SBA Disaster Loan Program: Frequently Asked Questions

Summary

This report responds to frequently asked questions about the Small Business Administration (SBA) Disaster Loan Program. The SBA Disaster Loan Program provides direct loans to help businesses, nonprofit organizations, homeowners, and renters repair or replace property damaged or destroyed in a federally declared disaster. The program is also designed to help small agricultural cooperatives recover from economic injury resulting from a disaster. SBA disaster loans include (1) Home and Personal Property Disaster Loans, (2) Business Physical Disaster Loans, and (3) Economic Injury Disaster Loans (EIDL). Most direct disaster loans (approximately 80%) are awarded to individuals and households rather than small businesses. The program generally offers low-interest disaster loans at a fixed rate with loan maturities of up to 30 years.

Key issues of interest to Congress include:

how the program is put into effect,

how much Congress appropriates to the program,

what types of loans are available to businesses and homeowners,

the use of SBA disaster loans in conjunction with insurance,

loan interest rates and terms for SBA disaster loans,

eligible activities,

loan processing times, and

collateral requirements.

For additional information on Small Business Administration Disaster Loan Program, see CRS Report R41309, The SBA Disaster Loan Program: Overview and Possible Issues for Congress, by Bruce R. Lindsay.