1: Disaster Assistance

Return small business operations to normal in the wake of disaster.

Other Information:

Returning small business operations to normal in the wake of a disaster is critical to ensuring that local economies regain traction as quickly as possible and once again are able to contribute to the economy and create jobs. The SBA -- in coordination with FEMA, other federal agencies, the American Red Cross, and others -- helps small businesses prepare for disaster and provides direct low interest loans to small businesses owners, homeowners and renters. In addition to providing money for physical damage, the SBA provides working capital in the form of Economic Injury Disaster Loans (EIDL) to small businesses and private nonprofit organizations. Acting as the federal government's disaster bank for disaster victims as required in section 7(b) of the Small Business Act, the SBA is responsible for providing affordable, timely and accessible low-cost, low-interest loans to disaster victims. On average, the Agency makes disaster loans totaling nearly $1 billion each year and has an active portfolio of over $7 billion. By providing disaster assistance in the form of loans, which are repaid to the Treasury, the SBA disaster loan program helps reduce federal disaster costs compared to other forms of assistance, such as grants. The disaster loans are a critical source of economic stimulation in disasterravaged communities and help generate employment and stabilize tax bases by protecting jobs. Small businesses in particular are helped by a stronger customer base and revitalized communities. Communities that have been devastated by disasters lack the customer base necessary for small businesses to become functional again. By providing integrated assistance, the SBA increases the effectiveness of this federal assistance.

Stakeholder(s):

• American Red Cross
  •  (Performer)


• FEMA
  •  (Performer)

Objective(s):

1: Businesses & Jobs

2: Small Business Needs

3: Small Business Voice

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