Small Business Association (SBA) Disaster Loans

What is an SBA disaster loan?

U.S. Small Business Administration (SBA) disaster loans are the primary source of federal long-term disaster recovery funds for disaster damages not fully covered by insurance or other compensation.

SBA’s Office of Disaster Assistance is working in conjunction with the Texas Division of Emergency Management (TDEM) and the Federal Emergency Management Agency (FEMA) to help business owners and residents recover, as much as possible, from this declared disaster.


Who is eligible for SBA low-interest loans?

When a federal disaster is declared, the SBA is authorized to offer low-interest loans to businesses of all sizes (including landlords) and to individual homeowners, renters, and private nonprofit organizations that have sustained damage in a disaster.


What’s the most common misunderstanding about SBA loans?

The most common misunderstanding about an SBA loan is the assumption that SBA disaster loans are only for businesses. While SBA offers loans to businesses of all sizes (including landlords), low-interest loans are always available to individual homeowners, renters, and to private nonprofit organizations alike.


When should survivors apply?

Residents and business owners should apply right away with SBA as part of the overall federal disaster recovery process, and not wait for insurance claims to settle.


Why should survivors apply?

Survivors who do not follow through with the SBA application process because they feel they cannot afford or do not want a loan may end the recovery assistance process for themselves and lose out on additional FEMA dollars.

Whether a loan is wanted or not, the SBA loan application may trigger additional grant assistance through FEMA’s Other Needs Assistance (ONA) program. The State of Texas

administers the ONA grant funding.

Some of these additional FEMA grants could include reimbursement for lost personal property, vehicle repair or replacement, moving and storage expenses.


What is available as part of the SBA low-interest loan programs?

Eligible homeowners may borrow up to $200,000 for home repair or replacement of primary residences and eligible homeowners and renters up to $40,000 to replace disaster-damaged or destroyed personal property.

Businesses of all sizes can qualify for up to $2 million in low-interest loans to help cover physical damages.

Small businesses and most private nonprofits suffering economic impact due to the severe weather and flooding can apply for up to $2 million for any combination of property damage or economic injury under SBA’s Economic Injury Disaster Loan (EIDL) program.


What are the deadlines to apply?

Texas survivors have until July 28, 2015, to apply for SBA loans. Eligible small businesses applying for only the EIDL program have until February 29, 2016.

Disaster survivors who are notified by the SBA that they may be eligible for low-interest disaster loans should work directly with the SBA to complete the application.


How do I apply?

Disaster survivors are urged to call 800-621-FEMA (3362) to register by phone. They may also go into a local Mobile Registration Intake Center or a Disaster Recovery Center to register with FEMA where they also may talk with SBA representatives. Register online at or by phone at 800-621-3362. TTY users should call 800-462-7585, with Video Relay Service survivors calling 800-621-3362.


What happens after I apply?

Most survivors who register with FEMA are automatically referred to the SBA. They will then be contacted directly by SBA or via an automated call back.


What are the loan terms?

Interest rates for SBA disaster loans can be as low as 1.688 percent for homeowners and renters, 4 percent for businesses and 2.625 percent for private nonprofit organizations, with terms up to 30 years.


Where do I get specific information about the SBA process?

If you have questions about SBA or the process, or need help to complete the SBA application, help is available. Applicants may contact SBA’s Disaster Assistance Customer Service Center by:

  • Calling 800-659-2955
  • Emailing
  • Visiting SBA’s website at
  • Deaf and hard-of-hearing individuals may call (800) 877-8339
  • Survivors may also visit with an SBA representative at any State/FEMA/SBA recovery center.