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.
Prime Contract
A contract awarded directly...
Mentor
A business, usually large, or...
NAICS
NAICS codes are common...
Duplicated Interest
The amount of interest exp...
Days Payable
A measure of the average time a...
Partnering
A mutually beneficial business-to-bus...
Projection
An estimate of future economic or...
Affiliated Group
When two or more...
Depreciation
A non-cash operating expense that...
Physical Loans
Funds to repair/replace dis...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Adjusted Net Worth
Post disaster fair market value of tangible...
Injury Analysis
Measures the effects of...
Collateral
Assets pledged by a borrower to secure a loan...
Defense Contractor
Any person who enters into...

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