US Small Business Administration - Disaster Loans

AKA:

SBA; Tornado 23; tornado23; disaster; home repair ; home rehabilitation

Description:

Loans up to $200,000 are available to homeowners to repair or replace disaster damaged or destroyed real estate. Homeowners and renters are eligible for loans up to $40,000 to repair or replace damaged or destroyed personal property.

Businesses and non-profits organizations of any size may borrow up to $2 million to repair or replace damage or destroyed real estate, machinery and equipment, inventory and other business assets.

The Small Business Administration (SBA) is the primary source of federal funds for long-term recovery assistance for disaster victims. The SBA has low-interest disaster loans for homeowners, renters and businesses of all sizes and most private non-profits to cover disaster damage to real and personal property.

SBA also provides working capital disaster loans for economic injuries caused by a disaster. NOTE: Your area must be officially declared a Disaster Area by the SBA to qualify for a loan.

The $2 million may include funds for working capital for small businesses and non-profits. Apply in person at designated SBA Disaster Centers, call the SBA toll-free at 1-800-659-2955 (or call 1-800-877-8339 for the deaf and hard of hearing line if needed) or email with questions.

------------------------Additional Update on 10/26/2023 for Tennessee (Counties of Fayette and Tipton), Mississippi (Counties of Desoto and Marshall), and Arkansas Selected Counties (Arkansas and Mississippi)- Declaration numbers 20034 and 20035.

Physical Damage Deadline is December 26, 2023, and Economic Injury Deadline is July 26, 2024.



---------------Update as of 5/11/2023 for Mississippi Declaration 17895 and 17896 (Disaster: MS-00153------------

Application Deadline for this declaration must be received by June 26, 2023

Economic Injury Applications must be received by January 25, 2024

This declaration provides for the following types of loan opportunities. This declaration includes both business entitites and Individual Homeowners.

What Types of Disaster Loans are Available?
!€¢ Business Physical Disaster Loans !€“ Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.


!€¢ Economic Injury Disaster Loans (EIDL) !€“ Working capital loans to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period.

!€¢ Home Disaster Loans !€“ Loans to homeowners or renters to repair or replace disaster-damaged real estate and personal property, including automobiles.

Must have experienced a loss occurring during March 31, 2023 - April 1, 2023

What are the Credit Requirements?
!€¢ Credit History !€“ Applicants must have a credit history acceptable to SBA.
!€¢ Repayment !€“ Applicants must show the ability to repay all loans.
!€¢ Collateral !€“ Collateral is required for physical loss loans over $14,000 and all EIDL loans over $25,000. SBA takes real estate
as collateral when it is available. SBA will not decline a loan for lack of collateral, but requires you to pledge what is available.


Other Loan Limitations:

What are the Loan Amount Limits?
!€¢ Business Loans !€“ The law limits business loans to $2,000,000 for the repair or replacement of real estate, inventories, machinery,equipment and all other physical losses. Subject to this maximum, loan amounts cannot exceed the verified uninsured disaster loss.

!€¢ Economic Injury Disaster Loans (EIDL) !€“ The law limits EIDLs to $2,000,000 for alleviating economic injury caused by the disaster. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and other recoveries up to the administrative lending limit. EIDL assistance is available only to entities and their owners who cannot provide for their own recovery from non-government sources, as determined by the U.S. Small Business Administration.

!€¢ Business Loan Ceiling !€“ The $2,000,000 statutory limit for business loans applies to the combination of physical, economic
injury, mitigation and refinancing, and applies to all disaster loans to a business and its affiliates for each disaster. If a business is a major source of employment, SBA has the authority to waive the $2,000,000 statutory limit.

!€¢ Home Loans !€“ SBA regulations limit home loans to $200,000 for the repair or replacement of real estate and $40,000 to repair

REFINANCING of pre-existing loans may be available in some cases.

Hours:

Mon - Fri 8:00 am - 8:00 pm EST (Hours of operation are subject to change)

Intake Process:

Apply online, download applications or email or call to request application be sent to you. The SBA has Customer Service Representatives in the Disaster Recovery Centers (only open after disasters) to provide face-to-face service to disaster victims. You may visit the SBA at any of these locations without an appointment. A SBA representative will be glad to answer questions and help complete your application. To find out where the SBA disaster offices are located an applicant can call the SBA toll-free at 1-800-659-2955 (or call 1-800-877-8339 for the deaf and hard of hearing line if needed) or send an email to disastercustomerservice@sba.gov. Loan applications may be downloaded from the SBA website.

Program Fees:

Interest Rates are fixed with terms up to 30 years

Eligibility:

Homeowners, renters, businesses, private non-profits, small agricultural cooperatives and small aquaculture businesses to cover disaster caused by physical property damage or economic injury

--------------------
December 9, 2023 Storm Declaration
Must have experienced a loss occurring during December 9, 2023 tornadoes in middle TN

What are the Credit Requirements?
!€¢ Credit History !€“ Applicants must have a credit history acceptable to SBA.
!€¢ Repayment !€“ Applicants must show the ability to repay all loans.
!€¢ Collateral !€“ Collateral is required for physical loss loans over $14,000 and all EIDL loans over $25,000. SBA takes real estate
as collateral when it is available. SBA will not decline a loan for lack of collateral, but requires you to pledge what is available.

Is Shelter?

No

Date of Official Change:

November 16, 2023

Address Listings

Contacts

Phone Numbers

Legal Status:

Federal