To apply for an SBA disaster loan, first confirm your county is in a declared disaster area, then submit an application online through SBA’s disaster loan portal, by phone at (800) 659-2955, or in person at a recovery center. SBA then inspects any physical damage, reviews your credit and ability to repay, and decides on the loan; applying is free, and you can file before your insurance claim settles.
Below is the full process in plain English, with links to the SBA pages each step comes from.
Step 1: Confirm you are in a declared disaster area
SBA disaster loans are only available in areas covered by a disaster declaration. You can look up open declarations by state and county on SBA’s disaster declaration search, and see federal declarations on FEMA’s declarations page. Each declaration lists its own application deadlines, so write those dates down before you do anything else.
Step 2: Pick the right loan
SBA offers several kinds of disaster loans, and SBA’s disaster assistance page explains each one:
Business physical damage loans repair or replace damaged real estate, equipment, inventory and other business property. Businesses of any size and most private nonprofits can apply for up to $2 million.
Economic Injury Disaster Loans (EIDL) provide working capital for ordinary bills such as rent, utilities and fixed debt payments that you cannot pay because of the disaster. They are for small businesses, small agricultural cooperatives, small aquaculture businesses and most private nonprofits. SBA says you do not need property damage to qualify, and the loans are not meant to replace lost sales or profits.
Home and personal property loans are for homeowners and renters, including business owners whose homes were damaged.
A business can receive both a physical damage loan and an EIDL, but the combined maximum is $2 million. SBA notes that agricultural producers, farmers and ranchers are not eligible, except aquaculture businesses.
Step 3: Know the current terms
According to SBA’s disaster loan page, as of November 2026:
EIDL rates are fixed and will not exceed 4%.
Business physical damage rates will not exceed 4% if you cannot get credit elsewhere, or 8% if you can.
Terms run up to 30 years, with no prepayment penalty.
The first payment is deferred 12 months, and no interest accrues during those 12 months.
Collateral is required for EIDLs over $50,000, but SBA says it will not decline a loan for lack of collateral.
For a sense of real numbers, a July 2026 SBA notice listed rates as low as 4% for businesses and 3.625% for nonprofits. Your own loan documents will show your exact rate.
Step 4: Gather what SBA will ask for
SBA decides business loans based on your ability to repay, so it reviews your finances and credit. One form is always required: SBA says IRS Form 4506-C must be completed and submitted with every disaster loan application, even if you do not normally file a federal tax return. It lets SBA request your tax transcripts from the IRS.
Beyond that, have your recent business tax returns, current financial records, a list of your debts, and records of your damage or lost revenue ready. The application will tell you exactly which forms apply to your business, and SBA may ask for more after you submit.
Step 5: Submit your application
You can apply three ways, all listed on SBA’s disaster page:
Online through the SBA loan portal.
By phone through SBA’s Customer Service Center at (800) 659-2955. SBA says callers who are deaf, hard of hearing or have a speech disability can dial 7-1-1 for relay services.
In person by booking a visit at appointment.sba.gov.
Do not wait on your insurance company. SBA says you do not need an insurance settlement to apply, and it can lend for the total loss up to its limits if you agree to use insurance money to reduce or repay the loan. If FEMA referred you to SBA after you registered at DisasterAssistance.gov, FEMA notes that being approved does not mean you have to accept the loan.
Step 6: Inspection and decision
For physical damage loans, SBA inspectors estimate the cost of damage after you submit. SBA then reviews your credit, your repayment ability and your eligibility before deciding. If your loss is physical, you can ask for a mitigation increase of up to 20% of your verified loss to make the property safer against future disasters.
Step 7: Closing and spending the money
If you are approved, you sign loan documents and SBA disburses funds. Use the money only for its approved purpose. SBA says EIDL funds cannot be used to expand the business, buy fixed assets, refinance debt or pay owners. Keep receipts; you may need to show how the money was spent.
Where Economic Recovery Center fits
You can always apply directly with SBA at no cost. Economic Recovery Center is a private company, not a government agency. We help business owners prepare a complete, organized application package so it is right the first time. SBA alone decides who is approved.
Frequently asked questions
Is there a fee to apply for an SBA disaster loan?
No. Applying directly through SBA’s portal or by phone is free. SBA’s loans have no prepayment penalty.
Do I need physical damage to get an SBA disaster loan?
Not for an EIDL. SBA says economic injury loans are available even if your property was not damaged, as long as your business suffered substantial economic injury from the disaster.
Should I wait for my insurance claim before applying?
No. SBA advises applying without waiting for a settlement. Insurance money you receive later goes toward reducing or repaying the loan.
How long do I have to apply?
Each declaration sets its own physical damage deadline, and the economic injury deadline is usually later. SBA has described the EIDL window as nine months from the disaster declaration. Check your county on SBA’s declaration search for exact dates.
Can I apply for both a physical damage loan and an EIDL?
Yes. A business can receive both, with a combined maximum of $2 million.