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Disaster Assistance has been part of the U.S. Small Business Administration’s mission since 1953, when Congress passed the Small Business Act, creating the SBA. Through the agency’s Office of Disaster Assistance, SBA is responsible for providing affordable and timely financial assistance to disaster victims. SBA’s long-term recovery assistance is in the form of low-interest loans to homeowners, renters, businesses of all sizes and private, non-profit organizations following a disaster.
When an area is declared a disaster by the President, various forms of federal assistance, including SBA’s disaster loan program, become available. If FEMA declines a request for a declaration or if the state determines the damage isn’t extensive enough to request FEMA assistance, the state can request an “Administrative/Agency Declaration” from SBA’s Administrator. If the request meets SBA’s damage requirements, residents and business owners will be eligible to apply for SBA disaster assistance in the declared area.
These direct federal loans are the only form of SBA assistance not limited to small businesses. The majority of SBA disaster loans approved after natural disasters—about 80 percent—go to homeowners and renters.
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