SBA Physical Loss Disaster Loans

This loan program provides low interest loans to eligible individuals and businesses that have incurred disaster damage. Loans are intended to help disaster victims’ repair or replace damaged property to its pre-disaster condition.

Here is the Code of Federal Regulations language on Physical Loss Disaster Loans (emphasis added):

(3) SBA makes a physical disaster declaration, based on the occurrence of at least a minimum amount of physical damage to buildings, machinery, equipment, inventory, homes and other property. Such damage usually must meet the following tests:

(i) In any county or other smaller political subdivision of a State or U.S. possession, at least 25 homes or 25 businesses, or a combination of at least 25 homes, businesses, or other eligible institutions, each sustain uninsured losses of 40 percent or more of the estimated fair replacement value or pre-disaster fair market value of the damaged property, whichever is lower; or

(ii) In any such political subdivision, at least three businesses each sustain uninsured losses of 40 percent or more of the estimated fair replacement value or pre-disaster fair market value of the damaged property, whichever is lower, and, as a direct result of such physical damage, 25 percent or more of the work force in their community would be unemployed for at least 90 days; and

(iii) The Governor of the State in which the disaster occurred submits a written request to SBA for a physical disaster declaration by SBA (OMB Approval No. 3245-0121). This request should be delivered to the SBA Disaster Area Office serving the region where the disaster occurred within 60 days of the date of the disaster.

Local jurisdictions must submit damage assessment reports on the EMD HS Form 1-PR and 2-BU as applicable to the state within 30 days of the event to allow time for processing.

Contact:

For more information please contact Toney Raines, Human Services Manager, at 253-512-7028.