Disaster Loan Frequently Asked Questions

What information must I submit for a disaster loan?

​Submit a completed loan application and a signed and dated IRS form 8821 giving permission for the IRS to provide the SBA your tax return information. To process your application we (SBA) need current financial information such as a personal financial statement, a current profit-and-loss statement, balance sheet and a list of debts. 

Can I use the disaster loan to expand my business?

The disaster loan helps restore property to pre-disaster condition, and, under certain circumstances, protects the structure from future disasters. It cannot upgrade or expand a business unless required by local building codes.​

Can the SBA refinance my mortgage?

​The SBA can refinance all or part of a previous mortgage in some cases when the applicant does not have credit available elsewhere, has suffered uninsured damage (40 percent or more of the property value), and intends to repair the damage. SBA disaster loan officers can provide additional details.

How soon before I know I've been approved for a loan?

​The sooner you return the completed loan application, the sooner the SBA can process it. The SBA tries to make a decision within two to three weeks. Make sure the application is complete. Missing information is a major cause of delays.

Is collateral required for these loans?

In a Presidential declaration, physical business loans over $25,000 must be secured to the extent possible. For Agency declarations, physical business loans over $14,000 must be secured to the extent possible. All EIDL loans over $25,000 must be secured to the extent possible.

Should I wait for my insurance settlement before I file my loan application?

​No. Don't miss the filing deadline by waiting for an insurance settlement. Final insurance information can be added when a settlement is made. The SBA can approve a loan for the total replacement cost, but any insurance proceeds that duplicate the SBA's loan must be applied to your SBA loan.

How may I use an Economic Injury Disaster Loan?

​The loan provides working capital for disaster-related needs until your business or private, non-profit organizations recovers. You may request an EIDL for the amount of economic injury but not in excess of what your business or private, non-profit organization could have paid if the disaster had not occurred. EIDL loans cannot refinance long-term debts or provide working capital needed before the disaster. EIDL loans do not replace sales or lost profits.

Must I submit a personal financial statement with my loan application?

Yes. The SBA must review a financial statement for each owner and one for each partner, officer, director and stockholder with 20 percent or more ownership. The SBA requires the principals of the business to personally guarantee repayment of the loan, and in some instances to secure the loan by pledging additional collateral.​




You may have heard that there are grants or free money available to start a business. In most cases, this information is incorrect and misleading. Promoters of these programs will ask for money before they send you additional information on "grants and free money," but you will often find that what you've paid for are only photocopied lists of companies to appeal to for money, or information on grant writing that is already freely available to you through programs such as the SBA.

The SBA and SBDC organizations do not provide grants for starting or developing a business. Although there are some grants available, they are generally targeted towards specific groups, specialized organizations, or activities. These grants may be targeted to non-profit organizations or educational institutions. An example of such an SBA grant would be the Small Business Innovation Research (SBIR) grants, which are coordinated through the SBA but are provided by other federal agencies including the Departments of Health, Education, or Agriculture.

Here's another article from BusinessWeek by Kerry Miller called Busting the 'Free Money' Myth. 

Here are all the Government grants that we could locate as of 7/29/2014:

Government Grants 2014