Small Business Administration Disaster Loans
The U.S. Small Business Administration (SBA) offers affordable financial help to businesses and private, non-profit organizations in a declared disaster area. Help is available in the form of low-interest, long-term loans for losses not fully covered by insurance or other means.
SBA's disaster loans are the main federal assistance offered for the repair and rebuilding of non-farm, private sector disaster losses. This is the only SBA direct loan program and is not limited to small businesses.
Businesses of all sizes and private, non-profit organizations may borrow up to $2 million to repair or replace:
- Damaged or destroyed real estate.
- Machinery and equipment.
- Inventory and other business assets.
In some cases, SBA may be able to refinance all or part of a prior mortgage or lien. They may also be able to increase the loan up to 20 percent of the confirmed physical losses. You could use the increase to make improvements that reduce the risk of damage by possible future disasters.
The SBA offers Economic Injury Disaster Loans (EIDL) up to $2 million to help meet working capital needs caused by the disaster for:
- Small businesses,
- Small agricultural cooperatives,
- Small businesses engaged in aquaculture, and
- Most private, non-profit organizations of all sizes.
EIDL help is available whether the business had any physical property damage or not.