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.
Small Business
A business smaller than...
Acquisition
The acquiring of supplies or...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Cash-basis Accounting
records revenue when cash is...
Current Liabilities
A balance sheet item, which...
Applicant/Co-Applicant
Business entity and person requesting...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Partnering
A mutually beneficial business-to-bus...
Mentor
A business, usually large, or...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Guarantor
The legal entity and...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Affiliates
Business concerns, organizations, or...
Cash Flow Test
Part of the CET that determines if...
Full and Open Competition
With respect to a contract action...

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