When a disaster damages your business or home, federal help can bridge the gap while you recover. The U.S. Small Business Administration (SBA) offers low-interest disaster loans to businesses, nonprofits, homeowners and renters to repair or replace disaster-damaged property and to cover certain economic losses. This friendly, step-by-step guide shows exactly which SBA disaster loan fits your situation, how to apply, what documents you’ll need, and practical tips to speed the process.
Quick snapshot — what SBA disaster loans can pay for
SBA disaster loans may be used to pay for:
- Repair or replacement of damaged buildings, machinery, fixtures and inventory (Business Physical Disaster Loans).
- Repair or replacement of homes and personal property for homeowners and renters (Home and Personal Property Disaster Loans).
- Working capital and operating expenses when a business suffers economic injury even without physical damage (Economic Injury Disaster Loan — EIDL).
- Special programs (for example, Military Reservists Economic Injury Loans) to cover particular needs.
Why this matters: SBA disaster loans are often the most affordable, long-term option to rebuild or restore operations after a declared disaster.
Step 1 — Know which SBA disaster loan fits your needs
Before applying, match your loss to the right loan type:
- Business Physical Disaster Loan — fixes buildings, equipment, inventory, and fixtures damaged by the disaster.
- Home and Personal Property Loan (SBA Form 5C) — for homeowners and renters to repair or replace primary residence damages and personal items.
- Economic Injury Disaster Loan (EIDL) — provides working capital to small businesses and nonprofits that can’t meet obligations because of disaster-related revenue loss.
Tip: If you’re unsure which loan is right, the SBA Disaster Assistance Customer Service Center can help — call 800-659-2955 (TTY 711).
Step 2 — Gather the essential documents (be prepared)
When you apply you’ll be asked to submit documentation that typically includes:
- Contact information and Social Security numbers for all applicants.
- FEMA disaster registration number (if you registered with FEMA).
- Proof of ownership or lease (deed, mortgage statement, or lease).
- Insurance policy numbers and claim information.
- Financial information (tax returns, profit/loss statements, bank statements).
- Employer Identification Number (EIN) for businesses.
- Any receipts or estimates for repairs and a list of damaged property.
Practical note: SBA often requires IRS authorization forms (e.g., to obtain tax transcripts) as part of verifying income and tax history — have recent tax returns handy.
Step 3 — How to apply (2 fast, official routes)
You can apply for an SBA disaster loan in two main ways:
- Online (recommended): Visit the SBA disaster portal at sba.gov/disaster and apply using the MySBA Loan Portal. The online process is the fastest way to submit your application and track status.
- In person at a Disaster Recovery Center (DRC): If a DRC is open in your area you can get help completing an application and turn in paper forms. Use the DRC locator on DisasterAssistance.gov or contact the SBA helpline for DRC locations.
If you prefer paper forms, call 1-800-659-2955 (TTY 711) to request them or get help.
Step 4 — What happens after you submit your application
- SBA review & inspection: After you submit, an SBA representative may contact you for additional information and an SBA inspector may visit to estimate physical damage. Prepare to show documentation and access to damaged areas.
- Approval & terms: If approved, SBA issues a loan offer with interest rate and repayment terms. Disaster loans are low interest but must be repaid; terms depend on loan type, purpose, and creditworthiness.
- Timing: Processing time varies by disaster size and document completeness. Apply early — deadlines for applications open after a declaration and can close months later. Public notices and SBA pages list specific cut-off dates for each declaration.
Step 5 — Smart sequencing: insurance, FEMA registration, then SBA
Best order to maximize assistance and avoid duplication:
- File insurance claims first — private insurance is typically primary.
- Register with FEMA (DisasterAssistance.gov) if applicable — FEMA registration helps document losses and can be required for some SBA steps.
- Apply to SBA for any remaining gaps or economic injury.
Why: SBA cannot duplicate benefits already paid by insurance or other programs — having insurance and FEMA records makes your SBA application smoother and reduces processing delays.
Step 6 — Common mistakes to avoid
- Missing the deadline: Deadlines vary by disaster; file as soon as you can after registration is open.
- Incomplete paperwork: Missing tax transcripts, proof of ownership, or insurance info delays decisions. Use the SBA checklist (Form 5/5C instructions) to confirm what to upload.
- Assuming the loan replaces insurance: SBA loans fill gaps, they don’t replace insurance — always file claims first.
- Not documenting emergency repairs: Keep receipts and photos for temporary fixes (tarping, boarding) — SBA may consider those costs.
Step 7 — Frequently asked questions (quick answers)
Q: Who can apply?
Businesses of all sizes, most nonprofits, homeowners and renters in a presidentially declared disaster area may be eligible.
Q: How much can I borrow?
Loan limits and purposes differ by loan type (e.g., business physical vs. home loans). SBA publishes program limits and rate info on its disaster pages.
Q: Is an SBA disaster loan a grant?
No. SBA disaster loans are loans and must be repaid. FEMA grants (if awarded) are different and typically cover limited emergency needs.
Q: Where do I get help filling forms?
Visit a local Disaster Recovery Center (DRC) or call SBA’s Disaster Assistance Customer Service Center at 800-659-2955.
Step 8 — Practical checklist — what to do today
- Photograph and catalog all damage (date/time stamped photos).
- File insurance claims immediately and save claim numbers.
- Register with FEMA (if applicable) at DisasterAssistance.gov.
- Visit sba.gov/disaster to create a MySBA account and start your application.
- Gather tax returns, proof of ownership/lease, insurance info, FEMA registration number, and ID documents.
- Call 800-659-2955 for questions or to request paper forms.
Closing — help is available; apply early and document everything
SBA disaster loans are a key recovery tool for businesses and households recovering from declared disasters. Start by documenting damage, filing insurance claims, registering with FEMA (when applicable), and then apply online at the SBA disaster portal or visit a Disaster Recovery Center for in-person help. Keep copies of every document and request all agreements in writing.
Disclaimer: This post is informational and not legal, tax, or financial advice. Program rules, interest rates, deadlines, and contact numbers can change. Always confirm details on the official SBA and USA.gov pages before applying. Images used in this article are royalty‑free or licensed for commercial use and are provided here for illustrative purposes.
Helpful official links (clickable)
- How to apply for an SBA disaster loan — USA.gov. (USAGov)
https://www.usa.gov/disaster-small-business - SBA disaster assistance — Economic Injury & Physical Damage loans; apply at sba.gov/disaster. (Small Business Administration)
https://www.sba.gov/funding-programs/disaster-assistance
https://www.sba.gov/funding-programs/disaster-assistance/economic-injury-disaster-loans - Disaster Home Loan application (SBA Form 5C) — PDF & instructions. (Small Business Administration)
https://www.sba.gov/document/sba-form-5c-disaster-home-loan-application - SBA Disaster Assistance Customer Service Center — phone & contact info. (Small Business Administration)
Call: 1-800-659-2955 (TTY 711) — disastercustomerservice@sba.gov