You may have heard that the SBA sometimes offers loans to help businesses after disaster strikes. This took centerstage in 2020 with the CARES act and Covid-19 pandemic. However, there are SBA loans for disasters at other times as well. It is helpful to know the options so that you can be prepared to ensure your business’s continuity.

SBA Disaster Loan Programs

The Small Business Administration offers a variety of loans that can help you get through challenging times. When a presidential emergency is declared, the affected can apply for a few types of loans to help get their businesses and lives back on track. The following are the three major programs:

  • Home and Personal Property: This program offers loans for disaster victims to help them with personal property. Despite being administered by the SBA, applicants do not need to be business owners. Of course, if your business has been affected by a major disaster, it is likely that your home was also.
  • Business Physical: For business-related funds, you can turn to this program. It can provide up to $2 million to replace or restore physical property lost or damaged during a disaster. Common types of disasters include hurricanes and floods. Unsurprisingly, you have to be a business owner to receive these loans.
  • Military Reservists Economic Injury: These loans are reserved for businesses that employ reservists that are called to active duty. It is intended to encourage businesses to hire reservists by giving them an insurance policy to protect against any losses that may come from a sudden activation.

Non-Disaster Loans

You can also apply for non-disaster loans through the SBA. The two major programs used for small business loans are 504 and 7a. These provide fixed- or variable-rate loans with amounts up to $5 million. They are administered and guaranteed by the SBA but provided through lenders.

The SBA also offers microloans for much smaller needs. These are fast-moving and can be used for more flexible purposes.

Applying for SBA Loans

To apply for a disaster loan from the SBA, you will need to wait until the presidential disaster has been declared. Then, you can register with the Federal Emergency Management Agency. Once you have completed this, contact the SBA to start your application. Non-disaster loans can be applied for at any time through a participating lender.

Learn More

Discover more about SBA loans today. These could help your business get the funds it needs to survive and thrive.