Substantial Damage

means uninsured or otherwise uncompensated disaster damages:

a) For homes is either: 40 percent or more of the home's pre-disaster fair market value (FMV) or replacement cost including the value of any land, whichever is less; or 50 percent or more of the structure’s pre-disaster fair market value or replacement cost, (excluding the value of any land) whichever is less.

b) For businesses is either: 40 percent or more of the aggregate value (lesser of market value or replacement cost at the time of the disaster) of the damaged real property (including the value of any land) and damaged machinery and equipment; or50 percent or more of the aggregate value (lesser of market value or replacement cost at the time of the disaster) of the damaged real property (excluding the value of any land) and damaged machinery and equipment.

Updated on
September 8, 2022
Published on
June 20, 2018
The 7(a) Loan Program, SBA’s most common loan program, includes assistance for each business with unique needs.
SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Depreciation
A non-cash operating expense that...
Affiliate
Business concerns are affiliates if one concern...
Emerging Small Business
A small business concern whose...
Cash Flow Test
Part of the CET that determines if...
Affiliated Group
When two or more...
S-Corporation
A form of corporation, allowed by...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Applicant Individual
aka who is requesting an SBA loan...
Small Disadvantaged Business Concern
A small business concern that...
Partnering
A mutually beneficial business-to-bus...
Contracting Officer
A person with the authority to...
Phase 1
Process used to determine the...
Normal Gross Margin
The margin that would have been...

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