After a federally declared disaster, the Small Business Administration offers low-interest loans not just to businesses but to homeowners and renters too. These loans can help you rebuild when insurance and FEMA grants fall short.
SBA Disaster Loans Are Not Just for Businesses
Despite the name, the Small Business Administration’s disaster loan program is one of the primary sources of federal recovery funding for individuals. If your home or personal property is damaged in a declared disaster, you may qualify for a low-interest, long-term loan to help you rebuild.
Types of SBA Disaster Loans for Individuals
Home Disaster Loans (up to $500,000): Available to homeowners to repair or replace their primary residence to its pre-disaster condition. These loans do not cover upgrades or additions, only restoration of what was damaged.
Personal Property Loans (up to $100,000): Available to both homeowners and renters to repair or replace personal property damaged in the disaster — including furniture, clothing, appliances, and vehicles.
Interest Rates and Terms
- Interest rates are typically between 2% and 4%, significantly lower than commercial loans
- If you can get credit elsewhere, rates may be slightly higher (around 8%)
- Repayment terms up to 30 years, based on your ability to repay
- No penalties for early repayment
- First payment may be deferred for up to 12 months
SBA disaster loans are separate from business loans. You do not need to own a business to apply. These loans are specifically designed for homeowners and renters who need help recovering from a disaster. The application process is different from SBA’s regular business loan programs.
How to Apply
Step 1: Register with FEMA first. FEMA may refer you to the SBA as part of your disaster assistance application.
Step 2: Apply online at disasterloanassistance.sba.gov, or visit a Disaster Recovery Center for in-person help.
Step 3: An SBA inspector will assess the damage to your property.
Step 4: The SBA reviews your application, credit history, and ability to repay.
Step 5: If approved, you will receive a loan closing package to sign. Funds are disbursed as repairs are completed.
What You Will Need
- Completed SBA disaster loan application (Form 5)
- Tax returns for the most recent year
- Personal financial statement
- Proof of ownership or lease agreement
- Insurance information and settlement details
Important Considerations
Declining an SBA loan may affect other aid. If you are referred to the SBA by FEMA and you decline or do not apply, you may not be eligible for certain FEMA grants. Always complete the SBA application even if you are unsure about taking a loan.
You only borrow what you need. You are not required to accept the full loan amount. You can accept a partial amount to cover specific repair costs.
Did not finish? Pick up where you left off.
Your answers are not saved — check your eligibility now before you go.
Relief Resource Center may receive compensation when you use links or tools on this page. All programs listed are subject to eligibility requirements and availability. This page is for informational purposes only and does not constitute legal, financial, or medical advice.