Small Business Administration Loans for Homeowners and Renters

After a federally declared disaster, the U.S. Small Business Administration (SBA) offers low-interest Physical Disaster Loans to help survivors repair or replace damaged property. Even though these loans come from the “Small Business Administration,” they are not just for businesses. SBA Physical Disaster Loans are also available to homeowners and renters, making them one of the most important recovery resources for individuals and families following a disaster. These loans can help bridge the gap between insurance coverage and the true cost of rebuilding, supporting long-term recovery for Tennessee communities.

What are SBA Physical Disaster Loans?

SBA Physical Disaster Loans provide financial assistance to eligible survivors for physical damage caused by a federally declared disaster. These loans are designed to help restore homes, personal property, business facilities, and nonprofit structures to their pre-disaster condition.

What Can the Loans Be Used For?

SBA Physical Disaster Loans may cover:

  • Structural repairs to homes or buildings
  • Replacement of personal belongings
  • Repair or replacement of business assets, equipment, and inventory
  • Mitigation improvements to reduce future disaster losses
  • Uninsured or underinsured repair costs

Applicants do not need to wait for an insurance settlement before applying.

Interest Rates and Terms

  • SBA offers low, fixed interest rates, based on an applicant’s ability to obtain credit elsewhere.
  • Repayment terms may extend up to 30 years to keep payments affordable.
  • Loan amounts are determined based on verified disaster damage and financial need.

Why Homeowners and Renters Should Apply

Even if survivors are unsure whether they want or need a loan, they should still complete the SBA application.

  • FEMA may require an SBA denial before offering certain types of additional assistance.
  • If SBA cannot approve a loan, applicants may be referred back to FEMA for other programs.
  • Completing the application keeps all assistance options open.

How to Apply

Survivors may apply:

  • Online through the SBA Disaster Loan Assistance portal
  • By phone through the SBA Customer Service Center
  • In person at a Disaster Recovery Center (DRC) or Business Recovery Center (BRC)

Applicants should gather insurance information, proof of occupancy or ownership, and relevant financial documents before applying.

Stay Informed

SBA loan programs vary by disaster and location. Survivors should:

  • Visit sba.gov/disaster for detailed loan information.
  • Monitor TEMA, FEMA, and local emergency updates.
  • Apply as early as possible to avoid delays in recovery.