SBA Disaster Loan Program: Overview and Possible Issues for Congress [September 2, 2011] [open pdf - 529KB]
"Through its Disaster Loan Program, the Small Business Administration (SBA) has been a major source of assistance for the restoration of commerce and households in areas stricken by natural and human-caused disasters since the agency's creation in 1953. SBA offers direct loans to businesses to help repair, rebuild, and recover from economic losses after a disaster, but approximately 80% of the agency's approved direct disaster loans are made to individuals and households (renters and property owners) to help repair and replace homes and personal property. The SBA Disaster Loan Program includes four categories of loans for disaster-related losses: (1) Home Disaster Loans, (2) Business Disaster Loans, (3) Economic Injury Disaster Loans (EIDL), and (4) Pre-Disaster Mitigation Loans. Home disaster loans are used by homeowners and renters to repair or replace their disaster-damaged primary residences or personal property. SBA regulations limit home loans to $200,000 for the repair or replacement of real estate and $40,000 for the repair or replacement personal property. Business disaster loans help businesses of all sizes and nonprofit organizations repair or replace disaster-damaged property, including inventory and supplies. […] This report also discusses some of the reforms contained in Title VII of H.R. 3854, the Small Business Financing and Investment Act of 2009, which passed the House on October 29, 2009, and was referred to the Senate Committee on Small Business and Entrepreneurship. H.R. 3854 contains provisions intended to address some of the programmatic and policy issues associated with the SBA Disaster Loan Program."
CRS Report for Congress, R41309