About Disaster Loans
The U.S. Small Business Administration (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/underinsured disaster-damaged property. SBA disaster loans offer an affordable way for individuals and businesses to recover from declared disasters.
Step 1: Apply for Loan
- Apply Online, In-Person at a Disaster Center or by Mail. As a business of any size, you may borrow up to $2 Million for physical damage.
- As a small business, a small agricultural cooperative, a small business engaged in aquaculture, or private non-profit organization you may borrow up to $2 million for Economic Injury.
- As a small business, you may apply for a maximum business loan (physical and 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.
Step 2: Property Verified and Loan Processing Decision Made
- SBA reviews your credit before conducting an inspection to verify your losses.
- An SBA verifier will estimate the total physical loss to your disaster-damaged property.
- A loan officer will determine your eligibility during processing, after reviewing any insurance or other recoveries. SBA can make a loan while your insurance recovery is pending.
- A loan officer works with you to provide all the necessary information needed to reach a loan determination. Our goal is to arrive at a decision on your application within 2 – 3 weeks.
- A loan officer will contact you to discuss the
- loan recommendation and your next steps. You will also be advised in writing of all loan decisions.
Step 3: Loan Closed and Funds Disbursed
- SBA will prepare and send your Loan Closing Documents to you for your signature.
- Once we receive your signed Loan Closing Documents, an initial disbursement will be made to you within 5 days.
- A case manager will be assigned to work with you to help you meet all loan conditions. They will also schedule subsequent disbursements until you receive the full loan amount.
- Your loan may be adjusted after closing due to your changing circumstances, such as increasing the loan for unexpected repair costs or reducing the loan due to additional insurance proceeds.
The following documents are required to process your application and reach a loan decision. Your Loan Officer and Case Manager will assist you to ensure that you submit the proper documentation. Approval decision and disbursement of loan funds is dependent on receipt of your documentation.
- Business Loan Application (SBA Form 5) completed and signed by a business applicant.
- IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management).
- Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
- Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
- Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).
ADDITIONAL INFORMATION THAT MAY BE NECESSARY TO PROCESS YOUR APPLICATION:
- Complete copies, including all schedules, of the most recent Federal income
- tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
- If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year are acceptable.
- A current year-to-date profit and loss statement. Additional Filing Requirements (SBA Form 1368) providing monthly sales
For more information go to SBA Disaster Loan or call 1-800-659-2955 (SBA Customer Service Center).