Government loans for emergency disaster relief

You may be surprised to hear that you may be eligible to receive a loan from the Small Business Administration (SBA) even if you are not a business owner.  After natural disasters such as floods, hurricanes, and windstorms the SBA makes government loans available to homeowners and renters.


What they offer is purely a loan, it is not a government hand out. Interest rates are guaranteed to be between four and eight percent.  Here are some limitations:

1.       Your home must be located within a federally declared disaster area. Check your address here

2.       You may apply to loans up to $200,000 to repair or replace damage to your primary home.  They do not do loans for second homes.

3.       You may apply for a loan to for up to $40,000 to replace personal property. Personal property is considered items not attached to the house (clothes, car, sofa, microwave etc.)

4.       SBA will ask you to collateralize loans over $14,000.

5.       The SBA only considers damage not covered under insurance policies.

Even though you have an insurance policy that does not disqualify you.  Hurricane claims come with large deductibles; you may be eligible for a loan to help you with your deductible expense.  The SBA will calculate your total damages then deduct the insurance payments.  You will need the claim settlement information from your insurance carrier before you can complete the loan application.

SBA disaster loans must be repaid, the SBA does not give grants.

Apply for an SBA disaster assistance loan by following these steps:

1.       Apply online at

2.       Submit the completed and signed application along with an IRS 8821.  Here is the link

When emergencies happen it is good to know all your options so you can make the best choice possible when rebuilding you home after a natural disaster.

Additional questions call the SBA disaster assistance customer service center at 800-659-2955 or email them at .