What are SBA disaster loans

The U. S. Small Business Administration (SBA) provides low-interest, long-term disaster loans to businesses of all sizes and private non-profit organizations. SBA disaster loans can be used to repair or replace various items damaged or destroyed in a declared disaster: building, house, machinery, equipment, inventory, etc. SBA disaster loans offer an affordable way for individuals and businesses to recover from declared disasters. We CMCD saw several businesses receiving SBA loans and going through the Covid-19 pandemic.

Types of SBA disaster loans

  1. Economic Injury Disaster Loans 

If your business suffered economic injury regardless of physical damage, you may qualify for an Economic Injury Disaster Loan (EIDL). Businesses can borrow up to $2 million with max term 30 years and max interest rate 4%.

If you are in a declared disaster area and are the victim of a disaster, you may be eligible for financial assistance from the SBA, even if you do not own a business. You can borrow up to $40,000 to repair/replace low-valued items (clothes, furniture, car, appliances…), or can borrow up to $200,000 to repair/replace the primary house.

If you are in a declared disaster area and have physical damages to your business, and you do not have insurance to cover the losses, you can apply for a loan up to $2 million to repair or replace your damaged properties: house, land, improvements, machinery, furniture, inventory… The interest rate is 4% max and the loan term is 30 years.

How to apply for SBA disaster loans

The fastest way is to apply online at the SBA’s secure website: https://disasterloanassistance.sba.gov/ela/s/

Our firm has experience in assisting clients obtaining loans from SBA or banks, so we can help you to prepare financial reports and other documents to satisfy requirements of the lenders.

Which Texas counties are eligible for SBA disaster loans

If you or your business is located in the following counties, you are eligible for SBA disaster loans:

Aransas, Austin, Bastrop, Bee, Brazoria, Calhoun, Chambers, Colorado, Dewitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Hardin, Harris, Jackson, Jasper, Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Tyler, Victoria, Walker, Waller, Wharton.

The following contiguous Texas counties are eligible for Economic Injury Loans only: Angelina, Atascosa, Brooks, Burleson, Caldwell, Grimes, Guadalupe, Houston, Jim Wells, Kenedy, Live Oak, Madison, Milam, San Augustine, Shelby, Travis, Trinity, Washington, Williamson, Wilson.

Henry Nguyen



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