Business Physical Disaster Loan Program
If you are in a declared disaster area and have experienced damage to your business, you may be eligible for financial assistance from the Small Business Administration (SBA). Businesses of any size and most private nonprofit organizations may apply to the SBA for a loan to recover after a disaster.
Business Physical Disaster Loans
Physical Disaster Loans are a specific type of financial assistance provided by the U.S. Small Business Administration (SBA) to businesses, homeowners, and renters in regions that have been declared disaster areas. These loans are intended to help businesses and individuals recover from the damage caused by natural disasters, such as hurricanes, earthquakes, floods, or other physical calamities.
The SBA's Physical Disaster Loans can be used to repair or replace real estate, personal property, machinery, equipment, inventory, and business assets that have been damaged or destroyed in a declared disaster. The loans can also cover the costs of business interruption and can provide funds for working capital to help businesses continue operating while they recover.
To be eligible for these loans, businesses must be located in a declared disaster area, and they must have suffered physical damage as a result of the disaster. Homeowners and renters who have also incurred physical damage to their homes or personal property in a declared disaster area may also be eligible for these loans.
It's important to note that the terms and conditions of these loans, including interest rates, repayment terms, and eligibility criteria, may vary depending on the specific disaster and the nature of the damage. Business owners and individuals interested in applying for Physical Disaster Loans should visit the SBA's website or contact their local SBA office for more information and guidance on the application process.
Business Physical Disaster Loans Overview
| Program Name | Business Physical Disaster Loans |
| Country | United States of America |
| Max Loan Length | 3 or 30 years |
| Interest Rate | 8% if credit available elsewhere |
| Max Loan Amount | $2.0 million |
| Payment Frequency | Monthly |
| Prepayment Penalties | No |
| Max Loan Length | No |
Types of disaster loans
SBA provides low-interest, long-term loans for physical and economic damage caused by a declared disaster. Learn more about home and personal property, business and economic injury loans.
- Home and Personal Property Loans
- Business Physical Disaster Loans
- Economic Injury Disaster Loans
- Military Reservists Economic Injury Loans
Who is eligible for Business Physical Disaster Loans?
To be eligible for this benefit program, your business or private non-profit organization must meet both of the following:
- Has sustained physical damage.
- Is located in a disaster declared county.
What are the loan terms for Business Physical Disaster Loans?
The SBA can provide up to $2 million in disaster assistance to a business. The $2 million loan cap includes both physical disaster loans and EIDLs. There are no upfront fees or early payment penalties charged by SBA. The loan term is up to 30 years and determined by the businesses ability to repay.
Crisis Counseling Assistance and Training Program Benefits
3 steps for the disaster assistance process
- Check disaster declarations : See if the SBA has issued a disaster declaration in your area.
- Apply for a disaster loan : Loans are available for businesses and homes affected by disaster.
- Check your status : Log in to your account and check your email for updates.
How do I apply for Business Physical Disaster Loans?
Apply online for disaster loan assistance at your own convenience through SBA's secure Disaster Loan Assistance website. For application information, please call 1-800-659-2955 or email [email protected]
Apply For A Disaster Loan
You can apply online for all types of SBA disaster assistance loans. The online application is the fastest method to receive a decision about your loan eligibility. You have the option of submitting a paper application by mail. For either application, you must submit the completed loan application and a signed and dated IRS Form 4506-C giving permission for the IRS to provide SBA your tax return information.
You may also apply in person at any Disaster Recovery Center and receive personal, one-on-one help from an SBA representative. For information or to find a location near you, please contact our Customer Service Center. Call 1-800-659-2955 (If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services) or e-mail [email protected] .
Required Information to Complete the Application
After a Presidential disaster declaration, you must first register with the Federal Emergency Management Agency (FEMA). To obtain a registration number, call FEMA at 1-800-621-3362 or visit DisasterAssistance.gov. The following information is required to complete the SBA online application:
- Contact information for all applicants
- Social security numbers for all applicants
- FEMA registration number
- Deed or lease information
- Insurance information
- Financial information (e.g. income, account balances and monthly expenses)
- Employer Identification Number (EIN) for business applicants
How to Repay a Disaster Loan
To make a one-time payment or schedule recurring monthly payments, register on Pay.gov and select the 1201 Borrower Payments option. There are several ways you can make a payment on your disaster loan: by phone, by mail or online. To make a payment, contact the SBA disaster customer service center at 1-800-659-2955 (If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services) . There is no fee for this service. You may also send a check or money order to the SBA. Please include your loan number on your check and your payment coupon, if available. Make your check payable to the U.S. Small Business Administration.
Disaster Assistance and Emergency Relief Program BenefitsDisaster Loan Fact Sheets
Learn the key points about SBA's Disaster Loans.
- Fact Sheet for Homeowners and Renters : If you are in a declared disaster area and are the victim of a disaster, you may be eligible for a low-interest rate disaster loan, even if you don't own a business.
- Fact Sheet: Homeowner Association Unit Owners : This information applies to SBA disaster loans for individual unit owners of Homeowner Associations, Planned Unit Developments, condominiums and other common-interest developments.
- Fact Sheet for Businesses of All Sizes : Any business or organization located in a declared disaster area and that incurred damage during the disaster may apply for a loan to help replace or restore damaged property.
