# What are the rate and repayment terms on SBA disaster loans?

**Short answer:** Terms run up to 30 years, with the first payment deferred 12 months and no interest accrual in that period. SBA's page says the fixed rate will not exceed 4% where you cannot get credit elsewhere. There is no prepayment penalty (sba.gov/disaster, read November 8, 2026).

Canonical page: https://www.sbaexpress.loans/answers/sba-disaster-loan-rates-and-terms/
Last checked: 2026-11-08

SBA disaster loans run up to 30 years, with no payment and no interest accrual for the first 12 months. SBA's disaster page lists the same structure for each loan type (read November 8, 2026).

## Payments

- The first payment is deferred for 12 months.
- No interest accrues for the first 12 months.
- Repayment can run up to 30 years. The term depends on your ability to repay.
- There is no prepayment penalty or fee.

## Rate ceilings on the page

These are ceilings SBA states. They are not quotes for your loan.

- Business physical damage loans: will not exceed 4% if you cannot obtain credit elsewhere, and will not exceed 8% if you can.
- Home and personal property loans: will not exceed 4% for applicants unable to obtain credit elsewhere.
- Economic Injury Disaster Loan (EIDL) and Military Reservist EIDL: will not exceed 4%.

SBA determines whether you can obtain credit elsewhere.

## Older loans

The page describes the terms SBA offers now. It does not restate terms for older loans, including COVID-era EIDL loans. Check your own note for those.

## Compared with 7(a)

A 7(a) loan has a maximum variable rate of Prime plus 3.0 to 6.5 percentage points, depending on loan size. A 7(a) real estate term runs up to 25 years, plus any reasonable construction or renovation period. A working capital term runs up to 10 years.

## Sources

- [sba.gov/disaster (read November 8, 2026)](https://www.sba.gov/disaster/)
- [13 CFR § 120.214](https://www.ecfr.gov/current/title-13/section-120.214)
- [SOP 50 10 8.1, App. 17 (p. 390)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)