What is an SBA (Small Business Administration) Loan?

Quick facts about Small Business Administration (SBA) Loans:

• May borrow up to $40,000 to repair or replace clothing, furniture, cars, or appliances damaged or destroyed in disaster
• May apply for up to $200,000 to repair or replace their primary residence to its pre-disaster conditions
• Loans may be increased up to 20 percent of the total amount of disaster damage to real estate, as verified by the SBA, to make improvements that lessen the risk of property damage by future disaster
• Proceeds from insurance coverage on your property or home will be deducted from the total damage to your property to determine the loan amount you are eligible for
• SBA must know repair costs, be sure that you can repay the loan, and have reasonable safeguards to make sure the loan is repaid (collateral)
• SBA tries to make decisions on each application within 14 days (as long as applications are completed properly)
• Minimum income for eligibility of loan is determined by the SBA
• SBA does not have a minimum monthly payment
• Payments vary depending up incomes and expenses, size of family, etc.
• First payment not due until five months after the date of the loan
• SBA loans offer low interest rates