Here is a list I have compiled of disaster loan requirements and restrictions. Please read this list carefully:
- The SBA is not giving money to small businesses; the agency is providing small businesses with loans to cover uninsured or uncompensated losses. If you have insurance on your property, the SBA will not cover that property.
- You can receive an Economic Injury Disaster Loan (EIDL) only if you are unlikely to get credit elsewhere. The maximum amount of the loan is $1.5 million, and the loan terms are below market rates, with 30-year terms.
- Loans for physical damages are for repair and replacement of real estate, equipment, furniture, etc.). You may also receive a loan to mitigate or prevent future losses, at 20% of the approved loan amount.
- You may be ineligible for a loan if you failed to file your income tax return or to get an approved extension, or if you did not compy with terms of previous SBA loans.
- To receive a loan, you msut have an acceptable credit history and an ability to repay the loan.
- Collateral is required for physical loans over $10,000 and for EIDL's over $5,000. Of course, the SBA doesn't say how you will obtain collateral if all of your business assets have been destroyed.
- The application deadlines are:
- For physical disaster loans, postmarked within 60 days of the date of the disaster declaration
- For EIDL's, postmarked within 9 months of the date of the disaster declaration.
- For physical disaster loans, postmarked within 60 days of the date of the disaster declaration
- For more information from the SBA, call 1-800-659-2955 or email disastercustomerservice@sba.gov.
- Submit your loan application to
Small Business Administration
Processing and Disbursement Center
14925 Kingsport Road
Fort Worth TX 76155-2243
Back to SBA Loan Programs Overview
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