SBA Disaster Loan Process

SBA disaster loans are only available if your location has been declared a federal disaster area.

The SBA has two types of disaster loans, one for physical property and the other for working capital (economic injury). All businesses can apply for a physical property disaster loan; but only small businesses can apply for the economic injury loan.

Physical property disaster loan (including inventory)

Repair or replacement of real property, machinery, equipment, fixtures, inventory and leasehold improvements may be included in the loan. In addition, disaster loans to repair or replace real property or leasehold improvements may be increased by as much as 20 percent to protect the damaged real property against possible future disasters of the same type.

Click here for more information

Working capital (economic disaster) loan

Applying for the loan
The first step is to obtain copies of the last 3 years tax returns from the IRS. You can call and request them at (800)829-1040. You will need to create a personal financial statement and a business' balance sheet current within the past 90 days. Don't let these three steps overwhelm you. If your financial records were destroyed, you will need to recreate your business' balance sheet.

AssetsWhere to get info
Cash Contact your bank
ReceivablesCreate a list of your customers served in the last 60 days. Contact your bank for the deposits made in the past 60 days.
InventoryThis is the inventory you had before the disaster. List each item and estimate the quantity and purchase price
Fixed assetsThe value of your building or equipment - use the number from the balance sheet on your tax returns.
LiabilitiesWhere to get the info
Accounts payableCreate a list of the bills you are aware of
LoansUse the information from your tax return's balance sheet
EquityDifference between all your assets minus your liabilities

If you have collateral, the SBA will expect you to pledge it for the loan, however a lack of collateral will not prevent you from getting a loan.

Now you are ready for the loan paperwork:
Click here for the application.