SBA Loans for Private Nonprofits

After a federally declared disaster, the U.S. Small Business Administration (SBA) may offer low-interest Disaster Loans to help eligible private nonprofit organizations repair or replace damaged property and recover from economic losses. Even though these loans come from the “Small Business Administration,” they are also available to eligible private nonprofit organizations, including some faith-based organizations and houses of worship.

SBA Disaster Loans may feature low, fixed interest rates and long repayment terms, which can help reduce financial strain during recovery. These loans may help bridge the gap between insurance coverage and the true cost of rebuilding or help an organization continue operating after a disaster-related financial loss.

What Are SBA Disaster Loans for Private Nonprofit Organizations

SBA Disaster Loans provide financial assistance to eligible private nonprofit organizations for both physical damage and, in some cases, economic injury caused by a federally declared disaster. These loans are intended to help organizations repair or replace damaged property and recover from disaster-related financial hardship. SBA offers two primary types of disaster loans for eligible private nonprofit organizations:

Physical Disaster Loans: For repair or replacement of disaster-damaged property
Economic Injury Disaster Loans (EIDL): For working capital and ordinary operating expenses an organization could not meet because of the disaster

What Can the Loans Be Used For?

SBA Disaster Loans for private nonprofit organizations may help cover:

Repair or replacement of damaged real estate
Repair or replacement of machinery, equipment, fixtures, inventory, and other property
Working capital needs to help cover ordinary expenses during recovery in eligible EIDL cases
In some cases, mitigation improvements that help reduce future disaster losses
Uninsured or underinsured losses

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

Why Private Nonprofit Organizations Should Apply

Even if an organization is unsure whether it wants or needs a loan, completing the SBA application may help keep recovery options open. If FEMA Public Assistance were to become available after a disaster, nonprofits usually must first apply for an SBA disaster loan before FEMA can consider certain eligible costs not covered by SBA.

Completing the application early may also help avoid delays and ensure the organization is considered for all available recovery options. In addition, SBA Economic Injury Disaster Loans may be available to most private nonprofit organizations even when they did not suffer physical property damage, if they suffered substantial economic injury in a declared disaster area.

How to Apply

If SBA becomes available after a disaster, eligible private nonprofits organizations may apply:

Online through the SBA Disaster Loan Assistance Portal
By phone through the SBA Customer Service Center
In person at a Business Recovery Center, when available

Applicants should gather key records such as insurane information, tax documents, financial statements, and property ownership or facility documentation before applying.

Stay Informed

SBA programs, deadlines, and eligibility can vary by disaster and location. Private nonprofit organizations should:

Visit SBA for current loan information
Monitor TEMA updates, FEMA announcements, and SBA announcements
Begin the application process as early as possible to avoid delays