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Ruben Garcia District Director of the U.S. Small Business Administration


 The Small Business Administration provides assistance in declared disasters to help homeowners, renters, small businesses and not-forprofits restore their homes and re-open their businesses.


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If a major fire, earthquake, tsunami, flood, or terrorist incident impacted San Diego. We would have a disaster office open as soon as the disaster was officially declared. This office or offices would be opened as close to where the incidents occurred as it was safe to operate.


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There are a number of SBA loan programs available:


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Homeowners and renters can borrow up to $40,000 in Personal Property Loans to repair or replace clothing, furniture, cars or appliances that are damaged or destroyed in a disaster.

Homeowners may apply for Real Property Loans of up to $200,000 to repair or restore their main residence to pre-disaster condition.


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It is possible to get an additional 20% loan to make structural improvements that may lessen property damage in future disasters – Such as adding tile roofs, stucco finishes under eaves to reduce fire dangers. Or to make your home less prone to flooding or earthquake damage.


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Second homes or vacation properties are not eligible, but may qualify under different programs.


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Physical Disaster Loans are provided for permanent rebuilding and replacement of uninsured and underinsured disaster-caused damages to privately-owned real or personal property.


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Businesses of any size and non-profits may apply for loans up to $2 MM to repair or replace real property, machinery, equipment, fixtures, inventory and leasehold improvements.


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Economic Injury Disaster Loans ( EIDL) are available to provide working capital until normal business operations resume. Small businesses, ag co-ops, aqua culture and private non-profits are eligible for EIDL loans. The limit is $2 MM.


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Most loans do not apply to agriculture. The Department of Agriculture has a different loan program for farmers and ranchers.


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Any proceeds from insurance coverage on your property will be deducted from the total damages to the property to determine the loan amount eligibility.


What happens if you are paying a mortgage and can’t afford to pay the mortgage and the disaster loan? If the applicant(homeowner) does not have credit elsewhere, has suffered substantial damages not covered by insurance and intends to repair the damage the SBA may be able to refinance all or part of a previous mortgage.


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Submit a loan application and two years federal tax returns. If you have lost your records all you need to do is sign a form indicating the SBA can access these records.


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If complete repair estimates are submitted with the loan application the SBA tries to approve such applications within 21 days.


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Collateral for loans over $10,000 is secured. The SBA will not turn down the loan if you do not have enough collateral. The ability to repay the loan and reasonable good credit are also required.


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Interest is usually around 4% and can be repaid over time. The longest repayment period is 30 years.


Terms of the loan are negotiable and are established based on each borrower’s ability to repay the loan.


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Military Reservists Economic Disaster Loan is available to small businesses that is facing financial loss when the owner or essential employee is called up for active duty.


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Prepare for the Worst and Hope You Never Need Too! Assess Your Risks – www.readyrating.org Have a Contingency Plan - www.ready.gov Review your insurance coverage Maintain as solid Supply Chain. – local vendors Consider Alternative Locations Keep copies of Records in a safe place. It is really important to keep records and documents in a safe and assessable place. Copies of your taxes, real estate appraisals and mortgages, inventory and property insurance are critical in getting assistance and your property restored quickly.


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Lots more information is available at www.sba.gov/disaster


National city chamber sba disaster assistance