Disaster loans are
available when areas are labeled as "Federal Disaster Areas," usually
following a dramatic natural event, such as fire, flood, earthquake, or
hurricane. These loans are available for anyone who suffers damage due to
a declared disaster, including business owners who may have physical or
economic damages due to a catastrophic event.
Here are the basic requirements for disaster loans:
- Physical Damage loans require collateral for home loans over $25,000, and real estate is the preferred form of collateral.
- Mitigation Assistance loans will be reviewed for mitigating measures, so loan qualification requirements are specialized.
- EIDLs are only available to small businesses if the SBA determines that they are unable to obtain credit elsewhere. EIDLs require collateral for loans over $25,000, and real estate is the preferred form. However, EIDL financings of less than $200,000 don’t require the business owner to use their primary residence as collateral as long as the business owner has other assets of high value that are equal to or greater than the loan amount.
- Military Reservist loans require collateral for loans over $50,000, and real estate is accepted. These loans will not be declined for lack of collateral, but the SBA will require the borrower to pledge collateral that is available.
Businesses of any size may borrow up to $2 million for physical
damage. $25,000 may be advanced within five (5) days of submission of the
SBA's signed Loan Closing Documents. The decision process can take 2-3
weeks. Closing will be expedited, but delays can occur based on the
number of applications submitted.
If you need to apply for a disaster loan, simply click on the box below to start your application.