Physical damage loans
Homeowners, renters, nonprofit organizations, and businesses of all sizes are eligible to apply for physical disaster assistance.
Home and personal property loans
If you live in a declared disaster area and have experienced damage to your home or personal property, you may be eligible for financial assistance from SBA — even if you do not own a business. As a homeowner, renter, or personal property owner, you may apply to SBA for a loan to help you recover from a disaster.
Eligibility
- Homeowners may apply for up to $200,000 to replace or repair their primary residence.
- Renters and homeowners may borrow up to $40,000 to replace or repair personal property — such as clothing, furniture, cars, and appliances — damaged or destroyed in a disaster.
- Secondary homes or vacation properties are not eligible for these loans. However, qualified rental properties may be eligible for assistance under SBA’s business physical disaster loan program.
- These loans cover disaster losses not fully covered by insurance or other sources. Proceeds from insurance coverage on home or property may be deducted from the eligible loan amount.
Use of proceeds
- You may not use the funds to upgrade homes or make additions, unless required by the local building code.
- You may be eligible for up to a 20% loan amount increase above the real estate damage, as verified by SBA, for improvements that will help prevent risk of future property damage caused by a similar disaster.
- SBA can refinance all or part of a previous mortgage in some cases, when the applicant does not have credit available elsewhere and has suffered substantial disaster damage that is not covered by insurance.
Terms
For applicants unable to obtain credit elsewhere:
- The interest rate will not exceed 4%
- SBA will determine whether an applicant can obtain credit elsewhere
Maturity
- Up to 30 years
- No pre-payment penalty or fees
Collateral requirements
- Collateral is required to the extent possible for home loans over $25,000 in Presidential and agency declarations.
- Real estate is the preferred form of collateral, even if the equity is insufficient to secure the full loan amount.
- SBA will ask the applicant for available collateral, but will not decline a loan for lack of collateral.
How to apply
- Apply online for an SBA disaster assistance loan. SBA’s inspectors will estimate the cost of damage once your application is completed and submitted.
- Complete, sign, and date IRS Form 4506-T with your application, giving permission for the IRS to provide SBA with your tax return information.
Additional information
Contact SBA’s Disaster Assistance Customer Service Center at:
Phone: 800-659-2955
TTY/TRS: 711
Business physical disaster
If you own a business located in a declared disaster area that has experienced damage, you may be eligible for financial assistance from SBA. Businesses of any size and most private non-profit organizations may apply to SBA for a loan to recover after a disaster.
Eligibility
- Up to $2 million to qualified businesses or most private nonprofit organizations to cover disaster losses not fully covered by insurance.
- Covers disaster losses not fully covered by insurance or other sources. If required to apply insurance proceeds to an outstanding mortgage on the damaged property, that amount can be included in your disaster loan application.
- Proceeds from insurance coverage on business property may be deducted from the eligible loan amount.
Use of proceeds
Loan proceeds may be used for the repair or replacement of the following:
- Real property
- Machinery
- Equipment
- Fixtures
- Inventory
- Leasehold improvements
Disaster loan funds may not be used to upgrade or expand a business, except as required by building codes. If you apply for mitigation assistance to make improvements that help reduce the risk of future property damage caused by a similar disaster, you may be eligible for up to a 20% loan amount increase above the real estate damage, as verified by SBA.
Terms
For applicants unable to obtain credit elsewhere:
- The interest rate will not exceed 4%
For applicants who can obtain credit elsewhere:
- The interest rate will not exceed 8%
SBA will determine whether an applicant can obtain credit elsewhere.
Maturity
- Up to 30 years, depending on ability to repay the loan
- No pre-payment penalty or fees
Collateral requirements
- Required for loans over $25,000
- Real estate is the preferred collateral. Loans of $200,000 or less will not require the owner of the business to use their primary residence as collateral if it is determined the owner has other assets of equal quality and of a value equal to or greater than the amount of the loan.
How to apply
- Apply online for an SBA disaster assistance loan. SBA’s inspectors will estimate the cost of damage once your application is completed and submitted.
- Complete, sign, and date IRS Form 4506-T with your application, giving permission for the IRS to provide with SBA your tax return information.
Additional information
Contact SBA’s Disaster Assistance Customer Service Center at:
Phone: 800-659-2955
TTY/TRS: 711