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Small Business Administration Loans

Government loans for disaster survivors.

Applying for a Loan

U.S. Small Business Administration to Offer Disaster Loans with No Interest and No Payments for First Year.  December 5, 2022 Press Release

SBA Disaster Assistance Physical Damage Loans

Do I have to apply for a Small Business Administration (SBA) loan?

Yes, if you are applying for FEMA or state financial assistance. 

How much will the SBA loan me?

  • SBA offers low-interest disaster loans of up to $200,000 for homeowners for housing repair and replacement, and up to $40,000 for homeowners and renters to replace personal property.   The loan term can be up to 30 years.

  • SBA will not approve loans to applicants who cannot pay the loan back.

  • SBA will provide loans to cover your insurance deductible.

  • Effective September 21, 2022, through September 30, 2023, the SBA will waive the interest rate for the first year on new disaster loans and extend the initial payment deferment period automatically to 12 months. This may require re-authorization each fiscal year.

What are the SBA interest rates? 

  • Loan interest rates are on a sliding scale.  Low-income/no-credit-available applicants will receive the lowest rate, not to exceed 4%.  Higher-income/credit-available applicants will receive the going market rate. 

  • Because interest rates change frequently, they are not included on this website.

Accepting a Loan

  • The SBA approved a $43,000 loan for our deductible in early 2019. We did not accept the loan offer. 

  • We knew that we needed to complete a geotechnically study of the soils prior to submitting it to insurance.  

  • We decided we did not want to take the loan.

  • This was the right choice for us because we started the home rebuild 22 months after the earthquake.

Do you have to accept the SBA loan?

  • ​No.  If you do not accept the loan, you are not eligible to receive any FEMA grant money or state grant money.  

  • Many survivors mistakenly believe that if they do not accept the loan, they will still receive grants from FEMA.

Should you accept the SBA loan?

This is not a simple decision.  Before accepting consider the following:

  • Can you obtain a better interest rate elsewhere?

  • Is your mortgage company willing to refinance?

  • Do you want to wait until you have a better grasp on your needs before obtaining a loan?

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