Hurricane, Storm, & Flood

Loan Information

If you are located in a declared disaster area, you may be eligible for financial assistance from the U.S. Small Business Administration (SBA).  

The SBA provides low-interest, long-term disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters to repair or replace uninsured or under-insured disaster damaged property.

SBA disaster loans offer an affordable way for individuals and businesses to recover from declared disasters.

 

What Types of Disaster Loans are Available?

Business Physical Disaster Loans

Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.

Economic Injury Disaster Loans         (EIDL)

Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.

Home Disaster Loans

 

Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles

What are the credit requirements?

  • Credit History – Applicants must have a credit history acceptable to SBA.

  • Repayment – Applicants must show the ability to repay all loans.

  • Collateral – Collateral is required for physical loss loans over $25,000 and all EIDL loans over $25,000.

    • SBA takes real estate as collateral when it is available.

    • SBA will not decline a loan for lack of collateral, but requires you to pledge what is available.

What are the loan terms?

  • The law authorizes loan terms up to a maximum of 30 years.

    • However, the law restricts businesses with credit available elsewhere to a maximum 7-year term.

  • SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay.

  • Interest rates

    • Home Loans                         1.25 - 2.5%​

    • Business Loans                     3.0 - 6.0%

    • Non Profit Organizations    2.75%

  • Size of available loans​

    • As a small business, you may apply for a maximum business loan (physical damage or Economic Injury (EIDL) of $2 million.

    • As a homeowner you may borrow up to $200,000 to repair/replace your disaster damaged primary residence.

    • As a homeowner or renter, you may borrow up to $40,000 to repair/replace damaged personal property.

What restrictions are there for eligibility?

Uninsured Losses

  • Only uninsured or otherwise uncompensated disaster losses are eligible.

  • Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility.

    • However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.

Ineligible Property and Noncompliance

  • Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes.

  • Property such as antiques and collections are eligible only to the extent of their functional value.

  • Amounts for landscaping, swimming pools, etc., are limited.​

  • Applicants who have not complied with the terms of previous SBA loans may not be eligible.

    • This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA loans

© 2020 by SBA Loan Aid Financial Services. 

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415.850.8370      contact@sbaloanaid.com

San Francisco, CA

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