About this programme
SBA disaster loans are the U.S. federal government's primary form of financial disaster recovery assistance for businesses, private nonprofits, homeowners, and renters. They're issued by the U.S. Small Business Administration's Office of Disaster Recovery & Resilience after a disaster is declared for a county or region, and they're loans, not grants — funds are disbursed and repaid over time, not given outright.
The programme covers more than small businesses: businesses of any size, agricultural cooperatives, aquaculture businesses, and most private nonprofit organizations can apply for physical damage or economic injury loans, and homeowners and renters can apply separately to repair or replace disaster-damaged real estate and personal property.
Several loan types sit under the same application: Business Physical Disaster Loans (real property, machinery, equipment, inventory, leasehold improvements), Economic Injury Disaster Loans / EIDL (working capital when a disaster causes financial hardship, not necessarily physical damage), Home and Personal Property Loans (for homeowners and renters), Military Reservist Economic Injury Disaster Loans / MREIDL (for businesses that lose an essential employee to active military duty), and Mitigation Assistance (extra funds layered onto an approved physical damage loan to reduce risk of future damage).
Because assistance runs through a single online application tied to a specific disaster declaration, exact terms, deadlines, and covered counties vary by disaster and are only confirmed on the SBA's declared-disaster listings at the time of application.
How it works
A disaster loan only becomes available once a Presidential or SBA Administrative disaster declaration covers the applicant's county — the declaration sets the eligible area and the application deadline.
Physical Damage Loans and Economic Injury Disaster Loans can both be applied for through the same portal; a business affected by physical damage can also apply for EIDL working capital, subject to the combined $2 million cap across physical and economic injury loans for the same disaster.
After submission, an SBA loss verifier/inspector estimates the cost of the disaster damage before the loan amount is finalized.
Approved loans defer the first payment for 12 months, and no interest accrues during that deferment period.
Fixed interest rates are capped at 4% for applicants the SBA determines cannot obtain credit elsewhere, and up to 8% for applicants who can obtain credit elsewhere but choose an SBA loan anyway.
Maturities run up to 30 years, sized to what the SBA determines the borrower can repay, with no prepayment penalties or fees.
Mitigation Assistance can add up to 20% on top of the verified disaster loss when the additional funds go toward measures that reduce the risk of future damage from wind, flood, wildfire, earthquake, or hail.
Who can apply
Businesses of any size (not limited to SBA's small-business size standards for physical damage loans), agricultural cooperatives, aquaculture businesses, and most private nonprofit organizations located in a declared disaster area can apply for a Business Physical Disaster Loan.
Economic Injury Disaster Loans are limited to small businesses, small agricultural cooperatives, small aquaculture businesses, and most private nonprofits that can show the disaster caused substantial economic injury — an inability to meet ordinary and necessary financial obligations — and that they cannot obtain credit elsewhere.
Homeowners and renters in a declared disaster area can apply for Home and Personal Property Loans to repair or replace a damaged primary residence or personal property, independent of any business application.
Military Reservist EIDL is limited to small businesses that lose an essential employee because that employee was called to active military duty.
Mitigation Assistance is only available layered onto an already-approved physical damage loan, not as a standalone application.
How to apply
- Confirm the applicant's county is covered by an active disaster declaration and check the application deadline for that declaration.
- Apply online through the SBA's disaster loan portal at lending.sba.gov/search-disaster/, or apply by phone or in person.
- Call the SBA's disaster assistance customer service center at 800-659-2955, or email DCS@sba.gov (general disaster loans) with questions.
- Schedule an in-person appointment for application help at appointment.sba.gov/schedule/ if needed.
- After submission, an SBA inspector verifies the disaster loss to establish the physical damage loan amount before approval.
Frequently asked
Is an SBA disaster loan a grant?
No. It is a loan that must be repaid, with a fixed interest rate (capped at 4% or 8% depending on the applicant's ability to obtain credit elsewhere) and a maturity of up to 30 years. The first payment is deferred 12 months and no interest accrues during that deferment.
Who can apply for an SBA disaster loan?
Businesses of any size, agricultural cooperatives, aquaculture businesses, most private nonprofit organizations, homeowners, and renters located in a county covered by an active disaster declaration. Economic Injury Disaster Loans (EIDL) are limited to small businesses, small agricultural cooperatives, and nonprofits.
What is the difference between a Business Physical Disaster Loan and an EIDL?
A Physical Damage Loan covers repair or replacement of real property, machinery, equipment, inventory, and leasehold improvements damaged in the disaster. An Economic Injury Disaster Loan (EIDL) is working capital to cover ordinary operating expenses when the disaster caused financial hardship, whether or not the business suffered physical damage.
How much can a business borrow?
Up to $2 million combined across Business Physical Disaster Loans and Economic Injury Disaster Loans for the same disaster. Homeowners can borrow up to $500,000 to repair or replace a primary residence, and homeowners and renters can borrow up to $100,000 for personal property.
Is collateral required?
Collateral is generally required for loans over $50,000 under a Presidential disaster declaration, or over $14,000 under an SBA Administrative declaration. Real estate is the preferred collateral, though a primary residence is not required as collateral for loans of $200,000 or less if other collateral is available.
Can the loan cover future disaster-proofing, not just the current damage?
Yes, through Mitigation Assistance, which can add up to 20% above the verified loss amount for measures that reduce the risk of future wind, flood, wildfire, earthquake, or hail damage. It is added to an already-approved physical damage loan, not applied for separately.
Where do I apply and who do I contact with questions?
Apply online at lending.sba.gov/search-disaster/. For questions, call the SBA disaster assistance customer service center at 800-659-2955, email DCS@sba.gov, or schedule an in-person appointment at appointment.sba.gov/schedule/.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.