How to Qualify for Funding After a Natural Disaster

Natural disasters commonly effect businesses. If your business suffered damages, you may be eligible for funding after a natural disaster.
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Staff Writer, @DooleyNotedLaw

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If you have been affected by a natural disaster, you may be able to get help from the government. This can include money to help with lost revenue and increased expenses. Moreover, several types of loans and grants are available to businesses after a disaster hits. This blog post will discuss how to receive government funding after a natural disaster and what to do once you receive it.

Types of Government Funding After a Natural Disaster

Businesses can receive two types of government funding after a natural disaster: loans and grants.

The Small Business Administration (SBA) provides low-interest loans to businesses affected by natural disasters. Further, the maximum loan amount a company can receive is $500,000. The Federal Emergency Management Agency (FEMA) provides grants. Your business does not have to repay these grants.


The Economic Injury Disaster Loan (EIDL) is a loan available to small businesses and non-profit organizations that have experienced economic hardship. This loan can help these businesses get back on their feet. Find more information about applying for an EIDL here.

You may have heard that the SBA was giving out loans related to the COVID-19 pandemic. However, they have ended this program and have stopped taking new applications.

Physical Damage Loan

The physical damage loan is for businesses that have experienced physical damage to their property. This can be due to a natural disaster, such as a hurricane or tornado. Therefore, your business can use this loan to repair or replace the damaged property.

Mitigation Assistance

Mitigation planning helps break the cycle of disasters. When you have a plan, it can help reduce the damage caused by future disasters. The Federal Emergency Management Agency (FEMA) helps businesses pay for prevention and reduction measures. Additionally, the amount of money given according to how much it costs to help people after a disaster.

Military Reservist Loan

Suppose the military calls one of your employees to active duty. In that case, you may be able to get a Military Reservist Economic Injury Disaster Loan. This loan can help your business cover expenses while the employee is away. Further, your business can borrow up to $2 million.


Who Can Receive SBA Funding After a Natural Disaster?

No matter how big or small your business is, natural disasters can affect it. That’s why the SBA offers loans to businesses of all sizes and private non-profit organizations, homeowners, and renters. Natural disasters can include hurricanes, floods, and wildfires. The SBA keeps a list of all the areas that have been declared disasters. If your location is listed, you might be able to get a loan from the SBA. 

Usually, the SBA loans are for small businesses. However, these disaster loans are for businesses of all sizes. Therefore, if your business needs assistance, you should consider applying for an SBA disaster loan.

You can apply for an SBA disaster loan online. All you need to do is create an account by going to the SBA website. Once you’ve created an account, you can apply directly on the website.

How to Use SBA Funding After a Natural Disaster

The funding you receive from the SBA can be used for various purposes. This includes:

  • Replacing damaged or destroyed real estate, inventory, equipment, and machinery

  • Repairing or replacing damaged or destroyed building components

  • Paying for working capital needs like payroll that you couldn’t meet due to the disaster

Your business can use the SBA Disaster loan to cover losses insurance does not cover. Moreover, you can use this loan to cover your company’s ordinary expenses even if the disaster had not occurred. This loan is helpful because it allows businesses to keep their doors open and continue operating despite setbacks.

Suppose you are a business owner who has been affected by a natural disaster. In that case, you may be eligible for a loan or grant.


Why Hire a Business Lawyer in Texas?

A natural disaster can be devastating to a business. However, a Business Lawyer in Texas can help you get the money you need. Extra cash in your pocket might get your business back up and running. Additionally, a business lawyer will help you with any legal issues from the disaster. 

If you have been affected by a natural disaster, don’t hesitate to reach out to Dooley Noted Law. We can help you get the funding you need to cover losses not covered by insurance. Our business lawyer can also help you get your business back on track.

The contents of this post, and the posting and viewing of the information on this post, should not be construed as, and should not be relied upon for, legal advice in any particular circumstance or fact situation. An attorney should be contacted for advice on specific legal issues.

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