Disaster Recovery Loans

SBA is offering disaster recovery loans to help businesses that suffer damage or economic loss due to a certified natural disaster. There seems to be more and more of them over the past few years. The physical and economic disasters caused by these natural disasters have lead to a number of businesses going out of business or struggling to make ends meet. The SBA is providing disaster recovery loans to make that easier. These loans are low interest, and can be used to repair or replace real estate, property, machinery, inventory, equipment, business assets, and other things destroyed by declared disasters.

SBA disaster offices throughout the country provide disaster loans. These long-term, low-interest loans come in a variety of forms. Here are some of the loans offered:

Home and personal property loans-
SBA disaster loans are not just for businesses, they are also available to the victims of disasters including families. If you suffered a home or personal property loss and are underinsured or uninsured, you can ask the SBA for a loan. You don't have to be a business to get an SBA disaster loan.

Business physical disaster loans-
SBA offers any business or private, non-profit organization located in a declared disaster area that incurred damage during the disaster the chance to apply for a loan to repair or replace the said damage. These business physical disaster loans can benefit businesses of all size, even though offered by SBA, you don't have to be a small business to get a loan.

This is the skinny on these loans:
- Businesses of all sizes and types may apply.
- Loan can't exceed $2 million.
- Loans must be used according to specifications (repair or replace damaged real estate, equipment, inventory and fixtures. Loans may not be used for expansion unless required to be up to code.)
- Loan may be increased 20% of the total amount of disaster damage to prevent future damage by disasters of the same type.
- Loans are for under-insured losses or uninsured losses.

Economic injury disaster loans-
The economic injury disaster loans are also offered to small businesses, private, nonprofit, etc. however, these are not for recovering damages, they are offered to those that suffer economic injury, even if there was no physical damage caused by the disaster.
This is the skinny on these loans:
- They are for small businesses, small agricultural cooperatives and certain private, nonprofit organizations that suffer from substantial economic injury may be eligible to apply.
- Loans can't exceed $2 million.
- Loans should be used to meet necessary financial obligations that you would have been able to meet had the disaster not happened.

Military reservists economic injury loans-
The military reservist economic injury loans are for small businesses to help them meet ordinary and necessary operating expenses that they would have been able to meet, but now can't because a key figure in their company gets called into active duty due to a disaster.