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SBA Business Physical Disaster Loan

Deadline to Apply: January 12, 2023


The SBA has activated its Business Physical Disaster Loan program to help replace or restore damaged property.

The Business Physical Disaster Loan provides up to $2 million in assistance to impacted small businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment. Businesses of any size are eligible. Private, non-profit organizations such as charities, churches, private universities, etc., are also eligible.

If you make improvements that help reduce the risk of future property damage caused by a similar disaster, you may be eligible for up to a 20 percent loan amount increase above the real estate damage, as verified by the SBA.

Eligibility and Terms

If you have suffered substantial economic injury and are located in a declared disaster area, you may be eligible for an SBA Business Physical Disaster Loan.

A business of any size or most private nonprofit organizations that are located in a declared disaster area and have incurred damage during the disaster, may apply for a loan to help replace damaged property or restore its pre-disaster condition.

The interest rate will not exceed 3.04 percent if you cannot obtain credit elsewhere. For businesses with credit available elsewhere, the interest rate will not exceed 6.08 percent. 

SBA determines whether the applicant has credit available elsewhere. Repayment terms can be up to 30 years, depending on your ability to repay the loan.

How to Apply:

  1. Apply: Begin by first registering with FEMA at disasterassistance.gov or by calling (800) 621-FEMA (3362). Then apply at disasterloanassistance.sba.gov, in person at any local disaster center, or by calling our Customer Service Center at (800) 659-2955 to request an application by mail. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.There is no need to wait for insurance claims to settle or to receive FEMA grants or contractor estimates before applying. You are under no obligation to accept the loan if approve.
  2. Application processed: Application packages and required documents (including credit and income information) will be reviewed for completeness. Eligible applications are sent to SBA’s loss verification team and property inspections may be necessary to decide the total physical damage. A loan officer takes over your case to work with you to receive any additional information, review insurance or other recoveries, and recommend a loan amount. The SBA strives to make loan determinations within 2–3 weeks after receiving complete application packages.
  3. Loan closure & disbursement: Loan closing documents are prepared for your signature. After receipt of the signed documents, an initial disbursement, up to the following amounts, will be made within 5 business days: up to $25,000 for physical damage; up to $25,000 for economic injury (working capital), which can be in addition to the physical damage disbursement for eligible businesses. An SBA case manager will work with you to answer questions and help you meet all loan conditions. The case manager schedules the disbursement of any remaining loan amount. Loan may be increased up to 20% after closing due to changing circumstances, such as unexpected repair costs or if you receive additional insurance proceeds for the same purposes.

Questions or need assistance? 

For additional information, please contact the SBA disaster assistance customer service center. Call 1-800-659-2955 (If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services) or e-mail disastercustomerservice@sba.gov.

The Florida SBDC Network stands ready to help your small business. For questions about disaster assistance available and how the Florida SBDC Network can help you, please contact your local Florida SBDC office, call (850) 898-3479, or email info@FloridaSBDC.org.  

SBA Resources:

Three Steps for Disaster Assistance Loans-508

2022_When_Disaster_Strikes_Businesses and Nonprofits-508

FL 17644 Map 10.04.2022