California Disaster Loans Fact Sheet - Amendment #2.pdf

Businesses and private non-profit organizations in California, Arizona, and Nevada may be eligible for financial assistance from the U.S. Small Business Administration (SBA) due to severe winter storms, straight-line winds, flooding, landslides, and mudslides that occurred from February 21, 2023, and continuing.

Eligible businesses can apply for Business Physical Disaster Loans to repair or replace disaster-damaged property, including real estate, inventories, supplies, machinery, and equipment. Economic Injury Disaster Loans (EIDL) are also available to help small businesses, small agricultural cooperatives, and most private non-profit organizations meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster.

Homeowners or renters may be eligible for Home Disaster Loans to repair or replace disaster-damaged real estate and personal property, including automobiles.

Applicants must have a credit history acceptable to SBA and show the ability to repay all loans. Collateral is required for physical loss loans over $25,000 and all EIDL loans over $25,000.

Interest rates depend on whether each applicant has Credit Available Elsewhere, ranging from 2.375% to 8.000%. Loan terms can be up to 30 years, but businesses with credit available elsewhere are restricted to a maximum 7-year term.

Loan amounts are limited to $2,000,000 for business loans and $200,000 for home loans, subject to verified uninsured disaster losses.

Applicants who have not complied with the terms of previous SBA loans may not be eligible.

Approved loan applicants may be eligible for additional funds to cover the cost of improvements that will protect their property against future damage, up to 20 percent of total physical damage to real property and personal property, or $200,000 for home loans.

SBA can also refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant does not have credit available elsewhere, has suffered substantial uncompensated disaster damage, and intends to repair the damage.