SBA DISASTER LOAN
SBA Disaster Loans & Economic Injury Disaster Loans (EIDL)
When disaster strikes, small businesses and individuals often need financial assistance to recover and rebuild. The Small Business Administration (SBA) offers two critical types of loans tailored for disaster recovery: SBA Disaster Loans and Economic Injury Disaster Loans (EIDL).
What Are SBA Disaster Loans?
SBA Disaster Loans provide low-interest, long-term financial assistance to help businesses, nonprofits, homeowners, and renters recover from declared disasters. These loans are available for physical damages caused by natural disasters like hurricanes, floods, fires, or earthquakes.
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Eligibility:
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Small businesses, agricultural cooperatives, and private nonprofits impacted by economic loss due to a disaster.
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Loan Purpose:
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Pay fixed debts, payroll, accounts payable, and other operational expenses that could have been met if the disaster had not occurred.
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Loan Limits:
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Up to $2 million, depending on the financial needs of the business.
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COVID-19 EIDL (Historical):
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During the pandemic, EIDL loans provided critical relief to businesses. While no longer available, similar loans may be offered in future declared emergencies.
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Key Features of SBA Disaster Loans & EIDL
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Low Interest Rates:
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Rates as low as 3.75% for businesses and 2.375% for nonprofits.
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Even lower rates for homeowners and renters.
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Flexible Terms:
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Repayment terms up to 30 years.
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Deferred Payments:
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Initial payment deferral period for qualifying borrowers.
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No Collateral for Smaller Loans:
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Loans under $25,000 often require no collateral.
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How to Apply
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Verify Disaster Declaration: Check if your location qualifies under a federal disaster declaration.
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Gather Required Documentation:
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Personal identification.
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Recent tax returns (personal and business).
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Financial statements and loan purpose details.
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Submit Application:
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Apply online via the SBA Disaster Loan Assistance Portal.
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Alternatively, apply in person at a local disaster recovery center.
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Why Choose SBA Disaster Loans or EIDL?
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Affordable financing for those affected by disasters.
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Reliable support tailored for recovery and resilience.
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Trusted by millions of businesses and individuals during tough times.
Loan Limits
Homeowners - $200,000
Businesses - $2,000,000
The amount SBA will lend depends on the cost of repairing or replacing your business and business contents, minus any insurance settlements or grants. Homeowners may apply for up to $200,000 to repair or replace their disaster damaged residence. Small businesses, small agricultural cooperatives and private non-profit organizations may be eligible for economic injury. These loans could not exceed $2 million to repair or replace damaged property or economic injury.
Loan Terms and Interest Rate
Interest Rates and Length of Time to Repay Loan
Per the Small Business Administration, the interest rate on these loans is determined by law. SBA assigns an interest rate to a loan based on the resources available to an applicant. The lower interest rate will not exceed 4 percent and the interest rate associated with current market rate will not exceed 8 percent. The rates are fixed for the term of the loan. Please refer to the SBA's Small Business Administration Fact Sheet link for the declared disaster for which you are applying.
When To Apply
Should I wait for my settlement before I apply?
No. Absolutely not!
Applications should be filed immediately, the sooner the better.
Do not miss the filing deadline by waiting for an insurance settlement.
SBA can approve a loan for the total eligible losses within the administrative guidelines and later adjust the loan eligibility or balance if insurance funds are received.