Do SBA disaster loans require collateral?
Short answer
Above set sizes, yes. SBA requires collateral to the extent possible on physical damage loans over $50,000 in Presidential declarations and $14,000 in agency declarations. Economic Injury Disaster Loan (EIDL) and Military Reservist loans over $50,000 also require it. Real estate is preferred (sba.gov/disaster, read November 8, 2026).
Yes, above set loan sizes, and the threshold depends on the loan type. SBA's disaster page states the thresholds (read November 8, 2026).
Thresholds
- Physical damage loans. Over $50,000 in Presidential declarations, and over $14,000 in SBA administrative or agency declarations. Collateral is required to the extent possible.
- EIDL. Required for loans over $50,000.
- Military Reservist EIDL. Required for loans over $50,000.
What SBA accepts
Real estate is the preferred collateralProperty a lender can take and sell if a loan is not repaid. . On a home loan, SBA prefers real estate even if the equity does not fully secure the loan.
Your primary residence
For business physical damage loans and EIDL, loans of $200,000 or less will not require the owner's primary residence as collateral. That holds if SBA determines the owner has other assets of equal quality, worth at least the loan amount.
Lack of collateral
SBA says it will not decline a home loan or a Military Reservist loan for lack of collateral. It will require you to pledge what is available. SBA's page does not repeat that statement for business physical damage loans or EIDL.
Compared with 7(a)
For a 7(a) loan, SOP 50 10 8.1 says a loan request must not be declined solely because collateral is inadequate (App. 19, Para. A, p. 404). 7(a) collateral rules are separate from disaster loan rules.
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