Disaster Loans


Disaster loans are meant to help people who have lost their livelihoods or homes to natural disasters. They are intended to aid citizens in recovering from disasters such as floods, earthquakes, tornadoes, or other natural events. Many people rely on emergency loans to recover after a natural disaster because they need emergency cash immediately. We only mention the loans offered by the Small Business Administration (SBA) and the Federal Emergency Management Agency (FEMA). They can cover up to $40,000 for personal property losses and $200,000 for business property losses. You may find additional financial products that you may access when your property or business is affected by a disaster.


It is recommended that you take out a disaster loan as soon as possible after a natural disaster has damaged your property because these loans have a deadline for application. That is, typically 90 days after the declaration of emergency.


The Small Business Association offers four kinds of loans:

  • Home disaster loans for homeowners or renters to repair or replace damaged property;
  • Business physical disaster loans for businesses to repair or replace damaged property used in their operations;
  • Economic injury disaster loans for small businesses and nonprofits unable to pay bills or make essential Financial Obligations due to a natural disaster;
  • Vehicle replacement loans.


Main advantages of disaster loans:

Low-interest rates

In the simplest terms, the amount you pay back will not be much more than the amount of money I receive.

Longer repayment terms, compared to other types of loans

You have more time to get your finances back in order before having to start paying them back.

More chances to get approval

Approval for a disaster loan depends more on your ability to pay it back, not your credit history and other factors that can make getting a loan more difficult.


When you can apply for a disaster loan

To benefit from economic recovery plans from the US small business administration, you need to know what cases you may apply for and get approved.

  • These loans are available to those who sustained damage in a declared major disaster area according to their home address or business location, not their mailing address.
  • You could apply for a disaster loan if you suffered damage to your property if you tried to get insurance reimbursement but were unsuccessful.
  • If you have been denied credit elsewhere or need a low-interest loan to repair your property, you may also receive approval for a disaster loan.

Note: The SBA offers disaster loans after a presidential-declared disaster. These loans are available for businesses, homeowners, and renters. The loans are just for rebuilding after a disaster. You can also use them to restore lost inventory, income, or property.


Our recommendation

Charlevoix, Cheboygan, and Emmet County Offices of Emergency Management Recommend applying for a disaster loan as soon as you can. Take out the disaster loan if a natural event damages your home or business. You can use the money to replace damaged property and make improvements that help prevent future disasters. Take out a loan if your company has suffered financial losses due to a natural event. Check our resources to prepare for a natural event.

Charlevoix, Cheboygan, Emmet County Office of Emergency Management P.O. Box 480, Petoskey, MI 49770 855-515-1624