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# Physical damage loans

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## Content

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## Home and personal property loans

If you live in a declared disaster area and have experienced damage to your home or personal property, you may be eligible for financial assistance from SBA — even if you do not own a business. As a homeowner, renter, or personal property owner, you may apply to SBA for a loan to help you recover from a disaster.

### Apply for a home and personal property loan

Apply now

### Eligibility

                  - Homeowners may apply for  up to $500,000  to replace or repair their primary residence.
                  - Renters and homeowners may borrow  up to $100,000  to replace or repair personal property — such as clothing, furniture, cars, and appliances — damaged or destroyed in a disaster.
                  - Secondary homes or vacation properties  are not  eligible for these loans. However, qualified rental properties may be eligible for assistance under SBA's  business physical disaster loan program .
                  - These loans cover disaster losses not fully covered by insurance or other sources. Proceeds from insurance coverage on home or property may be deducted from the eligible loan amount.

### Use of proceeds

                  - You may not use the funds to upgrade homes or make additions, unless required by the local building code.
                  - You may be eligible for up to a 20% loan amount increase above the real estate damage, as verified by SBA, for improvements that will help prevent risk of future property damage.
                  - SBA can refinance all or part of a previous mortgage in some cases, when the applicant does not have credit available elsewhere and has suffered substantial disaster damage.

### Terms

                  - First payment deferred for 12 months  
                  - No interest accrual for the first 12 months  

For applicants unable to obtain credit elsewhere:
                  - The interest rate will not exceed 4%
                  - SBA will determine whether an applicant can obtain credit elsewhere

### Maturity

                  - Up to 30 years
                  - No pre-payment penalty or fees

### Collateral requirements

                  - Collateral is required to the extent possible  for physical damage loans over $25,000 in Presidential declarations and $14,000 in agency declarations .
                  - Real estate is the preferred form of collateral, even if the equity is insufficient to secure the full loan amount.
                  - SBA will ask the applicant for available collateral, but will not decline a loan for lack of collateral.

### How to apply

Apply online for an SBA disaster assistance loan. SBA’s inspectors will estimate the cost of damage once your application is completed and submitted.

### Additional information

Contact SBA's Disaster Assistance Customer Service Center at:

Phone: 800-659-2955

TTY/TRS: 711

Email: disastercustomerservice@sba.gov

## Business physical disaster

If you own a business located in a declared disaster area that has experienced damage, you may be eligible for financial assistance from SBA. Businesses of any size and most private non-profit organizations may apply to SBA for a loan to recover after a disaster.

### Apply for a business physical disaster loan

Apply now

### Eligibility

                  - Up to $2 million to qualified businesses or most private nonprofit organizations to cover disaster losses not fully covered by insurance.
                  - Covers disaster losses not fully covered by insurance or other sources. If required to apply insurance proceeds to an outstanding mortgage on the damaged property, that amount can be included in your disaster loan application.
                  - Proceeds from insurance coverage on business property may be deducted from the eligible loan amount.

### Use of proceeds

Loan proceeds may be used for the repair or replacement of the following:
                  - Real property
                  - Machinery
                  - Equipment
                  - Fixtures
                  - Inventory
                  - Leasehold improvements

Disaster loan funds may not be used to upgrade or expand a business, except as required by building codes. If you apply for mitigation assistance to make improvements that help reduce the risk of future property damage, you may be eligible for up to a 20% loan amount increase above the real estate damage, as verified by SBA. 

### Terms

                  - First payment deferred for 12 months  
                  - No interest accrual for the first 12 months  

For applicants unable to obtain credit elsewhere:
                  - The interest rate will not exceed 4%

For applicants who can obtain credit elsewhere:
                  - The interest rate will not exceed 8%

SBA will determine whether an applicant can obtain credit elsewhere.

### Maturity

                  - Up to 30 years, depending on ability to repay the loan
                  - No pre-payment penalty or fees

### Collateral requirements

                  - Collateral is required to the extent possible for physical damage loans over $25,000 in Presidential declarations and $14,000 in agency declarations.
                  - Real estate is the preferred collateral. Loans of $200,000 or less will not require the owner of the business to use their primary residence as collateral if it is determined the owner has other assets of equal quality and of a value equal to or greater than the amount of the loan.

### How to apply

Apply online for an SBA disaster assistance loan. SBA’s inspectors will estimate the cost of damage once your application is completed and submitted.

### Additional information

Contact SBA's Disaster Assistance Customer Service Center at:

Phone: 800-659-2955

TTY/TRS: 711

Email: disastercustomerservice@sba.gov