- Fact Sheet for Associations : This information applies to SBA disaster loans for Homeowner Associations, Planned Unit Developments, co-ops, condominium and other common interest developments.
- Fact Sheet: Military Economic Injury Loans : This program aims to help small businesses meet operating expenses when essential employees are called-up to active military duty.
Economic Injury Disaster Loans
If you have suffered substantial economic injury and are one of the following types of businesses located in a declared disaster area ,you may be eligible for an SBA Economic Injury Disaster Loan (EIDL):
- Small Business
- Small agricultural cooperative
- Most private nonprofit organizations
Loan Amounts and Use
Substantial economic injury means the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster.
The SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Your loan amount will be based on your actual economic injury and your company's financial needs, regardless of whether the business suffered any property damage.
Eligibility and Terms
The interest rate on EIDLs will not exceed 4 percent per year. The term of these loans will not exceed 30 years. The repayment term will be determined by your ability to repay the loan. EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere. A business may qualify for both an EIDL and a physical disaster loan. The maximum combined loan amount is $2 million.
How to Apply Economic Injury Disaster Loans
You can apply online for an SBA disaster assistance loan. You must submit the completed loan application and a signed and dated IRS Form 4506-C giving permission for the IRS to provide SBA your tax return information. For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services) or e-mail [email protected].
Home and Personal Property Loans
If you are in a declared disaster area and have experienced damage to your home or personal property, you may be eligible for financial assistance from the SBA — even if you do not own a business. As a homeowner, renter and/or personal property owner, you may apply to the SBA for a loan to help you recover from a disaster.
Loan Amounts and Use
Homeowners may apply for up to $200,000($500,000 for Disasters declared on or after July 31st) to replace or repair their primary residence. The loans may not be used to upgrade homes or make additions, unless required by local building code. If you make improvements that help prevent the risk of future property damage caused by a similar disaster, you may be eligible for up to a 20 percent loan amount increase above the real estate damage, as verified by the SBA.
In some cases, SBA can refinance all or part of a previous mortgage when the applicant does not have credit available elsewhere and has suffered substantial disaster damage not covered by insurance. Renters and homeowners may borrow up to $40,000($100,000 for Disasters declared on or after July 31st) to replace or repair personal property — such as clothing, furniture, cars and appliances — damaged or destroyed in a disaster.
Eligibility and Terms
Secondary homes or vacation properties are not eligible for these loans. However, qualified rental properties may be eligible for assistance under the SBA business disaster loan program. Proceeds from insurance coverage on your home or property will be deducted from the total damage estimate to determine the eligible loan amount. The SBA is not permitted to duplicate any benefits.
For applicants unable to obtain credit elsewhere, the interest rate will not exceed 4 percent. For those who can obtain credit elsewhere, the interest rate will not exceed 8 percent. The SBA will determine whether an applicant can obtain credit elsewhere. SBA disaster loans are offered with up to 30-year terms.
In a Presidential declaration, home loans for more than $25,000 must be secured with collateral to the extent possible. For Agency declarations, home loans for more than $14,000 must be secured with collateral to the extent possible. The SBA will ask the applicant for available collateral, but will not decline a loan for lack of collateral. A first or second mortgage on the damaged real estate is commonly used as collateral for an SBA disaster loan.
How to Apply For Home and Personal Property Loans
You can apply online for an SBA disaster assistance loan. SBA will send an inspector to estimate the cost of your damage once you have completed and returned your loan application. You must submit the completed loan application and a signed and dated IRS Form 4506-C giving permission for the IRS to provide SBA your tax return information.
For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services) or e-mail [email protected].
Fact Sheet for Homeowners and Renters
If you are in a declared disaster area and are the victim of a disaster, you may be eligible for a low-interest rate disaster loan from the U.S. Small Business Administration - even if you don't own a business. As a homeowner, renter and/or personal-property owner, you may apply to the SBA for a loan to help you recover from a disaster.
Renters and homeowners alike may borrow up to $40,000($100,000 for Disasters declared on or after July 31st) to repair or replace clothing, furniture, cars or appliances damaged or destroyed in the disaster. Homeowners may apply for up to $200,000($500,000 for Disasters declared on or after July 31st) to repair or replace their primary residence to its pre-disaster condition.
The loans may not be used to upgrade homes or make additions unless as required by local building authority/code. Loans may be increased up to 20 percent of the total amount of physical loss, as verified by SBA, to make improvements that lessen the risk of property damage by future disasters of the same kind.
Secondary homes or vacation properties are not eligible for these loans. However, qualified rental properties may be eligible for assistance under our business loan program. Any proceeds from insurance coverage on your property or home will be deducted from the total damage to the property to determine the loan amount you are eligible for. SBA is not permitted to duplicate any benefits.
For applicants unable to obtain credit elsewhere the interest rate will not exceed 4 percent. For those who can obtain credit elsewhere, the interest rate will not exceed 8 percent. SBA determines whether an applicant has credit available elsewhere. SBA offers loans with long-term repayments in many cases up to 30 years.
Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay. For additional information, please contact our Customer Service Center. Call 1-800-659-2955 (If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services) or e-mail [email protected].