SBA disaster loans

Janover Capital editorial team · Checked November 9, 2026

Short answer

SBA lends directly after declared disasters. Businesses can borrow up to $2 million for physical damage and economic injury combined, with terms up to 30 years. The first payment is deferred 12 months, and no interest accrues in that period (sba.gov/disaster, read November 8, 2026).

Business physical damage maximum: $2 million
Repayment term: up to 30 years
Interest in the first 12 months: None accrues
Prepayment penalty: None

Key facts

SBA disaster loans: key facts
Fact	Value
Business physical damage maximum	$2 million
EIDL and physical combined	$2 million
Military Reservist EIDL maximum	$2 million
Repayment term	up to 30 years
First payment	Deferred 12 months
Interest in the first 12 months	None accrues
Prepayment penalty	None
Who you apply to	SBA directly

What SBA disaster loans are

SBA makes disaster loans directly, through what it calls its direct disaster loan program (85 FR 18107). They help businesses of all sizes, homeowners, renters and private nonprofits recover from declared disasters (sba.gov/disaster, read November 8, 2026). You need a declared disaster, or an essential employee called to active duty.

We do not make or arrange these loans. You apply with SBA.

The loan types

SBA's disaster page describes these (sba.gov/disaster, read November 8, 2026):

Business physical damage. Up to $2 million to repair or replace damaged property, for businesses of any size and most private nonprofits.
Economic Injury Disaster Loan (EIDL). Working capital for small businesses, small agricultural cooperatives, small aquaculture businesses and most private nonprofits. A business may qualify for both an EIDL and a physical damage loan, up to $2 million combined.
Military Reservist EIDL. Operating expenses when an essential employee is called to active duty, up to $2 million. SBA may waive that limit for a major source of employment.
Home and personal property. Up to $500,000 for a primary residence, and up to $100,000 for personal property.
Mitigation. A physical damage loan can grow by up to 20% of the verified loss, to reduce future risk.

Who qualifies

SBA's tests depend on the loan (sba.gov/disaster, read November 8, 2026):

Physical damage. The damage must be in a declared disaster area and not fully covered by insurance or other sources.
EIDL. You must have suffered substantial economic injury, meaning you cannot meet obligations or pay regular expenses. A decline in sales alone does not count. SBA must also determine you cannot obtain credit elsewhere.
Military Reservist EIDL. You can file from the date the employee receives notice of an expected call-up until one year after discharge or release.

What the money can pay for

SBA's page sets these uses (sba.gov/disaster, read November 8, 2026):

Business physical damage. Real property, machinery, equipment, fixtures, inventory and leasehold improvements. You cannot upgrade or expand, except as building codes require.
EIDL. Working capital and normal expenses such as health care benefits, rent, utilities and fixed debt payments.
Not with an EIDL. Expanding facilities, buying fixed assets, repairing physical damage, refinancing debt, or paying dividends or bonuses.

Terms and rate ceilings

Repayment can run up to 30 years, based on your ability to repay. The first payment is deferred 12 months. No interest accrues for the first 12 months. There is no prepayment penalty (sba.gov/disaster, read November 8, 2026).

These are ceilings on SBA's page, read November 8, 2026. They are not quotes for your loan:

Business physical damage: will not exceed 4% if you cannot obtain credit elsewhere, and will not exceed 8% if you can.
Home and personal property: will not exceed 4% if you cannot obtain credit elsewhere.
EIDL and Military Reservist EIDL: will not exceed 4%.

SBA determines whether you can obtain credit elsewhere.

Collateral

SBA's page sets these thresholds (sba.gov/disaster, read November 8, 2026):

Physical damage. Required to the extent possible over $50,000 in Presidential declarations, and over $14,000 in agency declarations.
EIDL and Military Reservist EIDL. Required over $50,000.

Real estate is the preferred collateralProperty a lender can take and sell if a loan is not repaid. . On business physical loans and EIDLs of $200,000 or less, SBA will not require the owner's primary residence as collateral. The owner must have other assets of equal quality and value. On home loans and Military Reservist EIDLs, SBA says it will not decline a loan for lack of collateral.

How to apply

Apply online through SBA. For questions, call 800-659-2955 or schedule an in-person appointment (sba.gov/disaster, read November 8, 2026). SBA's site lists current declarations, so start by finding yours.

What this page cannot tell you

Which disasters are open changes over time, so check SBA's current list. SBA's page shows rate ceilings, not the rate on a given loan. For financing unrelated to a disaster, look at a 7(a) loan or SBA Express.

Sources

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