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Physical Damage Loans - Business Physical Disaster

Small Business Administration (SBA)

Funding Amount

Up to $2 million

Funding Cycle

Rolling Applications


Use of proceeds:
- You may not use the funds to upgrade homes or make additions, unless required by the local building code
- You may be eligible for up to a 20% loan amount increase above the real estate damage, as verified by SBA, for improvements that will help prevent risk of future property damage caused by a similar disaster
- SBA can refinance all or part of a previous mortgage in some cases, when the applicant does not have credit available elsewhere and has suffered substantial disaster damage that is not covered by insurance

Who Can Apply

- Homeowners may apply for up to $200,000 to replace or repair their primary residence
- Renters and homeowners may borrow up to $40,000 to replace or repair personal property — such as clothing, furniture, cars, and appliances — damaged or destroyed in a disaster
- Secondary homes or vacation properties are not eligible for these loans. However, qualified rental properties may be eligible for assistance under SBA's business physical disaster loan program
- These loans cover disaster losses not fully covered by insurance or other sources. Proceeds from insurance coverage on home or property may be deducted from the eligible loan amount

Additional Eligibility Requirements

For applicants unable to obtain credit elsewhere:
- The interest rate will not exceed 4%
- SBA will determine whether an applicant can obtain credit elsewhere
- Up to 30 years
- No pre-payment penalty or fees
Collateral Requirements:
- Collateral is required to the extent possible for home loans over $25,000 in Presidential and agency declarations
- Real estate is the preferred form of collateral, even if the equity is insufficient to secure the full loan amount
- SBA will ask the applicant for available collateral, but will not decline a loan for lack of collateral

How to apply:
- Apply online for an SBA disaster assistance loan. SBA’s inspectors will estimate the cost of damage once your application is completed and submitted
- Complete, sign, and date IRS Form 4506-T with your application, giving permission for the IRS to provide SBA with your tax return information



Additional Information

For additional information, contact SBA's Disaster Assistance Customer Service Center at:
Phone: (800) 659-2955
TTY/TRS: 711

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