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	Business Loan Home and Personal Property Disaster Loans We don't think it will ever happen to us, but sometimes it does. Disasters can strike anytime and anywhere, destroying property and lives. If you live in a declared disaster area and have a loss, you may find help from a surprising place. The U.S. Small Business Administration (SBA) offers Disaster Assistance Loans to homeowners and renters, whether or not they own a business. The loans can be used for two purposes: personal property and real property. Personal property, such as clothing, furniture and automobiles, that is lost in a disaster can be repaired or replaced with a Personal Property Loan through the SBA. This loan gives a homeowner or renter up to $40,000 to help replace non-luxury items. Items such as antiques, boats, planes and furs do not apply.  A homeowner may apply for a real property loan for up to $200,000 to repair or restore their primary residence to its condition prior to the disaster. The loan cannot be used to upgrade the home or make additions, but can be used to bring a building up to city or county building codes. The loan can even be used for debris removal or necessary home relocations. An additional 20% may be added to the loan to make changes that will protect the property from a future disaster. In addition to providing repair and restoration funding for homeowners, the SBA may also be able to refinance a home mortgage. If the applicant is unable to find sufficient credit elsewhere for repairs to a severally damaged home, a partial or full refinance of the mortgage may be available. Loan amounts over $10,000 dollars must be secured with collateral. Often, real property loans are secured as a mortgage on the damaged real estate. Many homeowners and renters carry insurance. The amount of insurance received will be deducted from the total damage cost to the property. If the insurance distribution is still in process, the insurance proceeds will be assigned to the SBA. If your mortgage company requires your insurance payment to be applied to your mortgage, then the SBA does not consider the payment against your total damage costs. For example, you have $10,000 of damage to your home. Your insurance pays your mortgage company $9,000. The SBA will still lend you $10,000 for repairs. If the insurance pays you $9,000 for repairs, the SBA will only lend you $1,000. The interest rates on Disaster Assistance Loans depend on your ability to secure funding elsewhere. If the SBA finds that you have available credit from other sources, the interest rate will be based on the cost incurred by the U.S. government. It will not exceed 8% annually. If you are determined unable to find credit, the rate will not be more than 4% a year. The repayment terms are based on an owner's ability to repay the loan. The maximum repayment term is set at 30 years. The SBA's Disaster Assistance Loans for homes and personal property help people to restore their properties and prevent future damage. This program has helped many victims of disasters rebuild not only their homes, but their lives.