to obtain credit elsewhere. In major disasters, victims in contiguous counties may be eligible for loans as well.