Understanding SBA Disaster Loans

Support for Rebuilding After Natural Disasters

The U.S. Small Business Administration (SBA) provides critical financial assistance through its disaster loan recovery program to renters, homeowners, businesses, and private non-profit organizations affected by natural disasters. This support comes in the form of low-interest loans that are pivotal for rebuilding and recovery efforts.

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Key Loan Types & Deadlines

The SBA offers various types of disaster loans:

• Business Physical Disaster Loans: Aimed at businesses of any size, these loans help repair or replace disaster-damaged property, including real estate, inventory and equipment. Non-profit organizations are also eligible.
• Economic Injury Disaster Loans (EIDLs): These loans provide essential working capital to small businesses and non-profit organizations to cover ordinary financial obligations that cannot be met due to the disaster. This assistance helps sustain operations until normal activities resume.
• Home Disaster Loans: Homeowners and renters can receive loans to repair or replace damaged real estate and personal property.

For those affected by the severe storms, straight-line winds, tornadoes, and flooding in Oklahoma starting April 25, 2024, the filing deadlines are as follows:

• Physical Damage: July 1, 2024
• Economic Injury: January 30, 2025

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Eligibility & Interest Rates

Eligibility for these loans depends on the applicant’s credit history and ability to repay the loans. Interest rates are determined based on whether applicants have access to other credit. For instance, homeowners without access to credit elsewhere can receive loans at an interest rate of 2.688%, while businesses can secure loans at 4.000%.

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Loan Terms & Limits

• Maximum Loan Terms: Loans can have terms up to 30 years, but businesses with available credit elsewhere may be limited to a 7-year term.
• Loan Amount Limits: Business loans can go up to $2,000,000. Home loans are capped at $500,000 for real estate repairs and $100,000 for personal property repairs.

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Additional Support & Considerations

• Mitigation Improvements: Borrowers approved for disaster loans may also qualify for additional funds to make improvements that protect their property against future damages, like seawalls or sump pumps.
• Refinancing: The SBA may refinance existing mortgages or liens on damaged property, providing further financial relief.

Applicants should ensure they have no insurance proceeds that could reduce their loan eligibility, and they must comply with insurance requirements set by the SBA, especially in flood hazard areas.

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How to Apply

Applications can be submitted online through the [MySBA Loan Portal](https://lending.sba.gov). The SBA’s Customer Service Center is also available for assistance at disastercustomerservice@sba.gov or by phone at 1-800-659-2955.

This program illustrates the SBA’s commitment to facilitating recovery and resilience in the wake of natural disasters, ensuring that affected communities have the necessary resources to rebuild and thrive anew.