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.
Primary Activity
The major business activity of...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Physical Loans
Funds to repair/replace dis...
Credit Score Test
Part of the home loan CET show a...
Small Business
A business smaller than...
Request for Proposal (RFP)
A document outlining a...
Companion File
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Comparative Analysis
Is designed to point out significant trends that...
Liabilities
A financial obligation...
Limited Partnership
A business organization with one or...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Applicant/Co-Applicant
Business entity and person requesting...
Schedule of Liabilities
A business debt schedule that lists all of the debts...
Applicant Entity
The business entity requesting...

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