Physical Disaster Loans

General Loan Program Requirements
Any business that is located in a declared disaster area and has incurred damage during the disaster may apply for a loan to help repair or replace damaged property to its pre-disaster condition. The SBA makes physical disaster loans of up to $1.5 million to qualified businesses.

SBA loans will cover uninsured physical damage. If you are required to apply insurance proceeds to an outstanding mortgage on the damaged property, you can include the amount applied in your disaster loan.

Note: Charitable, religious, nonprofit and similar organizations with the ability to obtain credit elsewhere are eligible for physical disaster loans for up to 30 years at an interest rate based upon a different statutory formula. The nearest SBA disaster office can supply you with the interest rate.

Loan Program Description
If your business -- large or small -- has suffered physical damage as a result of a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration.

Any business that is located in a declared disaster area and has incurred damage during the disaster may apply for a loan to help repair or replace damaged property to its pre-disaster condition. The SBA makes physical disaster loans of up to $1.5 million to qualified businesses.

Loan Terms
Disaster loans can be used to repair or replace real property, machinery, equipment, fixtures, inventory and leasehold improvements. In addition, disaster loans to repair or replace real property or leasehold improvements may be increased by as much as 20 percent to protect the damaged real property against possible future disasters of the same type.

Loan Application Process
Once a Disaster has been declared, an applicant should contact the Federal Emergency Management Administration (FEMA) tele-registration number. It is a Toll Free number and is broadcast in the regions of disasters. SBA and FEMA have worked together to simply the process so that disaster victims can call one phone number for most of their needs. After supplying some basic information, applicants eligible for SBA loans can begin the application process. SBA staff will be in the community of the Disaster to help with the application process.

Loan Managing Agency
U.S. Small Business Administration