How to Obtain a Disaster Loan

a couple looking at the burned ruins of their home

Once safety has been established for everyone around in the wake of a natural disaster, it is time to begin the process of rebuilding, whether that is your home or business. For areas that have been subjected to high amounts of damage, obtaining a disaster loan may be the best option for you. With this, there are a couple of important things to look for, including how to obtain one that is low interest. Learn the steps you need to take to get your low interest disaster loan so you can effectively begin rebuilding once again.

Business Loans

Small businesses are often times hit the hardest during natural disasters, especially when there is a lack of disaster planning. An alarming number of businesses are forced out of business when hit with a tragedy of this magnitude. The days following are the most critical, if there has been physical damage done to the structure of your business, you may be eligible to apply for one of these loans. In addition to businesses, private non profit organizations also have the chance to apply for disaster loans as long as they are situated in the declared disaster area and have sustained at least some amount of damage.

While the interest rate will be determined by the credit of the business, there are some federal regulations that have been put in place. This will either be 4 or 8 percent depending on the entity’s ability to obtain credit. Depending on how much is needed, the period of repayment can be as much as 30 years.

Home Loans


After a major natural disaster, renters and homeowners who have been damaged and live within the declared area can receive up to $40,000 to repair the damaged property. If the damage is more extensive than this, homeowners have the option to apply for a $200,000 loan to restore the home to it’s pre disaster state. Disaster loans take into account the amount insurance will cover of rebuilding. It is important to realize that these personal property disaster loans only apply to your primary residence. Other options will need to be taken into account for vacation homes.

Similar to a business loan, it will be no greater than either 4 or 8 percent depending on the ability of the homeowner to prove credit. It can also be paid off as long as a 30 year period.

After the disaster is over, it’s time to start rebuilding. If your insurance won’t completely cover the costs, you don’t have to go without. Look into your options of low interest disaster loans. These will be beneficial to you in mending the damage done here to better protect your assets.

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