A disaster has hit my business. Where can I get money to recover?
SBA disaster loans and the other government-backed and community loans that can help a business repair and reopen, cheapest first.
After a declared disaster, the SBA lends directly to businesses in the declared area. Physical disaster loans of up to $2 million help businesses of any size repair or replace damaged property, equipment and inventory not fully covered by insurance. Economic injury disaster loans give small businesses working capital when the disaster leaves them unable to pay their bills, even without property damage, if they cannot get credit elsewhere.
As the SBA describes them, the first payment is deferred for 12 months, with no interest building up in that time; rates are fixed at no more than 4% for those who cannot get credit elsewhere (8% for physical loans if you can); and terms run up to 30 years, with no prepayment penalty.
9 routes to look at, cheapest first
Compare the first 4 side by side- L1
Very cheap or subsidised
Borrowing on better terms than the market, usually because a public body, community lender or large buyer is involved.- Government-backed and community lending
Community development lenders (CDFIs)
Loans from community development financial institutions: mission-driven lenders certified by the US Treasury that serve low-income communities and people who find it hard to get finance elsewhere, often with advice alongside.
WeeksPersonal guarantee likely - Government-backed and community lending
Program-related investments and impact funds
Loans, guarantees or investments from private foundations and other mission-driven funds, made to further a charitable purpose rather than for profit, often below market rates. Cheap and patient money, but only when your business does something the funder's mission is about.
MonthsLoans, or shares if you choose - Government-backed and community lending
SBA 504 loans
Long-term, fixed-rate financing for buildings, land and long-life equipment, split between a bank and a nonprofit Certified Development Company backed by the SBA. You usually put in 10% yourself.
MonthsUp to $5.5mPersonal guarantee likely - Government-backed and community lending
SBA disaster loans
Low-interest loans direct from the SBA for businesses in a declared disaster area: to repair or replace damaged property, or for working capital to get through the recovery. Up to $2 million, over as long as 30 years.
WeeksUp to $2m - Government-backed and community lending
SBA Microloans
A small business loan of up to $50,000 from a nonprofit community lender that the SBA funds, for working capital, supplies and equipment. The average is about $13,000.
WeeksUp to $50kPersonal guarantee likely - Government-backed and community lending
USDA farm loans (Farm Service Agency)
Loans for family farms and ranches from USDA's Farm Service Agency, or from a bank that FSA guarantees. For land, buildings, equipment, livestock and a season's costs. Direct loans have fixed rates set by FSA and go to farmers who cannot get credit elsewhere; guaranteed loans go up to $2,558,000.
MonthsUp to $3.2m
- Government-backed and community lending
- L2
Mainstream secured debt
Standard borrowing from banks, credit unions and mainstream lenders, often secured on assets or backed by a personal guarantee.- Government-backed and community lending
SBA 7(a) loans
A business loan of up to $5 million from a bank or other lender, with part of it guaranteed by the SBA, for businesses that cannot get the credit they need on reasonable terms elsewhere.
MonthsUp to $5mPersonal guarantee likely - Government-backed and community lending
SBA Express loans
A loan or line of credit of up to $500,000 from a bank or other lender with SBA Express authority. The lender decides under its own procedures and the SBA guarantees half, so there is less SBA paperwork than a standard 7(a) loan, but the same rate caps and the same rules on who can borrow.
WeeksUp to $500kPersonal guarantee likely - Government-backed and community lending
USDA Business and Industry loan guarantees
A loan from a bank or other lender, with up to 85% guaranteed by USDA Rural Development, for businesses, cooperatives and others whose project is in a rural area. Up to $25 million, for up to 40 years, for buildings, equipment, buying a business and more.
MonthsUp to $25m
- Government-backed and community lending
Worth knowing
- Check whether your county is covered by a declaration on the SBA's list of current disasters before you apply.
- Claim on your insurance first and keep the paperwork, since insurance payouts reduce what you can borrow.
- Keep photos, repair estimates and lists of what was damaged.
Sources
- SBA: Disaster recovery (loan types, eligibility and terms) · checked October 17, 2026
Facts about each route are sourced on its own page.